Bagehot: Running out of gas | The Economist

English: US President Barack Obama and British...

English: US President Barack Obama and British Prime Minister David Cameron trade bottles of beer to settle a bet they made on the U.S. vs. England World Cup Soccer game (which ended in a tie), during a bilateral meeting at the G20 Summit in Toronto, Canada, Saturday, June 26, 2010. (Photo credit: Wikipedia)

This is an outstanding, MUST-READ article published in the influential Bagehot column in this week’s Economist.

Bagehot: Running out of gas | The Economist.

The article concludes that the UK’s influence in terms of foreign policy has declined significantly on David Cameron’s watch.

Cameron’s policy on Europe has been a complete failure and he is a lame-duck (see related article from the FT). Similarly, the special relationship with the US has become lukewarm with Cameron’s policies. The US is concerned about UK cuts in defense spending, Scottish devolution, and the UK referendum on the EU under a Conservative Government.

This leads me to an open question:

Would a Labour Government be able to effectively redress Cameron’s follies and strengthen the UK’s status with Europe, the US, Russia and China?

Any thoughts?

via Bagehot: Running out of gas | The Economist.

Canada’s housing market: Look out below | The Economist

Version of an image of a credit card

Image via Wikipedia

This is a good article from the Economist. Check it out!

Canada’s housing market: Look out below | The Economist.

I too believe that some of Canada’s major cities, like Vancouver & Toronto are lucky to have escaped a real estate crash, so far.

It amazes me that Canadians still run around with lines of credit secured against their homes. In effect, often irrespective of security of income, consumers  frequently run up credit card bills against the equity in their real estate.

Sooner or later austerity will catchup with indebted Canadian consumers, in my view. If experience in many parts of Europe is anything to go by, it promises to be painful for many Canadians.