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Economy – Articles, Analysis, Opinion

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Across California there are plenty of signs of just how dry it’s been, such as here in Topanga Canyon near Los Angeles. wasim muklashy/Flickr via CC BY-NC-SA

California’s severe drought shows why we need to raise the price of water

Last January, California Governor Jerry Brown declared a State of Emergency following projections of severe drought. State bureaucrats and local officials jumped into action and mandated any number of…
Private equity is eyeing smaller investors. Image sourced from www.shutterstock.com

Private equity chases new investors – your aunt Edna

Private equity is becoming much less private these days. But it is still not clear who will benefit from this new-found openness and accessibility. Not so long ago, private equity operated largely outside…
Lending standards are so tight that even former Fed Chairman Ben Bernanke, center, who until recently was one of the most powerful people in the world, can’t refinance his mortgage. Reuters

Ben Bernanke among borrowers paying the price for knee-jerk home loan rules

It’s clear mortgage standards have gotten too tight when even a former Federal Reserve chairman who makes as much as US$250,000 per speech cannot refinance his home. Ben Bernanke complained about his inability…
With a few lines of code, cyber criminals and governments have able to infiltrate the security of banks and retailers and steal hundreds of millions in customer records. Shutterstock

JPMorgan hack signals banks and retailers can do more to keep our data safe

JPMorgan Chase early last month disclosed that cyber thieves pilfered account data on 76 million households and seven million small businesses over the summer, one of the biggest breaches ever and only…
There are high hopes that the new head of the Fed, Janet Yellen, will change the culture at the central bank and the lenders it regulates. IMF/Flickr via CC BY-NC-ND

Banking tail often wags the Fed’s regulatory dog

Federal Reserve Chair Janet Yellen has her work cut out for her if she hopes to change the culture at the world’s most important central bank. Media reports abound with evidence that the financial industry…
Bikesharing has exploded in popularity in recent years, including in New York with the Citi Bike program, but the pricing structures have been a cause for concern. NYCDOT/Flickr via CC BY-SA-ND

Bikeshare pricing could slow trend’s rapid expansion

Bikesharing has boomed in Europe and North America in recent years following decades of slow growth since its introduction on the streets of Amsterdam in 1965. Like any industry undergoing rapid expansion…
A bitter inversion: AbbVie nixed its US$54 billion acquisition of Irish drug maker Shire after the US Treasury eroded the benefits of doing a corporate inversion. Reuters

Need to access cash is driving surge of corporate inversions, not the high US tax rate

Corporate inversions have been front page news in the US for months with everyone from President Barack Obama to the man on the street expressing a view as their usage has surged. Unfortunately, many of…
Cubans are migrating to the US in greater numbers. Reuters

Explainer: why are more Cubans migrating to the US?

Compared to the number of Mexican immigrants entering the US through its southwestern border, migration of Cubans may seem insignificant. Yet the numbers of Cubans coming to the US has soared since Raul…
Marijuana is legal in some states, but that doesn’t mean that banks can deal with the proceeds. Rick Wilking/Reuters

Why won’t banks dance with Mary Jane?

In nearly half of US states, marijuana business is booming. Although marijuana is illegal under federal law, 23 states have legalized some marijuana use. Colorado and Washington even allow recreational…
The Winter Games in Sochi cost $50 billion, making them the most expensive ever. Reuters

Chasing glory: why hosting the Olympics rarely pays off

The competition to host the Olympic Games has typically been fierce, but an increased awareness of the giant money pit they usually become is convincing some cities to think twice. Earlier this month Oslo…
The dollar’s sharp rise in recent months stands to benefit consumers but exporters will suffer. Shutterstock

King dollar is back – for now

Recent months have seen a sharp jump in the value of the greenback, with more gains expected in the months ahead. After a period of prolonged weakness, the US currency once again is walking tall. Americans…
Angela Merkel has thus far closed her eyes to the need for more spending, at her country’s peril. Reuters

Germany may be the biggest loser if it doesn’t start spending

There’s growing pressure on Germany to spend more to support Europe – and for good reason. But it’s proving to be a hard sell to the country’s leaders. Germany’s budget is balanced and the government insists…