Saturday, June 13, 2015

Stanislav Petrov’s real life restaged - Financial Times

May 16, 2015 at 8:58pm
http://www.ft.com/intl/cms/s/2/00bec262-f89c-11e4-be00-00144feab7de.html

May 15, 2015 5:59 pm

Stanislav Petrov’s real life restaged

Tom Shone

A Russian colonel who averted nuclear apocalypse is the latest to play himself in a style of filming that is part documentary, part method acting
©Juliet Butler/AlamyStanislav Petrov, retired lieutenant colonel in the Soviet military
When Danish film-maker Peter Anthony first came across Stanislav Petrov, the lieutenant colonel in the Soviet air defence forces who in 1983 averted imminent nuclear apocalypse when he refused to give credence to signals of a US attack, the 67-year-old colonel was living in a small, squalid apartment block 90 minutes outside Moscow. He reached it via dirt roads. Outside, derelicts clutched vodka bottles, walking barefoot despite the –10C temperatures. The stairwell to the apartment stank of dog’s urine. In the living room, a disused sink sat next to ripped furniture. “It was a bum’s apartment,” says Anthony, but for a small closet in which was hung a blue parade uniform decorated with medals; in a drawer was a stack of fan letters from American schoolchildren, plus one from Kevin Costner thanking him for what he had done.The colonel himself — unshaven, possibly a little drunk, and looking as if he hadn’t eaten in days — was at first reluctant to talk about what had happened on the night of September 26 1983, when Soviet satellites mistakenly detected five US ballistic nuclear missiles heading towards the USSR. His story had long been a source of embarrassment to the Russian military. Everyone was afraid of taking the blame for what had happened. In the bunker outside Moscow where Petrov was stationed, alarm bells had sounded, electronic maps flashed; a back-lit red screen flashed the word “LAUNCH”, but Petrov, acting on what he would later call “a funny feeling in my gut”, thought the alarm a false one — five seemed too few for a full-scale attack, and there was still no corroboration from radars on the ground. He refused to confirm any incoming strike and a retaliatory one that would have likely killed somewhere in the region of 200m people was averted.


“The first thing I told him was, ‘I really want to go into your personal story,’” says Anthony. “He said, ‘That will never happen. I’m a Russian colonel. I do not talk about emotions.’ He was also a little evasive about what happened in 1983 because he was still afraid of what the army might think, and of the old KGB machine sending him to the gulag.”
Anthony found that Petrov’s answers to camera were frequently contradictory, or else they downplayed the events of 30 years ago — he’d say, “Oh, it was nothing special, this sort of thing happened a lot more on the American side.” Off-camera, however, he inveighed against the Soviet army and its failures. Returning for round two of filming, Anthony hit upon an unusual method somewhere between traditional documentary film-making and a kind of method-acted documentary. Reminding Petrov of a conversation he’d had the night before with his translator, Anthony would reshoot it, feeding the colonel cues to remind him of what he had said, asking for another take if he didn’t get what he wanted — in effect, shooting his film as if it were a narrative feature.
At times the film-makers seem engaged not in making a movie of Petrov’s life, but in plotting his life as if it were a movie
Combining thrilling re-enactments of what happened in 1983 (lots of radar-lit silhouettes, shouting, handheld cameras, and pounding score reminiscent of the latest Jerry Bruckheimer production) with present-day footage in which Petrov goes on a quest to meet Kevin Costner, the finished feature, The Man Who Saved the World, has picked up both awards and some criticism at the film festivals where it has shown, starting impassioned debates about the relationship between documentary art and truth. The two “quests” that make up its narrative — Petrov’s cross-country trip to meet Costner, his favourite actor after his role in the Cuban missile crisis drama Thirteen Days, and his tearful reunion with his mother at the film’s end — wouldn’t have happened but for the film-makers’ urging, and yet this involvement goes unacknowledged. At times the film-makers seem engaged not in making a movie of Petrov’s life, but in plotting his life as if it were a movie.
Meeting Kevin Costner on ‘The Man Who Saved the World’ set
“When we have shown this at festivals they ask, ‘Is this a feature film, a narrative feature or a documentary?’” says Anthony. “The only thing I know about documentary is you’re not supposed to lie. I don’t even call it a documentary, I just call it a movie. I wanted to make this like a big feature film, like a superman story mixed with an emotional story about a man who lost everything. I wanted scale. I grew up on big epic movies like The Deer Hunter, and I think that because we’ve seen so many films, the way people speak and the way they act in movies has come to seem natural to an audience, even though it’s not, even though they’re being manipulated with music. So I used a lot of music because I wanted it to seem very ‘fictional’. What people have to understand is this is not a story about a drunken alcoholic who lost his wife, it’s about a man who saved the world from nuclear war, it’s a once-in-a-lifetime story, a larger-than-life story.”
Either way, the film looks certain to further the debate about the relationship between art and truth started by such documentaries as Andrew Jarecki’s recent HBO series about millionaire Robert Durst, The Jinx (2015), following which Durst was arrested on murder charges; Rithy Panh’s The Missing Picture (2014), which uses small clay figurines and dioramas to depict Panh’s experiences in Khmer Rouge labour camps; and Joshua Oppenheimer’s Oscar-nominated The Act of Killing(2012), for which Oppenheimer persuaded several admitted and unpunished executioners responsible for the deaths of at least half-a-million Indonesian communists in the mid-1960s to re-enact their murders in the style of their favourite movies — donning costumes and make-up to enact a kind of grisly psychopathic camp, complete with big production numbers and climaxing with a dance to the song “Born Free”.

“In The Act of Killing we created a documentary of the imagination which documents not the killings themselves but the way the perpetrators have lied to themselves,” says Oppenheimer, whose new film, The Look Of Silence (2014), records a series of confrontations between a man and those in power in Indonesia who may have had a hand in killing his brother. In both films, the camera is an active presence: goading the murderers to boastful confession, or else protecting the subject from possible retribution. “Both my films are interventions in which the film-making process itself generates the primary drama,” says Oppenheimer, who points to Jean Rouch, the originator of cinéma-vérité, whose films — including Moi, un Noir (1958) and The Human Pyramid (1961) — ask the participants to act out their own lives for the camera.
“The first thing that happens when you point a camera at someone is they start to stage themselves,” says Oppenheimer. “The film-maker usually has a choice. Do I try and get past that self-consciousness as quickly as possible — so they are acting quote-unquote ‘naturally’ — or do I record the fact that they are trying to stage themselves? It becomes a kind of excavation. We live in a time when we are constantly staging ourselves and our friends for anonymous others on social media, who we hope will admire us or follow us. We’re constantly performing.”
Nevertheless, it is perhaps telling that in both The Act of Killing and The Man Who Saved the World, a departure from strict fly-on-the-wall methods was necessary, or went hand-in-hand with the task of overcoming the resistance of subjects hardened by repressive regimes in the Soviet Union and Indonesia. Vérité turns out to be a poor tool for penetrating ideology. “It’s like an onion”, is how Peter Anthony describes the process of trying to unravel the grumpy and frequently drunk Colonel Petrov. “You want to peel off all these layers and get to the middle.” And what did he find? At times reluctant to act out conversations for the cameras, Petrov gradually warmed to the process. Indeed, according to one of the film’s producers, Jakob Staberg, after spending some time with a German experimental theatre troupe, who heard of Petrov’s story and took him on tour with them as part of an anti-war theatre piece, “[Petrov]came back very different.

“Before, he would shoot a scene and complain, ‘I’m not an actor’, when he thought Peter was being too demanding. After he came back from playing theatre, he would say, ‘OK Peter, now my character, I would say this . . .’ and have long discussions about how he should pronounce different words. His late wife used to be a projectionist screening 35mm films in a military base. He loved going to the movies. Maybe that’s one of the reasons he became a part of our film. He got to be the star of his own movie. The Russian actor playing him as a young man said, ‘His acting is better than mine.’ He had tears in his eyes.”
As such, Petrov’s “performance” owes less, perhaps, to the methodologically precise films of Jean Rouch and more to Audie Murphy, the teenage US soldier who in January 1945 secured himself the congressional medal of honour by mounting the burning carcass of a tank and gunning down a phalanx of Germans, and then acted it out again in cinemascope for Universal’s 1955 film about his exploits, To Hell and Back . The film, which recreated the beaches of Anzio, Italy, and the battlegrounds of Sicily and Germany in Washington state, is little watched today, although Murphy haunts Quentin Tarantino’s Inglourious Basterds in the form of the (fictional) character of Fredrick Zoller, a German sniper obliged to star in a biopic of his own life produced by Joseph Goebbels.
One thinks, too, of the 1930 film People on Sunday, in which Berliners played themselves in a drama based on their own lives, or Roberto Rossellini’s resistance drama, Rome, Open City (1945), filmed in the still-smouldering ruins of bombed-out Rome, featuring sequences that, in the words of critic James Agee, were “as shatteringly uninvented-looking as if they had been shot by invisible newsreel cameras”. Many mistook it for a documentary about the real thing.

“The line is always blurry,” says Errol Morris, whose classic 1988 documentary The Thin Blue Line uncovered the wrongful death sentence passed on a Texas drifter by means of a series of meticulous Philip-Glass-scored re-enactments, and is widely seen as the film that moved away from the vérité-like methods dominating America’s direct-cinema movement in the 1970s, and opened the creative toolbox for documentary film-makers thereafter. “When I started out, this idea that you have a greater claim on truth because you are hand-holding the camera, or not lighting anything, struck me as abhorrent. Style does not guarantee truth. Nothing guarantees truth. Truth is a quest. You are being given evidence and being asked to assess that evidence, and there is more and more evidence out there. To me, the watershed moment was [the 2004 prisoner abuse scandal] Abu Ghraib, because you have soldiers recording images with cellphones, or small digital cameras, and those images — because of the internet — could be sent around the world instantly. Not just one copy but an unlimited number of copies. I’m always fascinated by the fact that the commanding officer tried to collect all the photographs and burn them. He was completely missing the point. We are in the 21st century.”
In other words, everyone is a master of vérité now. In the age of Donald Rumsfeld’s “unknown unknowns” and Stephen Colbert’s “truthiness”, the documentary film-maker, confronted with the ubiquity of reality TV and CCTV imagery, must own up to the inherent artfulness of the documentary form — the manipulative intent behind every camera — in order to interrogate the fictions by which we live, or else be caught peddling them uncritically. Re-enact by all means, but above all, be transparent about it. “Anything goes,” says Morris. “I don’t think there should be any limit on. I think it should be unfettered but the underlying goal should be the pursuit of truth.” What truth that turns out to be — dramatic, documentary, shocking, redemptive, or some mixture therein — remains up to the talent and inclination of the film-maker.
Colonel Petrov hasn’t seen The Man who Saved the World yet, but his living conditions have vastly improved thanks to a string of awards from Germany — the German Media Award in 2011, the Dresden peace prize in 2013 — and occasional bundles of cash sent to him, via a fixer, from the film-makers. “He doesn’t trust the banks,” says Anthony. “He’s had a hard life. He’s 75 now. He goes up and down. He has good days and bad days. But they’ve started to celebrate him in Russia now. Before, most Russians didn’t know he existed.”

Friday, June 12, 2015

The 10 Qualities of Exceptional People - TIME

June 11, 2015 at 4:12pm
http://time.com/3915152/qualities-exceptional-people/

Sherrie Campbell / Entrepreneur June 10, 2015   

The exceptional focus on who they are internally



Counter to what many believe, accolades are not really what success is about. To be rich is to have money and status, but to be wealthy is to have physical, emotional, mental and spiritual wellness plus financial abundance. Exceptional people are those who seemingly have it all. They have monetary success along with a deeply felt happiness and satisfaction in life. The truly exceptional focus on cultivating their inner worlds and the more soft-spoken qualities of their character because they know to be wholly successful, it takes being a really good human being.

1. Grace.

Grace is that dignified elegance about a person’s appearance, movement, personal style or behavior. To be graceful is to be strong and assured in who one is and to move gently within that energy.

Exceptional people live with a sense of inner elegance and are graceful even amidst a challenge. They are able to handle themselves in a noble and ethical manner. They hold good posture, their energy has a mystery, softness, strength and cleverness to it. They are vulnerable yet self-assured.

Grace is the undeniable quality of the depth of their personal wisdom.

2. Kindness.

Kindness comes naturally to exceptional people. It is consistent in how they treat, think about, and speak to others. They are genuine and come from a sensitive place. Although being kind may be perceived as weakness or vulnerability by others ,exceptional people understand that kindness is one of their strongest influences.

Exceptional people are kind, even to those whom they do not care for. They are aware they can love someone even if they do not like them. If they can’t say something nice, they have the control to remain quiet.

They believe there is no other human quality that will get them further in life than that of kindness.

3. Composure.

Composure is the beauty of self-control. Exceptional people accept that life is always going to bring its challenges and are aware that without a sense of composure it is too easy to allow conflict in situations and relationships to unnerve them. They embrace the concept of less equals more.

Exceptional people understand the less they react, defend, explain, become fearful or controlling, the more command they have over a situation. Having composure allows them to stand tall with resilience in the face of loss and challenge. They are also mindful to not be boastful about their success.

Composure allows them to maintain a certain stillness in the face of life’s changes.

4. Fearless.

Exceptional people are willing to dare greatly in life. They know it takes courage to love fully, to change themselves when necessary, to feel deeply, to take risks even when it’s scary and to chase their dreams with passion and an unwavering tenacity.

They are aware that to become courageous they must do courageous things. The exceptional understand it is not the loudness of their words but the depth of their character, to keep going no matter their circumstances, which makes them thrive.

5. Poised.

Because exceptional people are self-loving they naturally possess a quiet confidence. Their self-awareness, dedication to self-development and personal growth provide them the knowledge to succeed at nearly anything they seek.

Because of their life experiences and inner depth, they can be certain positive things will happen in their lives because they depend upon themselves to have the information and willingness to do the work necessary to get to their result.

6. Deliberate.

Exceptional people are clear and persistent in who they are, where they are headed and what they want from their life and relationships to be happy. In being deliberate other people know where they stand with them. The exceptional get what they want in life because they are clear in saying what they want.

Exceptional people use each challenge life brings to positively refine themselves. This refinement keeps their lives clear of negativity. Being deliberate keeps them pointed in the direction of their dreams, connected to their true loves and to living genuinely as who they are.

7. Intelligent.

For exceptional people, intelligence is about knowledge but even more so about emotions. In being aware of their own emotional patterns they are endowed with the flexibility to handle challenge and change, allowing them to unlock smart solutions to their problems.

With a well-rounded intelligence the exceptional carry themselves in a stately and unafraid manner. They live with a sense of security knowing there are a multitude of choices available in life, so there is no need to be reactive. In being emotionally grounded they have the ability to keep their eyes on the bigger picture turning obstacles into opportunities.

8. Unassuming.

Exceptional people do not see life as being all about them, in fact, they prefer to celebrate the accomplishments of others as much as their own. They are proud of who they are but have no need to add histrionics to their success. Most of the time they prefer being in the background, working hard and allowing their success speak for itself.

The exceptional are sensitive and want the best for everyone. They do not see themselves as above others as they are secure enough in themselves that the trap of comparison doesn’t interest them. They enjoy their lives and do not feel entitled to more without the commensurate work to back it up.

9. Truthful.

People gravitate towards what is real. Exceptional people are simple, upfront, gentle, but direct in the “being” of who they are. They are content to live life patiently, and know how to wait well. For them life is about being authentic and following their heart and nothing else.

The truly exceptional are people others can depend upon as they have no ulterior motives. They are relationship oriented not agenda oriented and believe that the truth is the only path to success and deep intimacy. Because they are truthful their personalities are not set up on pretenses. Who they are does not change from person to person or situation to situation. They are who they are and their priority in life is to be forthcoming.

10. Loving.

There is nothing more appealing to others than to be in the presence of a loving person. The truly exceptional know they must love themselves in order to have endless love to give. For them love is a verb and it is expresses itself through loving kindness, touch, their smile and sense of inner joy and vitality.

Exceptional people are warm towards others and kind to themselves. There is nothing they wouldn’t do to help and this loving approach is taken into every area of their life from career to parenting. Further, they apply love as a form of discipline and set boundaries when necessary. They are clear there will be times when the only way another person can learn and grow is for them to either have to withdraw their love, or to set boundaries around it to protect their generous nature. They know that for them to remain loving they must protect their heart and put themselves first in negative situations.

Through life’s experiences exceptional people have come to accept that some people can stay in their heart, but not in their life.

To be truly successful in life it is the understated qualities of success which are sustaining. To possess any one of them will increase the experience of a person’s success exponentially. The truly exceptional know that who they are internally is the most powerful marker of their influence on the world.

This article originally appeared on Entrepreneur.com.

Thursday, June 11, 2015

Jack Ma thinks World War III will be a good thing - CNBC

June 11, 2015 at 12:34pm
http://www.cnbc.com/id/102742229

Everett Rosenfeld | @Ev_Rosenfeld
Tuesday, 9 Jun 2015 | 4:23 PM ET
CNBC.com


World War III is coming, but it will be a good thing, according to one of Asia's richest men.

Jack Ma, founder and executive chairman of Alibaba Group, said Tuesday that the Internet and its various platforms will usher in a wave of global conflict. It will not, however, pit countries against each other, but instead will see the likes of China and the U.S. teaming up to defeat societal ills.
"The third world war is going to happen, and this war is not between nations," Ma said during a speech hosted by the Economic Club of New York. "In this war we work together against the disease, the poverty, the climate change—and I believe this is our future."


Alibaba Group Executive Chairman Jack Ma.
Ma said working to incite such a conflict is his life's passion, and Alibaba's mission of globalizing e-commerce can help.
"It's not about the money, it's about the dreams," he said of the Internet's future.

Alibaba, the massive Chinese e-commerce firm, is working to expand its international presence, and Ma is touring the U.S. this week to pitch his platform to American businesses. Although some have suggested it could potentially bring its marketplace to the U.S. as a direct competitor to the likes of Amazon, others remain skeptical that such a move could work.

Read MoreAlibaba earnings beat estimates
Ma, however, emphasized that his company is not analogous to Jeff Bezos' Internet giant.

"From the American point of view, Amazon probably is the only business model for e-commerce, but no, we are different," he said, explaining that Alibaba does not buy, sell or even deliver products—nor does it have any inventory or warehouses.

Instead, Ma pitched Alibaba as a way for small businesses to find success in the global digital marketplace, and he called for American firms to get involved.

"We show great respect for eBay and Amazon, but I think the opportunity and the strategy for us is helping small business in America go to China, sell their products in China," he said, adding that the Chinese middle class is already about the size of the American population, and it continues to grow.

Ma said Alibaba's new tactic will present just as much of an opportunity for Americans looking to expand their customer bases as it does for his own attempts at building a global empire.

"China has been focused on exporting for the past 20 years, and I think in the next 10-20 years China should be focusing on importing. China should learn to buy, China should spend the money, China should buy a lot of its things globally," he said. "And I think that American small business, American-branded products, should use the Internet and go to China."

Ma focused squarely on e-commerce during his Tuesday address, but his company has other important irons in the fire. Alibaba struck a number of deals to bring its cloud computing operations to the world—a challenge to not only Amazon, but also Google and Microsoft.

Read MoreAlibaba in big push to take on Amazon in cloud
The company—which posted strong earnings in May—is also looking for other ways to profit from the U.S. market, with reports suggesting the firm invested in hot startup Snapchat, and Ma's well-documented Hollywood ambitions.

Reports earlier this year indicated that Ma lost his title as China's richest man, as his estimated fortune of $24.5 billion lost out to an energy magnate. But that man, Li Hejun, lost as much as $15 billion last month—so Ma may well be his country's richest again.

Either way, the title likely means little to Ma: He told CNBC in November that he dislikes the super rich status that Alibaba's historic $25 billion IPO afforded him.

Read MoreJack Ma is tired, and doesn't like being rich
"People say, 'Well Jack, rich people is good.' Yeah it is good, but not the richest man in China. It's a great pain because when you're (the) richest person in the world, everybody (is) surrounding you for money," he said at the time. "Today when I walk on the street, people look at you in a different—I want people to see this is entrepreneur, this is a guy who is having fun of himself, and I want to be myself."

In fact, Ma said Tuesday that in "another life" he would have chosen to keep his company private, as his life has become "much worse" since that record-breaking offering.

Wednesday, June 10, 2015

Suu Kyi’s China trip a symbol of Myanmar power shifts - Financial Times

June 10, 2015 at 1:40pm
http://www.ft.com/intl/cms/s/0/c85f43ee-0e7e-11e5-9ae0-00144feabdc0.html?ftcamp=published_links%2Frss%2Fhome_us%2Ffeed%2F%2Fproduct#axzz3cZZ6mHL5

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/c85f43ee-0e7e-11e5-9ae0-00144feabdc0.html#ixzz3ccwbXLaK

June 10, 2015 3:33 am
Suu Kyi’s China trip a symbol of Myanmar power shifts
Michael Peel, Bangkok and Tom Mitchell, Beijing

Aung San Suu Kyi’s first trip to Beijing is not quite a historic piece of Nixon-to-China diplomacy. But it is a fresh sign of the former political prisoner’s pragmatic preparations for power — and a symbol of the interests she shares with the Middle Kingdom’s rulers at a rocky point in Sino-Myanmar relations.
Analysts say the visit, which begins later on Wednesday, is an effort by the two parties to show they can do business together ahead of likely big gains this year for Ms Suu Kyi’s National League for Democracy (NLD) in landmark Myanmar elections billed as cementing the country’s transition from military dictatorship.


China is a big investor in Myanmar and prizes the access it offers to the Indian Ocean, but tensions have emerged in areas ranging from the suspension of a large Beijing-backed dam project to conflict spillover at the countries’ shared border.
“This trip fills in a blank for both sides,” said Yun Sun, a senior associate at Washington’s Stimson Center think-tank. “If Aung San Suu Kyi were not to visit China, it would leave a spot on her credentials. And if you are China, you want to have at least a superficially good relationship with the potential future kingmaker of Myanmar.”
The Nobel peace laureate will spend five days in China at the invitation of the Communist party. Beijing has yet to confirm reports from Myanmar of talks with President Xi Jinping and Li Keqiang, prime minister.
Ms Suu Kyi’s long-flagged visit comes months before nationwide elections in Myanmar, the first since the military dictatorship of almost half a century stepped down in favour of a quasi-civilian government in 2011.
Ms Suu Kyi’s trip comes weeks after Thura Shwe Mann, a former Myanmar junta number three who is now the speaker of parliament’s lower house, met President Xi in Beijing, noted Christian Lewis, an associate at Eurasia Group, the political risk analyst.
“The sequence of visits likely reflects the fact that Beijing sees Shwe Mann as the strongest candidate for Myanmar’s next president, but recognises the rising power and influence of Aung San Suu Kyi and the NLD in legislative politics,” Mr Lewis said.
China’s relations with Myanmar were never better than when Ms Suu Kyi was a prisoner for 15 years in her own home and her then pariah state relied on its northern neighbour for investment and diplomatic support.
But Myanmar’s political opening has brought cooler relations with China, as gratitude for Beijing’s support mixes with anger at perceived abuses of its political and economic dominance.
Public protests led Myanmar’s government to stop work in 2011 on the Chinese–backed Myitsone dam in the north of the country, while villagers in the country’s north-west have faced violent security force crackdowns during years of rallies against the Chinese-operated Letpadaung copper mine.
China [will] want to have at least superficially good relationship with the future kingmaker of Myanmar
- Yun Sun, senior associate at Stimson Center
Tweet this quote
China's own grievances were highlighted when its military last week launched rare live-ammunition exercises in a border region, close to where the Myanmar army is fighting with rebels on the other side of the frontier. Myanmar’s bombing of rebel positions had earlier spilled into China, killing villagers.
Perhaps the most sensitive aspect of Ms Suu Kyi’s visit is her status in the west as a pro-democracy figurehead of the kind jailed by China. Her fellow Nobel peace laureate, Liu Xiaobo, the only Chinese winner of the honour, is serving an 11-year sentence for “inciting subversion”.
But US and European observers hoping for a ringing critique of Beijing’s policies are likely to be as disappointed as they are in Ms Suu Kyi's reluctance to speak out for Myanmar's persecuted Rohingya people.
She has tended to avoid anti-Chinese rhetoric and, unlike many of her fellow Nobel Prize winners, has shied away more generally from condemning alleged human rights abuses around the globe.
“She certainly doesn’t want to be seen as anti-China, and I don’t see anything that suggests she actually is,” said Thant Myint-U, a historian and author who has worked with Myanmar’s government on its peace process to end more than 60 years of civil conflict. “Her concerns have always been very domestic.”

Tuesday, June 9, 2015

If Europe cannot bend it will break - Financial Times

http://www.ft.com/intl/cms/s/0/a2183a4c-0dc5-11e5-aa7b-00144feabdc0.html#axzz3cZZ6mHL5

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/a2183a4c-0dc5-11e5-aa7b-00144feabdc0.html#ixzz3cZZS2kAV

June 8, 2015 2:15 pm
If Europe cannot bend it will break
Gideon RachmanGideon Rachman

Neither man would appreciate the comparison, but Alexis Tsipras and David Cameron are in remarkably similar situations.
The Greek and British prime ministers both say that they have secured a democratic mandate at home to demand changes in their national relationship with the EU. Both leaders have calculated that the other Europeans will meet their demands rather than risk seeing Greece leave the euro or Britain leave the EU. But both Mr Tsipras and Mr Cameron are encountering a wall of opposition in Europe that could lead them to the destinations that they are keen to avoid — Grexit and Brexit.

Both the Greeks and the Brits have found that an argument based on the results of their own national elections can go only so far in an EU of 28 member-states. When Mr Tsipras claimed that he had a democratic mandate to demand change in Europe, Wolfgang Schäuble, the German finance minister, is said to have responded: “I have also been elected.”
But the difficulties of changing Europe go well beyond a clash of national democratic mandates. They are rooted in the size and legal complexity of the EU — an organisation that is now so large and unwieldy that it finds radical change almost impossible to contemplate.
The British say that securing the changes they want in Europe, on issues such as immigration and the rights of national parliaments, will require treaty change — that is changes to the EU’s basic legal documents. But treaty change requires the agreement of all EU countries, some of which will also hold referendums. The very process of renegotiation also invites every member of the EU to come forward with their own clashing demands. Rather than contemplate that nightmarish prospect, it is easier for the EU simply to refuse to shift — other than in small or symbolic ways.
It is important to realise that this aversion to change is largely divorced from the merits of the reforms that are being requested. Different EU governments have different views on whether Greek or British demands are reasonable. There is some sympathy in France and Italy for Greek arguments that the country’s debts are unpayable and that further deep austerity would be counterproductive. There is some sympathy in northern Europe for British arguments on welfare and increasing the role of national parliaments. But, regardless of the merits of the Greek and British cases, there is a deep reluctance to open the Pandora’s box of profound reform.
Regardless of the merits of the Greek and British cases, there is a deep reluctance to open the Pandora’s box
Tweet this quote
The problems involved are not simply legal, they are also political. The worry is that concessions made to the Greeks or British would generate a backlash, with German or Dutch voters resenting a write-off of Greek debt, or Polish voters outraged by restrictions on the rights of EU migrants. Elsewhere, the sight of a radical left party such as Syriza or Eurosceptic conservatives, such as Britain’s Tories, extracting concessions from the rest of Europe could boost similar parties across the continent, making the EU even harder to manage.
As a result key governments in Europe, in particular Germany, are more willing to contemplate Grexit and Brexit than the Greeks and British may have realised.
The German government has been saying for some time that the eurozone can withstand a Greek exit from the euro. While Angela Merkel, the German chancellor, still seems keen to keep Greece inside for geopolitical reasons, the German finance ministry, led by Mr Schäuble, now seems inclined to let Greece go, believing that this could actually have a salutary effect on the other members of the eurozone. Whether or not Grexit happens, the German consensus is that the lesson of the whole Greek crisis is that Europe needs to be even less flexible, with the eurozone requiring tougher rules and stricter enforcement, including tighter supervision of national budgets from Brussels.
The British problem is less urgent than the Greek one and involves less money, but a similar German approach is already emerging. I spent part of last week in Germany at the Konigswinter conference, which has been bringing British and German decision makers together for 65 years.
The Konigswinter atmosphere was, as ever, friendly and frank. Markus Ederer, the head of the German foreign ministry, told the British visitors: “Germany will go to great lengths to support London, even help London, but it cannot go to any lengths.” Allowing EU countries to choose which of its principles to follow would “curb the union’s strength, maybe even more than continuing in a smaller but punchier union.” That looked like a quietly-stated, but direct, warning to the British that Berlin is prepared to see the UK leave the EU, rather than risk the union’s internal coherence.
Germany’s tough approach is based on a realistic assessment of how hard it will be to get reforms through a 28-member EU — as well as a profound aversion to rolling back the process of EU integration. But it is also an alarming commentary on Europe’s inability to respond to changed circumstances, whether it is a 25 per cent shrinkage in the Greek economy, or the unanticipated migration of millions of people across the EU. That failure to be flexible about change is dangerous. A Europe that cannot bend is much more likely to break.
gideon.rachman@ft.com

Saturday, June 6, 2015

An offer that Greece should not refuse - Financial Times

June 5, 2015 at 11:56pm
http://www.ft.com/intl/cms/s/0/f6127244-09e1-11e5-b6bd-00144feabdc0.html#axzz3cCAeH2a6

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/f6127244-09e1-11e5-b6bd-00144feabdc0.html#ixzz3cCCqXVrl

June 4, 2015 4:35 pm
An offer that Greece should not refuse
Philip Stephens

Greece should take the deal. The country’s creditors have tabled what has all the appearances of a final offer. Alexis Tsipras’s government should accept it. Athens will not achieve better terms and the alternative of default and likely exit from the euro would be worse for the Greek people.
The signs are not encouraging. The creditors’ proposals were hammered out at a meeting hosted by Angela Merkel. For all the Greek brickbats hurled at Berlin, the German chancellor has been more anxious than many to keep it within the euro. She understands that the geopolitical consequences of its departure would reach well beyond the inevitable financial shock. A fair inference would say Ms Merkel has pushed the International Monetary Fund as far as it will go.

Greece’s immediate response has been that Mr Tsipras would be the one presenting what officials described as a “last, best offer”. A kind interpretation would be that the prime minister has to play the politics of managing anti-euro hardliners in his own party; a harsher one that he has still to realise it really is one minute to midnight.
When politicians promise the impossible, the odds are that they will be found out. That is what has happened to the Syriza government. It offered the voters a shortcut out of the country’s dire economic predicament. They could throw overboard fiscal retrenchment and tough economic reforms and keep the euro. Now it is evident Mr Tsipras cannot deliver. More than that: the pain is unavoidable with or without default, inside or outside the euro.
Another miscalculation (or was it hubris?) was to assume that other European states should be bound by the choice made by Greek voters. Mr Tsipras was given a mandate to seek what he said was a better deal. No one should have expected that the voters of Madrid and Lisbon or Dublin and Berlin would feel an obligation to agree. Greece’s democratic choice does not trump those of other eurozone states.
The negotiating strategy of the Athens government has rested on the hopelessly flimsy assumption that Greece has a better option if its creditors refuse to bend to his demands. Economists can argue about the theoretical impact of default followed by a devaluation but, in the particular case of Greece, the consequences are probably all bad.
Syriza’s laundry lists of proposed structural reforms remain, well, laundry lists
Tweet this quote
In the short term a return to the drachma would see living standards fall sharply and, with Greece locked out of international capital markets, the government would be forced to generate the fiscal surpluses it now balks at. Austerity inside the euro would be replaced by harsher austerity without.
Ah, but what about the long-term gains to competitiveness from devaluation? In all likelihood they would be fleeting — lost to the dysfunctionality of the political and economic systems. Without the modernisation demanded by creditors, including overhaul of a clientelist and corrupt bureaucracy, a serious effort to collect taxes, the opening up of closed professions, and reform of public pensions, salvation outside the euro would be a chimera.
There is plenty of scope for debate about whether the specific fiscal targets in the latest offer are plausible. I count myself among those who think the Greek government is probably right when it says that the level of Greek debt is unsustainable. The focus by the creditors on precise numbers for fiscal and pension balances, however, reflects the deeper loss of trust.
Targets for the size of the primary surplus a year or two hence can be changed. What matters are the circumstances. The missing ingredient since Syriza’s election victory has been any confidence on the side of creditors that greater fiscal leeway would be accompanied by a serious commitment to overhaul the country’s governance. Mr Tsipras promised that, as an outsider, he would sweep away the corruption and cosy cartels. The impression he has given since is that one set of clients is being replaced by another.
If Athens wants other leaders to take seriously its view that austerity is counterproductive, the only way to do it is to embark on the political and economic reforms needed to underpin a return to growth. Sure, this is more than a two- or three-year project. But resolve and direction count. No one would argue with the slippage of a percentage point here in the size of the country’s primary surplus if the Greek government was breaking up the oligopolies, cleaning up government and stamping out endemic tax evasion.
Instead, Syriza has talked itself into believing that the rest of Europe, and above all Germany, is out to “punish” Greece. Laundry lists of proposed structural reforms have remained, well, laundry lists. The economy has gone backwards. And, yes, in a way it does now seem somewhat perverse to prescribe more austerity.
There is no guarantee that even if a deal is struck it will last. As long as Mr Tsipras and his colleagues feel more comfortable in blaming others for Greece’s woes, the country’s prospects will remain resolutely grim.
The consequences of Grexit for the rest of the eurozone would be at the very least dangerous. But here, sadly, Greece’s partners are trapped in their own par­alysis. They know they must turn a monetary into an economic union, but lack the will to do so. This does not look like a story with a happy ending.

Friday, June 5, 2015

Greece to delay IMF repayment as Tsipras faces backlash - Financial Times

http://www.ft.com/intl/cms/s/0/499e2286-0a97-11e5-a8e8-00144feabdc0.html?siteedition=intl#axzz3cCAeH2a6

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/499e2286-0a97-11e5-a8e8-00144feabdc0.html#ixzz3cCB3mdSN

Last updated: June 4, 2015 6:33 pm
Greece to delay IMF repayment as Tsipras faces backlash
Kerin Hope in Athens and Peter Spiegel in Brussels

Greek Prime Minister Alexis Tsipras delivers a speech during the Economist conference entitled "Europe: The comeback ? Greece: How resilient?" in Athens on May 15, 2015. Greece's left-wing government will not abandon its defence of social rights and salaries in tough talks with its EU-IMF creditors, Prime Minister Alexis Tsipras said. AFP PHOTO/LOUISA GOULIAMAKI (Photo credit should read LOUISA GOULIAMAKI/AFP/Getty Images)©AFP
Alexis Tsipras. Greek prime minister
Greece has notified the International Monetary Fund that it will not make a scheduled €300m loan repayment on Friday after opposition to a bailout compromise with creditors erupted inside the governing party.
Following a rarely used procedure permitted under IMF rules, the Greek government intends to bundle all the payments it owes in June totalling €1.5bn and transfer it at the end of the month.




Alexis Tsipras, the Greek prime minister, has come under intense pressure from within his left-wing Syriza party to withhold payment to the IMF as a sign of the country’s defiance to terms required by its international creditors to access desperately-needed €7.2bn in bailout aid.
But as recently as early Thursday morning, Mr Tsipras had signalled his government intended to make the payment. Asked by reporters after a four-hour Brussels meeting with Jean-Claude Juncker, European Commission president, whether the instalment would be made, the Greek prime minister said: “Don’t worry about that.”
Christine Lagarde, the IMF chief, had also said earlier on Thursday she was “confident” Athens would make the payment and dismissed talk that Greece would opt for the bundling option, last used by Zambia in the 1980s.
But according to a Greek central bank official, Athens made the request late on Thursday. Gerry Rice, the IMF spokesman, confirmed the request, saying the rule allows countries “to address the administrative difficulty of making multiple payments in a short period.”
However, senior IMF officials believe that any non-payment by Athens would be a political decision rather than a financial one; in an economy as large as Greece’s, €300m is a relatively small sum and Greek officials had been working to raid undisbursed EU funds for infrastructure projects to cover the payment as well as another €350m instalment due to the IMF on June 12.
As a result, Greece’s decision — coming less than 24 hours after Mr Tsipras was presented a five-page list of policy commitments by Mr Juncker that Athens needed to implement to win the €7.2bn in aid — will be seen as a negotiating tactic as well as a sign of a shortness of cash.
“This move is almost unprecedented and based on Tsipras’s comments yesterday unexpected,” said Mujtaba Rahman, head of European analysis at the Eurasia Group risk consultancy. “It unnecessarily raises the stakes and will further undermine the goodwill of Greece’s creditors.”

Ever since an emergency summit meeting of EU leaders hosted Monday in Berlin by Angela Merkel, the German chancellor, eurozone officials have been concerned that many of the terms in a compromise plan hammered out by Greece’s warring creditors would be unacceptable to Syriza.
Some eurozone officials believe Mr Tsipras will be forced to move to elections if he accepts creditors terms, which includes demands that Athens make public-sector pension cuts of 1 per cent annually starting next year. The pension measures, demanded by the IMF but resisted by the European Commission, were one of Athens’ most important “red lines” in negotiations.
In a sign of how fraught the political situation had become for Mr Tsipras, he was forced to put off an expected second round of talks in Brussels with Mr Juncker to address his parliament on Friday night.

Thursday, June 4, 2015

American socialism’s day in the sun - Financial Times

June 1, 2015 at 10:30pm
http://www.ft.com/intl/cms/s/0/9867696e-05dc-11e5-b676-00144feabdc0.html?siteedition=intl#axzz3boSZaI9X


May 31, 2015 5:19 pm
American socialism’s day in the sun
ED LuceEdward Luce


Leftwing politicians are in electoral retreat across most of the western world. The one exception is the United States. At 15 per cent in the Democratic polls, Bernie Sanders, the senator from Vermont, is riding higher than any US socialist since Eugene Debs ran for the White House a century ago.
The fact that Mr Sanders has very little chance of unseating Hillary Clinton is beside the point. His popularity is dragging her leftward. If he flames out, other left-wingers, such as Martin O’Malley, the former governor of Maryland who entered the race at the weekend, are ready to pick up the baton. Elizabeth Warren, the populist Massachusetts senator, will continue to prod Mrs Clinton from outside the field. The more Mrs Clinton adopts their language, the harder it will be for her to reclaim the centre ground next year. Yet she is only following the crowd. A surprisingly large chunk of Democrats are happy to break the US taboo against socialism.

To most students of US politics, the phrase American socialism is an oxymoron — like clean coal or the Bolivian navy. A century ago, Werner Sombart, a German scholar, asked “Why is there no socialism in America?” It was a question that confounded Marxists. As the most advanced capitalistic society, the US was most ripe for a proletarian revolution, according to their teleology.
Yet the US refused to live up to its role. Europe’s finest intellectuals would have done better to have listened to the Irish immigrant in 1893 who on landing at Boston docks proclaimed: “If there’s a government here, I’m agin it.” They might also have read the first three words of the US constitution: “We the people”. For all the crimes committed against Native and black Americans, the US republic came into being without an aristocracy or feudal serfdom. It was born a middle class country with equality of opportunity as its creed. That made it a radically different place to the old world it had left behind.
Such differences are no longer obvious. No one, including Mr Sanders, is talking about nationalising chunks of the US economy. Yet his policies are radical by American standards. He wants a single-payer healthcare system, along the lines of Canada, or the UK. He would abolish tuition fees for instate higher education. He would drive big money out of US politics, redistribute income, mandate paid holidays and increase social security benefits. He would also break up the “too big to fail” Wall Street banks. “Are we prepared to take on the enormous political and economic power of the billionaire class,” asks Mr Sanders, “or do we continue to slide into . . . oligarchy?”
A highly energised minority of Democrats are responding to his message. Mr Sanders raised $1.5m from small donors within 24 hours of his launch in early May. Although Mr Sanders is trailing far behind Mrs Clinton, his support exceeds that of almost any candidate in the Republican field. Is it a temporary protest vote? Or should Mrs Clinton’s donors start to worry?
The answer to the first question will come when Democrats hold their first presidential debate. As a plain talker with an authentic personality, the septuagenarian Mr Sanders could strike an unflattering contrast to Mrs Clinton. Because Mrs Clinton is so strongly associated with dynasty and wealth — the Clintons earned more than $25m in speaking fees since the beginning of 2014 — she will feel all the more need to appropriate Mr Sanders’s rhetoric. But that will risk making her seem even less authentic. A majority of the US public already says they find Mrs Clinton untrustworthy. Mr Sanders will not become the 45th president of the US. But he could fatally wound Mrs Clinton’s chances. So, too, could Mrs Warren.
The answer to the second question is yes — Mr Sanders is no flash in the pan. Socialism found no audience in the US because most Americans felt they were middle class. High rates of social mobility gave most people the sense that their society was exceptional — and rightly so. As Richard Hofstadter, the US historian, said: “It has been our fate as a nation not to have ideologies but to be one.”
That is now in question. As recently as 2008, 63 per cent of Americans identified as upper middle or middle class. That has fallen to 51 per cent. Meanwhile, the share of Americans who self-identify as “working and lower class”, according to Gallup, has risen from 35 per cent to 48 per cent since 2008. Perhaps fittingly, the share of Americans who identify as upper class is 1 per cent. That number hasn’t changed. But the belief that they are rigging the system is now mainstream.
To be clear, I am not forecasting a red dawn in the US. It is hard to imagine even a small portion of Mr Sanders’s agenda being enacted. But the rise of the Democratic left is every bit as real as the Tea Party’s surge among Republicans. Until recently, political scientists talked of “asymmetric polarisation” — meaning Republicans were moving more to the right than Democrats were moving left. Now Democrats are catching up. Meanwhile, more and more Americans profess intolerance for other people’s political beliefs. Elections are generally won in the centre. But it is smaller than it used to be. By US traditions, next year’s election is likely to present an unusually stark clash of ideologies. Whatever else he does from here, Mr Sanders has already ensured that.
edward.luce@ft.com

Wednesday, June 3, 2015

Europe’s problem is with Russia, not Putin - Financial Times

June 2, 2015 at 12:50am
http://www.ft.com/intl/cms/s/0/f0ff7324-03b5-11e5-a70f-00144feabdc0.html#axzz3boSZaI9X

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/f0ff7324-03b5-11e5-a70f-00144feabdc0.html#ixzz3bp2A1xE7

May 31, 2015 5:56 pm
Europe’s problem is with Russia, not Putin
Thomas Graham


Moscow is not a rising revolutionary force but one seeking to restore power, writes Thomas Graham
In this Wednesday, May 27, 2015 pool photo Russian President Vladimir Putin listens during a meeting in the Kremlin, Moscow, Russia. Putin says the United States is meddling in FIFA's affairs in an attempt to take the 2018 World Cup away from his country. Putin said in televised comments Thursday, May 28, 2015, that it is "odd" that the probe was launched at the request of U.S. officials for crimes which do not involve its citizens and did not happen in the United States. (Alexei Nikolsky/RIA Novosti, Kremlin Pool Photo via AP)©AP

The west acts as if it had a Vladimir Putin problem. In fact it has a Russia problem. The Russian president stands within a long tradition of Russian thinking. His departure would fix nothing. Any plausible successor would pursue a similar course, if perhaps with a little less machismo.
The Russia problem is not new. It emerged 200 years ago, at the end of the Napoleonic period, with the opening up of what we would today call a values gap. In the 19th century Russia maintained an autocratic regime as Europe moved towards liberal democracy
Yet Russia remained a great power, essential to European security. How to protect Europe in the presence of a powerful state that is alien in worldview? That was the problem then, as now.
European states seek security in balance; Russia seeks it in strategic depth. That view grows out of its location on the vast, nearly featureless great Eurasian plain, across which armies have moved with ease.
Historically, Russia has pushed its borders outward, as far away as possible from its heartland. It did not stop when it reached defensible physical borders, but only when it ran into powerful countervailing states. Where the west saw imperialism, Moscow saw the erection of defences.
Over time, resistance from the Germanic powers in the west, Great Britain and then the US in the south, and China and Japan in the east, came to define Russia’s zone of security as north central Eurasia, the former Soviet space.
For Moscow, states there face a choice not between independence and Russian domination, but between domination by Russia or a rival. That struggle,
Moscow believes, is playing out in Ukraine.
Also out of security concerns, Russia has opposed the domination of Europe by a single power and remains uncomfortable with greater European unity. The reason is easy to grasp: Russia can be the equal of Great Britain, France, or Germany, but it can never be the equal of a united Europe, which in population, wealth, and power would dwarf it as the US does today. Driving wedges between European states, and between Europe and the US, might forestall the emergence of a serious threat.
Russia’s fears are amplified by a sense of vulnerability. Its economy is stagnating, its technology is no longer cutting-edge, and outside forces — China, the west and radical Islam — are challenging it in the former Soviet space. The temptation is to act tough to cover up the doubts by, for example, flaunting nuclear capabilities.
After more than 20 years of hope that Russia could be brought into the west-led international order, the re-emergence of the Russia problem has shocked the west. But the threat is limited. This is not a rising revolutionary force but a declining state seeking to restore its power.
It can be managed. One way is to revitalise the European project. That means dealing vigorously with the issues fuelling anti-EU forces — the democratic deficit, immigration and inequality.
To be sure, steps such as a Nato presence in the Baltics and robust planning for hybrid-war contingencies are necessary, but the west needs to avoid over-militarising its response to what is largely a political challenge.
At the same time, more should be done to help Ukraine repair its economy and build a competent state as a barrier to Russia’s assault on European norms and unity.
Yet containment will not work in our globalised, increasingly multipolar world , as it did during the cold war. The west cannot contain one of the world’s largest economies, and it is geopolitical malfeasance to weaken unduly a power critical to the equilibrium we hope to create out of today’s turbulence, particularly in Asia.
The hard truth is that Ukraine cannot be rebuilt without Russia. It is simply too reliant on Russia economically, and Russia has too many levers of influence inside Ukraine, for it to be otherwise. Containment has to be leavened with accommodation. Finding the right balance is the challenge.

The writer is a former senior director for Russia on the US National Security Council staff

Tuesday, June 2, 2015

7 reasons Grexit wouldn't be a total disaster - CNN

http://money.cnn.com/2015/02/17/investing/greece-europe-grexit/index.html?iid=EL

The word Grexit has once again entered the financial vocabulary, after talks on Greece's future within the eurozone collapsed on Monday.
But somehow, the word -- shorthand for Greece's exit from the eurozone -- is not freaking out global markets as much as it once did.

Here is why a Grexit, while undoubtedly painful, might be much less of a deal now than in 2012 or back in 2010, when the eurozone was at the brink of collapse.
1. Stronger creditors: The structure of Greece's debt has changed dramatically. In 2010, 85% of Greek debt was held by private investors, leaving them with plenty to lose.
That ratio has flipped since then -- the latest data from Open Europe show that 80% of Greek government debt is now held by governments and other institutions, such as the IMF and the ECB, which are better equipped to deal with a potential Greek default.
2. Risk is spread out: No single bank holds a significant chunk of the debt either, so no one creditor would take too much of a hit. Plus, foreign banks held just $46 billion of Greek debt at the end of 2014. That compares to $300 billion in 2010, according to data from Wells Fargo and the Bank for International Settlements.
And global banks aren't being punished despite the fact that the debt standoff is shaking confidence in the Greek financial system. The country's biggest banks Piraeus (BPIRF)and Alpha Bank (ALBKF) have lost over 25% in market value so far this year.
Related: How Greece could accidentally stumble out of the euro
3. No fear of domino effect: Greece looks gloomy, but Portugal, Italy and Spain, the other "troubled" eurozone countries, are doing much better after working through their own painful bailout programs.
Bond yields tell the story. Investors are more willing to lend their money to the rest of the group, because they are less afraid these countries would follow Greece out of the eurozone. Spain's 10-year bond yields 1.59%, compared to 7% in 2010. In fact, both Spain and Italy can currently borrow money cheaper than the U.K.
4. ECB stimulus: After years of hesitation, the European Central Bank finally unveiled a big stimulus program in January, making investors very happy. The $1.3 trillion bond buying program is expected to help boost eurozone's growth. The cheap cash can help offset any potential fallout from Greece.
5. Economy growing: Europe, although battling the effects of a long recession, is in better shape now compared to the last time a Grexit was on the cards in 2012.
Eurozone's GDP is growing again -- in the last quarter of 2014, growth even beat expectations. Analysts say cheap oil, falling prices and a weaker euro are helping boost the economy.
6. New plan for member states: When the eurozone crisis first struck in 2010, the bloc's leaders didn't have any framework to turn to if a member state runs into troubles.
Since then, eurozone countries established the $800 billion bailout fund for emergency loans. They also agreed on rules on how countries can access this money.
7. Stocks rising: Investors appear unfazed by the prospect of a wider eurozone crisis. Despite the Greek standoff and a military conflict on the bloc's doorstep, major European stock markets are at record highs.
Related: Grim economic news piles pressure on Greece

Monday, June 1, 2015

Unrepentant Dick Fuld blames Washington for Lehman collapse - Financial Times

May 30, 2015 at 1:29am
http://www.ft.com/intl/cms/s/0/a6512800-055d-11e5-8612-00144feabdc0.html?siteedition=intl#axzz3bXcRHrRT

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/a6512800-055d-11e5-8612-00144feabdc0.html#ixzz3bXejuU4j

May 28, 2015 6:40 pm
Unrepentant Dick Fuld blames Washington for Lehman collapse
Tom Braithwaite in New York



Former Lehman chief Dick Fuld arrives to speak at the Marcum Microcap conference in New York on Thursday
Dick Fuld, who presided over the implosion of Lehman Brothers, used his first voluntary public appearance since 2008 to blame Washington for fuelling the financial crisis and ordering the investment bank’s closure.
“Wow, I haven’t done this for a while,” Mr Fuld said. “This is my first public event since 08. I don’t include my wonderful time with Congress,” he added, referring to his post-crisis grillings on Capitol Hill.

Mr Fuld, who was known in his Wall Street heyday as the Gorilla because of his aggressive attitude, chose a relatively low-profile venue for his public comeback — the Marcum Microcap conference in New York where small companies were looking for investors.
But even there, almost seven years since the bank’s collapse, there was still ill-will towards the Lehman boss, particularly from employees — some of whom saw their life savings wiped out in the biggest bankruptcy in US history.
“I have a few words I’d like to say to him,” said Brian Choi, a former Lehman employee who is now vice-president at Woerner Holdings, an investment firm. “You screwed so many.”
Another in the audience remarked: “There should be a Plexiglas shield in front of him.”
Mr Fuld showed no sign of contrition over the demise of the bank, which he led from 1994. The crisis was “a perfect storm,” he said, “but it starts with the government.” It paved the way for unsuitable borrowers to buy homes, caused an interest rate shock, and then unfairly “mandated” the bankruptcy of Lehman while saving competitors.
He acknowledged that all investment banks “had too much leverage” but insisted that Lehman was still solvent when it was placed into bankruptcy, citing the bank’s $28bn of equity capital, a capital ratio of 11 per cent and unencumbered collateral of $127bn.
“Lehman Brothers . . . was not a bankrupt company. I think I missed the violence of the market and how it spread from one asset class to the next. Did we try to do everything we possibly could? Did we fall prey to some other agendas? I’ll leave it at that.
“There’s so much I’d love to say,” he said. “Dah dah dah dah dah . . . enough said on that.” He reached for a glass by the stage and took a sip. “No, this is not scotch or rum.”
In a somewhat disjointed speech, whose pop culture references spanned Dean Martin and Rocky, Mr Fuld pointed to Barack Obama’s administration and said: “We need new leadership.
“Everything’s ‘great’,” he added. “Why the hell does it not feel better? Why has the belly of America been ripped out?”
Mr Fuld said he was a “hardcore capitalist” but added: “Capitalism only works, though, if it starts at the top and filters down. If it doesn’t get down we’re going to lose, really simple.
“Enjoy the ride — no regrets,” he advised the audience. “Look in the mirror, ‘this is about you and me. Are we OK? Let’s enjoy the ride.’ ”
Though Mr Fuld had said he would not speak in detail about Lehman, he answered some questions about the bank’s failure from the conference moderator.
After being told there would be easy questions, at the start of the session, Mr Fuld adopted an exaggerated, deep, movie-announcer voice, replying: “There is no easy one.
“We don’t have time to hear all the things I would have done differently,” Mr Fuld said.
“Do we have time?” the moderator asked the audience. “Yes!” came the resounding reply.
The former Lehman chief said: “It’s very easy to look back. I must tell you that I was blessed with a terrific team, for the most part, a terrific team and we were in it together.”
Asked why he did not retire, Mr Fuld said: “I didn’t think I had a choice. Lehman went down. The next Monday I was working with Alvarez [& Marsal, the bankruptcy consultants working on stabilising the Lehman estate].”
Please understand, not a day goes by when I don’t think about Lehman Brothers. Not a day. I’d love to tell you I’m over it, it’s behind me. It doesn’t happen
- Dick Fuld
In the aftermath of the collapse, he worked with Bryan Marsal, the bankruptcy consultant who was appointed chief restructuring officer.
“I was dedicated to helping unwind some of this stuff. It got a little dark because he was dedicated to tearing down everything my team had built.
“You have the right to ask me what happened at the end then when the fabric of the team got frayed . . . All I can say to that was the survival instinct took over.”
Asked why he had chosen to appear now, Mr Fuld said: “I thought it was time. You know what. Time for me to raise my ugly head. Our business is growing. I think I’ve gotten a lot of this stuff behind me.”
In 2009 Mr Fuld founded Matrix Advisors, a mergers and acquisitions consulting firm based in midtown Manhattan.
“I said to all of you: enjoy the ride, no regrets. Please understand, not a day goes by when I don’t think about Lehman Brothers. Not a day. I’d love to tell you I’m over it; it’s behind me. It doesn’t happen. But having said that, I do have to move on and this is part of it.”

Sunday, May 31, 2015

Russia censors discussion of involvement in Ukraine - Financial Times


High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/86fdcb96-0555-11e5-bb7d-00144feabdc0.html#ixzz3bXck27wQ

May 28, 2015 6:17 pm
Russia censors discussion of involvement in Ukraine
Kathrin Hille in Moscow


MOSCOW, RUSSIA - MARCH 29: Russian opposition politician Boris Nemtsov looks on in memory of the victims of a blast inside the Lubyanka metro station on March 29, 2010 in Moscow, Russia. At least 38 people were killed and 60 injured as two separate female suicide bombers blew themselves up on trains on Moscow's metro during morning rush hour. Twenty-five people died in the Lubyanka station blast and around 45 minutes later a second explosion occurred at the Park Kultury station leaving another 12 people dead. (Photo by Dmitry Korotayev/Epsilon/Getty Images)©Getty
Associates of murdered opposition politician Boris Nemtsov published a damning report earlier this month
Russia has made it a crime to speak, write or broadcast about Russian troop losses in peacetime and about people co-operating with Russian foreign intelligence, in what critics said was a Kremlin attempt to stop all information about Moscow’s involvement in the war in Ukraine.
President Vladimir Putin signed a decree on Thursday spelling out more than 20 additions to Russia’s state secrets law, including “information which reveals personnel losses in times of war and in peace time while a special operation is being conducted”.

The new censorship rules mean families of Russian soldiers killed fighting in Ukraine or activists researching Moscow’s clandestine campaign risk prison sentences of up to eight years.
“It appears that the position of just denying there are Russian soldiers fighting in Ukraine cannot last any longer,” said Kirill Koroteev, a lawyer with Memorial, the human rights group.
Earlier this month, associates of the murdered opposition politician Boris Nemtsov published a damning report that said at least 220 active Russian soldiers had died fighting in Ukraine.
Days before he was shot in central Moscow in February, Nemtsov said he intended to enlighten the Russian people, starting with families of military and security officials, that Mr Putin was dragging the country into war.
“Now people will go to prison for searching for data about our fallen soldiers,” Ilya Yashin, one of Nemtsov’s closest associates and co-author of the report, wrote on Twitter.
Olga Romanova, a journalist and rights activist, wrote on her Facebook page: “These things mean that a blogger will be criminally prosecuted for writing about a young widow . . . crying after she received a coffin from Donbass.”
Technically, Russia’s state secrets law only covers certain institutions or persons. But legal experts said the new rules could easily be applied more broadly to silence families of Russian soldiers killed in Ukraine, activists distributing or publicly discussing such information and all media reports about Russian involvement in the war.
“It can be administratively abused in such a way that the body of a soldier killed in Ukraine or benefits will only be released to the family in exchange for them signing a guarantee that they will keep silent,” said Mr Koroteev.
The new list also stipulates that “information about persons under evaluation with the aim of recruiting them for co-operation on a confidential basis, [and] people who assist or have assisted the organs of foreign intelligence of the Russian Federation on a confidential basis” will be regarded as state secrets.
An activist at a soldiers’ rights group said this was a catch-all description designed to cover volunteers and soldiers who were forced by the military to resign from their official duty before being sent into battle.