Letters to the Editor – 17/02 – Big bluff, Futures markets, Best of Twitter
Big bluff
[Re: The Scottish nationalists aren’t credible on keeping sterling, Friday]
The Westminster politicians would soon change their minds in the event of a “Yes” vote. A vote for Scottish independence would force all interested parties to negotiate over UK asset and debt sharing, bank recovery and rescue plans. Ross McEwan of RBS thinks that Scottish independence would be inherently manageable from the bank’s perspective. With all due respect to people like Danny Alexander – the former Cairngorms National Park Authority head of communications – I’m going to side with McEwan.
Alexander Milne
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Futures markets
[Re: When bureaucracy goes wrong: The Environment Agency and onion futures, Thursday]
Paul Ormerod is correct to criticise the ridiculous proposals contained in the EU’s Financial Instruments Directive, which allow regulators to place limits on the size of bets that can be placed on commodity futures. The sharp spikes in volatility they are trying to prevent would be less likely to happen if the markets in question were larger and more liquid, since the effects of an individual trade would be smaller by comparison. The legislation is likely to backfire if it results in a less liquid market.
Name Withheld
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BEST OF TWITTER
GDP numbers for Eurozone’s largest economies suggest growth stronger than expected 0.2 per cent.
@MarkitEconomics
Why is Prince William helping with floods “modern”? James II led teams fighting the Great Fire of London!
@AndrewLilico
Spain: Inflation at lowest level in over 50 years on weak domestic demand
@nr_zero
Investment in French economy has fallen seven out of the past eight quarters. And this is a recovery?
@minefornothing