Prem Sikka

Prem's an accounting professor at the University of Essex and is rapidly carving out a minor career as a leftist commentator on matters financial and economic. The only problem is that he advocates, all too often, policies of the utmost lunacy.

There is an urgent need to consider reforms. There is a nagging doubt that the concept of limited liability encourages shareholders to be passive and directors to be reckless. So government should dilute the benefit of limited liability and insist that in the event of bankruptcy at least 50% of the outstanding liabilities should be met personally by...

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The Watford System?

Rarely has a summit been so hastily organised, hyped so much, yet achieved as little as last week’s G20 meeting called by President George W. Bush to deal with the world’s financial crisis. World leaders did agree on a confidence-boosting package of economic assistance, but put off sorting out any detailed plans on overhauling financial management and regulation, or revising the problematic global currency trade and settlement regime until their next summit, scheduled on April 30, when the United States will be steered by President Barack Obama.

So what should happen between now...

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Conservatives and marriage

I'm not sure about these new proposals about marriage you know. Not sure at all.

Pre-nuptial agreements should also be legally binding ....

This may or may not be a good idea: I'll leave that to others to opine on. But I think it's more complex than many realise as well. The reason that pre-nups don't work in English law is that marriage itself is a contract, one that over-rides all previous ones. Just as an example, when you marry your will changes: there are statutory provisions that mean that your previous disposition of your assets...

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Inequality in China

We've another UN report worrying about inequality in a country:

While indicators of prosperity such as income, health and education levels in rich cities like Shanghai were approaching those of some European nations, other regions ranked with African countries like Botswana and Namibia, the report found.

"Inequalities that have emerged during rapid growth have widened to levels that pose additional obstacles (to development)," it concluded.

Now I admit, I don't worry all that much about inequality. Poverty, yes, that I want to eradicate, but that in the process of doing so some get more than others really doesn't...

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Do the forecasts point to an early election?

The CBI have come out with another set of gloomy forecasts this morning, by which the recession will be "deeper and longer lasting" than previously thought.  They predict that the economy will contract by 1.7 percent in 2009 and that unemployment will hit just under 3 million in 2010.  

It's still something that I think unlikely, but every forecast such as this strengthens the increasingly popular idea that Brown will call an early election.  Not only will he find it more difficult to maintain his Economic Saviour narrative as the recession worsens and unemployment skyrockets.  But also - if he waits - then the very real possibility of other countries recovering quicker than the UK will shatter his claim that we're "best placed" to deal with this downturn.  Watch this space.

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