Dutch Cabinet, Balkenende's Fourth, Collapses
NRC HANDELSBLAD INTERNATIONAL: The Dutch coalition government fell in the early hours of Saturday morning because it could not come to an agreement over whether to extend the Netherlands' military mission in Afghanistan.

Labour, the second largest party in his three-party alliance, is quitting what had always been an uneasy partnership with the bigger Christian democratic CDA and junior partner ChristenUnie, a small orthodox Christian party.

After a 16-hour cabinet meeting in The Hague last night, prime minister Jan Peter Balkenende gave a brief press statement explaining the parties have no confidence left in each other. "Where there is no trust, it is difficult to work together," Balkenende said. "There is no road left for this cabinet to walk."

Labour leader, and now ex-finance minister, Wouter Bos had given the cabinet a Friday deadline to confirm it would withdraw all 1,600 Dutch soldiers from the Afghan province Uruzgan no later than December 2010. The CDA and ChristenUnie refused to comply with his demand, which goes against the explicit wish of Nato for the Netherlands to stay longer. The Nato secretary general filed an official request for the extension of the Dutch mission earlier this month. >>> AP, NRC | Saturday, February 20, 2010

NRC HANDELSBLAD INTERNATIONAL: Nato flabbergasted by Dutch reaction to troop request: Dutch politicians asked for an official Nato request to keep troops in Uruzgan. The current political infighting in The Hague is raising eyebrows at the organisation’s headquarters. >>> Petra de Koning in Brussels | Friday, February 19, 2010

The Inevitable Collapse Of The Dollar

Finger-wagging Is Just Not Enough, Mr President
TIMES ONLINE: Apparently, during his big speech on financial reform last night, there were audible groans on the floor of the New York Stock Exchange when President Obama said that he had “always been a strong believer in the power of the free market”.

This was presumably because that particular element of the President’s audience thinks he is anything but. Applied to their own corner of the US economy, though, why they think as they do is anyone’s guess. One year on from the collapse of Lehmans, it looks to be business as usual on Wall Street, with big bonuses in the offing amid signs that, as Mr Obama said, the lessons of the crisis have been ignored by some.

But for all his finger-wagging, for all his promises to undertake serious financial reform, the President has actually done remarkably little so far.

Apart from trying to convince Americans that big government bailouts of financial institutions have come to an end, last night’s speech was all about trying to get that process back on track, which is why a key element of Mr Obama’s plans — a new consumer protection agency to oversee financial products such as mortgages and personal loans — was again flagged.

Yet the measure looks some way from ever reaching the statute book due to a formidable lobbying effort by the financial services industry.

Other elements of Mr Obama’s proposals, such as measuring and seeking to regulate systemic risk, are even further away. Similarly, while the Administration has tabled proposals which would ensure that many over-the-counter derivatives are traded on regulated exchanges, centrally cleared and more accurately reported, these plans are a long way from being enacted.

Part of the problem is that Mr Obama’s fellow Democrats, despite controlling Congress, seem far more determined to push through healthcare reforms before they ever turn their attention to an overhaul of financial regulation.

All of this is hugely regrettable and helps to explain why so many ordinary folk on Main Street believe that the President is in thrall to Wall Street.

Meanwhile, in fairness to those NYSE traders who groaned at Mr Obama’s comment last night, the President is giving them good reason to doubt his free-market credentials. >>> Ian King, Business commentary | Tuesday, September 15, 2009

Britons Face Losing Savings as Dubai Property Market Collapses
THE TELEGRAPH: Britons who invested hundreds of thousands of pounds in unbuilt property during Dubai's boom years face losing the money after a collapse in the market.

Falling property prices and the credit crunch have hit Dubai's financial model hard, with work stopped on hundreds of building sites. Photo credit: The Telegraph
An 800-strong group of investors, from individuals who put deposits on holiday flats to property brokers, says hundreds of millions of pounds is at risk.

Work has slowed or stopped on swathes of building sites, including on a second "Palm Island". The city was planning a series of artificial peninsulas in the shape of palm trees packed with seafront holiday villas, but only one is finished.

Of all the world's property crashes, Dubai's has been among the most spectacular. According to an estimate from Morgan Stanley, projects worth £165 billion have been delayed or cancelled across the United Arab Emirates. Prices in Dubai have fallen by more than 40 per cent since September.

As prices soared, many investors bought off-plan, either because it was cheaper, in the case of small-time buyers looking for a home in the sun, or because they could "flip" or sell on for a quick profit without ever having to pay the full value.

Investors on the end of a chain of "flippers" have been hit particularly hard as prices fell while building was put on hold. But even those who bought from developers now face the dilemma of whether to keep paying or cut their losses. >>> By Richard Spencer in Dubai | Saturday, May 23, 2009