UK Moves Near Recession as Growth Hits Zero

Any bonus over $40K subject to one-time charge

(NEWSER) - Britain will levy a 50% tax on bank bonuses over $40,800 this year, in an attempt to shore up the nation's finances—and appease angry voters—ahead of the coming election. Alistair Darling slammed banks who paid out hefty bonuses even as Britain remains in recession: "Their priority should be to rebuild their financial strength and to increase their lending," the treasury chief said. "If they insist on paying substantial rewards, I am determined to claw money back for the taxpayer." More»

How one country ducked the economic downturn

(NEWSER) - Australia has weathered the financial crisis better than any other developed country. Last week its central bank raised interest rates, indicating its primary concern is now inflation, not growth. What were the keys? Phil Dobbie of BNET explains:

• Befriending China: Australia used to export much of what it made to the US and UK, but over the last decade much of that trade has shifted to China. In fact, some economists argue that Australia didn’t need a stimulus package—Beijing’s stimulus was enough.

Voters don't reward economic competence after crisis: Krugman

(NEWSER) - The Bush administration has taken much of the blame for the American recession, but a "huge housing bubble and a financial crisis" were always on the cards, as Paul Krugman writes for the New York Times. Writing from London, where voters gave Gordon Brown a pummeling in Thursday's elections, Krugman observes that Britain shows what might have happened if the 2000 presidential election had gone the other way. More»

'How the hell are they doing?' exclaims furious politician

(NEWSER) - One of Britain's leading politicians laid into an unlikely adversary yesterday: the head of Starbucks. Company chief Howard Schultz said on CNBC that "the UK is in a spiral" and was causing Starbucks considerable grief, prompting business secretary Peter Mandelson to fire back: "Why should I have this guy running down the country? Who the fuck is he? How the hell are they doing?" More»

Brown ally says current crisis surpasses Great Depression

(NEWSER) - The current economic crisis will be the worst in a century, surpassing even the Great Depression, according to Gordon Brown's closest political ally. Ed Balls, a minister sometimes tipped as a future British leader, said that the downturn would be "more extreme and more serious than that of the 1930s." Balls' office has tried to downplay the remarks, which have been seized upon by political opponents and the media. More»