We now continue with our regularly scheduled recession


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The US government's decision to inject $250 billion in equity into its biggest banks and guarantee their debts is still textbook financial system bailout. The real wonder is why Washington didn't decide to announce this as it was trying to push through legislation (TARP) to buy banks' so-called toxic assets. It might have saved trillions of dollars in global equity markets and softened the impact of the crisis globally. It is true that the notion of having the government owning the nation's banks is unpalatable and at the time may not have seemed absolutely necessary. Had TARP managed to unfreeze the interbank market, it may not have been necessary to take over the banks so soon. Instead, some banks would have slowly been driven into the government's arms over time as TARP's activities revealed the extent of their losses, avoiding a major systemic collapse of confidence. Alas, the collapse of confidence came in one sharp shock last week. So the decision to move ahead is a welcome one. As a measure of how much calmer global markets have become, the dollar staged a sharp retreat against other currencies, indicating a sigh of risk relief. Europe and the UK, by contrast, had less ideological aversion to a state takeover of the banking sector and moved in one fell swoop to bail out their banks. They also had the benefit, perhaps, of a few days of 20/20 hindsight and knew that a piecemeal approach would likely leave them with several Lehman's. Luckily, Paulson was smart enough to take the 250 B's from the 700 Congress already approved, underscoring that the $700 billion was never meant to be a price tag, but rather a confidence-boosting armory of Depression-busting bucks. As mentioned here previously, the Feds will likely spend much less than that buying toxic assets, and probably make a bit of money here and there when some of those distressed assets turn good. Still, having failed to keep the banks from becoming partially government-owned, some feel it doesn't make sense now that the Treasury is settling for non-voting preferred shares to help avoid diluting equity and discouraging other investors from buying the banks' stocks. Government involvement is now a plus for potential investors, indeed it's the only thing seemingly keeping the banks afloat. I argued in favor of TARP and against critics of a Wall Street bailout because TARP was not a bailout. Most critics of the plan, including even some seasoned economists, didn't seem to understand that part of it. But this aspect of Paulson's bailout may indeed be bit unfair for taxpayers. The government, and by extension the taxpayer, should get a seat on the board and a say in how things are run. The danger, however, is that once Government is involved in running these banks, that it becomes difficult if not impossible to get them back out again. Keeping the shares non-voting ensures that the banks continue to be run like private banks (except for bankers paying themselves obscene sums and giving themselves golden parachutes), and obviates the need for some guarantees and timetables for a forced sale of the government's stake. And don't even mention moral hazard: at this point, we need the banks to take on more risk based on their government backing. The greater danger is that they stop lending at all to the economy. Oh yeah, that economy thingy. Now that the financial system is hopefully secure from collapse, the US must move on to reviving it. Lower rates may not be enough to actually kick start things. Massive fiscal stimulus in the form of government infrastructure spending might be a good idea, and US highways, bridges and ports certainly could use the investment. Further incentives for the housing market may also prove necessary to dig the US consumer out of the red. We also need to look now at how to resuscitate vital parts of the global economy that rely heavily on global credit: transportation, for one. Global trade is likely to be hit hard by the events of the past six weeks. Provided emerging markets can quickly revitalize funding to key industries, their savings could help hasten a recovery in global growth and accelerate their long-predicted economic decoupling from the now-moribund US economy. The UAE may still need to move more assertively into its own financial sector, both to shore up banks with capital injections against a likely correction in property prices, and to keep investments flowing around the region. This crisis has had a devastating impact on less affluent regional economies like Iran, and has brought Pakistan to the brink of collapse. Regional stability is crucial to the UAE.

warnold@thenational.ae

The candidates

Dr Ayham Ammora, scientist and business executive

Ali Azeem, business leader

Tony Booth, professor of education

Lord Browne, former BP chief executive

Dr Mohamed El-Erian, economist

Professor Wyn Evans, astrophysicist

Dr Mark Mann, scientist

Gina MIller, anti-Brexit campaigner

Lord Smith, former Cabinet minister

Sandi Toksvig, broadcaster

 

The Little Things

Directed by: John Lee Hancock

Starring: Denzel Washington, Rami Malek, Jared Leto

Four stars

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

The specs: 2018 Nissan Altima


Price, base / as tested: Dh78,000 / Dh97,650

Engine: 2.5-litre in-line four-cylinder

Power: 182hp @ 6,000rpm

Torque: 244Nm @ 4,000rpm

Transmission: Continuously variable tranmission

Fuel consumption, combined: 7.6L / 100km

Company%20profile
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The specs: 2018 Alfa Romeo Stelvio

Price, base: Dh198,300
Engine: 2.0L in-line four-cylinder
Transmission: Eight-speed automatic
Power: 280hp @ 5,250rpm
Torque: 400Nm @ 2,250rpm
Fuel economy, combined: 7L / 100km

Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

ICC Women's T20 World Cup Asia Qualifier 2025, Thailand

UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final

UAE currency: the story behind the money in your pockets
The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates

Padmaavat

Director: Sanjay Leela Bhansali

Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh

3.5/5

HOW TO WATCH

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The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Most F1 world titles

7 — Michael Schumacher (1994, ’95, 2000, ’01 ’02, ’03, ’04)

7 — Lewis Hamilton (2008, ’14,’15, ’17, ’18, ’19, ’20)

5 — Juan Manuel Fangio (1951, ’54, ’55, ’56, ’57)

4 — Alain Prost (1985, ’86, ’89, ’93)

4 — Sebastian Vettel (2010, ’11, ’12, ’13)

UAE currency: the story behind the money in your pockets

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

FIXTURES

All kick-off times UAE ( 4 GMT)

Friday
Sevilla v Levante (midnight)

Saturday
Athletic Bilbao v Real Sociedad (7.15pm)
Eibar v Valencia (9.30pm)
Atletico Madrid v Alaves (11.45pm)

Sunday
Girona v Getafe (3pm)
Celta Vigo v Villarreal (7.15pm)
Las Palmas v Espanyol (9.30pm)
Barcelona v Deportivo la Coruna (11.45pm)

Monday
Malaga v Real Betis (midnight)

The specs: 2018 Opel Mokka X

Price, as tested: Dh84,000

Engine: 1.4L, four-cylinder turbo

Transmission: Six-speed auto

Power: 142hp at 4,900rpm

Torque: 200Nm at 1,850rpm

Fuel economy, combined: 6.5L / 100km

if you go

The flights
Flydubai offers three daily direct flights to Sarajevo and, from June, a daily flight from Thessaloniki from Dubai. A return flight costs from Dhs1,905 including taxes.
The trip 
The Travel Scientists are the organisers of the Balkan Ride and several other rallies around the world. The 2018 running of this particular adventure will take place from August 3-11, once again starting in Sarajevo and ending a week later in Thessaloniki. If you’re driving your own vehicle, then entry start from €880 (Dhs 3,900) per person including all accommodation along the route. Contact the Travel Scientists if you wish to hire one of their vehicles. 

Manchester City (0) v Liverpool (3)

Uefa Champions League, quarter-final, second leg

Where: Etihad Stadium
When: Tuesday, 10.45pm
Live on beIN Sports HD

2019 ASIA CUP POTS

Pot 1
UAE, Iran, Australia, Japan, South Korea, Saudi Arabia

Pot 2
China, Syria, Uzbekistan, Iraq, Qatar, Thailand

Pot 3
Kyrgyzstan, Lebanon, Palestine, Oman, India, Vietnam

Pot 4
North Korea, Philippines, Bahrain, Jordan, Yemen, Turkmenistan

Russia's Muslim Heartlands

Dominic Rubin, Oxford

Copa del Rey final

Sevilla v Barcelona, Saturday, 11.30pm (UAE), match on Bein Sports

Thor: Ragnarok

Dir: Taika Waititi

Starring: Chris Hemsworth, Tom Hiddleston, Cate Blanchett, Jeff Goldblum, Mark Ruffalo, Tessa Thompson

Four stars

TOURNAMENT INFO

Women’s World Twenty20 Qualifier

Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November

UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi

THE DETAILS

Solo: A Star Wars Story

Dir: Ron Howard

Starring: Alden Ehrenreich, Emilia Clarke, Woody Harrelson

3/5

Volvo ES90 Specs

Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)

Power: 333hp, 449hp, 680hp

Torque: 480Nm, 670Nm, 870Nm

On sale: Later in 2025 or early 2026, depending on region

Price: Exact regional pricing TBA

RESULT

Argentina 0 Croatia 3
Croatia: 
Rebic (53'), Modric (80'), Rakitic (90' 1)

When is VAR used?

Goals

Penalty decisions

Direct red-card incidents

Mistaken identity

Ant-Man and the Wasp

Director: Peyton Reed

Starring: Paul Rudd, Evangeline Lilly, Michael Douglas

Three stars

Schedule:

Sept 15: Bangladesh v Sri Lanka (Dubai)

Sept 16: Pakistan v Qualifier (Dubai)

Sept 17: Sri Lanka v Afghanistan (Abu Dhabi)

Sept 18: India v Qualifier (Dubai)

Sept 19: India v Pakistan (Dubai)

Sept 20: Bangladesh v Afghanistan (Abu Dhabi) Super Four

Sept 21: Group A Winner v Group B Runner-up (Dubai) 

Sept 21: Group B Winner v Group A Runner-up (Abu Dhabi)

Sept 23: Group A Winner v Group A Runner-up (Dubai)

Sept 23: Group B Winner v Group B Runner-up (Abu Dhabi)

Sept 25: Group A Winner v Group B Winner (Dubai)

Sept 26: Group A Runner-up v Group B Runner-up (Abu Dhabi)

Sept 28: Final (Dubai)

Going grey? A stylist's advice

If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”