Capital Bears More of the Crisis Burden than Labor

Share of corporate operating surplus on gross value added. Share of labor compensation is the complement to 100%. Source: Eurostat.

Fed's Exit Strategy

Fed's chairman Ben Bernanke published an article in WSJ explaining the central bank's financial exit strategy after it pumped billions into the economy in an attempt to fight the negative effects of the crisis.
The Fed will need "to tighten monetary policy to prevent the emergence of an inflation problem," Bernanke writes. This should be achieved by eliminating large reserve balances of banks. To do that, the Fed could increase its target for federal funds rate, attracting liquidity back into its own hands. Moreover, in case the federal funds rate does not react sufficiently to the rate Fed will pay on deposited reserves, the Reserve or the Treasury could arrange large-scale "reverse repurchase agreements" - that is, issuing their own securities and sterilizing thus gained liquidity.
The timing and pace of such instrument should best foster Fed's objectives of maximum employment and price stability, the chairman concludes.

NYT Coverage on Slovakia

"Neighbor’s Shadow Still Large in Slovakia". I am not sure the title is really capturing the main issue in the country, but the article provides ample important insights into the happenings in Slovakia.

Top 10 Slovak Companies in 2008

Rank, Name, Industry, Sales in 2008 (individual)

1. Volkswagen Slovakia, automotive, €5.37 billion
2. Slovnaft, oil refining, €4.03 billion
3. Samsung Electronics, electronics, €3.52 billion
4. U.S. Steel Košice, metallurgy, €2.93 billion
5. SPP, gas distribution, €2.90 billion
6. Kia Motors, automotive, €2.23 billion,
7. Slovenské elektrárne, energy, €1.96 billion
8. PCA Slovakia, automotive, €1.74 billion
9. Sony Slovakia, electronics, €1.40 billion
10. Západoslovenská energetika, energy, €1.11 billion

Source: TREND Top 200. Last year's results can be found in our earlier post.