"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Wednesday, August 24, 2011

Fanning the financial crisis: Has regulation gone wrong?


Fanning the financial crisis: Has regulation gone wrong?
INSEAD Knowledge
Based on this ratio, one gets the impression there was no financial crisis in 2008. However, market-based leverage ratios and credit default swap rates increased dramatically during this period and reflect the reality that everyone knows: there was ...
Gordon Brown: Germany must drop blame game and save the euro
Christian Science Monitor
Germany has blamed others for the global financial crisis, but German loans funded much of the reckless spending. It must now agree to a common mechanism for Europe to pay its way out of crises. Refusing this responsibility endangers Germany and the ...
EMERGING MARKETS-Latam stocks down on contagion fears
Reuters
By Manuela Badawy NEW YORK, Aug 23 (Reuters) - Latin American stocks eased on Tuesday as less gloomy-than-expected economic data from China and the euro zone failed to calm fears of the deteriorating health of US banks and the economy. ...
JOSEPH STIGLITZ: Contagion of bad ideas is world's real problem
Business Day
The ECB argued that taxpayers should pick up the entire tab for Greece's bad sovereign debt, for fear that any private- sector involvement would trigger a "credit event," that would force large payouts on credit-default swaps , possibly fuelling ...
Goldman Sachs braced for legal battles over financial crisis
The Guardian
Photograph Charles Dharapak/AP Goldman Sachs, the embattled investment bank, will face an array of legal claims focusing on its conduct during the financial crisis, one of Wall Street's most feared lawyers warned last night. ...
George Soros: US Double-Dip Recession More Likely Now
International Business Times
Monetary/Economic Analysis: In the interview Soros also hinted that China is propping up the euro, because it wants an alternative to the dollar, which is plausible. On placing all the blame for Financial Crisis, Part 3, which is not a certainty, ...
The MAC Is Back, but Does It Kill a Deal?
New York Times
A deal-breaking move like this makes it feel like we are back in the financial crisis, when these attempts were all too common. A material adverse change clause, or MAC clause, is a way that parties to an acquisition allocate risk. ...
China's new currency policy
CNN (blog)
By Martin Feldstein, Project Syndicate China's government may be about to let the renminbi-dollarexchange rate rise more rapidly in the coming months than it did during the past year. The exchange rate was actually frozen during the financial crisis...
CREDIT MARKETS: Shaky Financial Sector Undermines Bonds Again
Wall Street Journal
Pressure remained on bank bonds as sovereign debt default fear contagion, slow domestic growth forecasts and pending mortgage litigation threaten the financial sector. Risk premiums--or the added yield investors demand to compensate for added risk--on ...
MBAs Don't Merit the Cost
BusinessWeek (blog)
Amid the financial crisis and recession, placement rates and salaries for MBAs have taken hits, making the degree less valuable. Pro or con? What situation screams for an MBA? Many scenarios cry out explicitly for a doctor, engineer, firefighter, ...
An employee's trust crumbled in the Asian financial crisis
News & Observer
By JOHN M. GLIONNA - Los Angeles Times SEOUL, South Korea -- With a shudder, Kim Deuk-uy recalls the gloominess of the 1998 Asian financial crisis. Back then, Kim worked for a securities company that was shedding employees as a snake sheds skin. ...
The Big 4 Banks: Defense Or Attack As A Long-Term Strategy?
Seeking Alpha
Investors still have fresh memories of the 2008 global financial crisis and its flow on effects, and many investors are still wary of Banks being what they should be; defensive assets with strong financials and paying a good returns on income invested. ...
Media choice: Economics or Bachmann's outfit?
Aljazeera.net
No less an authority than Nouriel Roubini, once dismissed as "Dr Doom" for his predictions - entirely accurate - of the 2008 financial crisis, is shaking his head and pointing his finger again. In intellectual circles, there's more and more talk about ...
Nouriel Roubini Wrongly Compares Gold To Y2K Tech Bubble
Forbes
The great Dr. Doom himself, seer of the financial crisis, doomster extraordinaire, Nouriel Roubini thinks today's gold investors are “sheep or lemmings.” It's a bubble, plain and simple and always. “Since gold has no intrinsic value,” says Dr.Doom, ...
Czech president says country in no rush to join eurozone, suggests reducing ...
Washington Post
By AP, ALPBACH, Austria — Czech President Vaclav Klaus says his country is not hurrying to join the eurozone while it is rocked by financial crisis. Vaclav Klaus also suggests the number of nations using the common European currency should be shrunk ...
Swiss franc dampens Swiss exports in July
Reuters
Swiss exports have long held up despite a nearly 30 percent rise for the franc since the 2008 financial crisis. Yet they have begun to show a softening of late. Although exports overall rose by a real 4.8 percent in July to 16.649 billion Swiss francs ...
Dollar Falls As Weak US Data Prompt Fed Speculation
Wall Street Journal
"The weaker data and concerns about what Bernanke might say when he gets to Jackson Hole???isdollar negative," said Greg Michalowski, chief currency analyst at FXDD in New York. Although fears of debt contagion are roiling Europe, "It takes two to ...
The Federal Reserve has some explaining to do.
Banks borrowed $1.2 trillion during financial crisis, news report reveals. Among other things Bloomberg uncovered, the Federal Reserve loaned  banks and other companies as much as $1.2 trillion of public money . . . .
Daily Majors Fundamental: EUR/USD, USD/JPY, GBP/USD, USD/CHF
FXstreet.com
The data is expected to be carefully watched as it will provide evidence about the status of the housing market that led to the eruption of the 2008 financial crisis. On Monday, the dollar showed declined against majors, including the Swiss franc, ...
Why the euro crisis has a silver lining
Daily Mail
Voters have become all too well aware that there is an frightening internationalfinancial crisis, though few would claim to understand the causes. Chancellor George Osborne can now worry less about the unpopularity of his own measures. ...
The Price of Secrecy for Central Banks
Wall Street Journal
Yet as the financial crisis showed, secrecy carries its own cost. If investors know an institution is under the gun, but can't tell who it is, that can undermine confidence in all firms. The latest example: the Federal Reserve's dollar-swap program. ...
Ex-Treasury Secretary Paulson Warns That US Is Overleveraged
NASDAQ
DENVER (Denver Post)--The US continues to struggle with too much debt -- the core problem behind the 2008 financial crisis, former Treasury secretary Henry Paulson warned an audience Monday. "We are overleveraged," Paulson told a meeting of the Global ...
Euro Break-Up Threat Hitting US - Ex-Fed Chief Greenspan
Wall Street Journal
"The euro is breaking down," Greenspan said. European banks are in trouble because they hold debt of countries close to default, such as Greece, he added. "The reason we're so sluggish is the level of uncertainty." Concern about Europe's ongoing debt ...
Euro-Area Services, Manufacturing Grow at Slowest Pace in Almost Two Years
Bloomberg
“A number of factors have hit growth, including a downturn in global demand, which caused exports of goods to fall at the fastest rate for over two years, and growing concerns about the economic outlook and the euro area's financial crisis...
Relentless Rally: Traders Unshaken by Quake, Economy
Fox Business
Indeed, the cost to insure the bank's debt rose to a record high -- even topping costs during the financial crisis -- in the Credit Default Swap market, according to the Wall Street Journal. With a slew of data pointing to a softer economic recovery ...
Apollo Investment: An Opportunity Or A Trap?
Seeking Alpha
On the other hand, if there is no “double dip” and/or global financial crisis, chances are the Apollo portfolio will continue to perform well from a credit perspective. We don't expect Apollo to boost net investment assets, as its debt to equity is as ...
Europe's doomed euro
ABC Online
In his Euro On Trial (written well before the financial crisis) the economic historian Brendan Brown argues that the European monetary union was a power play between French policymakers and German monetary authorities. Germany is Europe's largest...
Stock market turmoil: FTSE's 10 worst days
The Guardian
Global shares plunged in 2008 as the markets were gripped by the financial crisis. Photograph: Kiyoshi Ota/Getty Images Financial markets on both sides of the Atlantic have been convulsed in August by a fresh wave of selling amid fears that the world ...
Is the gold bubble set to pop?
IBTimes Hong Kong
Since the start of this year it is up by more than 50 per cent, and since the start of the financial crisis gold has risen by 150 per cent. gold was trading at $200 per ounce, today it is close to $2000. Gold, like other commodities tends to exhibit ...
Eurozone survey shows stagnant August growth
Economic Times
... including a downturn in global demand, which caused exports of goods to fall at the fastest rate for over two years, and growing concerns about the economic outlook and the euro area's financial crisis, which caused business confidence to plunge. ...
Is the US Economy Freefalling?
American Enterprise Institute
Our examination of the fifteen worst financial crises in the second half of the twentieth century showed that economies persistently perform poorly after a financial crisis, with real gross domestic product (GDP) growth 1.5 percentage points slower in ...
Higher tax rates don't offer higher revenue
BlueRidgeNow.com
Whenever there's a financial crisis of any sort at the national level, you can count on several politicians proposing an increase in the tax rates to solve the problem. However, higher tax rates will lower federal revenue, thereby aggravating the ...
Fox Won't Let Facts Stop Its S&P Conspiracy Theories
Media Matters for America
[The New York Times, 8/22/11] NYT: Justice Investigating Whether S&P "Improperly Rated Dozens Of Mortgage Securities In The Years Leading Up To The Financial Crisis." The New York Times reported on August 17 that the Justice Department "is ...
While The Anatomy of US Public Debt continues to Cripple the American Economy ...
San Francisco Chronicle (press release)
For most Americans, the economic and financial crisis is quite real. Personal Bankruptcies, Small Business Failures and the seemingly unending collapse of Residential Real Estate Markets continue to expose fundamental weaknesses in the US Economy. ...
23/08/2011US alleges Deutsche Bank knew of mortgage fraud
Expatica Germany
Germany's Deutsche Bank was aware of fraud being committed by a US subsidiary that issued thousands of bad mortgages before the 2008 financial crisis, US prosecutors have alleged. The US Department of Justice detailed the allegations in an amended ...
FDIC: Number of problem banks fell to 865 in Q2
The Associated Press
Still, large banks are less profitable than they were before the 2008 financial crisis. As a result, many are shrinking their staffs. Swiss bank UBS AG said Tuesday that it is cutting 3500 jobs worldwide as part of an effort to save 2 billion Swiss ...
France's Sarkozy to discuss crisis with China's Hu
Reuters India
[ID: nW1E7J801V] The French leader may sound out Hu on the possibility that the G20 - which played a vital role in coordinating stimulus efforts at the height of the financial crisis - take further action. Sarkozy will likely also push his own agenda ...
USPS Deficit: Five Problems Plaguing America's Postal Service
International Business Times
... and slashing service will not solve (USPS's) financial crisis." Still, something must be done. Either Congress must take over the payment or allow the postal service to manage benefits or else the USPS will default. 3) Too many costly retail units. ...
Gold, Stocks Take Separate Paths
Wall Street Journal
Investors need to safeguard the wealth that has survived the volatile swings since the financial crisis, and gold appears to be a safe place to park cash. "The dynamics hinge on market confidence, and that's favoring gold," Ms. Cooper said. ...

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