Financial crises feature bank panics and failures and large credit and asset losses — loan defaults and stock market collapses. The new Reinhart-Rogoff study examines 100 financial crises in more than three dozen countries since 1857. The findings are stark:
• The average decline in economic output in these crises was a staggering 12 [...]
Stock market bubbles of historic proportions are developing in the US and UK markets. With policymakers unwilling to introduce tough regulation, we’re heading for trouble
According to the stock market, the UK economy is in a boom. Not just any old boom, but a historic one. On 28 October 2013, the FTSE 100 index hit 6,734, breaching [...]
“The repo market wasn’t just a part of the meltdown. It was the meltdown.”
—David Weidner, Wall Street Journal, May 29, 2013.
Ask your average guy-on-the-street ‘what caused the financial crisis’, and you’ll either get a blank stare followed by a shrug of the shoulders or a brusque, three-word answer: “The housing bubble”. Even [...]
The scars are still raw five years after one of the worst financial crises in modern memory came to an end. Ever since the Dow Jones Industrial Average (DJINDICES: ^DJI) bottomed out in 2009, investors have been bombarded by warnings and predictions of imminent collapse from every corner of the punditsphere, and millions have listened, [...]
The project to impose political union is bringing economic ruin, making the legitimacy of the EU project ever more vulnerable
On the face of it, they seem worlds apart. Switzerland’s referendum vote against the free movement of labour, the ruling by the German Constitutional Court on the European Central Bank’s (ECB) attempts to save the [...]
In recent weeks, we’ve seen a rout in emerging markets as investors have been pulling out of stocks, bonds, and currencies in these regions.
Many EM countries rely heavily on external financing to balance their accounts. As the Federal Reserve tapers its quantitative easing program and makes steps towards tightening monetary policy, experts [...]
The growing problems in the Chinese banking system could spill over into a wider financial crisis, one of the most respected analysts of China’s lenders has warned.
Charlene Chu, a former senior analyst at Fitch in Beijing and now the head of Asian research at Autonomous Research, said the rapid expansion of foreign-currency borrowing meant [...]
Nervous financial markets, ineffectual interest rate increases, emerging market currencies under massive pressure: All because the US Federal Reserve reversed its monetary policy – or is that really the explanation?
The key reason for the current turmoil, he said, is the decision by the US Federal Reserve to cut its domestic bond purchases, a [...]
The simmering crisis in emerging markets has spread to Eastern Europe, forcing Russia and Romania to defend their currencies against capital flight and triggering a sharp rise in Hungary’s borrowing costs.
The Russian central bank vowed “unlimited” intervention to defend the rouble after it fell to a record low against a basket of currencies.
Is China about to have its own Bear Stearns moment? I have been thinking a lot about this after reading a smart report released today by BofA Merrill Lynch Chinese economist Bin Gao, which looks at the recent debt restructuring at the China Credit Trust Co., a major Chinese financial institution. Just a [...]