“Today Mayo writes his analyses for the Asian brokerage group CLSA and they still read like reports from a crisis zone.” Mayo, a lending expert, is writing about today. Before the big crash in 2008 he was writing about it too. Only then he got fired a couple of times for doing it. How was [...]
Since the 2008 financial crisis, economists around the world have been saying that stronger economic growth is just around the corner. As of yet, however, it has failed to materialise.
In August, Stanley Fischer, vice chair of the US Federal Reserve, laid out the predicament that forecasters have faced: “The global recovery has been disappointing”.
Recent reports from the International Monetary Fund have shaken the financial world as crisis rhetoric is moving from whispers to shouts. But are we really headed towards a repeat of 2008? Given the lack of understanding as to the true reasoning behind the most recent crash, it is hard to gauge whether we are headed [...]
“And Wolf’s intellectual evolution leaves him deeply concerned about the consequences of financial globalization.”
It is time for the 2014 Globie—a (somewhat fictitious) prize I award once a year to a book that deserves recognition for its treatment of the consequences of globalization. (Previous winners can be found here.) The [...]
Economists concerned over rapidly rising corporate debt levels in China are sounding the alarm, warning that major changes are needed to avoid an increase in “zombie” banks and firms.
After expanding at a lightning-fast rate, China’s corporate debt market is now the world’s largest at $14.2 trillion, according to Standard and Poor’s.
Experts worry that [...]
The Washington-based IMF said that more than half a decade in which official borrowing costs have been close to zero had encouraged speculation rather than the hoped-for pick up in investment.
In its half-yearly global financial stability report, it said the risks to stability no longer came from the traditional banks but from the so-called [...]
The UK and US economies may be on the mend at last, but that’s not the pattern elsewhere. On a global level, growth is being steadily drowned under a rising tide of debt, threatening renewed financial crisis, a continued squeeze to living standards, and eventual mass default.
I exaggerate only a little in depicting this [...]
“Unfortunately, no one had considered what problems this connectivity might cause if things went wrong.”
In June 1914, Archduke Franz Ferdinand was shot in Sarajevo by Serbian nationalist Gavrilo Princip. In London, markets barely registered the event. It was only a month later when Austria delivered an ultimatum to Serbia that investors woke up to [...]
Nothing has been learnt from the madness of the 1929 stock market crash as once again traders reach for record amounts of debt to pile into rising share prices.
The level of margin debt that traders are using to buy shares in the stock market reached the highest levels on record, according the latest data [...]
The world’s third-biggest economy is teetering on the brink of disaster. The most recent quarterly results showed shrinkage in Japan’s economy by an annualized 6.8% from April through June. Although the Bank of Japan has predicted a rebound in the next quarter, many economists are even more pessimistic than Jean-Pierre Lehmann. They predict a crash [...]