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 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 [...]
Queues in the City, banks raising cash in a hurry from the authorities and a rush to obtain gold – sounds like September and October 2008?
No, this was late July and early August 1914. Even before a shot had been fired by a British soldier, markets were gripped by fears of the [...]
Not much has changed in the EU since the financial crisis, the festering economic disaster that has been kept from the headlines as the US Fed and the ECB printed money as fast as they can, is set to make a return to the spotlight.
As many economists including myself have said, printing money just [...]
The mounting diplomatic crisis in the last week of July 1914 triggered a major financial crisis in London, the world’s foremost international centre, and around the world. In fact, it was the City’s gravest-ever financial crisis featuring a comprehensive breakdown of its financial markets. But it is virtually unknown. The reason is straightforward: it is [...]
China and India are at risk of a sudden slowdown as there is no precedent for their high growth rates being sustained. This conclusion, reported in today’s Australian newspaper, is the result of an influential Harvard study by President Barack Obama’s former chief economic adviser Larry Summers and his colleague Lant Pritchett.
The study found [...]
Andy Xie has been warning about the dire consequences of asset bubbles for most of his career. In his latest broadside, about the consequences of the Federal Reserve’s decision to continue quantitative easing, he has raised the volume on his megaphone.
The former Morgan Stanley economist reckons the global flow of hot money into [...]
“Get ready for some scary reading”
Come mid-October, the United States will have only $30 billion of cash on hand. On any given day, its net payments can reach as high as $60 billion. That means that unless Congress raises the debt ceiling, allowing the Treasury to issue new debt, the United States [...]
In other words, the very asset that most people believed led to the credit crisis is also the asset that is pretty much exempt from the new rules! Classic.
On the list of cures for the sick financial system, the concept of “risk retention” ranks right behind capital — but there are a couple of [...]
This is a warning that the entire global economy should take seriously. Not just other emerging markets.
… I argued further that the long prevalence of extremely low interest rates is likely to be creating the conditions for a serious financial crisis; all the economic activities that are profitable due to low rates will [...]