If you were to consider all of the financial crises we’ve witnessed throughout our recent history–each with its own unique causes and contexts–one consistent feature emerges: they’re cyclical.
If you were to consider all of the financial crises we’ve witnessed throughout our recent history–each with its own unique causes and contexts–one consistent feature emerges: they’re cyclical.
Systemic Risk in Banking : Systemic risk is the possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy.
odd-Frank and Basel III Post-Financial Crisis Developments and New Expectations in Regulatory Capital. Following the recent global financial crisis of 2009, financial regulators have responded with arrays of proposals to revise existing risk frameworks for financial institutions with the objective to further strengthen and improve upon bank models. In this meeting, Dr. Michael Jacobs will discuss new developments and expectations in regulatory capital with particular reference to the definition of the capital base, counterparty credit risk, procyclicality of capital, liquidity risk management, and sound compensation practices. He will also explain the implications of the Frank-Dodd rule for financial institutions and will conclude by presenting the implementation schedule for Basel III.
Liquidity Risk Reporting, Measurement and Managementaseemelahi
The objective of this paper is to demonstrate an implementation model for LCR reporting requirements with descriptions, their respective calculations, and caps and haircuts applied to each source of funding and use of liquidity in arriving at the ratio.
One of the biggest drawbacks in the subprime crisis was a wrong fit of risk measurements and tools to the firm’s portfolio allocation strategies.1 Crouhy (2009) and Stulz (2009) among others point out what went wrong in the risk management practices during the current and other recent financial crisis:
(a) Inadequate use of risk metrics. Daily VaR (Value at Risk) is widely used in financial institutions to assess the trading activities risk. However, VaR measures the minimum worst loss expected (at 99% or 95% confidence level, depending on the distribution used) and not the expected worst loss (Stulz, 2009). Furthermore, VaR does not tell us anything about distribution of the losses BEYOND the minimum worst loss and even worse, it is not sure whether VaR can capture low probability catastrophic events.
An enormous effort has gone into banking and financial regulatory reform following the recent financial crisis. This presentation is an attempt to:
Describe some key open questions about the relation among stability, growth, and regulatory reform.
Raise some concerns about overemphasis on some instruments and under emphasize on others in the ongoing reform process.
CASE STUDY CAPITALISM This case views the global, capitalistMaximaSheffield592
CASE STUDY CAPITALISM
This case views the global, capitalist economic system through the prism of the 2007–2008 financial crisis (referred to here as the
Financial Crisis). More than a decade later, what more do we now know? How did the crisis emerge, and what were its consequences
(short- and long-term)? What challenges does it present for capitalism today? What was the role of social responsibility? And
perhaps most importantly, what changes does a strategic CSR perspective suggest moving forward?
THE FINANCIAL CRISIS
In many ways, the dramatic economic events that began toward the end of 20071 (widely reported as “the most serious financial
crisis since the Great Crash of 1929”2 or the “Great Recession”3) brought into focus the comprehensive nature of CSR. From
individual greed and the abdication of responsibility to organizational fraud and the mismanagement of resources, to governmental
failure to monitor and adequately regulate the financial system, the crisis emphasized the many interlocking factors that make CSR so
complex. At the same time, and with the benefit of hindsight, these events demonstrate how straightforward CSR can be. At its
simplest, CSR is not rocket science. It is often common sense, combined with an enlightened approach to management and decision
making. To look back at some of the decisions that contributed to the economic crisis and try to rationalize why they were made,
however, represents an exercise in exasperation:
What do you call giving a worker who makes only $14,000 a year a nothing-down and nothing-to-pay-for-twoyears
mortgage to buy a $750,000 home, and then bundling that mortgage with 100 others into bonds—which
Moody’s or Standard & Poor’s rate[s] AAA—and then selling them to banks and pension funds the world over?4
Essentially, the crisis resulted from the cumulative effects of multiple bad decisions by many individuals who had lost their sense of perspective.5 What was amazing
at the time was “how so many people could be so stupid . . . and self-destructive all at once”
6
to produce “a near total breakdown of responsibility at every link in our financial chain.”7 The scale of
At the height of the boom, the subprime mortgage industry in the United States had clearly lost all sense of proportion. The result
was higher default rates and, as a consequence, higher rates of home repossessions:
Between 2005 and 2007, which was the peak of sub-prime lending, the top 25 subprime originators made almost
$1,000bn in loans to more than 5m borrowers, many of whom have [since] had their homes repossessed.10
The industry as a whole experienced all the signs of a bubble, the aftermath of which generated dramatic headlines such as “Sex,
Lies, and Mortgage Deals.”11 As a society, we should have picked this up earlier and acted to diffuse it. As such, the Financial Crisis
highlights the central role of CSR in today’s global business environment. It is a lens through which excesses ...
If you were to consider all of the financial crises we’ve witnessed throughout our recent history–each with its own unique causes and contexts–one consistent feature emerges: they’re cyclical.
Systemic Risk in Banking : Systemic risk is the possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy.
odd-Frank and Basel III Post-Financial Crisis Developments and New Expectations in Regulatory Capital. Following the recent global financial crisis of 2009, financial regulators have responded with arrays of proposals to revise existing risk frameworks for financial institutions with the objective to further strengthen and improve upon bank models. In this meeting, Dr. Michael Jacobs will discuss new developments and expectations in regulatory capital with particular reference to the definition of the capital base, counterparty credit risk, procyclicality of capital, liquidity risk management, and sound compensation practices. He will also explain the implications of the Frank-Dodd rule for financial institutions and will conclude by presenting the implementation schedule for Basel III.
Liquidity Risk Reporting, Measurement and Managementaseemelahi
The objective of this paper is to demonstrate an implementation model for LCR reporting requirements with descriptions, their respective calculations, and caps and haircuts applied to each source of funding and use of liquidity in arriving at the ratio.
One of the biggest drawbacks in the subprime crisis was a wrong fit of risk measurements and tools to the firm’s portfolio allocation strategies.1 Crouhy (2009) and Stulz (2009) among others point out what went wrong in the risk management practices during the current and other recent financial crisis:
(a) Inadequate use of risk metrics. Daily VaR (Value at Risk) is widely used in financial institutions to assess the trading activities risk. However, VaR measures the minimum worst loss expected (at 99% or 95% confidence level, depending on the distribution used) and not the expected worst loss (Stulz, 2009). Furthermore, VaR does not tell us anything about distribution of the losses BEYOND the minimum worst loss and even worse, it is not sure whether VaR can capture low probability catastrophic events.
An enormous effort has gone into banking and financial regulatory reform following the recent financial crisis. This presentation is an attempt to:
Describe some key open questions about the relation among stability, growth, and regulatory reform.
Raise some concerns about overemphasis on some instruments and under emphasize on others in the ongoing reform process.
CASE STUDY CAPITALISM This case views the global, capitalistMaximaSheffield592
CASE STUDY CAPITALISM
This case views the global, capitalist economic system through the prism of the 2007–2008 financial crisis (referred to here as the
Financial Crisis). More than a decade later, what more do we now know? How did the crisis emerge, and what were its consequences
(short- and long-term)? What challenges does it present for capitalism today? What was the role of social responsibility? And
perhaps most importantly, what changes does a strategic CSR perspective suggest moving forward?
THE FINANCIAL CRISIS
In many ways, the dramatic economic events that began toward the end of 20071 (widely reported as “the most serious financial
crisis since the Great Crash of 1929”2 or the “Great Recession”3) brought into focus the comprehensive nature of CSR. From
individual greed and the abdication of responsibility to organizational fraud and the mismanagement of resources, to governmental
failure to monitor and adequately regulate the financial system, the crisis emphasized the many interlocking factors that make CSR so
complex. At the same time, and with the benefit of hindsight, these events demonstrate how straightforward CSR can be. At its
simplest, CSR is not rocket science. It is often common sense, combined with an enlightened approach to management and decision
making. To look back at some of the decisions that contributed to the economic crisis and try to rationalize why they were made,
however, represents an exercise in exasperation:
What do you call giving a worker who makes only $14,000 a year a nothing-down and nothing-to-pay-for-twoyears
mortgage to buy a $750,000 home, and then bundling that mortgage with 100 others into bonds—which
Moody’s or Standard & Poor’s rate[s] AAA—and then selling them to banks and pension funds the world over?4
Essentially, the crisis resulted from the cumulative effects of multiple bad decisions by many individuals who had lost their sense of perspective.5 What was amazing
at the time was “how so many people could be so stupid . . . and self-destructive all at once”
6
to produce “a near total breakdown of responsibility at every link in our financial chain.”7 The scale of
At the height of the boom, the subprime mortgage industry in the United States had clearly lost all sense of proportion. The result
was higher default rates and, as a consequence, higher rates of home repossessions:
Between 2005 and 2007, which was the peak of sub-prime lending, the top 25 subprime originators made almost
$1,000bn in loans to more than 5m borrowers, many of whom have [since] had their homes repossessed.10
The industry as a whole experienced all the signs of a bubble, the aftermath of which generated dramatic headlines such as “Sex,
Lies, and Mortgage Deals.”11 As a society, we should have picked this up earlier and acted to diffuse it. As such, the Financial Crisis
highlights the central role of CSR in today’s global business environment. It is a lens through which excesses ...
This is a free e-book from the London School of Economics. It includes several stand alone chapters. Each one of them is written by a different expert or professor. The main underlying topics include how to manage and prevent future financial crisis. And, what would be the best financial regulatory framework to do just that.
AnsAns I am going to focus my remarks today on what is popularly.pdfankkitextailes
Ans:
Ans: I am going to focus my remarks today on what is popularly known as the “too big to fail”
(TBTF) problem. In particular, should society tolerate a financial system in which certain
financial institutions are deemed to be too big to fail? And, if not, then what should we do about
it?
The answer to the first question is clearly “no.” We cannot tolerate a financial system in which
some firms are too big to fail—at least not ones that operate in any form other than that of a very
tightly regulated utility.
The second question is the more interesting one. Is the current approach of the official sector to
ending TBTF the right one? I’d characterize this approach as reducing the incentives for firms to
operate with a large systemic footprint, reducing the likelihood of them failing, and lowering the
cost to society when they do fail. Or would it be better to take the more direct, but less nuanced
approach advocated by some and simply break up the most systemically important firms into
smaller or simpler pieces in the hope that what emerges is no longer systemic and too big to fail?
What Is the Too-Big-to-Fail Problem?
The root cause of “too big to fail’ is the fact that in our financial system as it exists today, the
failure of large complex financial firms generate large, undesirable externalities. These include
disruption of the stability of the financial system and its ability to provide credit and other
essential financial services to households and businesses. When this happens, not only is the
financial sector disrupted, but its troubles cascade over into the real economy.
There are negative externalities associated with the failure of any financial firm, but these are
disproportionately high in the case of large, complex and interconnected firms. Although the
moniker is “too big to fail,” the magnitude of these externalities does not depend simply on size.
The size of the externalities also depends on the particular mix of business activities and the
degree of interconnectedness with the rest of the financial industry. One important element is the
importance of the services the firm provides to the broader financial system and the economy
and the ease with which customers can move their business to other providers. Another is the
extent to which the firm’s structure and activities create the potential for contagion—that is,
direct losses for counterparties, fire sales of assets held by other leveraged financial institutions,
or loss of confidence that might precipitate runs on other firms with similar business models.
The presence of large negative externalities creates a dilemma for policymakers when such firms
are in danger of failing, particularly if the wider financial system is also under stress at the same
moment. At that point in time, the expected costs to society of failure are very large compared to
the short-run costs from providing the extraordinary liquidity support, capital or other emergency
assistance necessary to pre.
Join CMT Level 1, 2 & 3 Program Courses & become a professional Technical Analyst, CMT USA Best COACHING CLASSES. CMT Institute Live Classes by Expert Faculty. Exams are available in India. Best Career in Financial Market.
https://www.ptaindia.com/chartered-market-technician/
31 August 2011--US Banking Sector Report 2011EconReport
The US dollar is falling in value as its debts increase, expenditures increase, and the
Federal Reserve so-called Quantitative Easing (QE) experiments only prove to further punish the
survivors of the so-called World Financial Crisis/Credit Crunch with the inability to preserve and
grow hard-won capital. The main cause of the dollars decline is the “blatant disrespect” of the
natural inverse relationship between the value and the interest-rate of bonds—which is a debt
issue—as all fiat bills are. Inflation began on 25 March 2009 when the US central bank decided
to “buy” at least US $100B worth of Treasury bonds.
PAGE 280APPLYING THE CONCEPTTRUTH OR CONSEQUENCES PONZI SCHEM.docxsmile790243
PAGE 280
APPLYING THE CONCEPT
TRUTH OR CONSEQUENCES: PONZI SCHEMES AND OTHER FRAUDS
In the financial world, you always have to be on the lookout for crooks. Fraud is the most extreme version of moral hazard, and it is remarkably common.
The term Ponzi scheme has its origins in a 1920 scam run by serial con artist Charles Ponzi. Promising a 50 percent profit within 45 days, he swindled unsuspecting investors out of something like $250 million in 2014 dollars. Ponzi never invested their money. Instead, he paid off early investors handsomely with the money he obtained from subsequent investors.
Financial laws are now far more elaborate than in Ponzi’s day, and governments spend much more to enforce them, but frauds persist.
Bernie Madoff is the leading recent example. For decades, Madoff was a respected member of the investment community and able to escape detection. In the same manner as Ponzi, Madoff was redeeming requests for funds with the money he collected from more recent investors. Madoff’s con, which may have begun as early as the 1970s, failed only when the financial crisis of 2007–2009 depleted his funds, making it impossible for him to pay off the final cohort of wealthy, sophisticated—yet apparently quite gullible—investors and financial firms. The Madoff scandal dwarfed Ponzi’s racket: at the time the scheme blew up, the losses were estimated at $17.5 billion, and extensive efforts at recovery have put final losses in the neighborhood of $7 billion.
Unfortunately, in a complex financial system, the possibilities for fraud are widespread. Most cases are smaller and more mundane than those of Madoff or Ponzi, but their cumulative size is significant. One source devoted to tracking just Ponzi-type frauds in the United States listed 70 schemes worth an estimated $2.2 billion in 2014 alone.*
We aren’t going to get rid of Ponzi schemes and other frauds (see In the Blog: Conflicts of Interest in Finance). But the mission of ferreting them out and prosecuting those responsible is essential. A well-functioning financial system is based on trust. That is, when we make a bank deposit or purchase a share of stock or a bond, we need to believe that the terms of the agreement are being accurately represented and will be carried out. Economies where property rights are weak and enforcement is unreliable also usually supply less credit to worthy endeavors. That means lower production, lower income, and lower welfare.
imagesIN THE BLOG
Conflicts of Interest in Finance
Financial corruption exposed in the years since the financial crisis is breathtaking in its scale, scope, and resistance to remedy. Traders colluded to rig the foreign exchange (FX) market, where daily transactions exceed $5 trillion, and to manipulate LIBOR, the world’s leading interest rate benchmark (see Chapter 13, Applying the Concept: Reforming LIBOR). Firms have facilitated tax evasion and money laundering. And Bernie Madoff engineered what was arguably the largest Ponzi.
Covid19 Pandemic: Looming Global Recession and Impact on BangladeshMd. Tanzirul Amin
The following article was written by me, and was published in the Economic Trends section of the Keystone Quarterly Review (Volume-30) on July 30, 2020: https://lnkd.in/g9nGxzn
The article covers the effects of the Covid-19 Pandemic in the world economics, and the resulting impacts on the Bangladeshi economy. Various other economic aspects are covered, along with the alarming signs/symptoms of another "Great Global Recession".
Financial Crisis is a situation which leads to complete turmoil in a.pdfanushafashions
Financial Crisis is a situation which leads to complete turmoil in an economy. The consequences
of the turmoil vary depending on whether the economy is an advanced economy or an emerging
market economy. However it should be borne in mind that in a globalized world it is rather
impossible for anyone to become unscathable from a turmoil even if it does not occur in one\'s
own economy. The ripply effect is definitely there howevery small it may be.
While the basic flow of financial crisis is the same in an advanced economy versus an emerging
economy we\'ll drill down on the basics:
1. Stages of Financial Crisis in an advanced economy:
The financial crisis is basically initiated when there is an excess of something and it goes
completely out of control. Consider the 2008 US sub-prime crisis. There were financial products
which were sold to everybody visible. These led to deterioration of the financials of the company
selling them. These companies took on an unsurmountable amount of risk and they even thought
about keeping on betting in the hope that all will be bullish. But as is with every thing. what goes
up must come down. There is a deterioration in the finances of financial institutions. There is an
increase in uncertainty. Asset prices decline massively. The problem of moral hazard comes to
the fore. Economic activity declines. There is again the same moral hazard issue. All the bubbles
of asset price reach their doomsday and there is zero visibility as to how the economy would
recover.
There is complete uncertainty in term of employment. There is large unemployment. People
have no trust in the banking system. All they want if their money back. The US government now
wanted to bail out the enstranged banks by using taxpayers money. FII\'s sell all their
investments in such country. This leads to massive slide in stock markets. People lose trillions of
dollars in their trade. The complete economy is in doldrums. There is nothing that they do. The
entire financial system comes to a screeching halt.
Once the damage has been done it takes years and a lot of Quantitative easing programmes to
propel the economy back on track. This means pumping in excess liquidity to bring banks back
in the system. Bailing out banks. Once economic activity picks up all the rock bottom asset
prices would start picking up. This would take a few years. The economy returns on track and
then the boom period starts again.
Stages of Financial Crisis in an Emerging economy:
While there are no major differences between the financial crisis stages explained for the
Advanced economy and that for the Emerging Economy, there are only a few important points to
note.
The major difference is that a crisis in emerging markets leads to the currency of that country
suffer big time against the US Dollar. This is because it loses its value relative to the dollar. The
country would take a long time to bring back the value of the currency. This would mean
pumping in excess liquidity and.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
More Related Content
Similar to Financial Crises Are Naturally Recurring and Inevitable – Here’s Why
This is a free e-book from the London School of Economics. It includes several stand alone chapters. Each one of them is written by a different expert or professor. The main underlying topics include how to manage and prevent future financial crisis. And, what would be the best financial regulatory framework to do just that.
AnsAns I am going to focus my remarks today on what is popularly.pdfankkitextailes
Ans:
Ans: I am going to focus my remarks today on what is popularly known as the “too big to fail”
(TBTF) problem. In particular, should society tolerate a financial system in which certain
financial institutions are deemed to be too big to fail? And, if not, then what should we do about
it?
The answer to the first question is clearly “no.” We cannot tolerate a financial system in which
some firms are too big to fail—at least not ones that operate in any form other than that of a very
tightly regulated utility.
The second question is the more interesting one. Is the current approach of the official sector to
ending TBTF the right one? I’d characterize this approach as reducing the incentives for firms to
operate with a large systemic footprint, reducing the likelihood of them failing, and lowering the
cost to society when they do fail. Or would it be better to take the more direct, but less nuanced
approach advocated by some and simply break up the most systemically important firms into
smaller or simpler pieces in the hope that what emerges is no longer systemic and too big to fail?
What Is the Too-Big-to-Fail Problem?
The root cause of “too big to fail’ is the fact that in our financial system as it exists today, the
failure of large complex financial firms generate large, undesirable externalities. These include
disruption of the stability of the financial system and its ability to provide credit and other
essential financial services to households and businesses. When this happens, not only is the
financial sector disrupted, but its troubles cascade over into the real economy.
There are negative externalities associated with the failure of any financial firm, but these are
disproportionately high in the case of large, complex and interconnected firms. Although the
moniker is “too big to fail,” the magnitude of these externalities does not depend simply on size.
The size of the externalities also depends on the particular mix of business activities and the
degree of interconnectedness with the rest of the financial industry. One important element is the
importance of the services the firm provides to the broader financial system and the economy
and the ease with which customers can move their business to other providers. Another is the
extent to which the firm’s structure and activities create the potential for contagion—that is,
direct losses for counterparties, fire sales of assets held by other leveraged financial institutions,
or loss of confidence that might precipitate runs on other firms with similar business models.
The presence of large negative externalities creates a dilemma for policymakers when such firms
are in danger of failing, particularly if the wider financial system is also under stress at the same
moment. At that point in time, the expected costs to society of failure are very large compared to
the short-run costs from providing the extraordinary liquidity support, capital or other emergency
assistance necessary to pre.
Join CMT Level 1, 2 & 3 Program Courses & become a professional Technical Analyst, CMT USA Best COACHING CLASSES. CMT Institute Live Classes by Expert Faculty. Exams are available in India. Best Career in Financial Market.
https://www.ptaindia.com/chartered-market-technician/
31 August 2011--US Banking Sector Report 2011EconReport
The US dollar is falling in value as its debts increase, expenditures increase, and the
Federal Reserve so-called Quantitative Easing (QE) experiments only prove to further punish the
survivors of the so-called World Financial Crisis/Credit Crunch with the inability to preserve and
grow hard-won capital. The main cause of the dollars decline is the “blatant disrespect” of the
natural inverse relationship between the value and the interest-rate of bonds—which is a debt
issue—as all fiat bills are. Inflation began on 25 March 2009 when the US central bank decided
to “buy” at least US $100B worth of Treasury bonds.
PAGE 280APPLYING THE CONCEPTTRUTH OR CONSEQUENCES PONZI SCHEM.docxsmile790243
PAGE 280
APPLYING THE CONCEPT
TRUTH OR CONSEQUENCES: PONZI SCHEMES AND OTHER FRAUDS
In the financial world, you always have to be on the lookout for crooks. Fraud is the most extreme version of moral hazard, and it is remarkably common.
The term Ponzi scheme has its origins in a 1920 scam run by serial con artist Charles Ponzi. Promising a 50 percent profit within 45 days, he swindled unsuspecting investors out of something like $250 million in 2014 dollars. Ponzi never invested their money. Instead, he paid off early investors handsomely with the money he obtained from subsequent investors.
Financial laws are now far more elaborate than in Ponzi’s day, and governments spend much more to enforce them, but frauds persist.
Bernie Madoff is the leading recent example. For decades, Madoff was a respected member of the investment community and able to escape detection. In the same manner as Ponzi, Madoff was redeeming requests for funds with the money he collected from more recent investors. Madoff’s con, which may have begun as early as the 1970s, failed only when the financial crisis of 2007–2009 depleted his funds, making it impossible for him to pay off the final cohort of wealthy, sophisticated—yet apparently quite gullible—investors and financial firms. The Madoff scandal dwarfed Ponzi’s racket: at the time the scheme blew up, the losses were estimated at $17.5 billion, and extensive efforts at recovery have put final losses in the neighborhood of $7 billion.
Unfortunately, in a complex financial system, the possibilities for fraud are widespread. Most cases are smaller and more mundane than those of Madoff or Ponzi, but their cumulative size is significant. One source devoted to tracking just Ponzi-type frauds in the United States listed 70 schemes worth an estimated $2.2 billion in 2014 alone.*
We aren’t going to get rid of Ponzi schemes and other frauds (see In the Blog: Conflicts of Interest in Finance). But the mission of ferreting them out and prosecuting those responsible is essential. A well-functioning financial system is based on trust. That is, when we make a bank deposit or purchase a share of stock or a bond, we need to believe that the terms of the agreement are being accurately represented and will be carried out. Economies where property rights are weak and enforcement is unreliable also usually supply less credit to worthy endeavors. That means lower production, lower income, and lower welfare.
imagesIN THE BLOG
Conflicts of Interest in Finance
Financial corruption exposed in the years since the financial crisis is breathtaking in its scale, scope, and resistance to remedy. Traders colluded to rig the foreign exchange (FX) market, where daily transactions exceed $5 trillion, and to manipulate LIBOR, the world’s leading interest rate benchmark (see Chapter 13, Applying the Concept: Reforming LIBOR). Firms have facilitated tax evasion and money laundering. And Bernie Madoff engineered what was arguably the largest Ponzi.
Covid19 Pandemic: Looming Global Recession and Impact on BangladeshMd. Tanzirul Amin
The following article was written by me, and was published in the Economic Trends section of the Keystone Quarterly Review (Volume-30) on July 30, 2020: https://lnkd.in/g9nGxzn
The article covers the effects of the Covid-19 Pandemic in the world economics, and the resulting impacts on the Bangladeshi economy. Various other economic aspects are covered, along with the alarming signs/symptoms of another "Great Global Recession".
Financial Crisis is a situation which leads to complete turmoil in a.pdfanushafashions
Financial Crisis is a situation which leads to complete turmoil in an economy. The consequences
of the turmoil vary depending on whether the economy is an advanced economy or an emerging
market economy. However it should be borne in mind that in a globalized world it is rather
impossible for anyone to become unscathable from a turmoil even if it does not occur in one\'s
own economy. The ripply effect is definitely there howevery small it may be.
While the basic flow of financial crisis is the same in an advanced economy versus an emerging
economy we\'ll drill down on the basics:
1. Stages of Financial Crisis in an advanced economy:
The financial crisis is basically initiated when there is an excess of something and it goes
completely out of control. Consider the 2008 US sub-prime crisis. There were financial products
which were sold to everybody visible. These led to deterioration of the financials of the company
selling them. These companies took on an unsurmountable amount of risk and they even thought
about keeping on betting in the hope that all will be bullish. But as is with every thing. what goes
up must come down. There is a deterioration in the finances of financial institutions. There is an
increase in uncertainty. Asset prices decline massively. The problem of moral hazard comes to
the fore. Economic activity declines. There is again the same moral hazard issue. All the bubbles
of asset price reach their doomsday and there is zero visibility as to how the economy would
recover.
There is complete uncertainty in term of employment. There is large unemployment. People
have no trust in the banking system. All they want if their money back. The US government now
wanted to bail out the enstranged banks by using taxpayers money. FII\'s sell all their
investments in such country. This leads to massive slide in stock markets. People lose trillions of
dollars in their trade. The complete economy is in doldrums. There is nothing that they do. The
entire financial system comes to a screeching halt.
Once the damage has been done it takes years and a lot of Quantitative easing programmes to
propel the economy back on track. This means pumping in excess liquidity to bring banks back
in the system. Bailing out banks. Once economic activity picks up all the rock bottom asset
prices would start picking up. This would take a few years. The economy returns on track and
then the boom period starts again.
Stages of Financial Crisis in an Emerging economy:
While there are no major differences between the financial crisis stages explained for the
Advanced economy and that for the Emerging Economy, there are only a few important points to
note.
The major difference is that a crisis in emerging markets leads to the currency of that country
suffer big time against the US Dollar. This is because it loses its value relative to the dollar. The
country would take a long time to bring back the value of the currency. This would mean
pumping in excess liquidity and.
Similar to Financial Crises Are Naturally Recurring and Inevitable – Here’s Why (19)
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Financial Crises Are Naturally Recurring and Inevitable – Here’s Why
1. Financial Crises Are Naturally Recurring
and Inevitable – Here’s Why
If you were to consider all of the financial crises we’ve witnessed throughout our recent
history–each with its own unique causes and contexts–one consistent feature emerges: they’re
cyclical.
We take as a given the boom and bust of the business cycle, the expansion following the
recession, and the bull emerging victoriously after the bear.
But financial crises have a more incongruous and dissonant ring, as if they intrude upon the
“natural” cycle of things, disrupting the normalcy of economic convention.
Financial crises smack of concealed dealings. Reckless wagers. Hidden malinvestments. And
always…the ensuing blow-up fueled by greed as the accelerant.
And what happens next? The responsible parties escape accountability with a fat bonus, a
golden parachute, or another lucrative job offer.
Financial crises are spurred on by a behavioral narrative that virtually guarantees the repeat
performance of what appears as a comic tragedy :
Act I: Lax oversight and loss of banking regulations lead to economic fragilities.
Act II: Severe financial crisis ensues, followed by finger-pointing, and reform via regulations.
Act III: A widespread “forgetting” takes place as markets rise; a myopic view that leads to lax
oversight and looser banking regulations (Act I).
The cycle repeats itself.
Right now, we’re transitioning out of the third act to the top of the cycle, as the conditions for lax
oversight and looser banking regulations are slowly creeping up:
● Earlier this month, the Fed decided to forego raising the capital buffer required of banks
above its current level of zero.
● The Fed has also begun relaxing its stress test standard for US banks (though they are
retaining those standards for foreign institutions).
● And the Financial Stability Oversight Council recently removed Prudential, its last
insurer, from the Too-Big-to-Fail (TBTF) list.
None of these actions can single-handedly or collectively land a killing blow to the global
financial system.
2. But if anything, these actions reaffirm this cyclical narrative–that upon learning from our
mistakes, we forget those lessons to repeat the mistakes from which we, predictably, can once
again learn and forget.
Click here for more info:
https://escrowconsultinggroup.com/blog/financial-crises-are-naturally-recurring-and-inevitable-h
eres-why/