Tuesday, November 25, 2008
Letter About Service Hours
Cuautla Ashram Images http://www.slide.com/r/s72Rpt5m4z_HqiNJIIpzXc6Vcz4Po9ku?previous_view=mscd_embedded_url&view=original
Tuesday, November 18, 2008
Teak Wood Shower Bench
share teaching contribution Antonio Azpeitia J
Good morning.
I want to share this vast and well-informed comment that my friend and poet J. Economist Azpeitia Antonio sent me for all those wishing to learn more how we live and we are immersed human blessed in the global economy, I do not know if he is the author of this document or not, the important thing is the knowledge that leaves us the person who in one way or another it affects movements economists of any power.
had opened this blog to keep in a bank as things that interest me learning from life itself in which I am immersed, so that's why they call teaching file, because we would file that teach me something. I never imagined they would let me lessons that must be exposed to those who wish to take them. So they share them with pleasure and invite those who want to add something of value to others do so as it did Azpeitia
Well here I leave with him
Azpeitia said:
As is teaching this blog, I have considered this addition interesting ... I hope your comments
CRISIS 2007-2008
1. For years, the interest rates prevailing in international financial markets have been exceptionally low.
2. This has meant that banks have seen the business that made them smaller:
• They gave a low-interest loans
• They paid something for the customer deposits (the deposit is zero if the current account and, moreover, charged Maintenance Committee, paid "unless something")
• But still, the net interest income ("a" minus "b") decreased
3. To someone, then, in America, he decided that banks needed to do two things:
• Give more risky loans, in which they can charge more interest
• compensate the lower margin by increasing the number of operations (1000 x little more than 100 x bit)
4. As for the former (riskier loans), decided:
• Provide a type of mortgage customers, the "ninja" (people without regular income, no fixed employment, no properties)
• charge more interest, because there were more risk
• Use the real estate boom was in the U.S. market
• In addition, full of enthusiasm, decided to grant mortgage loans worth more than the value of the house that he bought the ninja, because, with the said housing boom, the house, in a few months, worth more than the amount given on loan.
• This type of mortgage, they were called "subprime mortgages"
• They are called "prime mortgages" which have little risk of default. On a rating scale between 300 and 850 points, prime mortgages are priced between 850 and 620 points the best the less good.
• They are called "subprime mortgages" which are more likely to default and are priced between 620 and 300 the least good, the bad.
• Furthermore, as the U.S. economy was going well, the now insolvent debtor could find work and pay the debt without problems.
• This approach was well for some years. In those years, the ninja were paying the mortgage terms and also as they had been given more money than her house was worth, had bought a car, had made reform at home and had gone on vacation with family . This, surely, in installments, with the extra money they had collected and, in some cases, which were paid in a botched job or that they had achieved. 5.Primer
comment: I think that, so far, everything is very clear and it is also clear that anyone with common sense, although not a financial expert, you may think that if something fails, the bump may be important.
6. As for the second (increased number of operations):
• Like many banks were giving mortgages, they had the money. The solution was easy: go to foreign banks to lend them money, because something is globalization. Thus, the money that I, this morning, I joined the Central Office Savings Bank of San Quirico Safaja may be that afternoon in Illinois, because there is a bank which my Savings Bank has given my money to lend it to a ninja. Of course, Illinois does not know that the money comes from my people, and I know that my money would be deposited in an institution as I Savings Bank, began to be at some risk. Neither does the Director of the Office of my box, who knows, and presumably that would work in an institution. Neither does the President of the Savings Bank, which is only known to have invested some money of its investors in a major U.S. bank.
7. Second comment: globalization has its advantages but also disadvantages, and its dangers. The people of San Quirico not know they are taking a risk in the U.S. and when she starts reading there Subprime mortgages are given, thinks: "What do these crazy Americans!"
8. In addition, it appears that there are "Basel Standards", which require banks worldwide that have a minimum capital in relation to their assets. To oversimplify, the Balance of the Bank of Illinois is: ASSETS LIABILITIES
Money Money Box it has received from other banks granted credits
Capital Reserves
TOTAL X X million million
The Basel Accords require the Capital of the Bank does not below a certain percentage of assets. Then, if the Bank is asking for money to other banks and giving lots of credit, the percentage of capital on Assets Bank of the low and does not comply with the Guidelines of Basel.
9. You have to invent something new. And that again is called securitization: the Bank of Illinois "packages" of mortgages-prime and subprime-in packages that are called MBS (Mortgage Backed Securities, or obligations secured by mortgages). So, where once had 1,000 mortgages "loose" in the account "Loans granted, now has 10 packs of 100 mortgages each, in which there is everything good (prime) and bad (subprime) and in the Lord's vineyard.
10. The Bank of Illinois quickly sold those 10 packages:
• Where does the money you get for these packages? Va Asset, the account "Cash Money", increasing, decreasing by the same amount the account "Loans granted", so that the share Capital / Loans granted improvement and Bank Balance complies with the Basel Standards.
• Who buys these packages and also buy them quickly so that the Bank of Illnois "clean" their balance immediately? Very good question! Illinois Bank creates affiliated entities, the conduits, which are not companies, but trusts or funds, and therefore are not required to consolidate their balance sheets with the parent bank. That is, suddenly appear on the market two types of entities:
The Bank of Illinois, with a clean face, and the Chicago Trust Corporation (or whatever name you please put it) with the following balance sheet: ASSETS LIABILITIES
The 10 packages of mortgages Capital: what you pay for those packages
11.Tercer Comment: If any person working in the Savings Bank of San Quirico, from President to Director of the Office know anything about this, quickly look for another job. Meanwhile, everyone is talking about expanding their international investments, of which you see I do not have the slightest idea.
12. How are they financed the conduits? In other words, where do they get money to buy the Bank of Illinois mortgage packages? In several places:
• By credit from other banks (Fourth comment: The ball is getting bigger)
• hiring the services of investment banks can sell the MBS to Investment Funds, Venture Capital, Insurance, Financial a family holding companies, etc.. (Fifth comment: Notice that the danger is approaching us, not Spain, but to our family, because as animated by the Director of the office of San Quirico, go and put my money in an investment fund)
• The happens is that to be "financially correct" or MBS conduits had to be well-qualified agencies ratings, which ratings are based on creditworthiness. These ratings say, "This company, in this State, this organization can lend money without risk," or "beware of these other because you risk not being paid."
RATING: Rating of a company or an institution, made by a specialized agency. In Spain, the lead agency in this field is Fitch Ratings.
The levels are:
AAA, the highest AA
A BBB BB
others, but very bad
Overall:
a bank or large usually has a rating of AA
A Bank or medium, a rating A
• The rating agencies gave these ratings or were given other names, more sophisticated, but in the end, say the same thing: They called
: Investment grade MBS representing the prime mortgages, that is, the less risk (the AAA would , AA and A), Mezzanine, the intermediate (I guess maybe the BBB and BB), Equity to poor, high risk, ie the subprime, that in this shed, are the protagonists.
• Investment Banks placed easily the best (investment grade) to conservative investors, and low interest. • Other managers
Funds, Venture Capital, etc., more aggressive. sought, all cost, higher returns, among other reasons because these gentlemen come to the year-end bonus depending on the profitability.
• Problem: How to sell MBS of bad managers latter without being noticed too that they are incurring excessive risk?
• Sixth Review: The plot thickens and, of course, the Savings Bank of San Quirico continue making statements Expansion happy and content, discussing the proper functioning of the economy and Social Work are doing.
• Some investment banks were able, from a re-rating agencies (a re-rating, a word that does not exist, but serves to understand)
• The re-rating was invented to raise the rating of bad MBS, which consists of structuring in sections, which are called tranches, ordering, from highest to lowest, the probability of default and commitment to prioritize the payment to the least bad. Ie
I buy a package of MBS, which tell me that the first three MBS are relatively good, the three seconds, very regular and the three others, frankly bad. This means that I have structured the package of MBS into three tranches: the relatively good, very consistent and very bad.
I agree that if the tranche will not pay very bad (or as they say these gentlemen, if in the wrong section incur in default), but collecting some of the very regular and quite tranche of relatively good, everything will go to pay mortgages relatively good tranche, which automatically, this tranche may be rated AAA. Seventh
comment: in the "Comments IESE Economic Situation, January 2008, I've got most of what I am saying, we call this" financial magic "
• To finish rolling to San Quirico, these sorted MBS tranches were renamed as CDO (collateralized debt obligations, collateralized debt obligations), as they could have taken another exotic name.
Not content with this, the financial wizards created another important product, the CDS (Credit Default Swaps) In this case, the purchaser, who bought the CDO, assuming a risk of default by the CDO would buy charging more interest. So, bought the CDO and said, "if it fails, I lose money. If no failure, plus interest payment. " Following
inventions, created another instrument, the Synthetic CDOs, which have not fully understood, but gave a surprisingly high yield.
Moreover, those who bought the Synthetic CDO could buy very cheap bank loans. The difference between these interests very cheap and high yields of Synthetic operation was extremely profitable.
13. Coming here and hoping that ye not lost too much, I remember one thing that you may have forgotten, given the complexity of the operations described, that everything is based on the ninjas pay their mortgages and the housing market U.S. continues to rise.
14. BUT:
• In early 2007, U.S. home prices plummeted.
• Many of the ninjas realized they were paying more than their home was worth and decided now (or could not) continue to pay their mortgages.
• Automatically, no one wanted to buy MBS, CDO, CDS, Synthetic CDOs and those who already had failed to sell.
• The entire assembly was sinking and one day, the Director of the Office of San Quirico a neighbor called to tell him that good, that the money was gone, or, at best, had lost 60% of its value.
• Eighth comments: Go now to explain to the resident of San Quirico what the ninjas, the Bank of Illinois and the Chicago Trust Corporation. You can not be explained by several reasons: most important, because nobody knows where that money. And when I say nobody, I mean ANYONE.
• But things go further. Because no one-not-know the crap they have in banks that bought mortgage packages, and nobody knows, Banks begin to not trust each other.
• As they do not trust, when they need money and go to the interbank market, where banks lend money to each other, or lend it or lend it expensive. The interest that banks lend money in the interbank Euribor (Europe Interbank Offered Rate, or Interest rate offered on the interbank market in Europe), a rate which, as you can see in the term to 3 months EURIBOR this Dictionary, has gone up (now beginning to fall.)
• Therefore, the banks now have no money. Consequences: i.
noncredit ii. They do not give mortgages, so that Astroc, Renta Corporation, Colonial, etc., I start to go terribly wrong. And shareholders who bought shares in these companies, they see that the prices of these companies are falling sharply.
iii. The 12-month Euribor, which is the benchmark for mortgages has been rising, which makes the average English mortgage you have, start to sweat to pay monthly fees.
iv. As the banks have no money,
1. Sell \u200b\u200btheir holdings in
2. Sell \u200b\u200btheir buildings
3. Metamos campaigning for money, offering better
v. As people begin to feel squeezed by the mortgage payment, unless the Court is English.
vi. As the English Court notices, purchase least Mataró socks manufacturer, nor the ninja knew existed.
vii. The sock manufacturer thinks that as sold under socks, he begins to staffing and fire a few.
viii. And this is reflected in the unemployment rate, mainly in Mataró, where people start buying less in stores.
15. This is a dictionary of words. What happens is that the word "Crisis 2007-2008" is very serious. The title is misleading, considering that the crisis will end in 2008. Now comes another question: "How long will this last?
16. Well, good question, too. very difficult to answer, for several reasons:
• Because it still does not know the extent of the problem (the numbers vary from 100,000 to 500,000 million dollars)
• Because we do not know who is affected. It is not known if my bank, the lifelong, serious Bank and tradition in the area, has a lot of crap on the Assets. The downside is that my bank does not know.
• When in America, mortgages not paid by the ninja go running, that is, banks can sell foreclosed houses for the price it is, something worth the MBS, CDO, CDS and even Synthetic.
• Meanwhile, no one trusts anyone.
17. Ninth comment:
• Someone has described this as "The Hoax"
• Others have said that the Crash of 29, compared to this, is a game of girls in the playground of a convent of nuns.
• Many, many may have been enriched with the bonus that have been growing. Now, they lose their jobs, but the bonus will be saved somewhere, perhaps in a shielded enclosure that may be where more secure and protected from other financial innovations that can happen to someone.
• The financial authorities have a great responsibility for what happened. The Basel Accords, theoretically designed to control the system, have stimulated SECURITISATION up ends able to obscure and very complicated market to which it was intended to protect.
• The Boards of Directors of financial institutions involved in this great fiasco, have a great responsibility, because they have not heard anything. And that included the Board of Directors of the Savings Bank of San Quirico.
• Some rating agencies have been incompetent or not independent from their clients, which is very serious
18. End of story (for now): the main central banks (European Central Bank, the U.S. Federal Reserve) have been injecting cash flow for banks to have money.
19. Some experts say yes there is money, but what there is trust. In other words, the liquidity crisis is not a real crisis of trust of others.
20. Meanwhile, sovereign funds, or mutual funds created by states with resources from the surplus in their accounts (mostly from oil and gas) and the Funds of the United Arab Emirates, Asia, Russia, etc. are buying stakes in major U.S. banks to get them out of the jam they have gotten. 
Good morning.
I want to share this vast and well-informed comment that my friend and poet J. Economist Azpeitia Antonio sent me for all those wishing to learn more how we live and we are immersed human blessed in the global economy, I do not know if he is the author of this document or not, the important thing is the knowledge that leaves us the person who in one way or another it affects movements economists of any power.
had opened this blog to keep in a bank as things that interest me learning from life itself in which I am immersed, so that's why they call teaching file, because we would file that teach me something. I never imagined they would let me lessons that must be exposed to those who wish to take them. So they share them with pleasure and invite those who want to add something of value to others do so as it did Azpeitia
Well here I leave with him
Azpeitia said:
As is teaching this blog, I have considered this addition interesting ... I hope your comments
CRISIS 2007-2008
1. For years, the interest rates prevailing in international financial markets have been exceptionally low.
2. This has meant that banks have seen the business that made them smaller:
• They gave a low-interest loans
• They paid something for the customer deposits (the deposit is zero if the current account and, moreover, charged Maintenance Committee, paid "unless something")
• But still, the net interest income ("a" minus "b") decreased
3. To someone, then, in America, he decided that banks needed to do two things:
• Give more risky loans, in which they can charge more interest
• compensate the lower margin by increasing the number of operations (1000 x little more than 100 x bit)
4. As for the former (riskier loans), decided:
• Provide a type of mortgage customers, the "ninja" (people without regular income, no fixed employment, no properties)
• charge more interest, because there were more risk
• Use the real estate boom was in the U.S. market
• In addition, full of enthusiasm, decided to grant mortgage loans worth more than the value of the house that he bought the ninja, because, with the said housing boom, the house, in a few months, worth more than the amount given on loan.
• This type of mortgage, they were called "subprime mortgages"
• They are called "prime mortgages" which have little risk of default. On a rating scale between 300 and 850 points, prime mortgages are priced between 850 and 620 points the best the less good.
• They are called "subprime mortgages" which are more likely to default and are priced between 620 and 300 the least good, the bad.
• Furthermore, as the U.S. economy was going well, the now insolvent debtor could find work and pay the debt without problems.
• This approach was well for some years. In those years, the ninja were paying the mortgage terms and also as they had been given more money than her house was worth, had bought a car, had made reform at home and had gone on vacation with family . This, surely, in installments, with the extra money they had collected and, in some cases, which were paid in a botched job or that they had achieved. 5.Primer
comment: I think that, so far, everything is very clear and it is also clear that anyone with common sense, although not a financial expert, you may think that if something fails, the bump may be important.
6. As for the second (increased number of operations):
• Like many banks were giving mortgages, they had the money. The solution was easy: go to foreign banks to lend them money, because something is globalization. Thus, the money that I, this morning, I joined the Central Office Savings Bank of San Quirico Safaja may be that afternoon in Illinois, because there is a bank which my Savings Bank has given my money to lend it to a ninja. Of course, Illinois does not know that the money comes from my people, and I know that my money would be deposited in an institution as I Savings Bank, began to be at some risk. Neither does the Director of the Office of my box, who knows, and presumably that would work in an institution. Neither does the President of the Savings Bank, which is only known to have invested some money of its investors in a major U.S. bank.
7. Second comment: globalization has its advantages but also disadvantages, and its dangers. The people of San Quirico not know they are taking a risk in the U.S. and when she starts reading there Subprime mortgages are given, thinks: "What do these crazy Americans!"
8. In addition, it appears that there are "Basel Standards", which require banks worldwide that have a minimum capital in relation to their assets. To oversimplify, the Balance of the Bank of Illinois is: ASSETS LIABILITIES
Money Money Box it has received from other banks granted credits
Capital Reserves
TOTAL X X million million
The Basel Accords require the Capital of the Bank does not below a certain percentage of assets. Then, if the Bank is asking for money to other banks and giving lots of credit, the percentage of capital on Assets Bank of the low and does not comply with the Guidelines of Basel.
9. You have to invent something new. And that again is called securitization: the Bank of Illinois "packages" of mortgages-prime and subprime-in packages that are called MBS (Mortgage Backed Securities, or obligations secured by mortgages). So, where once had 1,000 mortgages "loose" in the account "Loans granted, now has 10 packs of 100 mortgages each, in which there is everything good (prime) and bad (subprime) and in the Lord's vineyard.
10. The Bank of Illinois quickly sold those 10 packages:
• Where does the money you get for these packages? Va Asset, the account "Cash Money", increasing, decreasing by the same amount the account "Loans granted", so that the share Capital / Loans granted improvement and Bank Balance complies with the Basel Standards.
• Who buys these packages and also buy them quickly so that the Bank of Illnois "clean" their balance immediately? Very good question! Illinois Bank creates affiliated entities, the conduits, which are not companies, but trusts or funds, and therefore are not required to consolidate their balance sheets with the parent bank. That is, suddenly appear on the market two types of entities:
The Bank of Illinois, with a clean face, and the Chicago Trust Corporation (or whatever name you please put it) with the following balance sheet: ASSETS LIABILITIES
The 10 packages of mortgages Capital: what you pay for those packages
11.Tercer Comment: If any person working in the Savings Bank of San Quirico, from President to Director of the Office know anything about this, quickly look for another job. Meanwhile, everyone is talking about expanding their international investments, of which you see I do not have the slightest idea.
12. How are they financed the conduits? In other words, where do they get money to buy the Bank of Illinois mortgage packages? In several places:
• By credit from other banks (Fourth comment: The ball is getting bigger)
• hiring the services of investment banks can sell the MBS to Investment Funds, Venture Capital, Insurance, Financial a family holding companies, etc.. (Fifth comment: Notice that the danger is approaching us, not Spain, but to our family, because as animated by the Director of the office of San Quirico, go and put my money in an investment fund)
• The happens is that to be "financially correct" or MBS conduits had to be well-qualified agencies ratings, which ratings are based on creditworthiness. These ratings say, "This company, in this State, this organization can lend money without risk," or "beware of these other because you risk not being paid."
RATING: Rating of a company or an institution, made by a specialized agency. In Spain, the lead agency in this field is Fitch Ratings.
The levels are:
AAA, the highest AA
A BBB BB
others, but very bad
Overall:
a bank or large usually has a rating of AA
A Bank or medium, a rating A
• The rating agencies gave these ratings or were given other names, more sophisticated, but in the end, say the same thing: They called
: Investment grade MBS representing the prime mortgages, that is, the less risk (the AAA would , AA and A), Mezzanine, the intermediate (I guess maybe the BBB and BB), Equity to poor, high risk, ie the subprime, that in this shed, are the protagonists.
• Investment Banks placed easily the best (investment grade) to conservative investors, and low interest. • Other managers
Funds, Venture Capital, etc., more aggressive. sought, all cost, higher returns, among other reasons because these gentlemen come to the year-end bonus depending on the profitability.
• Problem: How to sell MBS of bad managers latter without being noticed too that they are incurring excessive risk?
• Sixth Review: The plot thickens and, of course, the Savings Bank of San Quirico continue making statements Expansion happy and content, discussing the proper functioning of the economy and Social Work are doing.
• Some investment banks were able, from a re-rating agencies (a re-rating, a word that does not exist, but serves to understand)
• The re-rating was invented to raise the rating of bad MBS, which consists of structuring in sections, which are called tranches, ordering, from highest to lowest, the probability of default and commitment to prioritize the payment to the least bad. Ie
I buy a package of MBS, which tell me that the first three MBS are relatively good, the three seconds, very regular and the three others, frankly bad. This means that I have structured the package of MBS into three tranches: the relatively good, very consistent and very bad.
I agree that if the tranche will not pay very bad (or as they say these gentlemen, if in the wrong section incur in default), but collecting some of the very regular and quite tranche of relatively good, everything will go to pay mortgages relatively good tranche, which automatically, this tranche may be rated AAA. Seventh
comment: in the "Comments IESE Economic Situation, January 2008, I've got most of what I am saying, we call this" financial magic "
• To finish rolling to San Quirico, these sorted MBS tranches were renamed as CDO (collateralized debt obligations, collateralized debt obligations), as they could have taken another exotic name.
Not content with this, the financial wizards created another important product, the CDS (Credit Default Swaps) In this case, the purchaser, who bought the CDO, assuming a risk of default by the CDO would buy charging more interest. So, bought the CDO and said, "if it fails, I lose money. If no failure, plus interest payment. " Following
inventions, created another instrument, the Synthetic CDOs, which have not fully understood, but gave a surprisingly high yield.
Moreover, those who bought the Synthetic CDO could buy very cheap bank loans. The difference between these interests very cheap and high yields of Synthetic operation was extremely profitable.
13. Coming here and hoping that ye not lost too much, I remember one thing that you may have forgotten, given the complexity of the operations described, that everything is based on the ninjas pay their mortgages and the housing market U.S. continues to rise.
14. BUT:
• In early 2007, U.S. home prices plummeted.
• Many of the ninjas realized they were paying more than their home was worth and decided now (or could not) continue to pay their mortgages.
• Automatically, no one wanted to buy MBS, CDO, CDS, Synthetic CDOs and those who already had failed to sell.
• The entire assembly was sinking and one day, the Director of the Office of San Quirico a neighbor called to tell him that good, that the money was gone, or, at best, had lost 60% of its value.
• Eighth comments: Go now to explain to the resident of San Quirico what the ninjas, the Bank of Illinois and the Chicago Trust Corporation. You can not be explained by several reasons: most important, because nobody knows where that money. And when I say nobody, I mean ANYONE.
• But things go further. Because no one-not-know the crap they have in banks that bought mortgage packages, and nobody knows, Banks begin to not trust each other.
• As they do not trust, when they need money and go to the interbank market, where banks lend money to each other, or lend it or lend it expensive. The interest that banks lend money in the interbank Euribor (Europe Interbank Offered Rate, or Interest rate offered on the interbank market in Europe), a rate which, as you can see in the term to 3 months EURIBOR this Dictionary, has gone up (now beginning to fall.)
• Therefore, the banks now have no money. Consequences: i.
noncredit ii. They do not give mortgages, so that Astroc, Renta Corporation, Colonial, etc., I start to go terribly wrong. And shareholders who bought shares in these companies, they see that the prices of these companies are falling sharply.
iii. The 12-month Euribor, which is the benchmark for mortgages has been rising, which makes the average English mortgage you have, start to sweat to pay monthly fees.
iv. As the banks have no money,
1. Sell \u200b\u200btheir holdings in
2. Sell \u200b\u200btheir buildings
3. Metamos campaigning for money, offering better
v. As people begin to feel squeezed by the mortgage payment, unless the Court is English.
vi. As the English Court notices, purchase least Mataró socks manufacturer, nor the ninja knew existed.
vii. The sock manufacturer thinks that as sold under socks, he begins to staffing and fire a few.
viii. And this is reflected in the unemployment rate, mainly in Mataró, where people start buying less in stores.
15. This is a dictionary of words. What happens is that the word "Crisis 2007-2008" is very serious. The title is misleading, considering that the crisis will end in 2008. Now comes another question: "How long will this last?
16. Well, good question, too. very difficult to answer, for several reasons:
• Because it still does not know the extent of the problem (the numbers vary from 100,000 to 500,000 million dollars)
• Because we do not know who is affected. It is not known if my bank, the lifelong, serious Bank and tradition in the area, has a lot of crap on the Assets. The downside is that my bank does not know.
• When in America, mortgages not paid by the ninja go running, that is, banks can sell foreclosed houses for the price it is, something worth the MBS, CDO, CDS and even Synthetic.
• Meanwhile, no one trusts anyone.
17. Ninth comment:
• Someone has described this as "The Hoax"
• Others have said that the Crash of 29, compared to this, is a game of girls in the playground of a convent of nuns.
• Many, many may have been enriched with the bonus that have been growing. Now, they lose their jobs, but the bonus will be saved somewhere, perhaps in a shielded enclosure that may be where more secure and protected from other financial innovations that can happen to someone.
• The financial authorities have a great responsibility for what happened. The Basel Accords, theoretically designed to control the system, have stimulated SECURITISATION up ends able to obscure and very complicated market to which it was intended to protect.
• The Boards of Directors of financial institutions involved in this great fiasco, have a great responsibility, because they have not heard anything. And that included the Board of Directors of the Savings Bank of San Quirico.
• Some rating agencies have been incompetent or not independent from their clients, which is very serious
18. End of story (for now): the main central banks (European Central Bank, the U.S. Federal Reserve) have been injecting cash flow for banks to have money.
19. Some experts say yes there is money, but what there is trust. In other words, the liquidity crisis is not a real crisis of trust of others.
20. Meanwhile, sovereign funds, or mutual funds created by states with resources from the surplus in their accounts (mostly from oil and gas) and the Funds of the United Arab Emirates, Asia, Russia, etc. are buying stakes in major U.S. banks to get them out of the jam they have gotten.
Subscribe to:
Posts (Atom)