asterisk2a + var   9

Money: The Too Big to Fail Edition by Panoply Media
Neil Irwin, author of The Alchemists: Three Central Bankers and a World on Fire, joins hosts Felix Salmon of Fusion, Cathy O’Neil of mathbabe.org, and Slate’s Moneybox columnist Jordan Weissmann. This week is all about Neel Kashkari of the Minneapolis Fed's new solution for our too-big-to-fail banks. //!& breaking up has complexity ... financial-industrial complex! //
too  big  to  bail  toobigtofail  TBTF  retail  banking  investment  banking  VAR  discounted  risk  systemicrisk  discounting  risk  BIS  centralbanks  liquidity  trap  GFC  financial  product  recovery  TARP  UK  USA  Europe  sovereign  debt  crisis  PIGS  economic  history  book  monopsony  oligopoly  oligopol  repo  interbank  lending  complexity  financial-industrial  complex  leverage  derivatives 
march 2016 by asterisk2a
This Letting Agent Admits The Housing Shortage Is Good News For Landlords - BuzzFeed News
[ Lord Adair Turner book & Richard Koo; banks tend 2 lend 2 property & land rather than productivity/businesses. risk averse, if the family cant pay the mortgage any more, than at least u have not lost all the money! less risky! Its also partly rentier behaviour of banks. // also BOE has to be concerned about future disposable income; rent & utilities eating up 50%-75% of income thus less for consumption! ] “Landlords’ balance sheets are looking healthier than at any point since 2014, and property investors are looking at an excellent rate of return from their portfolios.” Gill warned that changes to stamp duty announced in chancellor George Osborne’s Autumn Statement and due to take effect on 1 April – people selling buy-to-let investments will pay an extra 3% – were bad news for landlords. But overall, the “consistent and developing lack of housing for across all tenures, for a spiralling population” meant the level of demand for rental properties would not reduce, he said.
property  bubble  speculative  bubbles  asset  bubble  asset  allocation  macroprudential  policy  Generationengerechtigkeit  generation  rent  Housing  Crisis  social  affordable  distortion  ZIRP  NIRP  QE  aggregate  demand  Right  to  Buy  Buy-to-Let  Help  to  Buy  Scheme  Help  to  Save  policy  folly  policy  error  consumer  debt  household  debt  budget  deficit  recovery  mortgage  market  credit  bubble  GFC  bank  bailout  BOE  zombie  banks  rentier  rent-seeking  Richard  Koo  underinvestment  productive  investment  infrastructure  investment  zombie  consumer  industrial  policy  economic  history  Mark  Carney  financial  repression  behavioral  finance  behavioral  economics  herding  herd  hunt  for  yield  leverage  margin  trading  equity  bubble  Gini  coefficient  disposable  income  discretionary  spending  VAR  CDO  CDS  risk  aversion  squeezed  middle  class  secular  stagnation  inequality  UK  generational  contract  lost  generation  constituency  Tories  Conservative  Party  nasty  David  Cameron  George  Osborne  general  election  2015  general  election  2020  fiscal  policy  austerity  monetary  policy  liquidity  trap 
february 2016 by asterisk2a
What Really Caused the Crisis and What to Do About It - YouTube
"There are not perfect markets, and there is no perfect planner. [...] we will never arrive at perfect solutions. [...] market will never allocate perfectly ... [...] market will always tend to lend to property and land, and less into productive means (businesses = risk of 100 loss, land or property ... you have a loss when you sell it. << China, UK ) [...] not all credit is good credit. [...] need for macroprudential policy to dampen bubbles bc rate hikes could dampen normal non-speculative area of economy. ie loan to value limits [...] interest rate setting is blunt hammer that people though is the magic wand along the line of self-regulation, free market, neoliberalism and trickle-down [...] GFC can be traced back to the 60-70's - macroecon + micro with absurd assumptions (ie rational expectations, equilibriums, no bubbles) & math & pure theoretical base (no empirical analysis ie of what banks really do ie greed) = makes job of economist as policy advisor real easy.
bank  crisis  JohnMaynardKeynes  keynes  Keynesianism  book  Richard  Koo  aggregate  demand  austerity  liquidity  trap  deleveraging  balance  sheet  recession  debtoverhang  GFC  recovery  secular  stagnation  western  world  dogma  ideology  underinvestment  productive  investment  infrastructure  investment  monetary  policy  monetary  theory  trickle-down  economics  neoliberalism  neoliberal  budget  deficit  economic  history  credit  bubble  output  gap  productivity  inflation  targeting  nominal  GDP  targeting  asset  allocation  economics  investment  banking  zombie  banks  retail  banking  financial  product  CDS  CDO  hunt  for  yield  VAR  risk  aversion  deflationary  deflation  ZIRP  NIRP  QE  debt  monetisation  debt  monetization  Glass-Steagall  self-regulation  regulators  regulation  leverage  margin  trading  property  bubble  arbitrage  speculative  bubbles  asset  bubble  UK  USA  Europe  ECB  Fed  BOE  zombie  consumer  squeezed  middle  class  zombie  corporations  NPL  junk  bond  realestate  macroprudential  policy  mortgage  market  equilibrium  disequilibrium  Economist  economists  Adair  Turner  hayek 
february 2016 by asterisk2a
Vickers warns over weaker bank safety buffers - BBC News
[ no skin in the game ] The man charged with leading an inquiry into the future safety of Britain's banks has said Bank of England plans are not strong enough. Sir John Vickers, who led the Independent Commission on Banking (ICB) said: "The Bank of England proposal is less strong than what the ICB recommended." In a BBC interview, he added "I don't think the ICB overdid it." The Bank of England declined to comment. Specifically, it is the plans to make sure that banks have enough capital that Sir John has questioned. Capital is considered vital to a bank's safety, as it serves to protect it from sudden losses. It comes in many forms, but the most common is funding from shareholders, who expect a hefty return on the risk they are taking. The backdrop to this news is the current slump in bank share prices across Europe. Since the start of the year, European banking stocks have lost a quarter of their value. //&! bit.ly/1Xs0Bac
zombie  banks  retail  banking  investment  banking  toobigtofail  too  big  to  jail  TBTF  too  big  to  bail  economic  history  lobbyist  lobby  Lobbying  GFC  speculation  CDS  CDO  derivatives  Interestrateswap  financial  product  VAR  risk-management  risk  management  Greed  bonuses  bonus  financial  crisis  blackswan  Black  Swan  Career  Politicians  No  Representation  democracy  Super  Rich  1%  plutocracy  oligarchy  Wall  Street  shareholder  value  profit  maximisation  short-termism  self-regulation  regulation  deregulation  regulators  Glass-Steagall  BOE  ECB  Bundesbank  sovereign  debt  crisis  Fed 
february 2016 by asterisk2a
Jan Kregel: The Continuing Risk of Derivatives - YouTube
The other common feature that Kregel notes is that the major objective of active, global financial institutions no longer is the maximization of profits by seeking the lowest cost funds and channeling them to the highest risk-adjusted return. Rather, they are most interested in maximizing the amount of funds intermediated in order to maximize fees and commissions, thereby maximizing the rate of return on bank capital. This means a shift from continuous risk assessment and risk monitoring of funded investment projects that produce recurring flows of interest payments over time, to the identification of riskless "trades" that produce large, single payments with as much of the residual risk as possible carried by the purchasers of the package. The upshot is that most derivative packages mask the actual risk involved in an investment and increase the difficulty in assessing the final return on funds provided.
derivatives  investment  banking  retail  banking  banking  crisis  business  model  risk  aversion  ROI  VAR  CDS  Interestrateswap  financial  literacy  financial  market  financial  crisis  financial  cycle  FinancialCrisisInquiryCommission  tobin-tax  FinancialCrisisResponsibilityFee  CDO  financial  instruments  bonuses  bonus  Greed  shareholder  value  profit  maximisation  Wall  Street  economic  history  self-regulation  regulation  regulators  deregulation  Glass-Steagall  Bank  Oversight  zombie  banks  financial  product 
january 2016 by asterisk2a
Banks Are Perilously Exposed to China - Bloomberg View
International banks, however, don't appear to be heavily exposed to China, at first glance anyway. Bank of International Settlements data show that their claims on Chinese banks, companies, consumers and public sector are quite manageable, though Australian and U.K. banks have extended a lot of credit in China in proportion to their total foreign assets: [...] U.K. banks' $198 billion in Chinese assets at the end of last year looks particularly threatening, especially given that HSBC and Standard Chartered both derive a significant portion of their revenue from China. This exposure is particularly problematic because a debt overhang is one of the Chinese economy's biggest problems.
exposure  China  banking  crisis  investment  banking  UK  USA  2015  credit  bubble  equity  bubble  speculative  bubbles  bond  bubble  property  bubble  asset  bubble  asset  allocation  distortion  ZIRP  PBOC  NIRP  QE  QT  2016  balance  sheet  recession  underwater  debtoverhang  VAR  excess  reserves  shadow  banking  fractional  reserve  banking  banking  Fed  BOE  London  Bank  Oversight  George  Osborne  David  Cameron  Mark  Carney  liquidity  trap  Taper  monetary  transmission  mechanism  M3  monetary  policy  monetary  stimulus  unconventional  monetary  policy  monetary  system  monetary  theory  austerity  unknown  unkown  unintended  consequences  deregulation  self-regulation  regulation  regulators  Westminster  Toff  Conservative  Party  Tories  Establishment  Privileged  speculative  speculation  derivatives  financial  repression  financial  market  financial  cycle  financial  literacy  financial  crisis  HSBC  Standard  Chartered  NPL  correction  overcapacity  AIIB  Asia  FX  reserves  centralbank  reserves  margin  trading  leverage  irrational  exuberance  hubris  panic  petrodollar  Oil  price  OPEC  global  trade  global  economy  global  growth  global  imbalances  faultlines  structural  imbalance  Impediments  debt  monetisation  debt  monetization  BIS  Germany  Japan  Yuan  RMB  devaluation 
september 2015 by asterisk2a
Verdacht von CDS-Absprachen: EU verschärft Ermittlungen gegen Banken - SPIEGEL ONLINE
Die EU-Kommission droht zahlreichen internationalen Großbanken mit empfindlichen Geldstrafen. Sie wirft unter anderem der Deutschen Bank verbotene Absprachen bei Geschäften für Kreditausfallversicherungen vor. >> /watch?v=u84NhfiGJ7o "Banks in the dock over CDS"
value  at  risk  OTC  trust  cartel  CDS  Corruption  accounting  jpmorgan  confidence  GoldmanSachs  transparency  deutschebank  trustagent  VAR  banking  crisis  too  big  to  jail  Barclays  toobigtofail  bank  crisis 
july 2013 by asterisk2a
BBC - BBC Radio 4 Programmes - The Reunion, Barings Bank Collapse
In the first of a new series of The Reunion, Sue MacGregor reunites Nick Leeson, the man who broke Barings bank, with his colleagues and former boss, Peter Norris.
On the 26th February 1995, a pillar of the British financial and social establishment suddenly came crashing to the ground as Britain's oldest merchant bank went bust with debts of £830 million.
BaringsBank  NickLeeson  financial  history  trading  oversight  greed  fear  fraud  capitalism  regulation  VAR  psychology 
august 2011 by asterisk2a

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