Coherent Identifier About this item: 20.500.12592/61gg6p

A banker's perspective on the financial crisis : Crise financière vue par un banquier

2009

Premium

Summary

The fear is a consequence, not only of the vast sums of money involved nor of news of the number of large and reputable institutions that appear to be ailing, but also the result of the lack of understanding of its real causes. [...] The magnitude of the problem, however, and the far- reaching effects of any remedial action require more than ever a sober analysis of the causes of the current crisis, if future economic prosperity is to be preserved. [...] As It became a individuals started to follow the path of industry and finance, the trend necessity for was greatly accelerated by the startling growth of the internet both in terms of providing investment opportunities, tools of money management and managements to spreading information. [...] The temptation for governments to interfere with the financial system will become great, even to the extent perhaps of launching commissions to identify the factors responsible for the crash; as in 1987 when futures (a product never mentioned in the present crisis) were singled out as the main culprit of that crash. [...] In that respect, the current situation of Iceland represents a warning shot that should be considered carefully Third scenario: The Balanced Approach As a consequence of our analysis, the most constructive way out of the present crisis seems to lie in a progressive and balanced return to a proper risk /reward structure in the economy.

Authors

Tags

economics economy credit recession international finance business derivative securities financial statements finances internationales investments loans securities valuation corporate finance bank mortgage financial crises volatility fair value loan market business economics market and exchange credit (finance) derivative (finance) credit and debt asset mark-to-market collateralized debt obligation fair value accounting crises financières credit derivative cdos

Topics