Unintended consequences of saving the world from the financial crisis

Neil Dwane (Allianz) | The response of central banks to the financial crisis 10 years ago may have saved the world from a devastating depression, but it also created a host of unforeseen effects – from more indebtedness to more economic inequality. Looking back at what we got right – and what went wrong – what lessons can we take away for the future?

Short-Selling Is Likely To Gather Further Momentum

Chandra Roy | In this tenth anniversary of the financial market crisis, market regulators can clearly be seen to support the short-sell strategy of securities, rather than outlaw it. The practice is likely to gather further momentum as it is widely expected that at some point, new legislation will allow insurance companies and other final users to participate in the pool of securities on offer; currently, borrowers must source their needs from depositories and other trading houses via bespoke agreements.


Poland never really understood why it didn’t crash in 2008

SAO PAULO | February 24, 2015 | By Marcus Nunes via Historinhas | It took three years, but in late 2011 Poland finally botched up and went the way of the majority of countries, letting NGDP fall way below trend. They didn’t (correctly) react to the 2007-08 oil price rise, like the US, UK, EZ, etc. and fared well, but didn’t resist when oil prices picked up again in 2010-11, when, among the initial group, only the ECB was dumb enough to react.

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Market stress or financial crisis?

ZURICH | UBS analysts | The initial move in oil price was greeted as stimulating growth. The precipitous decline is triggering destabilising factors, especially in EM. As the US economy has accelerated, concern is growing that the Fed is about to shift policy in ways suited to its domestic objectives but not to the needs of increasingly stressed emerging and commodity producing countries and companies. In short, uneven global growth is simultaneously raising the spectre of unsustainable debt deflation across important parts of the (mostly emerging) world and a tightening of US dollar liquidity precisely when it is most needed.

Too big to fail, also too big to govern?

NEW YORK | “Errors”, “sloppiness” and “bad judgements”. Whatever. The fact is that JP Morgan’s CEO Jamie Dimon, no matter what he pleads, is the ultimate…