WORLD


Centralised systems have done everything possible to pursue stability at all costs increasing the probability of a large failure. Like the Fed, the Chinese have tried to stabilize their system and now may have to pay the costs Well, it finally happened. After over seven months of...

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Jake Bernstein  and   Jesse Eisinger (ProPublica) 19 December 2013
There have now been more than $435 million in SEC settlements regarding one of the most notorious groups of mortgage securities deals behind the financial crisis Five years after the financial crisis, the Securities and Exchange Commission appears to be wrapping up its investigation into...

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The "aam aadmi" of India and Pakistan is not really interested in the politics, but wants to carry on with life on a day-to-day basis Pakistani foreign office spokesperson, Aizaz Ahmed Chaudhury said, India and Pakistan need to address the mistrust that exists between them, responding to...

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Governments in all markets have encouraged speculators to bid up assets by creating a version of reality that may not exist. If a more accurate picture emerges, those same speculators may then punish them severely Markets all over the world are supposed to act as an indicator of their...

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Paul Kiel (ProPublica) 16 December 2013
High-cost lenders exploit laws tipped in their favour to sue tens of thousands of Americans every year. The result: A $1,000 loan grows to $40,000 A version of this story was published in the St. Louis Post-Dispatch on Sunday. Five years ago, Naya Burks of St. Louis borrowed $1,000...

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Marian Wang (ProPublica) 04 December 2013
The Consumer Financial Protection Bureau announced increased oversight of the companies that act as go-between for student borrowers and lenders Sallie Mae and other large student-loan servicers -- the companies that act as a go-between for borrowers and lenders -- will soon be getting...

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The new reforms announced over the summer and at the conclusion of the Third Plenum of the 18th Party Congress are supposed to change all this. But they have a long way to go Laws are meant to be obeyed. So when politicians, bureaucrats, and even central bankers have a problem they...

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Moneylife Digital Team 18 November 2013
The US quantitative easing (QE) programme may continue in 2013 it is likely that any tapering may be delayed much beyond March 2014, says State Bank of India (SBI) in a research report.   "The dynamics of US economic recovery will require that housing prices recover appreciably which...

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The world was pushed into a global recession when the US debt mountain collapsed in 2008. At present, overall debt burden relative to GDP is higher in India, Indonesia, Thailand, South Korea, China and Malaysia, up to 30% higher than in the US. What will be the effect if the global debt...

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Theoretically, the job of central bankers, CEOs and politicians is to protect us from risks that could lead to disaster. As the world’s market feast on easy money and massive debt, one might consider who got us here and that when (not if) the event occurs, they won’t be the ones to suffer

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RBI governor Raghuram Rajan tried to tell his colleagues about the dangers from flood of money from developed countries, but no one wants to listen. Eventually interest rates will rise higher than the present levels either because of uncertainty, inflation fears or tapering You have to...

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Hopefully the market’s optimism over the Washington negotiations will prove correct and the US economy and global markets will not collapse. But that does not mean that the present valuations are justified by forecasts of growth both for the global economy and corporate earnings On...

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Moneylife Digital Team 07 October 2013
How does Raghuram Rajan, the governor of the RBI, view the experiment of fiscal stimulus that the US Federal Reserve, under Ben Bernanke, has been pursuing? Remember, Rajan had correctly warned in 2005 that a combination of low interest rates, financial innovation, rising asset prices, and...

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The US government has shut down 17 times before. The worst was in 1995 and the market only dropped 3%. So, a government shutdown is not seen as a market moving event. Failure to raise the debt ceiling, which allows the government to keep borrowing and potentially avoid default, is another...

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Although the most corrupt and biggest offenders are Chinese companies, it is unlikely domestic pharmaceutical and food manufacturing firms will face the kind of regulatory challenges imposed on their foreign competitors any time soon The Chinese leadership wants to rebalance and reform...

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Do not expect policymakers, including US Fed and Chinese leadership, to admit that they followed a policy of too much stimulus similar to the one that caused the 2008 crash. For them it is simply easier to ignore the risks and keep the money flowing This week despite the endless fanfare...

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Moneylife Digital Team 19 September 2013
Asian equities, currencies and bonds have taken a beating over the last few months after the U.S. Federal Reserve hinted it would halt its nearly five-year policy of flooding markets with cheap cash, points out Reuters in its release on its Asia Business Sentiment survey Business...

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Moneylife Digital Team 19 September 2013
Tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and labour market, the US Fed said The US Federal Reserve has left its $85 billion per month stimulus programme in place, against broad expectations that it would...

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Moneylife Digital Team 31 July 2013
According to Credit Suisse, after months of worry about fragile developed world economies, China has become the main drag on activity important for demand Global growth remains weak in aggregate but it is becoming clear that the latest 'slowdown scare' has come to an end and global...

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Moneylife Digital Team 23 May 2013
Quantitative easing is a powerful monetary policy tool to revive markets and the economy. However, recent analysis has shown that there is no difference on how it affects economy. If at all, central banks’ policies has made markets more volatile than before with Warren Buffet stating that if...

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