WORLD


The dramatic reversal of the Japanese market’s fortunes in past month might be a preview of things to come and an abject lesson in the dangers of monetary experiments Since the end of December, the Japanese market has been falling like a rock. Since it reached its high late last year, it...

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India needs to allow Iran to open accounts in banks other than UCO Bank and from all the major port cities, which would result in increased trade between the two countries It may be recalled that Iran signed on 24 November 2013 an accord with US and European Union (world powers, really),...

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Throwing good money after bad is never a good idea, but if you put too much stress on an overleveraged system, you risk a systematic impact. Either way, the Chinese government, like other governments, will reap what they have sown. The only question is when? Default. It is an ugly word....

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The real problem with present day peer-to-peer or P2P lending is, several times, lenders are clueless about financial health of the borrower. This is because the information used by the P2P lenders comes from the borrowers and can be inaccurate or intentionally false Peer-to-peer (P2P)...

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If details can be worked out, there could be substantial trade with Pakistan via the land border at Wagah, instead of indirect trade through UAE Just about twenty years ago, in 1996, India extended the ‘Most Favoured Nation’ (MFN) status to Pakistan, and it was expected that they would...

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Moneylife Digital Team 07 January 2014
Yellen, described by Obama as the country’s most respected economists, is expected to be sworn in on 1st February as head of US Fed The US Senate has confirmed appointment of Janet Yellen as the head of the Federal Reserve, making her the first woman to lead the world’s most powerful...

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We have some idea now what happens when stimulus programs are instituted. But what we don’t know and will soon find out is what happens when these programs are ended. No doubt the predictions will be very wrong again In the story entitled Silver Blaze, the great detective Sherlock Holmes...

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Free money from the US Fed allowed Turkey, South Africa, India, Brazil, and Indonesia and others to run deficits as their higher interest rates created a demand for their bonds and currencies. Now that has reversed So far the markets seem to have taken the US Federal Reserve’s (Fed)...

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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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