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Tag Archives: leverage

Lehman 2.0

The global financial system is a tight web of connections. While the US Congress debates financial reform the Euro system is being shaken down by its weakest member Greece… In the financial crisis of 2007-2009 everyone was taken by surprise by “mortgage repayment” default risk… The assumption had always been that RMBS were sufficiently varied by […]

Is the next global crisis beginning?

It’s very helpful to see this chart. Data points like this show the extra risk that investors believe Greek debt represents. In September, 2008 when Lehman failed the global credit markets froze. Note how that impacted the the risk premium for Greek debt. FT Alphaville pointed to comments made by the Bank of France governor, […]

The Euro “big boy” view of the Obama plan

From Bloomberg… “Florian Esterer, a fund manager at Swisscanto Asset Management, and Dirk Becker, an analyst at Kepler Capital Markets, talk about President Barack Obama’s plan to curb U.S. banks. They also speak with Bloomberg’s Rishaad Salamat about today’s meeting of Group of Seven finance ministers in London. ” Here is the press release from […]

Balance sheet adjustments

Balance Sheet Adjustment Zhiguo He (University of Chicago), In Gu Khang (Northwestern University) and Arvind Krishnamurthy(Northwestern University and NBER) Discussant: Nicolae Garleanu (University of California, Berkeley, NBER and CEPR) Arvind mentioned that having better data would make this analysis more useful and that the Federal Reserve Bank of New York would have the data from the […]