Credit Finance

JR is troubled when “Evil” JR keeps trying to take his identity. Real JR gives a couple of pointers to keep this from happening to you.

Barry Eichengreen - renowned professor of Economics and Political Science at the University of California Berkeley, former senior advisor to the IMF, author of “Globalizing Capital: A History of the International Monetary System”, and editor of “Rescuing our Jobs and Savings: What G8 Leaders can do to Solve the Global Credit Crisis” - provides a detailed overview of the financial crisis. He discusses at length: (a) the excessive risk undertaken by a variety of financial institutions as a result of gradual deregulation of financial services sector in the second half of 20th century; (b) the role of both Republican and Democratic parties in maintaining deregulation policies following introduction of US President Ronald Reagan’s “free markets” ideology in 1980; (c) the inability of the US to properly manage or channel massive capital inflows from the developing world - especially China - during the last decade; (d) the failure of Bush administration to mount an adequate response to the financial crisis on account of its initial state of denial, financial engineering mindset, and “free markets” ideology; and (e) actions - such as, interest rate increases, deficit reduction, recapitalization of banks, and economic stimulus - that would have greatly mitigated the severity of the financial crisis. In addition, he dwells on: (f) the impact of the financial crisis on American power and globalization, as well as (g) the nature of institutional reforms required at global level to …

Niall Ferguson - renowned professor of History and Business Administration at Harvard, Senior Research Fellow at Oxford and the Hoover Institute, and author of “The Ascent of Money: A Financial History of the World” - provides a riveting historical perspective on the financial crisis. He discusses at length: (a) the historically bumpy evolution of the financial system via periodic crisis; (b) the boom-bust cycle of assets prices due to never changing human psyche; (c) the severity of the current financial crisis on account of excessive risks undertaken by investors; (d) the poor appreciation of risk in modern financial services industry due to general ignorance of financial history and reliance on limited duration mathematical models; (e) the origins of the sub-prime crisis, including the political dogma of increasing housing ownership rates and the moral hazard introduced by securitization process; (f) the susceptibility of insurance industry to financial crisis on account of entry into credit default swaps (CDS) market; (g) the fallacy of Greenspan Fed’s doctrine of focusing on consumer prices and ignoring asset prices; and (h) the role of 1997-98 Asian financial crisis in facilitating massive capital infusions into the United States over the last decade. In addition, he delves into: (i) the unique China-America relationship that enabled US consumer to engage in profligate spending as well as speculation on housing prices; and (j) the long-term impact on US power and …

May 21 (Bloomberg) — Bankers who worked at Donaldson Lufkin & Jenrette before its 2000 takeover by Credit Suisse AG reunited last night at New Yorks Cipriani restaurant in midtown Manhattan. Blackstone Group LP President and Chief Operating Officer Hamilton “Tony” James and former US Securities and Exchange Commission Chairman William Donaldson were among the DLJ alumni on hand to discuss the storied firm, the regulatory environment and current financial crisis. Bloomberg’s Sheila Dharmarajan reports. (Source: Bloomberg)

Niall Ferguson - renowned professor of History and Business Administration at Harvard, Senior Research Fellow at Oxford and the Hoover Institute, and author of “The Ascent of Money: A Financial History of the World” - provides a riveting historical perspective on the financial crisis. He discusses at length: (a) the historically bumpy evolution of the financial system via periodic crisis; (b) the boom-bust cycle of assets prices due to never changing human psyche; (c) the severity of the current financial crisis on account of excessive risks undertaken by investors; (d) the poor appreciation of risk in modern financial services industry due to general ignorance of financial history and reliance on limited duration mathematical models; (e) the origins of the sub-prime crisis, including the political dogma of increasing housing ownership rates and the moral hazard introduced by securitization process; (f) the susceptibility of insurance industry to financial crisis on account of entry into credit default swaps (CDS) market; (g) the fallacy of Greenspan Fed’s doctrine of focusing on consumer prices and ignoring asset prices; and (h) the role of 1997-98 Asian financial crisis in facilitating massive capital infusions into the United States over the last decade. In addition, he delves into: (i) the unique China-America relationship that enabled US consumer to engage in profligate spending as well as speculation on housing prices; and (j) the long-term impact on US power and …

Barry Eichengreen - renowned professor of Economics and Political Science at the University of California Berkeley, former senior advisor to the IMF, author of “Globalizing Capital: A History of the International Monetary System”, and editor of “Rescuing our Jobs and Savings: What G8 Leaders can do to Solve the Global Credit Crisis” - provides a detailed overview of the financial crisis. He discusses at length: (a) the excessive risk undertaken by a variety of financial institutions as a result of gradual deregulation of financial services sector in the second half of 20th century; (b) the role of both Republican and Democratic parties in maintaining deregulation policies following introduction of US President Ronald Reagan’s “free markets” ideology in 1980; (c) the inability of the US to properly manage or channel massive capital inflows from the developing world - especially China - during the last decade; (d) the failure of Bush administration to mount an adequate response to the financial crisis on account of its initial state of denial, financial engineering mindset, and “free markets” ideology; and (e) actions - such as, interest rate increases, deficit reduction, recapitalization of banks, and economic stimulus - that would have greatly mitigated the severity of the financial crisis. In addition, he dwells on: (f) the impact of the financial crisis on American power and globalization, as well as (g) the nature of institutional reforms required at global level to …

Niall Ferguson - renowned professor of History and Business Administration at Harvard, Senior Research Fellow at Oxford and the Hoover Institute, and author of “The Ascent of Money: A Financial History of the World” - provides a riveting historical perspective on the financial crisis. He discusses at length: (a) the historically bumpy evolution of the financial system via periodic crisis; (b) the boom-bust cycle of assets prices due to never changing human psyche; (c) the severity of the current financial crisis on account of excessive risks undertaken by investors; (d) the poor appreciation of risk in modern financial services industry due to general ignorance of financial history and reliance on limited duration mathematical models; (e) the origins of the sub-prime crisis, including the political dogma of increasing housing ownership rates and the moral hazard introduced by securitization process; (f) the susceptibility of insurance industry to financial crisis on account of entry into credit default swaps (CDS) market; (g) the fallacy of Greenspan Fed’s doctrine of focusing on consumer prices and ignoring asset prices; and (h) the role of 1997-98 Asian financial crisis in facilitating massive capital infusions into the United States over the last decade. In addition, he delves into: (i) the unique China-America relationship that enabled US consumer to engage in profligate spending as well as speculation on housing prices; and (j) the long-term impact on US power and …

May 3 (Bloomberg) — Billionaire investor Warren Buffett talks with Bloomberg’s Betty Liu about Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein.¶ Buffett, who invested billion in the bank in 2008, said Blankfein has “done a great job running” Goldman. They spoke on May 1 before Berkshire Hathaway Inc.’s annual shareholders meetings in Omaha, Nebraska. (Source: Bloomberg)

Charman bernancke (wed 2-25-2010) warned Congress that the Federal Reserve would not back US spending at current deficits. That means financing from overseas, tax hikes, or default. It also means a severe limitation on funds supplied to the system. Expect credit to dry up almost completely, and interest rates to rise as money becomes scarce…! Washington Post: Article www.washingtontimes.com Donate: Donate: www.s119320640.onlinehome.us

Feb. 22 (Bloomberg) — Bloomberg’s Monica Bertran reports on new credit-card rules that take effect today and their potential impact on card issuers. (Source: Bloomberg)