Do you want to know how the next financial crisis will arrive, and how it could be prevented? In that case, read “The Money Formula“, a book by Paul Wilmott and David Orrell published earlier this year.
It shows you, with mathematical precision, what the financial world did not learn from the previous crisis. It also shows why it is so difficult for the rest of the world to catch them out.
Banks still have to deal with the consequences of their excesses, which brought on the financial crisis. Their reputation is in tatters, fines are slapped on them almost daily and regulation controls almost their every step.
But their plight doesn’t stop here. The biggest challenge they’re facing is slowly becoming obvious – and it could change the industry forever.
The strengthening US dollar after the end of the Federal Reserve’s quantitative easing could starve the world’s financial markets of as much as $10 trillion in liquidity, investment advisory firm CrossBorder Capital has warned.
The European Central Bank and the Bank of England issued an extended paper pleading for leniency from regulators on the treatment of asset-backed securities (ABS), a class of securities largely blamed for sparking the 2007-2008 financial crisis.
The current economic slowdown in India is not just an aftereffect of the financial crisis of 2007. A lot is written of how China and India received only minor bruises from that crisis due to certain structural patterns in which they had opened up their economies in the last two decades. Conversely, many advanced economies caught a cold when America sneezed.