If you are wondering what’s behind the sudden largesse of the European Central Bank (ECB) when it comes to purchases of bonds, you may find a recent speech by an ECB official at a conference about financial stability enlightening.
While regulators focused on making banks safer following the 2007-2009 financial crisis, the non-bank financial sector has been allowed to continue without the same stringent requirements for liquidity and leverage. This gap came into sharp focus during the crisis caused by the Covid-19 pandemic.
If Brexit does go ahead (and probably even if it does not), the European Union is ready to chip away at Britain’s dominance in the financial sector. At least, that’s what a recent speech by François Villeroy de Galhau, the governor of the Bank of France, suggests.
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.
— This article was originally posted in Youth Ki Awaaz, India
By Sourajit Aiyer
One advantage of being an Indian is that one gets to see multiple faiths and religions in close proximity. But the world of our religions often looks very distant from the world of our business.
Many perceive business to be pragmatic and religions to be emotional and that the two do not really intersect. But the texts of various religions actually have a lot of pragmatism, which has a lot to teach modern business management. Here are some of these teachings:
Ahead of the Chancellor’s Budget set to be published on March 16, there is a lot of speculation that he may announce other measures to cool down the buy-to-let property market. I don’t think he will need to: the market will cool down pretty rapidly once the regulatory changes that are coming for banks are understood by buyers. Admittedly, that will take a while. This article is for those who want to stay ahead of the game.
But three analysts published warnings about the asset class on Monday. While not calling for an abrupt end to the rises in emerging markets stocks and bonds witnessed over the past few months, the warnings serve as a reminder that volatility can come back at any time.