While this is an interesting article, the point of this post is only to capture the quotes that show the extent of the unreasonable and unsustainable runaway growth in various aspects of the financial markets, that have developed since the 1980’s. Stock markets in the world are valued at a paltry $51 trillion compared to the $400 trillion in derivatives. However the overall total of equities, bonds, and derivatives at $518 trillion was supported by a world economy of $49 trillion.  If Planet Mars were banker to the world, our credit cards would be cut up. The emergence of an … Continue reading If Planet Mars were banker to the world, this planets credit cards would be cut up

In a remarkable event that we will need to reflect on tomorrow, the Feds are going to remove bad investments from Banks Balance Sheets and take on the risk?  Am I reading this correctly?  That is tantamount to nationalisation of Banks.  More tomorrow. Bloomberg Sept. 19 (Bloomberg) — U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed moving troubled assets from the balance sheets of American financial companies into a new institution. Congressional leaders who met with Paulson and Bernanke late yesterday in Washington said they aim to pass legislation soon. The initiative, which may also … Continue reading Paulson, Bernanke Push New Proposal to Cleanse Balance Sheets | huh!!

HSBC are doing what Citi have failed at to date. They are forcing local business units to adopt the central standard. For the life of me, I cannot tell why global Banks or any Bank with multiple business units for that matter, do not lay the law down and do the same thing. Finextra: HSBC talks up IT integration initiative The bank’s One HSBC initiative aims to establish a common technology platform across business units and regions. HSBC says the programme aims to “re-engineer the company so that wherever possible we use global systems”. This is expected to drive down … Continue reading HSBC lay the law down with local business units

Umair writes some great stuff, but this post is a classic, and a keeper.  “We’re addicted to consumption”, and “Do we need razors with ten blades – or a single blade that never dulls?” are classic quotes that reverberate.  The key backdrop in this piece [for me] is the comment on the financial system. America’s Addiction and the New Economics of Strategy – Umair Haque Let’s re-examine the house of cards that is the global financial system. Emerging markets seek export-led growth: they undervalue their currencies, so their exports are more competitive purely in terms of price. That’s essentially a subsidy … Continue reading “Addicted to consumption” | where does that leave Banks