Asian countries are being forced to impose capital and currency controls as zero interest rates in Developed countries moves speculative money towards Asia.The Lehman Crisis in 2008 had led to a global risk aversion of all assets with capital flowing out of the Asian countries as all “risky assets” took a massive dive.But with Markets […]
Spain,European Union and IMF all denied that a Spanish Bailout of Euro 250 Billion was being formulated by the international agencies.There are some people who think that a preventive bailout measure will reduce the ultimate cost of a Spanish Bailout learning from the lesson of the Greek Contagion.However despite repeated rumors,the Politicians have continued denied […]
China with its $2 Trillion Foreign Exchange Reserves is on the constant lookout for cheap assets around the world.With its massive horde of Dollars and Euros depreciating on a daily basis,the Chinese government is investing in Hard Assets in places like Africa,Venezuela etc. who are in desperate need of capital.It seems that China has found […]
Bear Sterns was brought down as trading partners refused to provide short term funding to the bank.With Banks losing trust and faith in Bear Sterns solvency it was only a matter of time before it went bankrupt.The Spanish Banks are facing a situation somewhat similar though less acute than Bear Sterns did .Foreign Banks are […]
Standard Chartered IDR closed below its listing price of Rs 104 in the Indian Market.A Review of Standard Chartered IDR had revealed severe disadvantages for retail investors.In Seven Reasons Why StanChart IDR was not a good buy, I had listed out the shortcomings of the IDR instrument and Standard Chartered as a stock.It seems that […]
Caja Madrid which was looking for a Bailout from the Spanish Central Bank is merging with another large Caja Bancaja.The Central Bank is pressurizing the Cajas(Socially run Spanish Savings Banks) to merge with each other to reduce costs and improve management.This is being done with the help of a Bailout Carrot.The Cajas are basically badly […]