The US Government has released more details of how it would conduct ’stress tests’ and how it would give the banks six months to raise private capital and if they fail, the US government would provide capital and that too only preferred capital and not equity capital. Such capital would convert in seven years into [...]
Just take a look at www.ft.com/alphaville where they have a table prepared by UBS on the Tier 1 capital adequacy (CA) ratios for many American banks. They also show tangible equity ratios. I do not know yet what constitutes tangible equity.
The issue whether these Tier 1 CA ratios, which look adequate, are worth looking at [...]
S&P downgrading India’s credit rating outlook is not entirely a surprise. Some may take aim at the agency, given their diminished reputations. That would be a mistake. Their methodologies for sovereign credit rating assessment have not been criticised.
Speaking to Bloomberg, Rajeev Malik of Macquarie Securities said that the new government should privatize, to reduce the [...]
The lead article in ‘Outook’ (March 2, 2009) puts the grade at B-. Perhaps, they were in a charitable mood. Then, there are columns by Dr. Pratap Bhanu Mehta (thanks to him for sending the link to his article), by Laveesh Bhandari of Indicus and an interview with Dr. Shankar Acharya. All three pull no [...]
In his column comparing Japan’s lost decade with what awaits US and UK in the coming decade, FT’s Economics Editor and Columnist Martin Wolf begins with the right question. It is a positive example of intellectual open-mindedness:
What has Japan’s “lost decade” to teach us? Even a year ago, this seemed an absurd question. The general [...]
Emanuel Derman, former head of Quantitative Finance in Goldman Sachs and theoretical physicist now teaches both Industrial Engineering and Quantitative Finance in Colombia University. His blogs are short, crisp and both thoughtful and thought-provoking.
Here are two samples:
http://www.wilmott.com/blogs/eman/index.cfm/2009/2/19/Do-Keynesians-Laugh-When-They-Tickle-Themselves (and)
http://www.wilmott.com/blogs/eman/index.cfm/2009/2/12/Shocks-to-the-System
Took a quick look at the Bloomberg news report on the plan to prevent foreclosures. Foreclosures occur when the borrower finds the loan value higher than the market value of the house and then he/she loses the incentive (because they can walk out of the mortgage, in some states in the US) to service the [...]
Would like to spend some time with the docs. before doing up a detailed post on it. But, for now, two edits in MINT should serve as great reads. Actually, this week MINT hit a high point with three high-quality, punchy editorials with the right tone and content. Here are the links to all of [...]
Thanks to Nitin for forwarding this article. It is hard to form a view of this article because it is devoid of meaningful content. It starts with a rant on US financial capitalism, slides into ‘crapitalism’ and then defends it in the next paragraph.
In between, China is extolled for the wrong reasons while India is [...]
In case you were wondering (as I was) as to how the China shares (H-shares) in Hong Kong were not mirroring the performance of local shares this year (world’s best stock market performance), this Bloomberg article solves the puzzle.
China Record Loans Diverted to Stocks, Shenyin Says (Update1)
Email | Print | A A A
By Chua [...]
Bare Talk at Mint
Recent Comments