The old exhortation to ambitious youth, “Go East, young man!” has lost none of its potency over the century or so since it was first uttered. Asia now has global growth by the scruff and is running away with it while the West keeps on digging itself into a deeper hole.
With near zero returns for prime sovereign debt, wealth managers and fixed income managers have been pouring money into high yield corporate bonds for more than a year in a search for better rewards.
QFINANCE brings to you its top 5 financial news stories of the week, along with relevant QFINANCE articles and definitions to fill you in on background details. Stories this week include protests across France against pension reforms, the UK spending review, and G20 reactions to the currency wars.
The past several weeks have seen new revelations about the complexity of the mortgage industry and the astonishing level of sloppy work done to document that complexity. We are on the verge of massive lawsuits and a good deal of wailing and gnashing of teeth on the part of the banks that issued the loans and the entities that processed, repackaged and sold them as securities.
Watergate seems to have permanently disfigured US English by requiring a mandatory suffix, “gate”, to be appended to every fresh scandal, “just so’s we knows its big”. However, US market commentators and financial bloggers are revving their engines big time on foreclosure-gate, and since I dropped an un-elucidated mention of this into a previous blog, now might be a good time to give the topic an airing.
Speaking at the Canadian Consulate’s “Invest in Canada” luncheon on 6 October, the Nobel Prize winning economist Joseph Stiglitz in effect threw in the towel over the ongoing currency wars. As reported by Reuters Stiglitz said that what the US was involved in amounted to a competitive devaluation of the dollar against other currencies that were also deliberately devaluing.
Hedge funds continue to bear the brunt of blame for the 2008 credit seizure, market collapse and ensuing Great Recession. Whether part of the problem (securitization), an exacerbation of the problem (short-selling) or the problem itself (Madoff), the weight of public opinion continues to be stacked against them.
QFINANCE brings to you its top 5 financial news stories of the week, along with relevant QFINANCE articles and definitions to fill you in on background details. Stories this week include overreaction to sovereign debt by Eurozone investors, the Chile miners' miracle rescue, and China's reserves hitting a record high.
As the world watched the incredible sight of Chile’s 33 miners emerging, one by one, from what might so easily have been their stony tomb half a mile underground, there was a real sense that this was also the opportunity for the country as whole to shed the darkness of the Pinochet years and to be seen as a modern, democratic country with a thriving economy.
When the Norwegian Nobel Committee decided to award the 2010 Nobel Peace Prize to Liu Xiaobo “for his long and non-violent struggle for fundamental human rights in China”, the members knew, of course, that their decision would not be cheered by the Chinese authorities who regard Liu Xiaobo as a “criminal” and have him locked up and serving an eleven year prison sentence.