Are we on the verge of another financial crisis?
It is a question well worth asking as the prices of stocks and property have been sky high by central bankers flooding the markets with cheap money.
What should risk professionals do?
The first question for risk managers, internal auditors and finance professionals is; how much of the cheap and plentiful liquidity provided by Quantitative Easing, or QE as it is known, has gone into inflating asset prices—stocks, bonds and housing?
The second question is: how far will asset prices fall when the Fed and the Bank of England start to “taper” or reduce their QE and how will that impact my institution? Continue reading
Posted in Banking, Business
Tagged asset price, Audit, Bernanke, bonds, economy, Federal Reserve, Financial Crisis, India, Rajan, Risk, stocks, Subprime, Summers, Yellen
So much of what passes for discussion these days on how to improve economies is centred around GDP growth, debt ratios, tax regimes, the regulatory environment, infrastructure development and corporate profitability. Moreover, when a company announces that it is cutting costs, by laying off workers and closing down divisions, analysts cheer, the stock price rises and commentators laud the good decision. Continue reading
Posted in Business, People, Politics
Tagged America, Banks, economy, Financial Crisis, GDP, Girls, Government, Greece, Hygiene, India, politics, Republican, Spain, Taxes, Women