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Archive for June, 2012


Well its the last day of the month and the world economy standing in the mid of year 2012. Lets try to pull the events by connecting the dots and see where the world is :
1) After months weeks years of posturing and denial Spain and Cyprus formally requested aid from Europe bailout funds. More so they have officially confessed to their insolvency and the insolvency of their banking system.
Spain 10 year bond yield breached the worst level and it touched the 7% in return many od the Spain bank ratings got junk by Moodys

2) Over in the US, the city of Stockton, California filed for bankruptcy this week… View full article »

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The Euro cup 2012 is all set for the sunday and we have Spain Vs. Italy. So It’s debt Vs debt in the euros final. As I am sure a zillion of you have already noted. In the noise of the Euro cup there was the nineteenth,
EU summit to save the Euro has, quite remarkably, agreed to do something to try and save the Euro.

The whole build-up and conclusion to this summit have brought a sense of nostalgia to some observers; the disillusionment in advance, View full article »

Well ever thought or imagine of influencing the reference rate. Barcalys did that exactly the same in return the regulator FSA fined it with the largest fine in an attempted manipulation of and false reporting of LIBOR and Euribor Benchmark rates.

The LIBOR rate is a critical element of the financial system. Before I move further some basics on it to understand the scenario: LIBOR stands for ‘London InterBank Offered Rate‘. It is produced for ten currencies with 15 maturities View full article »

I saw a movie during my travel to Bhopal couple of weeks back  Other People’s Money . As I was more curious to know about the heated debate in US whether Private Equity to be termed as Hero or Villan. Those of you who has seen the Wall street series and remember Gordon Gekko,a character resembling popular culture for unrestrained greed (with the signature line, “Greed, for lack of a better word, is good”), often in fields outside corporate finance.

Let us try to understand Private Equity (PE) : View full article »

Watch out every investor has started eyeing Brussels as the dates are closer June 28-29 as they worried about an economic slowdown in the U.S. and China were preparing for the European leaders to disappoint at the EU summit.

There was anxiety on Monday Spain escalated,when the country formally asked other euro countries for rescue loans for its banks, View full article »

Yesterday I was going through a very interesting piece delivered by Jaime Caruana . General manager of the Bank for International Settlements (BIS) and he also hold the position in the past to be a former governor of Bank of Spain.

Well the message from the report of BIS is very clear that not enough being done to repair finances of Banks & Governments – cheap central-bank money props up the lame ducks. Another major remark from BIS View full article »

There is a famous quote ” I like players to be married and in debt. Thats the way you motivate them ” by Emie Banks.

The Euro cup 2012 is reflecting the crisis during the soccer mania when the fans chanting here is one of them between German and Greece as the financial crisis has spilled into this event, as of course it had to…

From the New York Times:

“Without Angie, you wouldn’t be here,” bellowed the German fans, referring to the multibillion-dollar bailouts Greece has received from European partners, first and foremost Germany.
View full article »

Was thought of sharing this a long back but skipped from my mind . Markets provides lot of learning opportunities and if it is presented in the form of a movie it is more easy to learn . I am sharing some of the best movies that I saw and some quotes :

  • Most Corrupt Movie About Finance: Enron, The Smartest Guys In The Room       
  • Best Line: ’I would like to know if you are on crack, if so that would explain a lot. If not, you may want to start because it’s going to be a long time before we trust you again.’ View full article »

I truly believe it pays to be an optimist in life. it’s practically part of the job description. You can fearfully view a crisis as a time of loss and peril, or you can choose to view it as a time of opportunity with potential for positive change. The Eurozone crisis has triggered a ripple effect across global markets, and many investors are expressing pessimism about the economic health and sustainability of the region. Me? I’m an optimist. With elections in Greece now behind us, there are still many unanswered questions. View full article »

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