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Tag Archive: POLITICS


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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Contagion Predicting for Euro

Well the election is over in Greece and the New democracy party gained and possible that they will need support from Syriza to form the government. The question still remain in my mind. Can the Greece leave he euro quietly ? well possible but a lot of arguments has already been put in to  posts and the economists, financial baron have discussed.

When I say possible because the Greek economy is just 2% of the Euro zone GDP. but here again it  already had plenty of noise knock on effects. View full article »

Source: International Monetary Fund.

It has been correctly quoted that picture speak more than the words. So what does the graph looks like, Not more can be said for them as we focusing on Europe back again. View full article »

Before the Grexit and Brokers terminologies I did an article from the train that focused on European Debt Crisis : Resolution or Dissolution. While returning back from Indore to Mumbai  by India‘s non stop trains  Duronto express. I met a lady and has an argument on the financial market profession and the expression of love. She has her own point of view that the people from Finance industry do not understand emotions  and run for money.

But I believe  emotional difficulties are  common to all the profession View full article »

The Greek puzzle is getting cozy each day . The G8 imageleaders backed Greece in euro zone as reported by Reuters. Putting any new remarks it looks like to wait and watch the scenario and action by the regulators, politicians.

Today I thought of sharing some old brokers terminologies and bit personal experience. As I quoted on FB View full article »

Guest Post :

During the economic recession of 2008, debt in the U.S. came to the forefront in a spectacular manner. At this point of time, the overall financial structure appeared on the brink of total collapse and people witnessed the outcome of years of casual spending and lack of monetary regulation by government institutions. Credit cards seemed to be the preferred means of payment in the nation. According to a recent study, more than 1.3 billion different payment card varieties are presently in use in America. Times are tough and it’s not really shocking to see a number of Americans crushed under an incredible amount View full article »

JP Morgan Series :

Picking up from the CDX.NA.IG indices are composed of 125 North American corporate credits that are investment grade when the index begins trading understanding JP Morgan loss. As derivative’s are zero sum game so if JP Morgan lost $2 billion from April 2012, than who made a $2 billion profit in the same time, well I don’t know.May be some unidentified hedge funds apparently. It was like once the sharks smelled blood in the water, they started betting against the whale, making his losses much bigger. The huge size that traders were complaining about

View full article »

The world financial market where already under pressure from the Euro crisis, untill yesterday late night when the news broke out JPMorgan has trading loss of at least $2 bln, reputation hit . The CIO unit is where Bruno Iksil was making $200 billion-sized bets. Basically JPM has suffered massive losses at its CIO group most likely due to its IG/HY positions held by Iksil.

Below quotes from Mr Jamie Dimon

  • “…Errors, sloppiness, and bad judgement.”
  • “Bad strategy, badly executed and poorly monitored”
  • “It could get worse. This could go on for a little bit.”
  •  “Badly executed, badly monitored. I’m not going to repeat it 800 times” View full article »

I do not know why but somebody wanted me to define some basics on Yield spreads, that whether Yield spreads can judge the risk environment in an economy ?

Yield spreads are good tools to judge the risk environment in an economy a lower yield spread means that the issuer of debt is in a situation to demand loans at a lower spread above the yield of government security which in turn shows the presence of ample liquidity.

As far as economic growth is concerned a lower yield spread indicates greater amount of liquidity available for growth View full article »

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