2012 Mid Year World economy towards the path of Bailouts & Bankruptcies

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… Continue reading “2012 Mid Year World economy towards the path of Bailouts & Bankruptcies”

Euro Cup and 19th Euro Submitt

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, Continue reading “Euro Cup and 19th Euro Submitt”

LIBOR Manipulation : ny thing for you Big Boyz

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 Continue reading “LIBOR Manipulation : ny thing for you Big Boyz”

Understanding Private Equity through a movie

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) : Continue reading “Understanding Private Equity through a movie”