The Speech on Euro Crisis by Soros

A year back George Soros gave a speech on the Euro Crisis, Could be one of the best speech have heard in the financial domain. After 1 year imagesEuro remains Status quo with some positive signs. Here is the complete speech

He Started with the Crash of 2008 that has been a widespread recognition, both among economists and the general public, that economic theory has failed. But there is no consensus on the causes and the extent of that failure.

He differentiate economics that is a social science and there is a fundamental difference between the natural and social sciences.

Putting the radically approachinspired by Karl Popper who taught him that people’s interpretation of reality never quite corresponds to reality itself. This led him to study the relationship between the two. There is a two-way connection between the participants’ thinking and the situations in which they participate. On the one hand people seek to understand the situation; that is the cognitive function. On the other, they seek to make an impact on the situation; he termed that the causative or manipulative function.  Continue reading “The Speech on Euro Crisis by Soros”

The problem is not Cyprus. The problem is the Euro.

 CEO of the Saxo Bank  Lars Seier Christensen express his opinion it was remarkable :-

Polish Złoty and Euro Coins

The real problem is not Cyprus, it is the Euro.

After a few disturbing weeks, I would like to wrap up my comments on Cyprus and, hopefully, turn to other issues going forward. It is astonishing that a EUR 10 billion bailout can keep the world spellbound for so long. But then again, while the amount is not staggering, some of the implications are mind-blowing.

That a small economy can be destroyed over a weekend is in itself very scary. But Cyprus’s fate was basically sealed when the Troika revealed its first version of the bailout package. Continue reading “The problem is not Cyprus. The problem is the Euro.”

The Euro Crisis not over

Recently Jörg Bibow was interviewed have tried to put the points in English stating that Mario Draghi’s announcement imagespromise of ECB support for government bond markets seems to have calmed fears of an imminent euro breakup, at least for the time being. That does not mean the euro crisis is over though. Not at all, as the underlying problems remain largely unresolved. Liquidity can buy time but it cannot solve the imbalances inside the euro area and related debt overhangs that are the deeper cause behind the euro crisis. It is important in this context that the ECB promise is for conditional support. Continue reading “The Euro Crisis not over”

Credit derivatives.

People write to remember things, I write to forget. I am sure that definitely had many post on Credit derivatives.cropped-financial_information13.jpg
Many of my friends and colleagues are still not so familiar with them and just wanted to define for them . For them the understanding of credit derivatives is that these monster was behind the subprime crisis in 2008, Lehman crisis, and later the Eurocrisis and now the Grexit. Continue reading “Credit derivatives.”

Best Trades of 2012 @ Wall Street

The global economy gloom is still not over but 2012 was more promising that the last couple of years after the major Subprime Crisis and the ongoing Euro Debt crisis. Here are some of the trades winning bets to be made on Wall Street in 2012. And finding some of them was relatively simple: Just buy the thing that caused—or nearly caused—a major financial meltdown a couple of years back.

1. Subprime mortgage bonds : May sound awkward Continue reading “Best Trades of 2012 @ Wall Street”