- Who’s afraid of a big current account deficit?
- What is the CAD?
- What if there was no capital account?
- Should we bemoan the large Indian CAD?
- A big CAD got us into trouble in 1991. Won’t that happen again?
- Why won’t all channels choke all at once?
- What kinds of foreign investors respond the most to rupee depreciation?
- Why is a large CAD seen as a big problem?
- What is the role of MOF or RBI in ensuring adequate capital comes into the country to match the CAD? Continue reading “The Current Account Deficit of India (CAD)”
Lesson #1 Government agencies allocate capital better than the private sector
Lesson #2 Central banks should control asset prices and prevent them from falling
Lesson #3 Darwin & Schumpeter were wrong, creationists are right; there is such a thing as a free lunch
Lesson #4 Towards a new orthopraxy
Lesson #5 Wondrous tools used by the clergy to grow GDP
Lesson #6 How to finance infinite needs……
I never thought I’d write these words, but Nick Leeson – the original rogue trader – is back, baby! Well, kinda. It’s not like he’s slinging SWAPS on Canary Wharf or anything. But the man who famously destroyed Barings Bank and whose iconic SIMEX trading jacket sold for £21,000 in the aftermath is now back in the biz, albeit in a decidedly less prestigious role than he’s used to.
Mr Leeson is joining GDP Partnership to mediate on behalf of distressed borrowers with debts of more than €1m (£850,000) to find “the best possible outcome for both bank and borrower”, said Conor Devine, a chartered surveyor and one of GDP’s founding partners. Continue reading “Rogue Trader – Nick Leeson Back”
- Lesson #1 Government agencies allocate capital better than the private sector
- Lesson #2 Central banks should control asset prices and prevent them from falling
- Lesson #3 Darwin & Schumpeter were wrong, creationists are right; there is such a thing as a free lunch
- Lesson #4 Towards a new orthopraxy
- Lesson #5 Wondrous tools used by the clergy to grow GDP
- Lesson #6 How to finance infinite needs
Jon, posting at the OTC space, does a nice job of setting out the size of various markets. In particular he uses gross
market value rather than notional for OTCs, which is a (much) more useful measure. The results are interesting:
Scarcely a day goes by without a press article or speech mentioning in its introduction the “more $600+ trillion OTC derivatives market”. Whilst this may liven up the subject, this unnecessarily inflames concern. Here’s why.
What are the figures? The quoted figures come from the Bank for International Settlements (BIS) half yearly reporting on OTC derivatives market activity – published on their website. The latest is: BIS OTC 2012 H1 which notes $639 trillion open notional. Continue reading “How Big is OTC”