Commodity Trade Mantra

Posts Tagged ‘Moral Hazard’

Why Banks Are Doomed: Technology and Risk

It’s not just that banks are no longer needed–they pose a needless and potentially catastrophic risk to the nation. To understand why, we need to understand the key characteristics of risk. The entire banking sector is based on two illusions.

Why Did China Order Its Smaller Banks To Load Up On Cash?

Smaller banks are the weakest link of China’s financial system because their lack of a stable deposit base would force them to seek more expensive funding and offer more risky loans. They will be hardest hit when borrowing costs are elevated and the economy slows.

China's First Default Is Coming: Here's What To Expect

With a large volume of trust products scheduled to mature this year, who bears the losses in the event of a default could set an important precedent. Policymakers may see, the default of a trust in current circumstances, as having less risk of contagion than some other shadow banking products.

UBS Warns The Fed Is Trapped

Why did the Fed decide to hold back in Sep, puzzling investors who had very widely expected a taper and thereby putting the credibility of its communication strategy at risk? The Fed is facing two major but opposing risks, which confirm that it is now trapped.

follow us

markets snapshot


Market Quotes are powered by Investing.com India

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook