THE CREDIT CRUNCH, THE ECONOMIC RECESSION AND MAJOR FRAUDS SCHEMES
Lawyers are having a heyday
Many countries, companies and private individuals are suffering severely from the credit crunch, the economic recession and the various fraud schemes (Madoff, Stanford, Enron, etc.). However, what causes misery to some represents opportunity to others, in this case, the lawyers.
The financial meltdown, for instance, has resulted in governments interfering in financial institutions, people being sacked, and litigation. Securities fraud results in litigation. It seems like a lawyers’ paradise, however let’s not forget that many lawyers are feeling the impact of the crisis as severely as everyone else.
It is however fair to say that …
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IN THE SHADOWS OF DEBT
Who is to blame for the current crisis?
Massive borrowing, hedge funds, credit default swaps (CDSs), collateralized debt obligations (CDOs) and other instruments seem to be part of the current trillion dollar problem. What was known about these instruments and the risks attached to them in the recent past? There was actually quite a lot known right from the start.
A must read is The Economist’s article ‘In the shadows of debt‘ of September 21, 2006 (click here). In 2006, central bankers and supervisors worried about the risks to financial stability that could be lurking …
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WHO IS TO BLAME FOR BLACK MONDAY?
That remains to be seen
‘Blaming others is a sign of low self-esteem because in doing so we are not taking responsibility‘
On Monday 29 September 2008, the US House of Representatives rejected a $700 billion bailout plan aimed at stabilizing the financial system, i.e. a plan to let the least fit survive, triggering the largest point drop in Wall Street’s history.
The bill was trounced by a 228-205 vote, with “no votes” from both the Democratic and Republican sides. The fact is that of the Democrats, 141 voted for the bill and 94, or 40%, voted …
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