Wall Street

Interconnected for better or for worse?

Understand how the markets work, but isn’t it incredible that a financial crisis made in America can even hit Saudi Arabia. Not only is the kingdom on the other side of the globe, it also has more money than any other country in the world. [...]

Will regulating banks avert another global crisis?

The G20 group’s discussions this weekend may lead to banks and other financial institutions having to pay two new taxes to fund future bail-outs. Good timing that a former Goldman CDO man just published a novel he wrote “about the cliched high life I had been living while creating and selling billions upon billions of these securitization and credit derivative products, now better known as ‘toxic assets”. [...]

The American Dream – what does it stand for today?

It seems to me that a few bankers have managed to hijack and contaminate the American Dream. To them it means looking after number one at the expense of others, which is as far from the true meaning as you can get. And the price for that is being paid by Middle America with their drastically reduced spending power. [...]

Stop the “heads I win – tails I’m bailed out” syndrome!

To avoid repeating last year’s crisis, governments must find a way of making investors in financial institutions understand that they will lose money if banks fail. If not, there is no stopping the moral hazard of investors feeling safe believing that governments will always prevent major banks from collapsing. [...]