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Emerging Market Channel: Latest Posts
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Emerging Markets
BofA Gives Details on Loan Modification Program
Nice to see that the Feds aren’t the only ones bailing people out. Tonight I see a release from BofA wherein it essentially bails itself out itself via a $8.4-billion mortgage modification program for people with home mortgages obtained through its Countrywide subprime subsidiary. Granted, it did this at the urging of various state Attorneys [...]
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Emerging Markets
Open Letter to European leaders on Europe’s banking crisis: A call to action
This is a once-in-a-lifetime crisis. Trust among financial institutions is disappearing; fear may spread. Last week’s US experience showed that saving one bank at a time won’t work. A systemic response is needed and in Europe this means an EU-led initiative to recapitalise the banking sector. Unless European leaders immediately unite to address this crisis [...]
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Emerging Markets
Biggest Lesson From The Great Depression
Ilian Mihov, Professor of Economics at INSEAD, holds forth on the lessons of the collapse of the ‘golden age’ of the late 1920s. What is the biggest lesson from the Great Depression? In my view, it is that monetary policy and the financial sector play a crucial role in economic development. Let me put it [...]
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Asia
US slowdown = Chinese slowdown
Earlier this week I was talking to my grad student Shang Ning about the awful markets around the world, and he suggested that maybe it was a good thing that Chinese stock markets were closed this week for National Day since this would act as an extended circuit breaker that might protect them from collapsing [...]
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Emerging Markets
Business as usual in Frankfurt?
Apparently yes. The press release after the Governing Council (GC) decision to keep interest rates unchanged contains the usual clever account of the “economic and monetary developments in the euro area” the balance of which leads to the final decision. Following the usual two-handed style, we understand that: on the one hand “economic activity is [...]
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Emerging Markets
The Financial Sector Crisis and Islamic Banking
The international financial crisis began over a year ago, and has intensified over past few months. The International Monetary Fund has already warned that this credit crisis will result in losses of over trillion dollars and that it may worsen especially after the 150-year-old US financial giant Lehman Brothers been declared bankruptcy, not to mention [...]
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Asia
Chinese Trade: An Update
I was surprised by this item from the BBC: Chinese trade surplus at new high Wednesday, 10 September 2008 China’s trade surplus hit a monthly record of $28.7bn (£16.28bn) in August as the gap with the US and Europe widened, despite weaker world demand. China’s global trade gap for the month was 14.9% wider than [...]
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Emerging Markets
Bailout Redux: The Real Choice Ahead
If the choice is between a lousy bailout bill and economic Armageddon, I’d vote for the lousy bailout bill. But make no mistake: This is a lousy bill. It doesn’t do the most important thing — help distressed homeowners avoid foreclosure (that role is given to the Treasury Department, which is the equivalent of putting [...]
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RGE Analysts
US-India Nuclear Accord: Nonproliferation Disaster or Landmark Deal?
The 123 Civil Nuclear Agreement between India and the United States was approved by the Senate by an 86-13 vote on Oct 1, 2008. This landmark deal, three years in coming, represents a major foreign policy achievement for both the Bush administration in its final months and Manmohan Singh’s coalition government in India that was almost voted out of power after allies withdrew support over the government’s aggressive backing of the pact. Ending thirty years of India’s nuclear isolation following its nuclear tests, the pact allows American businesses to begin selling nuclear fuel, technology and reactors to India in exchange for safeguards and U.N. inspections at India’s civilian, but not military, nuclear plants.
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Emerging Markets
Super Liens, FHLB Advances and the Road to Forbearance
“Then faced with the worst financial crisis in a century, U.S. policymakers of the 1930s deliberately enacted a set of reforms that included central bank restructuring, bank regulatory reforms, federal deposit insurance, and a separate, politically accountable, publicly funded rescue mechanism, the RFC. Those policymakers paid careful attention to statutory and institutional structures that separated [...]
