Tags

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Source Data for Leverage Ratios from Wikipedia entry

Source Data for Leverage Ratios from Wikipedia entry

http://en.wikipedia.org/wiki/File:Source_Data_-_Leverage_Ratios.png

http://en.wikipedia.org/wiki/File:Leverage_Ratios.png

from – wikipedia entry –

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

***

Foreclosure trends 2007 - 2008

Foreclosure trends 2007 - 2008

http://en.wikipedia.org/wiki/File:Foreclosure_Trend_-_2007.png

found here –

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

*and other great information including –

****
http://en.wikipedia.org/wiki/File:Foreclosure_Trend_-_2007.png

Chart of foreclosure numbers from 2007 – 2008

In its “Declaration of the Summit on Financial Markets and the World Economy,” dated 15 November 2008, leaders of the Group of 20 cited the following causes:

During a period of strong global growth, growing capital flows, and prolonged stability earlier this decade, market participants sought higher yields without an adequate appreciation of the risks and failed to exercise proper due diligence. At the same time, weak underwriting standards, unsound risk management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in the system. Policy-makers, regulators and supervisors, in some advanced countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account the systemic ramifications of domestic regulatory actions.[35]

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

***

***

http://www.weforum.org/pdf/scenarios/TheFutureoftheGlobalFinancialSystem.pdf

The crisis is rooted in global imbalances, including long
regimes of low interest rates, rapidly rising asset prices,
massive leverage and trade and savings imbalances.
The World Economic Forum’s Global Risk Report pointed
to associated risks of these phenomena in early 2007
and 2008.
The crisis has revealed severe limitations in the current
regime of global coordination and regulation and
a multitude of failures in risk management. Such failures are
not limited to financial institutions, but affect governments,
central banks, rating agencies, corporations, households
and the media. Given the global nature of the financial
and economic turmoil, new approaches and solutions
from both governments and the private sector are
required to restore confidence to markets and ensure
an effective long-term response.

To stimulate the dialogue between governments and
the private sector regarding the future of the global financial
system, the World Economic Forum launched the New
Financial Architecture project in January 2008, with
the mission of addressing the following central question:
How might the governance and structure
of the global financial system evolve over both
the near-term and long-term?


This report draws upon many of the World Economic
Forum’s expert communities in offering a set of answers
to this central question.


We trust this publication will challenge your thinking
and offer new perspectives on how the global financial
system may be significantly altered over the course
of the coming years. Above all, we hope the insights
it provokes may contribute towards ensuring that together
we will find ways to promote long-term financial stability
and revive global economic growth.
Professor Klaus
Professor Klaus Schwab
Founder and Executive Chairman
World Economic Forum

****
Throughout this process, intellectual stewardship and
guidance was provided by an actively involved Steering
Committee co-chaired by John Thain, President of Global
Banking, Securities and Wealth Management, Bank of
America Merrill Lynch, and David Rubenstein, Co-Founder
and Managing Director, The Carlyle Group.

The report is the culmination of a partnership with Oliver
Wyman and twelve months of work interacting with senior
industry practitioners, leading international scholars,
regulators, policy-makers and other distinguished experts
and stakeholders. In addition, Clifford Chance provided
guidance regarding the future of financial regulation. To
date, the project team has had the privilege of interviewing,
surveying, debating and facilitating meetings with over
250 of the leading thinkers in global finance. Eight major
workshops were convened for the project in Geneva, Kuala
Lumpur, London, New York, Sharm El Sheikh and Tianjin.

In phase two of this project, the World Economic Forum
will work with key stakeholders to delve deeper into the
implications of this analysis, with the goal of exploring
collaborative strategies and areas of systemic
improvement. This will involve an examination of the
potential future sources of systemic risk, as well as
opportunities to reposition the industry for sustainable,
long-term growth in ways that maximize the stability and
prosperity of both the financial and real economies.

Max von Bismarck
Director and Head of Investors Industries
World Economic Forum
Bernd Jan Sikken
Associate Director and Head of Emerging Markets Finance
World Economic Forum

http://www.weforum.org/pdf/scenarios/TheFutureoftheGlobalFinancialSystem.pdf

***
Steering Committee members
Paul Achleitner, Germany
Member of the Board of Management
Allianz SE

Sameer Al Ansari, UAE
Chief Executive Officer
Dubai International Capital LLC

Bader M. Al Sa’ad, Kuwait
Managing Director
Kuwait Investment Authority
Sir Howard Davies, United Kingdom
Director
London School of Economics
and Political Science

Robert E. Diamond Jr, United Kingdom
President
Barclays PLC

Volkert Doeksen, Netherlands
Chief Executive Officer and
Managing Partner
AlpInvest Partners

Tolga Egemen, Turkey
Executive Vice President
Financial Institutions and Corporate Banking
Garanti Bank

Jacob A. Frenkel, USA
Vice Chairman
American International Group Inc

Johannes Huth, United Kingdom
Managing Director
KKR & Co Ltd

From the World Economic Forum:
Max von Bismarck, USA
Director and
Head of Investors Industries
World Economic Forum USA

Kevin Steinberg, USA
Chief Operating Officer
World Economic Forum USA

Chanda Kochhar, India
Joint Managing Director
ICICI Bank Limited

Scott McDonald, United Kingdom
Managing Partner
Oliver Wyman

Daniel Och, USA
Founder and Chief Executive Officer
Och-Ziff Capital Management Group LLC

David M. Rubenstein, USA (Co-Chair)
Co-Founder and Managing Director
The Carlyle Group

Heizo Takenaka, Japan
Director, Global Security Research Institute
Keio University

Tony Tan Keng-Yam, Singapore
Deputy Chairman and Executive Director
Government of Singapore Investment Corporation GIC

John A. Thain, USA (Co-Chair)
President of Global Banking,
Securities and Wealth Management
Bank of America Merrill Lynch

Ruben K. Vardanian, Russia
Chairman of the Board and Chief Executive Officer
Troika Dialog Group

Bernd Jan Sikken, Switzerland
Associate Director and
Head of Emerging Markets Finance
World Economic Forum

http://www.weforum.org/pdf/scenarios/TheFutureoftheGlobalFinancialSystem.pdf

***
My note –

Earlier tonight on one of the FoxNews / FoxBusiness shows, I heard the accusation once more that the economic crisis is not real but rather a thrust by socialists and others to make it appear that there is a problem when there really isn’t. And, on the previous night there was Mr. Cavuto telling us how the rich could and likely would become vindictive since they are being railed against by the “populists” – the masses. I also heard tonight as someone on the Hannity show mocked the Chinese and others (they named countries, all of which are loaning us money), around the world versing us on capitalism and prudence and some sort of obscene slur in the same neighborhood.

There have been a few times like this when it seemed that the “news” isn’t the news at all but rather a platform for manipulating and trading the truth around until it no longer communicates the facts with any accuracy whatsoever. But, the worst of all is that it incites the “us and them” mentality that they claim to find undesirable. Their views of our economy are that we don’t really have a problem, things aren’t all that bad.

Well, if they are not all that bad, then why does it cost ten dollars to buy a gallon of milk, a box of cereal and a cheap package of hot dogs on sale? Why are there millions of people that have lost their homes, businesses, jobs and virtually everything that they owned trying to pay their bills across a broad spectrum of the population in the United States? Do they really believe that these events are just a matter of opinion while our homeless shelters fill with people, tent cities are housing people who’ve lost their homes across our nation, food banks are overwhelmed, tens of millions of people are unemployed, underemployed, laid off, bankrupt and totally insolvent?

How cruel is that, to pretend that none of it is really true while those who are experiencing it can attest to its validity and how foolish is that pretense, when every last number, tally and monetary indicator is showing what has happened in the absolute tense? Maybe with enough money, a delusion isn’t considered a problem but when that delusional twisted version of reality is used for news shows that are being broadcast nationally and internationally?

It is my opinion that the chart at the top of this post which indicates the amount of leverage and comparisons of available assets to that leverage – is only the tip of a really, really, really big, ugly iceberg and that is what has caused the decimation of our economy, the global economies and our future.

– cricketdiane, 03-25-09


Advertisements