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Post by account_disabled on May 2, 2024 4:45:19 GMT
What exactly crippled the financial institutions that we have trusted for so long Was it the deterioration of assets caused by mortgaged backed securities the ensuing deleveraging of balance sheet and everyone doing it all together at the same time or was it the fall of Lehman brothers that eventually crashed the little confidence and trust left in the financial system Was it really wise to let Lehman go and then to bail out. Citibank along with the biggest rescue package in history South Africa WhatsApp Number List Is it right that we are currently in a situation that can only be described as bailout frenzy with massive moral hazard in the making because we were worried about the perverse incentive from bailing out one investment bank One cannot foresee everything. But it seems there are a lot we did not foresee during the past year. Looking back at the major events that have happened during the development of this credit crisis we have always been just one step albeit a very important step late in preventing them. Maybe now is the time to start thinking ahead. THE TALENT ADVISORS MELBOURNE AUSTRALIA The breakdown of the housing and credit markets was systemic in nature with seismic consequences felt around the world. Change is inevitable to deal with the resulting new realities. The under pricing of risk will be adjusted. Responsible governance and good risk management practices will be heightened. A scarcity of capital for credit and capital expenditure purposes will require stimulus.
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