Signs of a Global financial Crisis – GFC Some of these signs are already present, some are occurring currently and yet others still developing. Over time we will track the occurrences as they unfold. Whilst I have applied them to Australia, they are equally applicable in the US, Britain and Europe. Our Signs are as…
When we boil it all down, it was greed and the escalation of greed which was the root cause of the GFC. The re-emergence of a number of Greed indicators show a worrying trend. Some of these are already present, some are occurring currently and yet others still developing. Over time we will track the…
A democracy is meant to quickly respond to the wishes of the people through their elected representatives, each with an equal voice. In a democracy, politicians can influence the will of the people, but never dictate to them. When people vote to install a political leader in a democracy it is expected the leader can…
When we boil it all down, it was greed and the escalation of greed which was the root cause of the GFC. The re-emergence of a number of Greed indicators show a worrying trend. Some of these are already present, some are occurring currently and yet others still developing. Over time we will track the…
A river of capital flowed … bail-outs, interest rate reductions, printing money, special banking arrangements etc. Worldwide stimulus packages flowed including a massive stimulus from China. Bankers were no longer paid to hoard and began to lend. Capital began to trickle – when the banking system appeared solid. A readjustment period ensued. Why did the…
… a walk down memory lane in the GFC series It is important to understand what happened last time ! The beginning In the Lead up to 2008 credit easy to obtain, interest rates were low, there was an excess of capital, risks were ignored and Greed was rampant. This Spawned Collateralised Debt Obligations (CDO’s)…