PARIS: Too much debt has made the world's financial system as vulnerable as it was 10 years ago, Europe's top central banker during the 2008 global meltdown has warned as he looks back on the crisis."There is now agreement that the excessive debt level in advanced economies was a key factor in the triggering of the global financial crisis in 2007 and 2008," Jean-Claude Trichet, who ran the European Central Bank between 2003 and 2011, said in an interview."The growth in debt, especially private debt, in advanced countries has slowed, but this slowdown has been offset by an acceleration of emerging country debt," said Trichet, a Frenchman who ran his country's central bank, the Banque de France, before taking the helm at the ECB."This makes the entire global financial system at least as vulnerable as it was in 2008, if not more so."Trichet was only the second president at the ECB, which was barely a decade old when US bank Lehman Brothers collapsed in September 2008, a date widely seen … [Read more...] about Global finance ‘as vulnerable’ as in 2008: Ex-ECB chief
Institute of global finance
All eyes are on the Turkish lira. Its decline has been precipitous – it has already lost more than 40% of its value against the US dollar this year. For Turkey, which has relied on the inflow of foreign credit, this poses terrible risks. Enormous debt coupled with a vicious attack for political reasons on the Turkish economy by the US government has pushed Turkey toward the precipice. Will Turkey’s descent take Europe with it and then, certainly, other middle-income countries? Is this the harbinger of a new global financial crisis that would be far more dangerous than the one in 2007-08? The dailyReport Must-reads from across Asia - directly to your inbox Financial instability The credit crisis of 2007-08 has not really ended. The problems posed by the collapse of the US housing market and the subsequent debt problems in world banking have not been fixed. Sober recommendations from the Basel Committee on Banking Supervision as well as from the International … [Read more...] about Could Turkey trigger the next global financial crisis?
Institution of moral and academic excellence Let me devote this column today to a very significant milestone of an educational institution that has taught and trained more than 400,000 global alumni who are now transforming and leading the communities in which they live as well as achieving excellence in the profession they have chosen to pursue. This institution is the oldest school in Quezon City which is celebrating its 85th Jubilee year since its foundation in 1932 by the Dutch Franciscan sisters. This is St. Joseph’s College (SJC), Quezon City, a leading institution of academic excellence and the Alma Mater of so many Filipinas who have become outstanding leaders for social transformation in the service of God and people. The incumbent school president now is Sister Teresita C. Babaran, SFIC. SJC is one of the charter members of the Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU) in 1957, along with 10 other … [Read more...] about Institution of moral and academic excellence
PHUKET MEDIA WATCH – World news selected by Gazette editors for Phuket’s international community BRICS set up bank to counter Western hold on global finances Reuters / Phuket Gazette PHUKET: Leaders of the BRICS emerging market nations launched a $100-billion (58.32 billion pounds) development bank and a currency reserve pool on Tuesday in their first concrete step towards reshaping the Western-dominated international financial system. The bank aimed at funding infrastructure projects in developing nations will be based in Shanghai and India will preside over its operations for the first five years, followed by Brazil and then Russia, leaders of the five-nation group announced at a summit. They also set up a $100 billion currency reserves pool to help countries forestall short-term liquidity pressures. The long-awaited bank is the first major achievement of the BRICS countries since they got together in 2009 to press for a bigger say in the global financial order created by … [Read more...] about BRICS set up bank to counter Western hold on global finances
A bloodbath gripped the crypto markets this week, with virtually every single major cryptocurrency taking significant losses, but huge amounts of excitement remains about the space from all corners of society. Bitcoin, the first, biggest, and most recognisable cryptocurrency, has been at the heart of much of that excitement, with acolytes touting it as the future of global finance, and some even suggesting that it could replace fiat currencies like the dollar and the pound. Bitcoin’s rise has been so rapid and so aggressive that the market’s more established institutions and figures have been simply unable to ignore it. There is a big spread of opinion across the sector, with some seeing cryptocurrencies as a possible driver of a fundamental shift in the global financial system, others disliking bitcoin, but having some faith in the blockchain technology that underlines it, and others just seeing crypto as, basically, a complete waste of time. To find … [Read more...] about What 12 major analysts from banks like Goldman, JPMorgan, and Morgan Stanley think of bitcoin