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How might the current financial crisis shape financial sector regu

The current financial crisis was triggered by increasing defaults on subprime mortgages and the turn of the housing cycle in the United States. However, it ...

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Capital
How might the current financial crisis shape financial sector regulation and structure?

The current financial crisis was triggered by increasing defaults on subprime mortgages and the turn of the housing cycle in the United States. However, it had deeper causes in the under-pricing of risk and debt accumulation in several countries during the period of low real interest rates and easy access to credit. The financial industry has responded by raising capital and reducing leverage. The public sector has provided massive liquidity support, injected capital and improved deposit insurance. Looking further ahead, wide-ranging reforms are underway aimed at increasing market and institutional resilience. It is an open question how wide the financial safety net will be cast. The future financial sector can be expected to be smaller and operate with higher capital and liquidity buffers than before the crisis.

Last Updated on Sunday, 22 February 2009 21:01
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Europe doesn't need sovereign wealth funds

French President Nicholas Sarkozy has proposed that European nations create sovereign wealth funds to protect national companies from foreign “predators.” This column says that idea is protectionist and without merit. Emerging economies establish sovereign wealth funds to invest foreign reserves or commodity revenue – not to bail out domestic firms and stifle global competition.

 

Last Updated on Sunday, 22 February 2009 21:02
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When Money Talks Arab Sovereign Wealth Funds in the Global Public Policy Discourse

The financial interdependence that sovereign wealth funds (SWFs) created between the West and the Arab world could help stabilize multilateral relations and promote economic development and political stability in the Middle East, concludes a new paper from the Carnegie Middle East Center.

Sven Behrendt studies the rise of Arab SWFs, assesses their investment strategy, and evaluates the policies of Arab investors and Western nations.

 

by Sven Behrendt, The Carnegie Endowment for International Peace

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Last Updated on Sunday, 22 February 2009 21:07
 
From Hegemony to New Geopolitical Competition

Russia’s conduct in the post-Soviet space in general and its policies toward Central Asia in particular should be seen within the context of Russia’s post-imperial readjustment. The notion of the sphere of “privileged interests” currently advanced by the Kremlin is a clear indication that Russia’s search for a new modus operandi with its ex-Soviet neighbours is a painful and, essentially, an open-ended process.

Moscow views Central Asia as an area of great strategic importance as it presents both considerable opportunities (due to the region’s rich energy resources) and serious threats (stemming from the region’s inherent instability and its proximity to volatile Afghanistan).

 

Last Updated on Sunday, 22 February 2009 21:06
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There is no evidence of human-induced financial crisis

It’s disappointing that Crikey, like others in the liberal media, have fallen for the nonsensical line that the so-called "financial crisis" is either real or requires urgent action. Anyone who disputes this claim, which is advanced with evangelical fervour by its advocates, is howled down as a heretic and a "denialist". The days of the witch-hunt are truly back. Put simply, there is no evidence of a human-induced financial crisis, regardless of the hysterical claims advanced in trendy films like Al Gore’s Inconvenient Loot.

Last Updated on Sunday, 22 February 2009 21:08
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