Nearly 38% of global respondents to this week’s poll think the behavioral biases of investors are the primary cause of investment bubbles, while 33% of those polled believe responsibility lies with central banks and their easy money policies. Excessive leverage (19%) and government policies (7%) were less favored responses. Read more
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Having recently passed the four-year anniversary of the Lehman Brothers collapse, it’s tempting to believe that our economy and capital markets have learned from their mistakes. After all, big banks are heavily scrutinized (see J.P. Morgan’s “London Whale” debacle), fancy … Read more
Leave a CommentWhen the Basel III rules become operative in January, banks will have to meet a new leverage standard that will cap the leverage permitted under other Basel rules. In a poll conducted earlier this week, we asked readers at what level the Basel Committee on Banking supervision should set its minimum leverage ratio. Read more
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Finance professor Amir Sufi of the University of Chicago Booth School of Business argues that the severe U.S. recession and Europe’s ongoing economic woes can best be explained as aggregate demand and leverage problems that cannot be effectively treated through monetary policy initiatives alone. Read more
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How can investors better manage their portfolios in these turbulent times? This central question framed an engaging session led by Pranay Gupta, CFA, last month at the second annual India Investment Conference in Mumbai. Read more
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