A small presentation I prepared to explain the Causes of the Subprime led Financial Crisis.
Please feel free to give feedback.
Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts
Monday, March 14, 2011
Sunday, March 13, 2011
The travels of a T-Shirt in the global economy
Read an interesting book "The travels of a T-Shirt in the global economy". Author Piethra Rivoli traces the travels of an ubiquitous T-Shirt, from the cotton fields of western Texas to the manufacturing bases in china, back to the US market and then to continetal Africa. In the process she introduces the complex labyrinth of market forces in place, global trade, protectionism and power.
A bit detailed at times, but still interesting read if you want to understand global trades..
Thursday, February 10, 2011
Recommended Reading: The Big Short
The fall of 'Lehman Brothers' in the later half of 2008 was a defining moment for me. Not as much for what Lehman stood for as for the resulting job losses in Lehman India (where some of my dear friends were proud employees once).
What I did not realize then, pretty obvious in hindsight, is the fall of Lehman Brothers had a more profound effect on wall street. This event marked the demise of high leverage Investment banking that was a hallmark of USA's capitalistic economy.
How did then this well oiled machine go so wrong? How come top notched financial innovations got punished by the very market they created?
Michael Lewis's 'The Big Short' takes throws light on what caused this catastrophe (biggest recession since 1930s'). A must read for all to understand how the fundamental weaknesses of the system (allowing esoteric high-leveraged deals), action (or rather inaction) of credit rating agencies such as Moody's S&P and above all the greed of Capitalist world joined hands to derail world's biggest economy.
Michael Lewis's deft treatment of such a prosaic topic is commendable. The sensitive handling of key protagonist coupled with thoughtful explanation of exotic financial instruments, makes the book, a compelling read.
Highly recommended.
What I did not realize then, pretty obvious in hindsight, is the fall of Lehman Brothers had a more profound effect on wall street. This event marked the demise of high leverage Investment banking that was a hallmark of USA's capitalistic economy.
How did then this well oiled machine go so wrong? How come top notched financial innovations got punished by the very market they created?
Michael Lewis's 'The Big Short' takes throws light on what caused this catastrophe (biggest recession since 1930s'). A must read for all to understand how the fundamental weaknesses of the system (allowing esoteric high-leveraged deals), action (or rather inaction) of credit rating agencies such as Moody's S&P and above all the greed of Capitalist world joined hands to derail world's biggest economy.
Michael Lewis's deft treatment of such a prosaic topic is commendable. The sensitive handling of key protagonist coupled with thoughtful explanation of exotic financial instruments, makes the book, a compelling read.
Highly recommended.
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