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Definitions. In your author’s opinion, the writedown of Greek debt falls clearly within the S&P definition of sovereign default. Undeterred however by rating agency definitions, European leaders have characterised the writedown as a voluntary “ private-sector involvement ” or PSI. Management Consulting. Helpful Links.
Definitions. ON WEDNESDAY November 23rd, an auction of German government bonds (known as “Bunds”) managed to sell only €3.6 Thirdly, European banks are currently focused on building their balancesheets not on lending. Management Consulting. Helpful Links. Would a Bund by any other name smell as sweet?
Definitions for what constitutes EvD, and methodologies to calculate its value, remain in their infancy. In the same way that banks must constantly balance assets and liabilities, data-laden firms need to move from cyber-defense and fire-fighting toward more proactive management of what could prove to be their most important asset.
Listen to what Ignazio Angeloni, head of the ECB’s financial stability directorate says today: “ At first sight the 6 percent target looks manageable and less ambitious than what people might have expected. Mike "Mish" Shedlock [link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management.
Draghiz e: "The test is credible because the ultimate purpose of it is to restore or strengthen private sector confidence in the soundness of the banks, in the quality of their balancesheets" Mish : The test is credible because we say it is. Spanish officials claim it makes no sense to penalize these asset as if they were bad loans.
More Questions Any banks fudging the definition of a performing loan? What about mark-to-market valuations of loans and assets on the balancesheets of banks? Mike "Mish" Shedlock [link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management.
The simple definition V = GDP/M where V is velocity, M is money supply, and GDP is Gross Domestic Product. I prefer the definition of deflation as a pathological slowing in the velocity of money. However, I disagree with his definition of deflation based on velocity. It''s simply a truism based on Fekete''s definition.
We’re focusing today on how new challenges and new technologies are changing human capital management, and how to ensure that this key resource becomes a sustained competitive advantage for your company. How are those changes impacting business leaders, and what does that mean for human capital management? Angelia Herrin, HBR.
When I began investing, one looked at the real property on balancesheets. In today''s tech driven world, the definition of value is more cloudy than ever before, especially since all transactions and exchanges are literally fabricated from thin air and deposited in "The Cloud".
Banks, fund managers and other institutions in the interbank market will be able to trade the CDs, but non-financial companies and retail investors will be barred. A hitherto strong focus on managing interest rates, even with the occasional liquidity squall, has meant that credit growth and leverage have continued to rise rapidly.
Retailers like Walmart and Macy’s manage a supply chain, buying and reselling their own inventory. Note that people often get hung up on definitions of “platform” these days. Let’s see what happens when we connect them rather than manage them — that is, focus on the links rather than the nodes.
This is a problem because it forces households and businesses to divert energy away from productive activity and towards managing and avoiding the cost of inflation. One way to manage liquidity risk is to increase your stock of savings. What asset(s) do you think people should buy to manage inflation risk? Final thoughts.
Study the BalanceSheet. With term definitions in hand, analyze your company’s balancesheet. Become familiar with what a typical balance looks like and what it can tell you about the financial state of a business. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization). Operating income.
Despite the unprecedented increase in the Federal Reserve’s balancesheet, growth in M2 over the first nine months of this year fell below its average rate of growth over the past 115 years, a time when the growth in the monetary base was stable and quite modest. The answer depends on the definition. So which is it?
There seems to be a still-widespread perception that PBoC reserves represent a hoard of unencumbered savings that the PBoC has somehow managed to collect. The PBoC has been forced to buy the reserves as a function of its intervention to manage the value of the RMB. But of course they are not. Pettis on GDP.
economy based on relationships that are indistinguishable from someone sneezing on a sheet of graph paper. Those who managed to get to that point were in for a nice down to earth set of comments and graphs that followed. By definition, nominal GDP is equal to the monetary base multiplied by the “velocity” of the monetary base.
This model rests on an understanding of how distortions in the savings rates of different countries have driven the great trade and balance-sheet distortions with which we are wrestling today, just as they have in most previous global crises, including those of the 1870s, the 1930s, and the 1970s. I suggest "something else".
We can see this mindset at work in China’s management of two recent bubbles: the real estate market and local government debt. Building entire cities where no one lives, malls where no one shops, trains that no one uses all add to GDP because of the ridiculous definition that says all government spending adds to GDP.
It is not a balancesheet test, but a cash flow test. So Chicago is not bankrupt by definition (yet) and has a huge tax base. Mike "Mish" Shedlock [link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. This is one of several eligibility criteria.
It’s very easy for a confident-sounding analyst, fund manager or professor to say something on TV that can throw off the best laid plans of investors. As a staunch deflationist, as well as someone who is definitely not agnostic regarding gold, I am proof enough. ” Don’t hold your breath waiting for that to happen.
In 2020, the Fed has galloped over the precipice, increasing its balancesheet by around $2.8 However, while China is definitely not immune from criticism, the primary cause of America’s slow decline might be more accurately located closer to home. This inadvertently fuels asset bubbles and financial instability.
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