December 31, 2008

Privatising Profits, Socialising Losses

Privatizing Profits, Socializing Losses, By Tony Phillips

The rapid fallout from less than a decade of financial speculation has been mind-boggling. Barely legal, the unregulated bubble in "credit derivatives"2 grew from $1 trillion in 2003 to $15 trillion in 20073 to finally burst, leaving the global financial system on life support in the public ward.

The unravelling began in August 2007, reaching crisis levels in October 2008. The "toxic" credit bubble was pricked by the deflation in another bubble—the U.S. housing market. Bad mortgages defaulted on a large scale, raising other questions as to the viability of certain credit derivative investments. The result: an implosion of U.S. investment banking with knock-on threats to overexposed retail banks. Inter-bank credit froze due to counterparty risk, and lack of credit threatened the productive sectors of the world's economies.

Read on ... Privatizing Profits, Socializing Losses, By Tony Phillips

Posted by Tony Phillips at 01:39 PM | Comments (1)

December 13, 2008

UBA and the Depression


Two things of merit happened today. After three years I had my last class in the University of Buenos Aires where I hope to qualify with my thesis etc. as a Masters in Economics. The photo shows a few of us students in the Argentine province of Entre Rios on the Paraná river celebrating the end of one of the courses.

The second thing is that I have had my first financial analysis piece published by the Americas program. It dissect the Global Financial crisis and names a few names of those responsible. Hold onto your hats and click on the link below to read the story in English... Privatising Profits, Socialising Losses


Posted by Tony Phillips at 10:47 PM | Comments (1)