So this isn’t what I wanted to hear: Mr Key also warned that other finance companies may go under and the government would continue to look after investors by keeping the guarantee on investments in place. I think he meant: Mr Key also warned that other finance companies may go under and the tax payer …
Category Archive: Financial Economics
Permanent link to this article: http://www.tvhe.co.nz/2010/09/01/sigh-more-like-scf/
Aug
31
2010
Thoughts on South Canterbury Finance saga
The receivers are in, and the government is throwing in $1.7bn in order to buy assets they expect to get a return of $700m from. Sounds like a typical New Zealand investment to me There are a few points to come out of this. In some sort of order these are: The government had to …
Permanent link to this article: http://www.tvhe.co.nz/2010/08/31/thoughts-on-south-canterbury-finance-saga/
May
10
2010
Sovereign debt is a different beast
So it seems the ECB is going to go out and buy government bonds. I don’t quite agree with this description of what is happening to be honest: “They are not cranking up the printing presses,” said James Nixon, co-chief European economist at Societe Generale SA in London. “This is a much more targeted, surgical …
Permanent link to this article: http://www.tvhe.co.nz/2010/05/10/sovereign-debt-is-a-different-beast/
May
07
2010
A wild day on the markets
The Dow Jones Industrial Average fell nearly 1,000 points today, the largest intra-day fall since 1987. It’s not quite certain yet what caused it, with some blaming an “erroneous trade”, possibly via human error or a computer glitch. It seems the initial fall, whatever the cause, then triggered many more sells as paranoia over the …
Permanent link to this article: http://www.tvhe.co.nz/2010/05/07/a-wild-day-on-the-markets/
May
07
2010
Prior moral hazard and the credit crisis
Were inextricably linked. A quote that illustrates this to me strongly came from a Bloomberg article today. The ECB decided to tell the countries that have high soverign debts to go to hell, and now that they aren’t going to take on the risk themselves private investors aren’t willing to and are selling. This makes …
Permanent link to this article: http://www.tvhe.co.nz/2010/05/07/prior-moral-hazard-and-the-credit-crisis/
Apr
01
2009
Open Source software vendors: recession resistant?
Apparently Red Hat, a vendor of a commercial linux distribution, has been doing well during the recession. This makes sense intuitively, people are looking for ways to cut costs due to the economic climate, and giving Microsoft less money seams to be a good way to go about it. This reminds me of a classic …
Permanent link to this article: http://www.tvhe.co.nz/2009/04/01/open-source-software-vendors-recession-resistant/
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