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How the Great Recession Changed Banking

Harvard Business

The Great Recession of 2007 to 2009 was under way. That strengthened investment banks’ balance sheets by forcing them to scale back and to change the nature of the risks they take. Investment bank Bear Stearns collapsed. Lehman Brothers toppled. Investment banks used to trade using their own capital.

Banking 28
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The Globalization Backlash Is Reverberating Through Boardrooms

Harvard Business

As a practical matter, for example, these changes in the global policy regime are forcing multinational corporations to scale back and sell parts of their international operations. According to the World Trade Organization, international trade this year will grow at its slowest pace since 2007. at the forefront. at the forefront.

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BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

This has been labelled the “second phase of global liquidity”, to differentiate it from the pre-crisis phase, which was largely centred on banks expanding their cross-border operations. This share was higher than during the pre-crisis period from 2005 to mid-2007. Moreover, even the prospects for restoring trend growth are not bright.

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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

Third-quarter Gross Domestic Product grew at a 1.5 Operating revenue decreased 15.9 My personal belief is the trucking industry needs to realize production of goods will have ups and downs,” Satish Jindel, principal of SJ Consulting , which closely tracks industry pricing, told Logistics Management. in October from 50.2

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Fed Minutes Show Majority Believe "Marginal Efficacy of QE Likely Declining"; Economy Turned the Corner?

MishTalk

The projected improvement in economic activity was expected to be supported by highly accommodative monetary policy, diminished fiscal policy restraint, and a pickup in global economic growth, as well as a further easing of credit conditions and continued improvements in household balance sheets.

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Inequality Isn’t Just Due to Market Forces — It’s Caused by Decisions the Boss Makes, Too

Harvard Business

In aggregate, such dynamics would operate in a similar manner as unions, systematically raising the wages for low and middle earners relative to high-earners, such that the wage gaps between them are narrowed, thereby lowering wage inequality. Since that time, however, the U.S. has transitioned to a market-oriented system of employment.

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Pettis Proposes Savings Glut and Income Inequality are Source of Global Imbalances; Mish vs. Pettis: I Respectfully Disagree

MishTalk

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. It does so in two ways.

Banking 67