Found 160 article(s) for author 'Financial Crisis'

Stock Market Short-Termism’s Impact

Stock Market Short-Termism’s Impact. Mark Roe, December 2018, Paper, “Stock-market–driven short-termism is crippling the American economy, according to legal, judicial, and media analyses. Firms forgo the R&D they need, cut capital spending, and buy back their own stock so feverishly that they starve themselves of cash. The stock market is the primary cause: directors and executives cannot manage for the long term when their shareholders furiously trade their company’s stock, they cannot make long-term investments when stockholders demand to see profits on this quarter’s financial statements, they cannot even strategize about the long term when shareholder activists demand immediate results, and they cannot keep the cash to invest in their future when stock market pressure drains away that cash in stock buybacks. This doomsday version of the stock-market–driven short-termism argument entails economy-wide predictions that have not been well-examined for their severity and accuracy.Link

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Europe in ‘more trouble’ than the U.S. 10 years after great recession

Europe in ‘more trouble’ than the U.S. 10 years after great recession. Andrei Shleifer, December 4, 2018, Video, “There are signs of fragility in the economy, but Harvard Professor Andrei Shleifer the U.S. is better off today than it was in 2008. He spoke with Yahoo Finance’s Alexis Christoforous about his new book, ‘A Crisis of Beliefs: Investor Psychology and Financial Fragility’Link

 

 

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Famed Harvard economist warns of Brexit spillover from clash

Famed Harvard economist warns of Brexit spillover from clash. Martin Feldstein, November 15, 2018, Video, “The resignations of some members of British Prime Minister Theresa May’s government Opens a New Window. and calls Thursday for a no-confidence vote over a proposed Brexit deal hammered the British pound and European stock markets.Link

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The Crisis Next Time: What We Should Have Learned From 2008

The Crisis Next Time: What We Should Have Learned From 2008. Carmen Reinhart, November/December 2018, Paper, “At the turn of this century, most economists in the developed world believed that major economic disasters were a thing of the past, or at least relegated to volatile emerging markets. Financial systems in rich countries, the thinking went, were too sophisticated to simply collapse. Markets were capable of regulating themselves. Policymakers had tamed the business cycle. Recessions would remain short, shallow, and rare.Link

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Another Recession Is Looming

Another Recession Is Looming. Martin Feldstein, September 27, 2018, Opinion, “Ten years after the Great Recession’s onset, another long, deep downturn may soon roil the U.S. economy. The high level of asset prices today mirrors the earlier trend in house prices that preceded the 2008 crash; both mispricings reflect long periods of very low real interest rates caused by Federal Reserve policy. Now that interest rates are rising, equity prices will fall, dragging down household wealth, consumer spending and economic activity.Link

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Challenges Ahead

Challenges Ahead. Ricardo Hausmann, 2018, Book Chapter, “Sovereign debt ratios in advanced and emerging economies have grown to near record highs, while in low-income countries, debt levels have been gradually building since the debt relief of the early 2000s. As global monetary conditions tighten, the burden of debt will grow, and rollover risks will increase. And with a more fragmented creditor base, timely and orderly restructurings may become harder to achieve. This chapter will explore these challenges and consider which policies might enhance crisis prevention and strengthen crisis resolution. It will also consider the extent to which these objectives can be pursued by individual countries, and where multilateral action may be required to improve the international architecture.Link

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This Market Has All The Signs Of A Bubble

This Market Has All The Signs Of A Bubble. Andrei Shleifer, September 24, 2018, Audio, “Andrei Shleifer, Professor of Economics at Harvard University, discusses his new book, “A Crisis of Beliefs: Investor Psychology and Financial Fragility,” and whether we are prepared for another financial crisis. Hosted by Pimm Fox and Lisa Abramowicz.Link

 

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How Close Are We To Another Financial Collapse?

How Close Are We To Another Financial Collapse? Nancy Koehn, September 19, 2018, Audio, “This month marks the 10 year anniversary of our financial system buckling under the weight of big lending. The crash set off the worst economic crisis since the Great Depression, with millions of Americans losing their homes, jobs and savings. While the debate is still going on as to whether policymakers did enough to prevent this meltdown from being even worse, are our policy makers doing enough right now to keep another crisis from happening?Link

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