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March 17, 2009

Financial Markets
"Concentrations of risk, plagued with deadly correlations"

The FT’s Gillian Tett makes a simple but important point: AIG’s role in the credit default swap market meant that a lot of risk that the bank regulators thought had been dispersed into many strong ha…

October 27, 2008

Financial Markets
The soaring yen

Back when it was fashionable to talk about the end of macroeconomic volatility, it was also common to note that volatility had disappeared from the currency market. The FT’s resident financial anth…

The soaring yen

September 27, 2006

Financial Markets
Paulson may (or may not) have a strong dollar policy …. New Zealand, though, clearly doesn’t have a strong kiwi policy

It is perhaps a sign of the times that the US is encouraging China to provide the US with a bit less financing (the US of course, has a strong RMB policy, not a weak dollar policy) and New Zealand’s …

August 30, 2007

Financial Markets
Turning lemons into lemonade

Or perhaps – with a bit of reverse financial engineering – into “apples, pears, strawberries and all the rest.” Martin Wolf is the latest observer to note that the US has created a lot of financial l…

August 17, 2007

Financial Markets
Conduits, SIVs, cash-hoarding, commercial paper restructuring and such

Yves Smith of Naked Capitalism is right – If Gillian Tett of the FT disappeared, we would be in a whole lot of trouble. I wouldn’t be surprised if a lot of central bankers rely on her reporting to…