217 pages

English

Découvre YouScribe en t'inscrivant gratuitement

Je m'inscris

Financial Alchemy in Crisis , livre ebook

Pluto Press - Anastasia Nesvetailova

Découvre YouScribe en t'inscrivant gratuitement

Je m'inscris

Obtenez un accès à la bibliothèque pour le consulter en ligne
En savoir plus

217 pages

English

Obtenez un accès à la bibliothèque pour le consulter en ligne
En savoir plus

A propos
Informations
Extrait

Description

In July 2007, the combination of a seemingly unstoppable rise in house prices and bullish banks swimming in liquidity meant that almost anyone could get a mortgage in the UK or US. Little more than a month later the supply of credit dried up practically overnight, leaving the world wondering how bank liquidity could suddenly vanish.

In Financial Alchemy, Anastasia Nesvetailova shows that this liquidity never actually existed. The rise of sophisticated financial instruments created what appeared to be an abundance of liquid funds but was in fact a credit pyramid. As soon as house prices stopped rising the reality was exposed.

Nesvetailova's bold and radical analysis explains why the credit crisis was an inevitable consequence of entrusting the world economy to financiers who believe that they can 'create' money and wealth.
Introduction. The End of a Great Illusion

1. The Stages of the Meltdown

2. The Tale of Northern Rock: Between Financial Innovation and Fraud (Anastasia Nesvetailova and Ronen Palan)

3. How the Crisis Has Been Understood

4. Some Uncomfortable Puzzles of the Credit Crunch

5. 2002- 2007: The Three Pillars of Liquidity Illusion

6. After the Meltdown: Re-Writing the Rules of Global Finance?

Conclusion. A Very Mundane Crisis

Notes

Index

Sujets

Economic Policy

Public Policy

POLITICAL SCIENCE

Political economy

Economics

Business

Informations

Publié par	Pluto Press
Date de parution	07 mai 2010
Nombre de lectures	0
EAN13	9781849645409
Langue	English
Poids de l'ouvrage	1 Mo

Informations légales : prix de location à la page 0,6250€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Extrait

Financial Alchemy in Crisis

Financial Alchemy in Crisis The Great Liquidity Illusion

ANASTASIA NESVETAILOVA

First published 2010 by Pluto Press 345 Archway Road, London N6 5AA and 175 Fifth Avenue, New York, NY 10010

www.plutobooks.com

Distributed in the United States of America exclusively by Palgrave Macmillan, a division of St. Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010

The rights of Anastasia Nesvetailova and Ronen Palen to be identiﬁed as the authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library

ISBN ISBN

978 0 7453 2878 2 978 0 7453 2877 5

Hardback Paperback

Library of Congress Cataloging in Publication Data applied for

This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental standards of the country of origin.

Designed and produced for Pluto Press by Chase Publishing Services Ltd, 33 Livonia Road, Sidmouth, EX10 9JB, England Typeset from disk by Stanford DTP Services, Northampton, England Printed and bound in the European Union by CPI Antony Rowe, Chippenham and Eastbourne

For Alexandre Gennady Palan

AbbreviationsAcknowledgements

Introduction: The End of a Great Illusion ‘Liquidity’ and the crisis of invented money Liquidity illusion and the global credit crunch

1. The Stages of the Meltdown The prelude: the American sub-prime crisis From sub-prime crisis to the global credit crunch From global credit crunch to global recession

2. The Tale of Northern Rock: Between Financial Innovation and Fraud (Anastasia Nesvetailova and Ronen Palan) The controversy over ﬁnancial innovation Offshore: the uses and abuses of SPVs Northern Rock and Granite

3. How the Crisis has been Understood Ex-anteandex-postvisions of the credit crunch Structural theories of the credit crunch Cyclical theories of the crisis

4. Some Uncomfortable Puzzles of the Credit Crunch Dismissed: the warning signs and the whistleblowers Ponzi capitalism: a crisis of fraud?

ix x

1 4 7

24 24 28 33

43 48 51

62 62 71 80

91 100

vi i i

FI NANCI AL ALCHEMY I N CRI SI S

5. 2002–7: The Three Pillars of the Liquidity Illusion Liquidity and the paradigm of self-regulating credit Playing with debt – together. Liquidity as a ‘state of mind’ The alchemists: turning bad debts into ‘money’

6. After the Meltdown: Rewriting the Rules of Global Finance? The three stages of the policy response The crisis and geopolitics: a new special relationship? Conceptual dilemmas and traps

Conclusion: A Very Mundane Crisis

NotesBibliographyIndex

113

121 131

143 144

149 156

172

177 184 197

Abbreviations

ABSs Asset-backed securities BIS Bank for International Settlements CDOs Collateralised debt obligations CEO Chief Executive Ofﬁcer CRA Credit rating agencies ECB European Central Bank FSA Financial Services Authority (UK) FSF Financial Stability Forum FSB Financial Stability Board GDP Gross domestic product IMF International Monetary Fund MBAs Mortgage-backed assets MBSs Mortgage-backed securities NIFA New international ﬁnancial architecture OFC Offshore ﬁnancial centre ORD Originate and distribute (model of banking) OTC Over-the-counter (trade) SIV Special investment vehicle SNB Swiss National Bank SPE Special purpose entity SPV Special purpose vehicle VAR Value at risk (model)