Middleton argues that the European situation is particularly fraught, on account of their being "too many chiefs and not enough Indians"; in other words, too much politics. He argues that European Monetary Union was destined to fail from the beginning, given the sharp contrasts in economic profiles between member states.
Alasdair and Reggie also discuss potential problems banks and other financial institutions could have with derivatives. Although Reggie views these tools as a necessary part of finance, he thinks that it is "very, very foolish and unrealistic to rely on liquidity as a given", considering the way in which derivative netting links institutions across the world. He views owning physical precious metals as a crucial means of insuring against problems in the banking system. Source
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