Tatar_Khan's Offprints

[Tatar Khan]

ACKERMANN PROPOSES GLOBAL OVERSEER

GERMANY

Ackermann: Global watchdog could prevent market bubbles

Deutsche Bank CEO Josef Ackermann suggests that creating a global financial sector watchdog could prevent an encore of the global market storm unleashed by the US subprime crisis. Analysts say the idea may be a good one, if indeed market experts can effectively spot a crisis looming, but the devil may be in the details.

Ackermann believes the new entity should include global experts who would monitor the development of financial markets and warn of any potential dangers on the horizon, allowing regulators and market players to take action. The banker feels such experts could have foreseen and averted the US subprime debacle now sparking a US and global economic slowdown. Leading global banks and securities firms have reported $163 billion in write-downs and credit losses since early 2007 on account of the crisis, and Ackermann predicts more losses are on the way.

Ackermann says all financial crises of the past 30 years have started as bubbles that market experts could have popped before they grew. But analysts contend most crises have gone undetected even by experts within the markets in which they were spawned, and that choosing the right members for a global watchdog would be crucial. Members would need a proven track record in predicting crises and must be free of any potential conflicts. There would also have to be a clearly defined set of tasks and actions for the group.

Some questions may be clarified after the Institute for International Finance (IIF), of which Ackermann is also chairman, issues a preliminary report by April outlining findings of a committee designated to recommend ways for the financial industry to tackle the subprime crisis. The report is expected to include calls for stronger risk management and accounting standards, as well as a goal of introducing global regulations to safeguard financial sector stability.

"Ultimately, banks and regulators must work more closely together to provide greater transparency on the distribution of risks in the global financial system," Ackermann says.

Antonio Guerrero

Interesting idea however so far neither the rating agencies, central bank governors or other financial leaders were able to avert in time the economy about any major incoming crisis. So I am not sure who would be that the overseer.

[Andrew]

Yeah, the US showed plenty of warning signs of an impending bubble and recession. They dealt with it by creating lots of inflation.

I don't see how a global committee would be effective in any way. Countries will do whatever they want.

[Edric O]

Heh, sounds like it would be about as effective in averting financial crises as the UN is in averting wars.

[Tatar Khan]

LET THE GOOD TIMES ROLL

THE MIDDLE EAST

http://www.gfmag.com/index.php?idPage=818

Gordon Platt

For those hooping that Middle East will go bankrupt when the oil runs out this is bad news because the Middle East is getting smart and diversifying itself.

[Tatar Khan]

PALM OIL PRODUCER REAPS REWARDS

COMPANY TO WATCH: IOI/MALAYSIA

Palm oil prices have almost doubled in the past year on rising demand from China and India and increased use of crude palm oil as an alternative energy source. Kuala Lumpur-based IOI, one of Malaysia

[Tatar Khan]

PERU MAKES THE GRADE

PERU

Peru's president Alan Garcia: Fiscal policies led to upgrade.

While analysts debated whether Brazil or Panama would win the race to become the next Latin American investment-grade-rated country, Peru beat both countries to the finish line. Citing a strong improvement in fiscal and external solvency ratios, Fitch upgraded Peru

[Tatar Khan]

BANK BAILOUTS COULD HARM COUNTRY RATING

GLOBAL

A cautious approach: Bank of England governor Mervyn King.

The global credit crunch has highlighted just how far regulators and banks in some markets are willing to go to prop up the domestic financial system. However, clear differences are emerging between the United States and the United Kingdom when it comes to the extent of regulatory intervention

[Tatar Khan]

INDIAN PROJECT FINANCING GETS EX-IM BANK BOOST

INDIA

Reaching out: The US hopes its firms can win a slice of India's $500 billion spending spree.

Bhopal Medical College Trust is the first Indian project to reap the benefits of US Export-Import Bank

[Tatar Khan]

ECONOMY SET TO PASS GERMANY

[Egeides]

Could someone complete my education and tell me what better they'd be than Alan Greenspan?

[Tatar Khan]

INFLATION FLARES BUT COOL HEADS PREVAIL

MIDDLE EAST

GCC monetary leaders are pressing ahead with plans for a single currency, despite pressures to revalue.

Central bank governors from the six member states of the Gulf Cooperation Council (GCC) gathered in Doha, Qatar, in April for their twice-yearly meeting amid signs that inflation is worsening in the region. Rising prices for food and shelter pushed inflation in Oman to a record high 11.1% in February, and economists say inflation in Saudi Arabia will soon rise above 10% for the first time. Doha and Dubai have been living with double-digit inflation for several years amid an economic boom.

While rising prices are putting pressure on GCC members to revalue their dollar-pegged currencies, the central bank governors say they did not even discuss the issue in Doha. Instead, they renewed their pledge to push ahead with plans to create a single currency by 2010. Economists say a decision to revalue would hurt the value of the GCC countries

[Tatar Khan]

INDIA VS CHINA

THE ELEPHANT AND THE DRAGON

http://www.gfmag.com/index.php?idPage=858

Jonathan Gregson

Here is the game of future politics is being played as US is courting India to balance against China, India and China are both trying to become the next superpowers and not tools to fight each other. It doesn't mean they won't be rivals.

[nemafakei]

Just a note to say I've merged the threads. Yes, it's a little arbitrary, as the topics are different, but just copying and pasting without comment doesn't acheive much. I'm guessing these are all from the same site - would you care to link to it?

[Tatar Khan]

I put urls for larger articles, but I see no point to do that for smaller ones since they are small and it is easier to read them from the forums.