The Bright New Financial System
Journal Title: Manager Journal - Year 2009, Vol 9, Issue
Abstract
By the end of 2008, Mr. Paul Volcker gave financiers a devastating critique. “For all its talented participants, for all its rich rewards” he said, the “bright new financial system” has “failed the test of the marketplace” In light of the events of recent weeks, it is hard to disagree. A financial system that ends up with the government taking over some of its biggest institutions in serial weekend rescues and which requires the promise of 700 billion dollars in public money to stave off catastrophe is not a trustworthy system. The disappearance of all five big American investment banks – either by bankruptcy or rebirth as commercial banks – is powerful evidence that Wall Street failed “the test of the marketplace”. Something went wrong. But what exactly and why? A more serious analysis needs to distinguish between three separate questions: what is Mr. Volcker’s “bright new financial system”? Second, how far was today’s mess created by instabilities that are inseparable from modern finance and how far was it fuelled by other errors and distortions? Third, to the extent that modern finance does bear the blame, what is the balance between its costs and its benefits and how can it be improved?
Authors and Affiliations
Adela Coman, Florina Hahn
Keywords
Related Articles
- EP ID EP451724
- DOI -
- Views 119
- Downloads 0
Institutional Sustainability And Sustainable Development
Institutional Sustainability and Sustainable Development are two concepts very often used together. Their meanings are blurring and versatile. This paper aims to define each concept distinctly and to identify their simil...
Modern Trends In Tourist Entrepreneurship
The authors aim in this paper to identify the possibilities to improve the tourist activity by measuring indicators. Recent research on highlighting the influence of tourism on the economies, societies and culture of var...
Normative acts management
The presence of the normative act amongst the formal law sources system is the result of the constructive activity of specialized bodies, designated by the Constitution, by laws or by regulations of normative power (havi...
Steve Jobs And Modern Leadership
During the time, especially in the last fifty years, leadership has increasingly become a major subject in the management literature, a subject of much thought, writing and teaching. While the importance of leadership is...
An association between market orientation and business performance: A case study of small medium enterprises in Sri Lanka
In the globalized and highly competitive era of the present day business environment, firms are under constant pressure to build upon their skills and resources for developing distinctive competencies to withstand market...