Business and Economic » Subprime Mortgages http://www.avivaunderpants.com Business and Economic Development of The World Very rapidly, so we Need Enough Information to Assist in Developing Business we Have, for that? we Provide a lot of Info You need Sun, 19 Jun 2011 16:50:50 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Measure Business Risk http://www.avivaunderpants.com/measure-business-risk/index.html http://www.avivaunderpants.com/measure-business-risk/index.html#comments Wed, 17 Feb 2010 16:13:03 +0000 Syafir http://www.avivaunderpants.com/?p=561 Measure Business RiskThe side effect of this “perfect storm” is to destroy the faith, or illusion, digging in the numbers studying the behaviors of others, by measuring the fundamental we can find a formula that allows to quantify and manage risk, they have their than roll the dice, and may justify the payment of a fee. The reaction of managers of savings is to consider the 2010-2012 period as an aberration, after that everything will be as before, but unlike the 10 calendar days that disappeared in 1598 (Gregorian reform) these 3 years do not disappear, and change radically the way that investors behave.
In theory, at this moment in which the investor refuses to take any risk, we should be opportunities to acquire, from the huge “selling for termination of activities “, actions that could later appreciate. There are precedents during the crisis that hit developing countries. But how do we quantify the risk (definition: risk is knowing what you do)? Who has the credibility to give the suggestions? Certainly not the banks that have managed their money even worse those of its customers. Knowing that there is an answer is better than the illusion that somewhere out there. No investor, institutional or private, memories of a similar economic situation current, the outbreak of so many contemporary “bubbles” (subprime mortgages, securitization, derivatives, share prices, private equity etc..) has created a downward spiral that is on impact consumers around the world, the immediate consequence is a contraction of turnovers companies (and, at the aggregate level of GDP), increased unemployment, loss of the holdings, bank loans in pain and so on. To find similar situation should go back to the Great Depression of 1929, and in fact the current indicators of GDP, share prices and global trade are following the same evolution of the time, if the analogy were to continue past a further 24 months before touching the bottom, but at least this time the response of governments is very intense greater and could expect a faster track.
From the perspective of an investor, who presumably have seen their wealth halved the last 12 months, the next few months might be the opportune time to invest in shares. However, the unpredictability of this crisis (or rather, depression) and inability managers of savings – at least – to manage, had the merit of reflecting what are the logics of investment to be applied in the future, any analysis of future needs But after recognizing the mistakes made in the past.

]]> http://www.avivaunderpants.com/measure-business-risk/index.html/feed 0 Financial Crisis And The Economic Crisis http://www.avivaunderpants.com/financial-crisis-and-the-economic-crisis/index.html http://www.avivaunderpants.com/financial-crisis-and-the-economic-crisis/index.html#comments Mon, 18 Jan 2010 19:20:52 +0000 Syafir http://www.avivaunderpants.com/?p=416
financial crisis and economic crisis
financial crisis and economic crisis

Part-1

The house of cards has collapsed under the rubble and risk staying all. My contribution to the meeting today winds through a reflection on two aspects the first is the crisis of values and a betrayal of trust that this crisis proves the second is the direction that, in my opinion, you must follow to exit the current situation and restart the economy on a sounder footing.

What we are experiencing is a crisis of moral and ethical values in a field finance that without attention to himself and his needs is reduced to dry technique. And the technique, if not governed by laws and moral rules, gives rise to a vicious cycle that feeds itself and in which profit, an end in itself, becomes the sole objective. The result is what we have today under the eyes, the finance infested with toxic elements that have come to infect the real economy, plunging the world into severe recession.

Finance is part of a complex mechanism – the economy – in which plays a very precise and defined: to provide the necessary capital investment in the real economy of firms, households and public administration. Within a few years the development of an unhealthy financial engineering, passed off as innovation, has created a colossal mess and has spread the illusion of enrichment easily, effortlessly and quickly transforming the economy based on investment economy based on income.

This step is deadly because it completely changes the approach of the people’s economy it goes from the idea that the economy is a tool for improving human life and to spread progress and prosperity, the idea that, instead, an end in itself. And that, consequently, the more you earn now, the better.

In this scenario increases the savings allocated increasingly toxic assets and sick with the lure of higher returns and immediate and depressed investment, which requires more time to be repaid, but which ensures greater stability and security as long as you continue to invest in research, innovation, training for production systems have increasingly responsive to changing market needs. In terms of values and ethics of the economy, the big financial trap, which have fallen million savers and investors, has revealed a pattern of negligence, lack of control and likely collusion to put it mildly devastating.

- First of all, the financial crisis was caused by the inordinate greed of the super managers. Too many among those having been called upon to handle large firms, banking groups and brokerage, with no moral and ethical values, they put their interests before those of the firm, triggered by instruments and procedures unhealthy stock option millionaires disproportionate benefits, opportunities for enrichment out of the picture makes sense and all logic. The managers are the custodians and managers of a well, their main task is to keep the company healthy, to have them produce the profits necessary to remunerate the capital invested, pay wages and salaries of workers and employees contribute to common good through a fair tax levy (the means by which “the major shareholder of each company, the state redistributes the wealth produced by the economic system), do their part to improve the living conditions of communities which it operates. Naturally the manager must be recognized treatment commensurate with their economic responsibilities, but when the interests of the individual have the upper hand over the company as a whole, the decline is inevitable.

- Secondly, the lack of foresight. Who has designed and engineered subprime mortgages, bonds that have derived from, the bonds of all kinds, junk bonds, he knew he was putting together a system that, sooner or later would collapse. He did so because seduced by speculation and profit from short or very short period to issue securities, square, cash and run. Similarly, savers and investors, attracted by the smoke of very high interest, have forgotten that the economy is made of roasted hard work, tangible products and daily commitment that take time to produce tangible results.

This discussion will continue in the second section below

]]> http://www.avivaunderpants.com/financial-crisis-and-the-economic-crisis/index.html/feed 0