Sovereign debt vulnerability and systemic risk

Posted on 10. mai, 2010 by Jean Jacques Ohana in Weekly Focus

The chronicle of the financial events of the last three months has been crystal clear:
A global bubble on all risky assets developed since the unprecedented accommodative policy set up by Central Banks and Governments. From a monetary point of view, global rates were set around 0% and liquidity injections in the US have not been [...]

Sovereign debt problem and the risk of financial dislocation

Posted on 27. avr, 2010 by Jean Jacques Ohana in Weekly Focus

We have emphasized several times that the weak link of the financial system is sovereign debt solvency and that the latter is closely linked to European Banks and Cash liquidity. Now this scenario is materializing as confirmed by Riskelia’s Financial Markets Radar.
Greece’s solvency problem has turned into a major liquidity crisis preventing Greece from refinancing [...]

Financial markets and industrial cycle

Posted on 29. jan, 2010 by Jean Jacques Ohana in Weekly Focus

Global economy is so endogenous that financial markets are good predictors of the global industrial cycle. Indeed, when cyclical assets move in trend they interact with the real economy in a self fulfilling process. As cyclical assets rise they induce a boost in global confidence of companies and consumers, then stimulating the economy. On the [...]

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