‘The Credit Paradox’ Archive

What could trigger the next financial crisis?

With financial markets becoming increasingly complacent about the recurrence of a crisis, we believe it is relevant to explain a couple of areas of concern which could trigger the next round of crisis:
In the last few weeks, Greece has taken the center stage in the financial markets. Within the next two months, Greece has to [...]

Sub Prime Woes biggest casualty in U.K.

Customers of Northern Rock Plc withdrew $2 Billion yesterday after the stock went down by 26% ..
Northern Rock is one the biggest mortgage lender in U.K.
The sub prime contagion is now spreading across the world and I don’t think its ‘contained’ as it was believed to be..
One is reminded of the famous words of J [...]

When the lender becomes the borrower!

In the last few weeks we have been witness to one of the most interesting times in the global financial markets!
First it was the ’sub-prime exposure’ contagion from U.S. Housing Markets spreading like wild fire across continents.
Second was the ‘Leverarged Buy out’ market that went into a coma [and sealed the M & A story [...]