The Risks are Now So Huge that Market Psychology is the Key
This Would be a Rather Bad Time for a Skeleton to Fall out of a Banking Cupboard
We have previously argued that the world's financial system was becoming systemically unstable. As events unfold, many of these concerns are now being borne out. The risks are now so huge that government money on its own cannot necessarily resolve them by brute force - the real key is to manage, and even take advantage of, the psychology of the market. One of the key factors that will determine whether this is practically possible, is whether any of the banks have any gruesome skeletons that will fall out of a cupboard at a particularly inconvenient moment.
Could the Fall of Lehman Brothers Unleash 'The Risk Soliton'
Why the Complexity and Interconnectedness of Financial Markets Could Lead to a Catastrophe
The author has previously argued that the complexity of modern financial markets, taken together with some of the methods used to try to manage risk could actually lead to a systemically unstable financial system. The author has previously termed what might conceivably now ensue for the first time, following the collapse of Lehman Brothers, as 'The Risk Soliton', so could it now happen ?
Georgia - Should this be a Wake-Up Call for Some Proper Strategic Risk Analysis ?
Why we shouldn't forget what NATO is really about.
The conflict underway in Georgia should act as a wake-up call to remind us what NATO is really about. As current events unfold we should do a sober risk analysis. If poor decisions are made, we might lay the ground for a serious future conflict, or fatally undermine the mission of NATO, and with it our own security.
RCRT GAVONTS has been Listed by the US DoD's DACS
DACS is the US DoD's authoritative source for state-of-the-art software.
RCRT GAVONTS has been listed by the US Department of Defense's DACS agency. DACS's mission is to act as the US Defense Department's Software Information Clearing house - serving as an authoritative source for state-of-the-art software.
Would Anyone Like Some Free Energy ?
Heat Pumps - A Simple Technology - But No Strategic Thinking To Make Use Of It
While we have all been concentrating on the problems in the credit markets - perhaps the problems that we should really be worried about have been unfolding in the background in the energy markets. Addressing these issues requires long-term strategic thinking - here is one simple thing that might be done to help to adress the situation.
Exercising the 'Traders Option'
The problem of risk-asymmetry and risk vs. reward in the world of finance.
As current events in the financial markets unfold, there has been some criticism of the levels of remuneration paid to senior bankers and other financiers. There is a common perception of a significant imbalance between risk and reward.
One answer is to reward executives according to their 'risk-adjusted' performance. Some of these arguments reminded me of a risk management phenomenon known as the Trader's Option within the banks in the City.
Should Banks be Able to Use Mortgage Debt To Raise Finances From Government?
This morning's news highlighted some further developments in the current catalogue of economic woes.
Technorati Weblogs
Technorati Weblogs
Our 'News' and 'Risk Commentary' weblogs are now registered with Technorati.
The Stibium Naming and Directory Server v3.2.0 Has Been Released
Version 3.2.0 of the 'Stibium' naming and directory server has now been released. This release includes an updated version of the Stibium .Net Client Library, which enables Stibium to also be used by .Net software clients. There is also a set of NUnit Test Suites for the .Net client library.
This version also includes a number of other enhancements, including the ability to configure the Stibium namespace's naming syntax.
The Irony of 'Moral Hazard'
An Issue of Tough Market Reality Rather Than Abstract Morality
Why 'Moral Hazard' is a more important issue than some people have realized.