14 September 2018 FT — Articles to Read

14 September 2018


Question: According to MSN:Lifestyle, what are 11 of the Most Important Qualities Women look for in a guy?


Trader’s lost bet blows hole in post-crisis safety net – Pg. 1

–          Authorities singled out clearing houses as pillars of global market stability to withstand the next financial crisis.  They stand between two parties in a trade to help prevent the fallout from defaults rippling through the market

–          Nasdaq said the size of Mr Aas’s positions blew through several layers of safeguards designed to protect the clearing house from hefty losses


Wall Street panic aggravated financial crash, says Bernanke – Pg. 2

–          The real estate bust was not the primary reason for the plunge in US economic fortunes in the financial crisis, Ben Bernanke…

–          …panic in the funding and securitization markets was the main reason for the severity of the crisis.   Its early stages would have been “significantly less severe” without the collapse in confidence on Wall Street

–          …adds intensity to the debate over whether the US central bank and other authorities put too much public money into rescuing Wall Street from 2007-09, and whether they were negligent in failing to tackle the hazards building in the property market

–          …reversal of a surge in borrowing that, combined with a house price collapse, depressed household spending and sparked intense deleveraging

–          The other source was the fragility of the financial system, in which mortgage-related losses triggered Wall Street panic, including runs by wholesale funds and fire sales of securitized assets

–          The two drivers imply different policy responses, Mr Bernanke said. If household debt was the main problem, it would imply the focus should be on stabilizing housing markets and modifying troubled mortgages.  The markets-focused driver implied the “policy imperative” was to end panic in the financial sector – putting the focus on interruptions to the supply of credit, not demand for it

–          This week marks the 10th anniversary of the collapse of Lehman Brothers, which triggered the most intense phase of the panic


Emerging market turmoil makes the case for a stronger IMF – Pg. 9

–          Before the financial crisis, the fund had less than $300bn available to support troubled countries.  However, after the European sovereign debt crises that arsenal rose to $1tn

–          In 1997 Asian financial crisis, by contrast, the potential hole was about $500bn, then twice what the IMF had in reserve

–          About a quarter of the IMF’s arsenal is cash, or money permanently deposited by members in so-called quotas.  Another quarter comes from multilateral borrowing arrangements, or credit lines, which are due to expire in 2022.  The rest is bilateral borrowing agreements, and those credit lines start to expire from 2019

–          …nobody knows what the Trump administration will do.  And the US has a veto


Answer: (1) Chemistry; (2) Vulnerability; (3) Stability; (4) Equality; (5) Awareness; (6) Emotional Presence; (7) Curiosity (About Her!); (8) Protectiveness; (9) Acceptance; (10) Assertiveness; (11) Red Hair