Risk management is still a weak spot—perhaps because boards (and companies) are increasingly complacent about risks, as we move further out from the 2008 financial crisis.
Value Eroding Fallacies : Author's Blog
The 2013 Nobel Economic Sciences Prize committee says, an unknown flaw in the 'Capital Asset Pricing Model' causes mis-pricing of financial assets and contributes to financial crisis like the 2008 case. What is the flaw? Why have thousands of studies failed to fix it for over five decades, while billions of dollars in shareholder wealth were eroded? Breakthrough research explains and rectifies the flaw, and shows how another 'Financial Crisis' can be prevented.
Videos
Diagnosis and Cure
If 'Financial Risk Management' was as simple as merely raising the bar of criterion cost, then no 'Asset Pricing Model' would be required in the first place! There's more to it, which calls for a deep diagnosis into conventional financial practice and transform it from a 'Subjective Cultivated Art' into an 'Objective Rational Science'.
Sunday, August 10, 2014
Sunday, July 6, 2014
Global Financial Systems Still Vulnerable to Crisis
Systemic risks must be taken seriously in the financial sphere. A growing group of current and former officials continues to express concern about current and potential future risks in the United States, Europe, and globally, says Simon Johnson, professor at MIT's Sloan School of Management (ET article)
Saturday, May 24, 2014
'Old' isn't necessarily 'Gold'..even economic theories !
Bloomberg reports - When Dr.Sakir Devrim Yilmaz of University of Manchester offered an unofficial course that challenged some traditional economic theories relevant to the recent economic crisis, the university's economics department refused to
Friday, May 23, 2014
Monday, January 20, 2014
Wednesday, January 1, 2014
Does Limiting Promoter Holding Protect or Damage Public Shareholders' Interest
In a discussion paper issued in 2008 the Indian finance ministry wrote the following:
"A large number of shares distributed among a large number of shareholders is essential for the sustenance of a continuous market for listed securities to provide liquidity to
"A large number of shares distributed among a large number of shareholders is essential for the sustenance of a continuous market for listed securities to provide liquidity to
Tuesday, December 10, 2013
Nobel Laureates warn of bubble, recession
Economist Frank Knight (1885-1972) might be proved right....once again. This year's Nobel Laureate Robert Shiller says lack of an acceptable asset pricing model poses a Knightian uncertainty.
Tuesday, December 3, 2013
After 45 Nobel Prizes to 74 Laureates in various disciplines of economic sciences, the answer to financial crisis remains elusive.
The Economic Sciences Prize Committee writes in its scientific background note on the 2013 prize
"....we do not yet fully understand how asset prices are determined......"
"....we do not yet fully understand how asset prices are determined......"
Thursday, October 10, 2013
World Bank warns, but more than a third of countries near pre-crisis levels!
The World Bank says "Better Risk Management Can Unlock Opportunities, Prevent Crises, and Protect Poor Amidst Disasters and Shocks",
Saturday, September 14, 2013
Five years after the 2008 crisis, what have we learnt?
Old theory was wrong, but do we have a new one?
Our old theory of what to do was wrong, and we don’t have a new one says Matthew Yglesias, Slate.com's business and economics correspondent.
Our old theory of what to do was wrong, and we don’t have a new one says Matthew Yglesias, Slate.com's business and economics correspondent.
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