Archive for November 30th, 2011

Why hedge funds performed better in 2008 crisis and will banks learn the lessons?

November 30, 2011

As the 2008 crisis unfolded most thought hedge funds would lead to further chaos with their highly leveraged and risky structures. But this was not to be barring a few cases here and there. Why so?

Dallas Fed note tells the story. The hedge funds post LTCM crisis have made efforts to diversify and not follow the herd mentality:

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RBA’s new liquidity facility to support Basel-III norms

November 30, 2011

Basel-III implementations are kicking in and are hitting economies differently.

Take Australia’s case for instance whose regulator started work on getting Basel-III implemented in their banks. Under Basel-III we have two ratios to strengthen liqidity conditions of banks:

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Growth rate in India’s states in 2000s – A case of divergence or convergence?

November 30, 2011

Utsav Kumar and Arvind Subramanian write this interesting paper on India growth story. They look at states performance in the high growth decade 2000s and claim to be the first paper to do so. There are number of papers which have looked at states (many references are there in the paper) performance but all are before 2000s.

There are four broad findings (covered in BS as well):

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