Archive for May 20th, 2014

What makes Switzerland an international finance centre?

May 20, 2014

A nice speech by Thomas J. Jordan, Chairman of the Governing Board Swiss National Bank.

He points to historic reasons that led to formation of Swiss IFC and how it can maintain it in future.

 

 

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Is the only purpose of the government to boost share market?

May 20, 2014

The elections are over and the business media has gone berserk way beyond expectations. Tall claims are being made on how this election outcome is basically a victory of development. The media is rife with experts/wannabe experts with their laundry list of so-called reforms to develop Indian economy.

However, a quick glance at the laundry list shows how the list is just full of usual suspects revolving around macroeconomics and financial markets. Now one is not saying macro does not matter but is it just about this? and since when has development come to mean just stock markets? The experts citing India amidst a bull run for 15-29 years, Sensex kissing 30,000 by 2014 and some saying 1,00,000 in 10 years and so on. They clearly have missed how equity markets peaked just before the 2008 crisis worldwide and in Japan in 1989. And none of them really helped people as wealth got eroded in just quick time. So instead of asking people to be cautious and not put all eggs in the equity basket, more and more people are being nudged to move into equities.

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