Matched sale transaction
Applies mainly to convertible securities. Procedure whereby the Federal Reserve Bank of New York sells government securities to a nonbank dealer against payment in federal funds. The agreement requires the dealer to sell the securities back by a specified date, which ranges from 1 to 15 days. The Fed pays the dealer a rate of interest equal to the discount rate. These transactions, also called reverse repurchase agreements, decrease the money supply for temporary periods by reducing dealers' bank balances and thus excess reserves.
Scenario analysis
The use of horizon analysis to project total returns under different reinvestment rates and future marketyields.
Seat
Position of membership on a securities or commodityexchange, bought and sold at market prices.
Mark Berch:Low ball
Slang for making an offer well below the fair value of an asset in hopes that the seller may be desperate to sell.
Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or redemption charge. For a closed-end fund, the market price may vary significantly from the net asset value.
Current/noncurrent method
The translation of all of a foreign subsidiary'scurrent assets and liabilities into home currency at the current exchange rate while noncurrent assets and liabilities are translated at the historical exchange rate; that is, the rate in effect at the time the asset was acquired or the liability incurred. Mark Berch
Plan for reorganization
A plan for reorganizing a firm during the Chapter 11bankruptcy process.
Applies mainly to convertible securities. Procedure whereby the Federal Reserve Bank of New York sells government securities to a nonbank dealer against payment in federal funds. The agreement requires the dealer to sell the securities back by a specified date, which ranges from 1 to 15 days. The Fed pays the dealer a rate of interest equal to the discount rate. These transactions, also called reverse repurchase agreements, decrease the money supply for temporary periods by reducing dealers' bank balances and thus excess reserves.
Scenario analysis
The use of horizon analysis to project total returns under different reinvestment rates and future marketyields.
Seat
Position of membership on a securities or commodityexchange, bought and sold at market prices.
Mark Berch:Low ball
Slang for making an offer well below the fair value of an asset in hopes that the seller may be desperate to sell.
Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or redemption charge. For a closed-end fund, the market price may vary significantly from the net asset value.
Current/noncurrent method
The translation of all of a foreign subsidiary'scurrent assets and liabilities into home currency at the current exchange rate while noncurrent assets and liabilities are translated at the historical exchange rate; that is, the rate in effect at the time the asset was acquired or the liability incurred. Mark Berch
Plan for reorganization
A plan for reorganizing a firm during the Chapter 11bankruptcy process.
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Mark Berch - Factors of the Great Recession
Countless variables directly and indirectly was responsible for the continuing Great Recession (that started with the United States sub prime mortgage crisis), with experts putting many weights upon particular causes.
That problems resulted from a conjunction of overwhelming components, this consists of simple loan requirements in the time of the 2002–2008 time frame that actually stimulated risky financing together with borrowing practices; international transaction lack of balance; real-estate bubbles which have since burst; economic plan choices corresponding to united states government gross as well as expenses; and additionally solutions chosen by nations around the world to bail out difficult banks sectors plus independent bondholders, presuming individual economic burdens or maybe socializing failures.( Mark Berch )
One particular story talking about the particular triggers coming from financial crisis starts up with the important escalate in savings on the market for the funding within the 2000–2007 period while the global pool of fixed-income investments inflated from around $36 trillion on 2000 to $80 trillion on 2007. This unique "Giant Pool of Money" increased as financial savings from high-growth developing nations went through world wide finance markets. Eric Berch
Brokers shopping for greater yields as compared with those delivered by UNITED STATES. Treasury bonds searched for substitutes globally.
The enticement granted by such easily available financial savings overpowered the procedure and regulatory management systems in nation after country, the moment loan companies and in addition borrowers added most of these financial savings to use, driving bubble right after bubble all over the globe. When these bubbles have ruptured, resulting in property price ranges (example., housing and business property) to reject, the indebtedness payable to worldwide stock investors stay at full pricing, generating topics in regards to the solvency of buyers, authorities and funding systems. Eric Berch
Troubled banks in the UNITED STATES. and additionally The european countries cut down back crediting driving a lending crisis. The public and additionally a bunch of governing were will no longer able to borrow and invest at pre-crisis stages. Organisations as well decreased these investments since demand faltered and lowered their own workforces. Increased unemployment because of financial condition made it tougher for the general public and countries to honor their commitments. This specific was responsible for financial company losings to lift, gathering the loan crunch, therefore triggering an unpleasant feedback circle.
The U.S Monetary pandemic Inquiry Commission revealed it's findings in Jan 2011. It concluded just that "the disaster was preventable and additionally was in fact triggered by: Widespread outages in economic regulation, including the Federal Reserve's disaster to control the tide of hazardous residential loans; considerable complete breakdowns in corporate and business governance including way too many financing groups functioning recklessly and taking on too much risk; An explosive combination of disproportionate loaning and exposure by households and Wall Street that actually placed the financial system on a crash course with financial crisis; important policy makers unwell prepared for the crisis, devoid of a extensive knowledge of the economical scheme these people oversaw; and systemic breaches in responsibility and integrity at every one of the layers.
Feel free to check my other articles on the subject: Eric Berch Ian Berch Mark Berch
Countless variables directly and indirectly was responsible for the continuing Great Recession (that started with the United States sub prime mortgage crisis), with experts putting many weights upon particular causes.
That problems resulted from a conjunction of overwhelming components, this consists of simple loan requirements in the time of the 2002–2008 time frame that actually stimulated risky financing together with borrowing practices; international transaction lack of balance; real-estate bubbles which have since burst; economic plan choices corresponding to united states government gross as well as expenses; and additionally solutions chosen by nations around the world to bail out difficult banks sectors plus independent bondholders, presuming individual economic burdens or maybe socializing failures.( Mark Berch )
One particular story talking about the particular triggers coming from financial crisis starts up with the important escalate in savings on the market for the funding within the 2000–2007 period while the global pool of fixed-income investments inflated from around $36 trillion on 2000 to $80 trillion on 2007. This unique "Giant Pool of Money" increased as financial savings from high-growth developing nations went through world wide finance markets. Eric Berch
Brokers shopping for greater yields as compared with those delivered by UNITED STATES. Treasury bonds searched for substitutes globally.
The enticement granted by such easily available financial savings overpowered the procedure and regulatory management systems in nation after country, the moment loan companies and in addition borrowers added most of these financial savings to use, driving bubble right after bubble all over the globe. When these bubbles have ruptured, resulting in property price ranges (example., housing and business property) to reject, the indebtedness payable to worldwide stock investors stay at full pricing, generating topics in regards to the solvency of buyers, authorities and funding systems. Eric Berch
Troubled banks in the UNITED STATES. and additionally The european countries cut down back crediting driving a lending crisis. The public and additionally a bunch of governing were will no longer able to borrow and invest at pre-crisis stages. Organisations as well decreased these investments since demand faltered and lowered their own workforces. Increased unemployment because of financial condition made it tougher for the general public and countries to honor their commitments. This specific was responsible for financial company losings to lift, gathering the loan crunch, therefore triggering an unpleasant feedback circle.
Ian Berch:The USA Economical catastrophe
The U.S Monetary pandemic Inquiry Commission revealed it's findings in Jan 2011. It concluded just that "the disaster was preventable and additionally was in fact triggered by: Widespread outages in economic regulation, including the Federal Reserve's disaster to control the tide of hazardous residential loans; considerable complete breakdowns in corporate and business governance including way too many financing groups functioning recklessly and taking on too much risk; An explosive combination of disproportionate loaning and exposure by households and Wall Street that actually placed the financial system on a crash course with financial crisis; important policy makers unwell prepared for the crisis, devoid of a extensive knowledge of the economical scheme these people oversaw; and systemic breaches in responsibility and integrity at every one of the layers.
Feel free to check my other articles on the subject: Eric Berch Ian Berch Mark Berch
