Title - The Confidence Game
Author - Steven Solomon - All Reserved.
Review - Sampson I.M Onwuka
Year of 2005
The big is old and the emergent revisionist reason for Stephen Solomon is no where confined the problem of federal funds rate and the delay for new rates which are characteristically new emergent properties in world of money and the history of Federal Reserve and Central Bank system.
Steven Solomon writing in his ‘The Confidence Game’
demonstrated why the London ‘Big bang’ forced all kinds of public interest and
proved a substantial problem for Mortgage as well as Insurance companies, in
the 80’s. The 80’s were full of innovation, and not only innovation in terms of
business done or owned by Americans, the 80’s was a time when International
corporations and Banks, or what is now ‘super-safe’ companies, such as Freddie
and Fannie, attracted the most exposure from Europe. The 80’s was a decade of
great ‘mergers and acquisitions’ many of which was between European
International countries benefiting from their 1978 agreement and their Banks to invest in the United States and International market as against the registration on U.S banks trading oversea. Although something can be said about the LIBOR preceding 1978 and even 1971, the role of International Banks in helping to sprout European Banks all over the States was mostly effective after 1978.
This 1978 transformation was also not a handicap since the beginning of liberal International exposure of European Banks gradually ended Breton Wood accords and the role of International Baskets. The real question is how these countries and their representative fared in time of crisis and why? The second question is why the exposure to European funds to U.S vice versa required a separ and other basic requirement of Basel I. From Steven Solomon we gave the idea that the exposure of foreign funds to international markets created the need for more careful observation and moratorium. At large it was not happening neither was the case of Universal Banking a careful incident amounting to something other con attitude. Above all he seem to indicate that the bait on CDO and bizarre, Credit Rating, consequent to what is now ‘Synthetic Securities’.
This 1978 transformation was also not a handicap since the beginning of liberal International exposure of European Banks gradually ended Breton Wood accords and the role of International Baskets. The real question is how these countries and their representative fared in time of crisis and why? The second question is why the exposure to European funds to U.S vice versa required a separ and other basic requirement of Basel I. From Steven Solomon we gave the idea that the exposure of foreign funds to international markets created the need for more careful observation and moratorium. At large it was not happening neither was the case of Universal Banking a careful incident amounting to something other con attitude. Above all he seem to indicate that the bait on CDO and bizarre, Credit Rating, consequent to what is now ‘Synthetic Securities’.
Steven Solomon attempted to suggest is that the ‘Confidence
Game’ surrounded so to speak surrounded a certain Hedge Fund managers who took
a plastic view of faulty triple A rating the elemental Ratings agencies when
against the baiting or the real conditions of the market, was a careless risk.
The trial of Universal Banking came therefore on October 1987, following the
announcement that U.S will invade Kuwait. The question of losses so often the
case with many International banks participating in one, forced new and additional light
to be thrown on the question of monitory World financial society.
No doubt that the foundation of what we might regard as European Union was based entirely on this view of Universal Banking. No doubt that the influence of Chicago Board of trade and exchange of cash without CME, may added to the attraction of European Banks to America, and may have further widened the gap between the American Banks who barred from dealing directly in securities and the Internationals who set their own financial products. The gap between Universal Banking and its interpretative position by way of Specialized Bank is gradually been breached and nothing like that theory which noted as the London ‘Big Bang’ of 1986, had the freedom to experience the trial and effort by the rest of the world. That the theory began under Margaret Thatcher but tested by October 1987, the World Broad Market involves strategic investment from different parts of world into one continues chain of interrelationship via Exchange markets such as Euro Bond or other Cash Funds.
No doubt that the foundation of what we might regard as European Union was based entirely on this view of Universal Banking. No doubt that the influence of Chicago Board of trade and exchange of cash without CME, may added to the attraction of European Banks to America, and may have further widened the gap between the American Banks who barred from dealing directly in securities and the Internationals who set their own financial products. The gap between Universal Banking and its interpretative position by way of Specialized Bank is gradually been breached and nothing like that theory which noted as the London ‘Big Bang’ of 1986, had the freedom to experience the trial and effort by the rest of the world. That the theory began under Margaret Thatcher but tested by October 1987, the World Broad Market involves strategic investment from different parts of world into one continues chain of interrelationship via Exchange markets such as Euro Bond or other Cash Funds.
Short View
The London ‘Big Bang’ was the tendency to draw up International for Banks engaged in trans-border trade, and securities lending beyond the borders of their country (a given demand and supply) and as well engage in all kinds of Insurance Finance Product in the retail market. The issue covering this view began shortly after the 1978 agreement of European countries that their respective Banks can participate in US securities market. But the exact nature of their participation and degree of participation needed additional prescription, verse Europe. The call for monitoring activities of the Banks was raised by… and it amounted to Universal Banking, which also included the freedom to deal with business between the two days of the country. But after the incident of the 1987, London Banks were able to fully conduct the full range of securities business. All of these led to the whole notion or revival of ‘structural spectrum’ and higher emphasis on IMF as a form of Specialist Bank, where a newer Bank was in the pipes for making a serious difference.
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