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IBS-U and the ALUMNI PROJECT TEAM presented INSIDE JOB with Wouter van der Stok on the 24 March @'the IBS Groningen. Mr. Van der Stok gave a personal statement about the Oscar winning movie Inside Job directed by Charles Ferguson. Furthermore he did an analysis of this Crisis due to the movie and how all this affectected us. Afterwards there was a discussion round with him.
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FINANCIAL/ECONOMIC SITUATION IN THE WORLD
WOUTER VAN DER STOK
The idealised current global long wave
The Kondratieff long wave cycle 1949 - 2012
Source: http://www.marketoracle.co.uk/Article25663.html
USA
USA
USA Current account balance as a % of GDP
USA
CONSUMER LENDING CRISIS
The Cycle of Deflation
Source: http://www.marketoracle.co.uk/Article26039.html
Source: http://www.marketoracle.co.uk/Article26039.html
Total Spending US from FY 1900 to FY 2010
Top Holders of US Debt ($BN)
Source: http://www.marketoracle.co.uk/Article26195.html
Source: http://www.marketoracle.co.uk/Article26195.html
POSSIBLE SOLUTIONS Medium term
- Review and simplify international accounting rules on financial reporting: “fair value” versus “mark-to-market”.
- Ensure originators retain the riskiest part of securitized loans.
- Enforce prime brokers to stop lending to hedge funds which fail to disclose audited balance sheets.
POSSIBLE SOLUTIONS
- Arrange to bring trading of derivatives onto exchanges for safety (even if costs go up).
- Re-introduce some aspects of the old Glass-Steagall Act to separate commercial banking from capital market activities.
- Improve financial literacy of general public to reduce financial misrepresentation, greed, fear and ignorance of risks.
THANK YOU
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