56 online
 
Most Popular Choices
Share on Facebook 14 Printer Friendly Page More Sharing
OpEdNews Op Eds   

Where to go from here?: Uncertainty, Caution, and the New Financial Frontier

By       (Page 1 of 2 pages)   No comments
Message Constance Lavender

This columnist has followed the recent turbulence in the financial markets with curiosity, a critical eye, and a perspective tempered by over four decades of history.

Your reporter has chronicled this week's events in two articles and a poll:

http://www.opednews.com/articles/MORE-BIG-CORPS-ON-AUCTION-by-Constance-Lavender-080917-938.html

http://www.opednews.com/articles/2/Global-Financial-System-Re-by-Constance-Lavender-080914-367.html

Poll:

http://www.opednews.com/Poll/How-much-faith-do-you-have-by-Constance-Lavender-080914-749.html

This writer has made three observations concerning the current crisis:

1.  The lack of a reliable and predictable mechanism for the orderly liquidation of failing US companies seems to have accelerated, not eased, investor nervousness. Without an orderly, predictable, and rational  process for liquidating failed businesses, volatility will only worsen.

2. A functioning, rational regulatory structure, adapted to new global finance realities and competent to identify risks before they threaten financial foundations may be a neccesary condition for the return of market stability.

3. And some entity constructed to assess, evaluate, and regulate new financial instruments---including their legality and potential for abuse---in real time might prevent future interruptions.

Some explanation and clarification is required: credit ought to be given where credit is due. Treasury Secretary Henry Paulson has been one of the few steadfast faces in the crowd over the past few months. Paulson is working under difficult circumstances to say the least.

With regard to the observation that there is currently no reliable and predictable mechanism for the orderly liquidation of failing US companies;  that function is currently being performed by a person or people (Paulson, Bernanke, Cox) whereas a mechanism or structure seems more rational.

Markets are in the midst of a complicated crisis, not at the bottom. Yesterday, Putnam Mutual Funds came under threat and there have been additional developments as well to be reported in a later column.

Markets are also in the midst of a US presidential election. Congress and the White House are vowing cooperation on a "bipartisan" measure to put a stop-gap in place.

Markets temporarily--that is yesterday---reacted positively to that news. Yet are the markets rational? Are the markets a good predictor of the future?

What is the wisdom of an emergency measure to placate a fluctuating, wildly gyrating financial system with an uncertain outlook?

Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Rate It | View Ratings

Constance Lavender Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Constance Lavender is an HIV-Positive pseudonymous freelance e-journalist from a little isle off the coast of Jersey; New Jersey, that is...

In the Best spirit of Silence Dogood and Benj. Franklin, Ms. Lavender believes that a free (more...)
 
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

 
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Heterosexism and the African American Community

Stay Tuned...NJ Corruption Probe Extended To Other States

Deviating from the Norm: A Deviant Analysis of Kate Chopin's The Awakening as Coming Out Story

The Hero Myth in Maya Art & Culture

The Hero Cycle in Maya Myth & Culture

From Whitman to Wilde: A Cultural Perspective on Individualism at the Fin de Siècle

To View Comments or Join the Conversation:

Tell A Friend