What are some economic challenges that Wall Street are facing currently?
Author: admin // Category: subprime mortgageI know the subprime mortgage has been a big problem, but what else?
Too much capital (not only speculative). And due to capital accumulation it becomes less scarce and cheaper (not only because of depreciation).
Sectoral changes happens in economy, supply shocks – this provides a much volatility (in risks and profits). Investors become anxious – do many changes, switching between different types of assets/investments, so wall-street has much more work than in usual situation (and higher profits for services), though many fund-managers have really hard-time which requires a lot of efforts and proof of their competence. Many (right) decisions needs to be made in not-enough-information conditions, this uncertainty makes a lot of problems because of high responsibility (high risks of high loses) and current overload.
January 16th, 2013 at 6:12 am
Too much capital (not only speculative). And due to capital accumulation it becomes less scarce and cheaper (not only because of depreciation).
Sectoral changes happens in economy, supply shocks – this provides a much volatility (in risks and profits). Investors become anxious – do many changes, switching between different types of assets/investments, so wall-street has much more work than in usual situation (and higher profits for services), though many fund-managers have really hard-time which requires a lot of efforts and proof of their competence. Many (right) decisions needs to be made in not-enough-information conditions, this uncertainty makes a lot of problems because of high responsibility (high risks of high loses) and current overload.
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