Thursday, August 12, 2010

Links for August 11, 2010

I must admit this one shocked me. Dr. D. Subbarao, whose actions held promise spoke in Hyderabad recently and said all the wrong things. The speech is here. Ajay Shah’s brief reaction is here and Ila Patnaik’s critique, here. Will post a note on it soon, focusing on RBI’s ambition of becoming the co-ordinating regulator. The other points have been more than amply rebutted by Shah & Patnaik.

Get Rid of Them! Bill Black’s “alternative to the Rating Agencies: I cannot help but agree. Credit ratings give a false sense of security to lenders and discourage independent assessment. Regulatory support to this practice needs to be discontinued. And if it was the independence of the lender (from borrower influence) that concerns regulators, how can they believe that an agent of the borrower will represent associated risks better? Its a question all regulators, including SEBI, need to mull.

The next big thing – Structured Notes: What? you haven’t bought one yet!!

You just have to click this graphic… one of the coolest I’ve seen in days.

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And for the finale, something I never thought I would hear from a “developed” market maven

Time to regulate volatile food markets - Joachim von Braun

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