Financial Markets in The Global Perspective: North & South America
The paper presents a critique of financial concepts in the global financial markets. The key concepts includes Equity and Debt Financing, Risk of a financial crisis and the economy: Minsky’s theory of financial fragility, with reference to hedge, speculative and Ponzi balance sheets. Information Asymmetry: Adverse Selection and Moral Hazard in the Context of the Financial Services Industry, Weakened banking sector (extremely low bank capital), rising interest rates and asymmetric information and the onset of a currency and financial crisis. Elaborate illustrations are also presented to aid the contextualization of the global financial markets.
Keywords: Financial Markets, Equity, Debt, Hedge Funds, Information Asymmetry, Currency Devaluation.
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