The Rabid Capitalist

Analysis, ideas and strategies for building wealth from a pro

Find out more

Global Financial Stability Warning:

The Rabid Capitalist Told You So

Professor Glenn A. Okun

NYU Stern School of Business

September 5, 2023

The Financial Stability Board (FSB), the global banking system oversight organization, confirmed The Rabid Capitalist’s warnings regarding financial shocks issued over the past several months (see https://therabidcapitalist.com/2023/07/25/bank-lending-diet-or-starvation/, https://therabidcapitalist.com/2023/08/07/another-approaching-storm-multifamily-commercial-mortgages/, and https://therabidcapitalist.com/2023/08/08/shots-across-the-bow-warnings-from-the-credit-markets/ among others) .  Better late than never, I suppose.

Klaas Knot, chair of the Financial Stability Board, warned that the global economic recovery is losing momentum due to rising interest rates in major economies. He emphasized that the global financial system will face additional challenges and shocks in the coming months and years.

Despite recent stability in financial markets, Knot emphasized the need for authorities to closely monitor real estate for signs of stress and urge financial providers to manage their risks properly. He also highlighted that some borrowers have fixed-rate loans established before central banks like the US Federal Reserve, European Central Bank, and Bank of England began tightening monetary policy to combat inflation. As a result, it takes time for higher interest rates to reach the real economy.

Complete content is available for a $15 monthly subscription.  The Rabid Capitalist: Special Opportunities answers the age-old question, “What would Professor Okun do?”.   It is devoted to the never-ending quest to get my subscribers rich.

The free subscription provides material unavailable at LinkedIn. The $15 monthly version gets you everything.  Subscribe to get Professor Okun delivered by email and you will never miss anything!
Join me at https://therabidcapitalist.com/.

rabidcapitalist
,
, , , , , ,

One response to “Global Financial Stability Warning:”

  1. Shakhzod Ismailov Avatar
    Shakhzod Ismailov

    Professor Glenn A. Okun’s recent article, “Global Financial Stability Warning: The Rabid Capitalist Told You So,” highlights the Financial Stability Board’s (FSB) validation of ‘The Rabid Capitalist’s’ warnings about impending financial shocks. When it comes to recognizing the hazards in the global financial system, “better late than never” applies. Klaas Knot’s warning about the global economic recovery losing steam due to rising interest rates in key economies is cause for alarm. As we’ve seen in recent years, financial market stability may be deceiving, so Knot’s emphasis on monitoring real estate and advocating for proper risk management is critical. The inclusion of fixed-rate loans made prior to central banks tightening their policies adds another layer of complication to the problem. It’s a clear admonition to be cautious and make sound financial decisions. The availability of comprehensive content via a subscription to ‘The Rabid Capitalist: Special Opportunities’ is exciting, since it promises insights into Professor Okun’s financial knowledge. This post is a timely reminder to stay aware and prepared for unexpected financial difficulties.

    Like

    Reply

Leave a comment

Discover more from The Rabid Capitalist

Subscribe now to keep reading and get access to the full archive.

Continue reading