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Why China survived the financial crisis
Shalendra D. Sharma

important so that the banks (and other financial institutions) cannot mask problems such as a high proportion of non-performing loans, and, for banks involved in international transactions, that a healthy balance between assets and liabilities denominated in different currencies exists. Asia’s financial crisis vividly demonstrated that systemic problems in the banking and financial sector are accidents just waiting to happen – or more appropriately, waiting to “explode” without warning and quickly engulf the economy as a whole.19 According to The Economist, China has “the

in The Asian financial crisis
Open Access (free)
Oonagh McDonald

brokerage services to a large number of hedge funds, as a result of which hedge funds placed investment assets with Lehman's broker-dealer units in various jurisdictions. These assets were used as collateral for funding activities and were then reused by Lehman to meet its own obligations (re-hypothecation). The bankruptcy meant that many of Lehman's clients could not access their collateral assets during the whole process, whilst their assets changed value and they waited for the completion of differing legal processes. This would alter the size and location of hedge

in Lehman Brothers
Problems of polysemy and idealism
Andrew Sayer

markets are just one form in which those opportunity costs sometimes get reflected. We could say that the notion of the market as ether refers to ‘implicit markets’, but this still tendentiously suggests that real markets are the normal form of economic organisation, and, if absent, are held back by pre-modern conventions and practices, ill-defined property rights and state restrictions, and are just waiting to be ‘freed’, whereupon economic benefits are supposed to follow. In this way, the conceptual slide from imaginary to actual markets is closely associated with

in Market relations and the competitive process
Open Access (free)
Oonagh McDonald

and July 2007, the amount outstanding had doubled, reaching $1.2 trillion, and debtors extended the maturity of their borrowings so that investors had to wait for repayment. As the market collapsed, some conduits, special purpose vehicles usually set up by banks to purchase and hold financial assets by selling asset-backed commercial paper to investors, such as the money market mutual funds (MMMFs) were affected as well. Investors became increasingly unwilling to roll over ABCPs, especially at maturities of more than a few days. As the sponsors of the programmes

in Lehman Brothers
Open Access (free)
Crisis, reform and recovery
Shalendra D. Sharma

-term borrowing was subject to much stricter restrictions, requiring one to provide detailed information, besides obtaining permission from the MOFE.37 Also, since the government expected that the credit rating on bank loans of Korean companies would improve in the international financial market, it further induced financial institutions to transform long-term external debts into short-term debts (MOFE 1998). However, other “borrowers seem to have taken a ‘wait and see’ approach by continuously rolling over short-term loans rather than taking out long-term ones, an approach

in The Asian financial crisis