International Financial System

Buenos Aires, Argentina January 22, 2009A The international financial crisis has left us a clear lesson: the international financial system was not as robust and efficient and appeared to be those entities that were displayed as the strongest demonstrated that not everything glitters is gold. The lack of effective regulation and supervision led to a position taken on excessive and irresponsible risk. a For specialists in the field, while the crisis in financial systems are not at all pleasant for its impact on the real economy have a positive aspect that is clear from them inefficient and fragile entities. Thus the crisis in financial markets survive the entities that have known a better way to manage the various risks and proved to be efficient, producing the revival of a financial system stronger and more experienced to prevent problems from happening the same. The Status of the international financial system is fragile.

For the American economist predicted the subprime crisis, Nouriel Roubini, for the U.S. financial system: The problems of Citi, Bank of America and others suggest that the system is bankrupt. Roubini warned that (if the projections) are true, that means the U.S. banking system is effectively insolvent, because it started with a capital of U.S. $ 1.4 billion. It is a systemic banking crisis. Probably a Roubini’s assertion is true and this concern in terms of prospects for economic recovery in the U.S..

UU. But perhaps the U.S. banking system is not the only one who is in bankruptcy.