Yea-Mow Chen, professor of Finance from San Fransisco State University, was our guest speaker this morning in class. His presentation was titled "Global Economic Developments and Some Critical Issues."
We discussed the recent turbulence in financial market, how leverage can cause a lot of problems and How concerns over sovereign spilled into the banking sectors in Europe.
A term that I wasn't familiar with is Basis Points (1% = 100bps). The Basis point spread can reflect investors feelings (A high spread = concern). Currently, Greece is a risky investment. For every $100 of protection, Greece has to pay 6% (BP=600)
We also discussed the possibility of a Great Depression or Double Dip.
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