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Subbarao fears fiscal deficit to fuel next crisis

  
Analysis, Economy, Education
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RBI GOVERNER

The Reserve Bank of India (RBI) governor, Duvvuri Subbarao, expressed fear that the next financial debacle could stem from a currency crisis or from the way the government handles its ‘stimulus exit’. Speaking at the first International Research Conference organised by RBI here on Saturday, Subbarao said,

“I worry that in resolving this financial crisis, perhaps we are sowing the seeds of the next crisis. Next crisis could be a currency or a fiscal crisis.” The central banker, however, denied that RBI would back out from its commitment to full convertibility of rupee but would impart flexibility to its pre-determined course in the light of the recent global economic developments.

Participating in a panel discussion, the RBI governor said the developed economies may fail to wind down their borrowings, leading to cyclical deficits morphing into ‘structural fiscal deficits’, affecting the system as a whole. In the wake of global credit crisis, following the US sub-prime crisis in 2008, many governments and central banks pumped in huge funds and resorted to low-interest-rate monetary policies, for boosting their sagging economies. These have resulted in bloating of fiscal deficits. (more…)

Hedge Fund Legends with Their Humble Beginnings

  
  Education
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While the hedge fund industry may be mostly comprised of professionals from privileged upbringings, some of the world’s most successful hedge fund managers actually come from more humble beginnings. 
Hedge fund legends such as George Soros, Ray Dalio, and sibling duo Marc Lasry and Sonia Gardner are just some of the recognizable names in the industry from middle-class backgrounds who worked their way up the corporate ladder to become some of the most successful leaders in the financial world.
According to Soros’ official biography, the Hungary native and founder of New York-based Soros Fund Management, immigrated to England when he was 17 to attend the London School of Economics. His uncle paid his living expenses while he attended the business school. 
Nowdays, Soros, also known to many in the industry as “The Man Who Broke the Bank of England” for his $1 billion investment profit for his bet during the 1992 currency crisis that struck the United Kingdom, is one of the richest people in the world. He came in at No. 15 in this year Forbes’ 400 List of Richest Americans with a net worth of about $19 billion.
Bridgewater Associates founder Dalio runs one of the largest and most successful hedge funds in the world, but the Queens native grew up in the middle-class neighborhood of Jackson Heights. He also spent part of his childhood years catering to the needs of rich businessmen. 
According to Maneet Ahuja’s The Alpha Masters, Dalio, the son of a jazz musician and a homemaker, began caddying at the age of 12 at a Long Island golf club to make extra money.  (more…)

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