Announcement

Collapse
No announcement yet.

Contest #1: Best Interview Question for Banking Industry Expert

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Contest #1: Best Interview Question for Banking Industry Expert

    Let's say you got to interview one of the top experts -- arguably the world's top expert -- in banking and money:
    "Since 1967, he's written 12 books on Banking, Investments, Markets and Money. He's been a Columnist for American Banker; Member, President's Panel on Educational Research and Development (Kennedy and Johnson administrations); Member, President's Commission on Housing (1981-82); Consultant, Twentieth Century Fund and Carnegie, Ford, Kettering, and Sloan Foundations (1962-1966); Consultant to the American Council of Learned Societies (1962-1964)."
    And let's say you are going to interview him in mid-July and get to ask him one question. What would it be?

    For our first iTulip.com contest, we're asking registered iTulip.com Forum Members to submit questions to ask our interviewee. (We'll tell you who it is later. You're welcome to guess, but we will neither confirm nor deny.)

    What kind of question? For example, you may be wondering:

    1) What is the greatest risk facing the U.S. banking system today?

    2) Do you think that the U.S. economy is at the turning point in the credit cycle and will it "be different this time"? We won't have a crises like the one that caused the U.S. banking system to freeze for six months in the early 1990s?

    3) Do you think the U.S. banking system may require help from the Fed or even a tax payer bailout ala the Savings and Loan Crisis if housing prices decline significantly in many areas of the country at the same time?

    Please post your questions below.

    You must be a Registered Forum Member to post. To register, please go here.

    Question Collection Period Opens: June 26 noon ET.
    Question Collection Period Closes: July 3 noon ET.

    The top ten questions will selected by iTulip.com.

    Then, we will open a poll where Registered Forum Members will vote to rank the top ten questions by level of interest.

    The one question that receives the most votes, wins.

    Question Polling Period Opens: July 7 noon ET.
    Question Polling Period Closes: July 11 10AM ET.

    Vote here.

    The Prize: One Ounce U.S. Gold Eagle



    The winner will be announced by member name on July 11.

    In case of a tie, two coins will be awarded to two members.

    iTulip.com, Inc, employees may not participate. Void where prohibited.
    Last edited by FRED; 07-09-06, 09:31 AM.
    Ed.

  • #2
    derivatives risk

    these are a series of interrelated questions about derivatives risk:

    what measures are financial institutions taking to manage counterparty risk in their otc derivatives, and how do these measures vary according to both sector and individual actor [i.e. commercial banks in general, versus variation among individual commercial banks]?

    do these institutions know who their counterparties are since these contracts are often assigned after being negotiated?

    what will prevent a daisy chain derivatives implosion from causing not just a financial, but an economic catastrophe, short of the fed injecting massive liquidity and making all contract holders whole [i.e. the ltcm solution]?

    ltcm was a single, albeit huge [in terms of the nominal exposures of its derivatives contracts], institution so that the fed could intervene, as it did, in a very focused way. are there scenarios in which multiple institutions could blow up simultaneously and overwhelm the fed's managerial capacity?
    Last edited by jk; 06-25-06, 01:33 PM.

    Comment


    • #3
      My One Question to the Banker>

      Mr. Banker,

      What is your total, absolute, unequivocal asset allocation at this moment?

      This is the only question that should be asked to an expert from whom one wishes to gather that person's truest beliefs about investing in markets. EJ told me I could not pose this as a question.

      So, Mr. Banker, Whatever is the greatest realistic risk to the banking industry, and you do not even have to tell me because that would constitute a second question, were that risk to be realized what realistic effects would it have on the US economy?
      Last edited by Jim Nickerson; 06-26-06, 12:44 PM.
      Jim 69 y/o

      "...Texans...the lowest form of white man there is." Robert Duvall, as Al Sieber, in "Geronimo." (see "Location" for examples.)

      Dedicated to the idea that all people deserve a chance for a healthy productive life. B&M Gates Fdn.

      Good judgement comes from experience; experience comes from bad judgement. Unknown.

      Comment


      • #4
        Undervalued importance

        What are the top three or more things you've learned in your career that both the general investing public is unaware of or undervalues in importance, and that were relative surprises to you too?
        http://www.NowAndTheFuture.com

        Comment


        • #5
          Implosion of Freddie Mac and Fannie Mae?

          Please provide in detail your opinion of the events leading up to and the impact to both Global and US Ecomonies in the event of implosion of both or either Mortgage Backers (ala chronic "Enron-itis"), keeping in mind the increase in Forclosure which are sure to come as the Interest rates are increased in the coming Months, as a result of easy access Monitary policies in the previous several years. What effect of such an implosion on the Overseas Investor confidence level as relates to the US Treasury and Bond markets would occur?
          With the current investigations into questionable accounting practices of both Corporations, and the likely losses forthcoming one must seriously wonder about the stability of these institutions, as I am quite sure would be the case of the Worlds Central banks as well as overseas citizens now holding US debt instruments in Dollars.
          Could or will America survive economically in such an event?

          Comment


          • #6
            Dear Mr .......,
            You have so much experience could please tell us your dream as if you were sitting on a cloud looking at Earth: What would be your DESIGN of a financial system. The thing in today's words including Central banks, Commercial banks, rules between them, shares, interest, euros, dollars, yuans, etc. but leaving the United Nations with its constituting countries intact.

            Comment


            • #7
              Dear Mr. M:

              ...ok, so I know who it is...but don't want to spoil it for everyone...

              Anyway, Mr. M, my question is about US currency and its dominant role in international trade. Some would argue that the Dollar is losing its position, and with current account deficits as large as they are, that other currencies have already or will become the "gold standard" for safety and security in the investment community. What can the Fed do to keep the dollar well positioned, and is this even something that SHOULD be done?

              Looking forward to hearing your answer...

              -Lobodelmar

              Comment


              • #8
                My question for the banker:

                How is money created and where do the interest payments come from?


                Assuming you received an honest answer, the answer would show the root of inflation, the reason for exploding government and consumer debt, the source of our credit and housing bubble, yen carry trade, etc.

                The fraud that is central banking would be exposed.

                Comment


                • #9
                  who is it?

                  Originally posted by lobodelmar
                  ...ok, so I know who it is...but don't want to spoil it for everyone...

                  Anyway, Mr. M,...

                  -Lobodelmar
                  is it Mr. Monopoly [the little guy with the top hat, monocle and cane]?

                  Comment


                  • #10
                    New Money Growth

                    Mr Banker, my question is:

                    For decades price stability has been the key to robust economic growth. In recent times, technological innovation and increased global trade has eased inflationary pressures and allowed interest rates to trend down to very low levels. In your view, is it possible that high money supply growth (even when needed to avoid falling prices), is it possible that the high money supply growth introduces imbalances more dangerous than a deflationary price environment?

                    Mr Banker, that is my question.

                    The question is phrased as if you were asking it live, not reading it. If one were asking the question via email or print, then the redundency isn't required. I find that transcripts of reporters' questions often have some redundency in them. It's probably to make sure the questionee hears you correctly.

                    Comment


                    • #11
                      GATA and their comrades/cohort

                      GATA claims the gold price has been reduced and is actively being held down by a conspiracy among a cabal of central bankers, bullion banks and derivatives traders (these last 2 usually are the same corporation).

                      Leasing is one technique they use.

                      If you were hired by such a cabal and tasked with doing this (secretly suppressing the price of gold), how would you do it - In fact, COULD you or any agency you know of do it?

                      I don't believe it IS being done, my question is about the ability of someone to do it and keep it a secret..

                      I'm not asking about the PPT - anyone who believes in that is an obvious whack-job ; )

                      Oh, and one more thing, who is the one big Silver short?

                      Comment


                      • #12
                        Sounds like some explanation is required. The answer to my question is (assuming the banker was willing and able to tell you):

                        - Money is created when someone borrows it into existence. (government via bonds, banks via discount window, public via fractional reserve lending) Money is created the instant it is borrowed. Then it can be spent into the economy.

                        - Interest payments. If you were the first person to borrow the first $100 into existence and the bank wanted $5 as interest, you'd need $105. But only $100 exists. So someone else must borrow new money so you can get the $5 from them.

                        Therefore this system creates a constantly expanding money supply as borrowers continually chase dollars to make their interest payments.

                        An expanding money supply will of course ensure each dollar becomes more and more worthless over time.

                        Productivity and economic growth dampen the inflationary effects, but the system is inflationary by design. This has a few potential outcomes:
                        - borrowing stops and the entire system grinds to a halt
                        - borrowing continues until the dollars become worthless
                        - borrowing is perennially held in precise balance with economic requirements by omnicient Fed interventions

                        This system allows:
                        - The Fed to receive interest on money they created out of nothing.
                        - Government to create bonds and sell them to the Fed. They get to spend the money and simply have to pay interest on the bonds.
                        - The public gets caught with the bill and must run faster and faster as their dollars continually depreciate.


                        I'm not sure a gold standard is the best solution, but good money structure is certainly not the above. It's interesting how you can see this structure reflected in every aspect of today's economy. It's fractal and expresses its distortions perfectly.

                        Comment


                        • #13
                          What's the dollar value of intra-bank gold and Silver settlement?

                          Former economics professor Fekete claims the prices for Gold & Silver are not being set for the most part by industrial demand and mine supply supply on the commodity exchanges but by bankers trading back and forth.

                          He claims when the COMEX suspended buy orders on Silver in 1980 he was in Swizerland and saw vans going back and forth across bridges - and was told the vans were full of Silver - when a single large party defaults, worldwide exchanges go from paper to physical, even if in many cases the transactions net out to zero.

                          The claims of trading volume surprised me when I heard first it, but then I saw this corroborating data.

                          http://www.lbma.org.uk/clearing_charts.htm

                          apparently the financial back-and-forth of Gold and Silver is HUGE compared to the industrial consumption.

                          for Silver, ~800MOZ is industrially consumed per year, but 250MOZ trades DAILY, and that's ONLY LBMA. It's not Mumbai & Dubai & Shanghai.

                          Do the US banks have similar volume, and what do you think of the theory that Gold and Silver prices are NOT being set by pure demand and supply considerations?

                          Comment


                          • #14
                            Originally posted by Spartacus
                            Former economics professor Fekete claims the prices for Gold & Silver are not being set for the most part by industrial demand and mine supply supply on the commodity exchanges but by bankers trading back and forth.

                            He claims when the COMEX suspended buy orders on Silver in 1980 he was in Swizerland and saw vans going back and forth across bridges - and was told the vans were full of Silver - when a single large party defaults, worldwide exchanges go from paper to physical, even if in many cases the transactions net out to zero.

                            The claims of trading volume surprised me when I heard first it, but then I saw this corroborating data.

                            http://www.lbma.org.uk/clearing_charts.htm

                            apparently the financial back-and-forth of Gold and Silver is HUGE compared to the industrial consumption.

                            for Silver, ~800MOZ is industrially consumed per year, but 250MOZ trades DAILY, and that's ONLY LBMA. It's not Mumbai & Dubai & Shanghai.

                            Do the US banks have similar volume, and what do you think of the theory that Gold and Silver prices are NOT being set by pure demand and supply considerations?
                            spartacus,
                            why doesn't monetary demand count as demand? what you are pointing to is the fact that the precious metals are being remonetized, and that their use as money dwarfs their use industrially. the banks are settling for their own and their customers accounts.

                            it's 35 years since the dollar, [and thus all currencies since the dollar is the reserve currency], was detached from any physical value and became pure fiat. what will the dollar be worth 35 years from now?

                            Comment


                            • #15
                              Here is the question that has been on my mind the most recently. I'd love to hear the answer of a banking and monetary expert:

                              It's been theorized that in the last 35 years asset bubbles have been created by a combination of monetary expansion, increasing debt, and easing credit standards. If you believe this to be the case who ultimately is paying the price for these fiscal policies and how can an individual investor not only hedge against the inherent risks associated with these bubbles but also profit from them in a real not just nominal way?

                              JD
                              Last edited by JD_; 07-01-06, 02:05 PM.

                              Comment

                              Working...
                              X