Ontonix:: when Will the USA Collapse?


The European Union is in a state of evident and (possibly) irreversible demise. The first and most prominent reflection of this is the weakness of the Euro which we have recently forecasted to "dissolve" around Q3 of 2013. Once the common currency is gone, the union will probably transform into something else that is easier to manage, less complex, less heterogeneous. The structural resilience of the EU as a system has been very low (1 on a scale from 1 to 5) since November 2010 and this is certainly not a good omen.

Recently we have turned our attention to the US. Employing data from the World Bank we have rated the country as a system, incorporating into the analysis over 800 parameters spanning:

  • Economy
  • Industry
  • Agriculture
  • Energy
  • Society
  • Ecosystem
  • Transportation
  • Telecommunications
  • Military/Defence
  • Education
  • Health System
  • etc. Read more of this post

Operational Risk: After MF Global, Risk Management Again Takes Centre Stage


I’m no banker (you must have misheard!) but the MF Global collapse only serves to illustrate how impotent Regulation and risk management for financial institutions really is!

The dramatic collapse of MF Global, the broker-dealer and clearing firm that was bankrupted by bad bets on European bonds, has sent financial services firms scurrying to make sure their risk management operations are up to the task, industry sources say. Even as much of Wall Street remains mired in a period of intense risk aversion in light of the European debt crisis and fragile U.S. economy, the demise of Jon Corzine’s company has most of the industry on red alert. Experts say the current risk management environment is a flashback to the period immediately following the collapse of Lehman Brothers in 2008, when the investment community realized how costly it can be to not fully understand counterparty risks.

via After MF Global, Risk Management Again Takes Center Stage – Advanced Trading.

The company may have been “…bankrupted by bad bets on European bonds” but how can that be when, quite apart from all the other rules and regulations, compliance with Basel requirements for OPERATIONAL RISK should provide a sound basis upon which to build… Read more of this post