Understanding the risks inherent in shadow banking: a primer and practical lessons learned
Examinations of the 2007?09 financial crisis often use the term shadow banking. This paper explains the form and functioning of the shadow banking system, how it relates to systemic risk and the recent financial crisis, and what particular aspects should be highlighted to benefit policymakers as they implement new regulations designed to enhance financial market resiliency. The paper is divided into two parts: The first serves as a primer on shadow banking; the second provides a narrative of how the system froze during the financial crisis and pertinent lessons learned for the current reform ...
Noteworthy: hurricane season, venture capital, exports
Ike deals severe blow to Texas economy. Texas investment funding slips in 2nd quarter. Latin America, China lead Texas surge in overseas sales.
Noteworthy: Gulf oil spill: Costs of well disaster still piling up
British Petroleum's Macondo well blew out April 20 as the Deepwater Horizon platform sunk. By the time the well was capped on July 15, an estimated 4.9 million barrels of oil had flowed into the Gulf of Mexico. The U.S. government and BP are still assembling a definitive estimate of the flow; the final figure is likely to be a source of contention because it will be the basis for determining financial penalties.
Noteworthy: energy: oil, gasoline price spikes unlikely in 2009
Noteworthy: dairy squeeze: low prices, high costs hit Texas industry
Production of more than 7 billion pounds a year makes milk one of Texas' top 10 agricultural commodities. However, 2009 is shaping up to be a tough year for the state's dairy producers.
What drives diesel fuel prices?
Historically, gasoline has commanded a premium over diesel, but that changed in mid-to-late 2007, when diesel rose above gasoline. In 2007 and 2008, however, gasoline traded higher than diesel only 21.1 percent of the time. This deviation from historic norms raises an interesting question--what drives diesel prices? As with virtually all petroleum-derived products, the story begins with oil prices. Seasonal patterns also play a significant role. Demand for a range of oil-based products changes with the weather, and prices fluctuate as refiners adjust their output mix. Government regulations ...
Noteworthy: commercial building: Texas shows signs of weakening
Texas commercial construction held up relatively well throughout 2008--in the broad view, at least.
Market expectations and corn prices: looking into future to explain present
Market expectations of future supply and demand are important in determining current prices for agricultural products such as corn, which are harvested annually and stored for later use. Prices can quickly move when beliefs change?due to new data, for example?even if events far in the future are involved.
Commodity futures investing: method to the madness
Just as there are popular indexes that measure the value of groups of stocks, such as the Dow Jones industrial average, there are indexes that do the same for commodity futures.
Noteworthy: oil markets: Saudis abandon WTI price as benchmark
Saudi Arabia's state-owned oil company no longer uses West Texas Intermediate (WTI) crude oil as its pricing benchmark. Saudi Aramco, the third largest U.S. oil supplier, switched to the Argus Sour Crude Index (ASCI) in January.