Notice of Annual Elections Please take a moment to review the proposed slate of Officers and Directors for the 2008-2009 program year, beginning July 1st. According to the SQA Bylaws, the Secretary is prepared to cast a unanimous ballot on behalf of the membership on May 30th, 2008 pending receipt of any additional Nominating Petitions. Follow the link for details and instructions.
05.08.08Deciphering the 2007/8 Liquidity and Credit Crunch with Markus Brunnermeier from Princeton University. Abstract: Deciphering the 2007/8 liquidity and credit crunch various
amplification mechanisms that explain how shocks can cause large
dislocations. A crucial concept in this research is the emergence of
liquidity spirals. At times of crisis when asset prices and market
liquidity drops, funding requirements for financial institutions
increase. This is the case since the collateral value of the underlying
assets erodes and margins rise. Higher margins force financial
institutions to cut back on leverage, exacerbating the initial price
decline and so forth. Another amplification mechanism is the risk of
financial gridlock. This can emerge when financial institutions are
lenders and borrowers at the same time and each individual institution
is not able to pay its obligation only because the others are not
paying theirs. While coordination might resolve this, this may be
difficult in today’s complex and interwoven financial system.
