Reuters - Video

EDITION: U.S. | U.K. | IN

Business

Breakingviews: Washington is a "nightmare" for risk managers

Monday, Oct 07, 2013 - 03:39

Oct. 7 - A U.S. government default would be entirely political and temporary, but risk gurus must try to prepare for it nevertheless, argues Breakingviews.

▲ Hide Transcript

View Transcript

So second we get a shot down still no lines at the end of the tunnel we thought it's time to revisit this story with Edward had us -- when you you you wrote a piece on following day. Com that it. At about the risk manager what was manager should do you talked about a -- survivalist -- failure maybe now's the time direction polonium well. If only you could. You -- you have this problem that it's very hard to take seriously. Especially sitting in Europe we look at this these days. What's with listener they're not there worsen the Italians the fact that he. But. Did they are and they seem to be here they seem to be remarkably dedicated to bringing the US fiscal system and the -- of global financial system to the brink of some sort of cliff. President Obama called on the markets to please induce a little panic so that we can get the Republicans to our round. It -- but yes -- unity if you're risk management going to be looking at this -- They're crazy that we should be prepared and then you with your performance in what should we didn't at which we do. I don't go if one doesn't have a mean. The first he should do is you should try and stay calm because there's really nothing to worry about we keep hoping fingers crossed. It seems extremely unlikely that the US will actually. Trash the world's financial system. And even if they default technically for a day or week or whatever. Even if they saw in the US economy -- these furloughs and eventually you'll recover from map that's by far the most -- or whatever or get. That it I mean you got lost time this happened we lost what 1112% on the CS entity. Divx -- upper fifties finds sixty -- -- were pretty low now to twenty of their bout but it's it's it's heading up that. We don't wanna get to that you know we saved for editing jobs that could you tell the Republican legislators in the US north. We haven't the other way you -- the Democrats do is when you make a compromise -- get this thing out of the way. While waiting what torture review of what -- I mean respect isn't for portfolio managers. What are some sidelines and and and just -- -- that their clients' money on the sidelines and -- see what happens. You know I know I possession I I think it's impossible position for this and this is the key point in this piece is that. If you think about it if the US were to actually induce a global financial panic it's an avalanche that goes in unpredictable directions. I'm around the world don't know where people are gonna freak out -- You can't really. Gets get. Insurance against that kind of prevent -- are furious survivalists that in the US served somewhere you can you know -- shotgun you're ten foods in -- ready for anything. Are you you actually can't be ready for anything in -- portfolio you certainly can't be ready for the anchor of the world's financial system to get lost Jimmy joining the US standing. Has taken and -- irreparable hit as a result of this again. And I think you DUS standings and taking small irreparable hits for the last twenty or thirty years this is another one I don't think it says. This isn't the deal breaker for the US is reserve currency here for the dollars as the currency for the US is global standing but it's. It's another little little dent in the impression on me and in the image of this of the country. Okay that was many things that -- had us. If you watch our US outbreak TV show -- told police incident that he bsc. What's this one on the -- of course in front piece that would -- alma breaking news website. I'm -- problems is --

Breakingviews: Washington is a "nightmare" for risk managers

Monday, Oct 07, 2013 - 03:39

Top News »

Money »

Finding meaning in the S&P 500 2000 mark Finding meaning in the S&P 500 2000 mark

Mon, Aug 25, 2014 - (2:35)

S&P falls back from record high S&P falls back from record high

Fri, Aug 22, 2014 - (1:35)

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)