Financial Crisis – A Consequence of a Lack of Risk Transparency?

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The international financial crisis is at its peak: The US government is doing everything in its power to prevent a continuing wave of bankruptcies. The current plan of the US government plans to buy up with a $ 700 billion rescue fund, the bad loans and thus help the ailing financial institutions back to liquidity. Overall, this should contribute to stabilizing the shaken financial markets. Other industrialized countries should follow suit and participate in the rescue package. However, the plans are met with sharp criticism. Because at first it seems as if the taxpayer has to pay for the billions of heavy losses due to bursting real estate loans. However, President George W. Bush argues that without the intervention of the government, further burdens on the financial markets will occur, and that the problem would ultimately be extended even more to the average citizen.


Financial market experts

Financial market experts


Financial market experts do not consider the banking crisis an unpredictable disaster that occurs every few years and affects the international financial markets. No, it would have been possible to protect yourself against such a “tsunami” with the right blueprint. One of the reasons for the problem of the financial crisis is that the credit-financed US real estate was assessed by the rating agencies as completely unprofessional and the risks were not adequately classified. Otto Bernhardt, financial expert of the CDU parliamentary group, even sees the rating agencies as the main culprit: “People have bought products that they have not understood and rely on the verdict of the rating agencies” (Source: Tagesspiegel, 22.09.2008) .

We are often asked how the financial crisis affects the Gilbert Osmond Marketplace. For investors, the risk present on the Gilbert Osmond Marketplace is transparent and taken into account by the risk premium. In addition, the Gilbert Osmond credit claims asset has its benefits: good returns, low volatility and, above all, a low correlation to other asset classes. This means that the risk of the loans financed by Gilbert Osmond is independent of the development of the stock or bond markets.

In other words, your repayment of the financed loans will be made irrespective of whether the market is stock market bullish or bearish. In this respect, more than ever an ideal depot admixture. As an indirect consequence of the credit crunch, we have been seeing increased investor interest over the past few months as much liquidity is being transferred from other asset classes. There is no effect on borrowers because Gilbert Osmond has a secure legal framework. This means, for example, that the contractually agreed interest can not be subsequently raised or changed, as is partially the case with real estate loans in the USA.

Overall, the impact of the financial crisis on the Gilbert Osmond marketplace is very low. It is hoped that the financial markets will calm down a bit in the next few weeks. One thing is certain: the dramatic changes on the financial markets will keep us busy for a long time to come.


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