It’s the poorest country in Europe and its main export is alcohol but it can still beat the world’s largest economy when it comes to financial muscle. Yes you’ve guessed it, Moldova trumps the United States in the Banker magazine’s 2009 World Financial Health Index.
Every month, the financial services company State Street studies the trillions of dollars in institutional investor money it looks after as custodian and tries to gauge where things stand. Over the years, it has come up with a map consisting of five different regimes, or moods, to reflect this. They range from the bullish “Liquidity Abounds” in which investors buy equities and focus on growth, to the uber-risk averse “Riot Point”.
Whether it’s on Reuters.com or during the presidential debates, one of the most vexing aspects of the financial crisis is that it’s difficult to explain in simple terms. Nevertheless, the problems that began in subprime mortgages have rippled outwards for more than a year, not only taking out storied names like Lehman Brothers but affecting everyday people far removed from the world of Wall Street.