FinTech Today

Read Time: 4 mins As the world is suffering from the coronavirus pandemic. It is really important to understand how the measures taken by certain governments are going to affect their respective economies and the economy worldwide. As we know that the majority of the firms these days work on Capitalism and that has led us to cheaper solutions to the majority of our stuff. But is Capitalism really good for us and should we keep up with the flow and let Capitalism grow like it is or should we focus to drive Socialism instead? Let's deep-dive and understand that how the surroundings are changing and what COVID-19 may lead us to. First of all, let's understand what Capitalism is? C apitalism is basically an economic and political system wherein a country's industries and trade are managed and controlled by private owners, also known as shareholders, on a for-profit basis. Although no country is fully Capitalized here is a list of countries wherein the majority is con...

Read Time: 4 mins As we all know amid the coronavirus crisis, the USA has cut the Fed rate to 0% to increase liquidity and furthermore to prevent the market to fall, whose probability currently stands at more than 50%. Let's have a look at what the current scenarios are in the global market and let's understand what this rate cut from the very basics. Market Volatility  Currently, the market stands at a very thin rope and can head to any direction based on the changes in the global circumstances. In brief, the factors such as the pandemic coronavirus, the oil price war between Russia and OPEC, the conflicts between US and Mexico, the Isreal-Palestine issue and many more stand as the core reason behind such volatility in the market and especially the lockdowns due to Coronavirus is affecting a lot of markets globally. To understand more about the factors affecting the market, I'll suggest a read to this blog on "Why the market is plunging" .  With such ...

Read Time: 3 mins Today as we all see that the market is plunging by margins that none of us expected or are willing to believe. As in today's world, problems are solved on a global level due to globalization, so are the creation of problems. One problem leads to another and that leads to another thus creating a domino effect. This is a big reason why we are seeing such a drop in the market worldwide. Looking back at how 2020 started for us we can easily understand the domino effect. Starting with the Trade war between US-China, then Israel-Palestine conflict, the death of Soleimani i.e. the US-Iran conflict, then CAA-NRC conflict in India, the climate issues addressed at Davos 2020, and the current pressing issues of Russia and OPEC oil pricing war and the pandemic Coronavirus, all these are the ripples that create a convolute path for the understanding of the downfall in the global market. First, let's see what is the status of the global market and a few top compani...

Read Time: 5 mins The Global Financial Crisis was the downturn in the market that took place from mid-2017 and lasted until early 2019. Also known as the United States subprime mortgage crisis, the reason behind the crisis, as is well understood by the name, was the housing market of the US. The US housing market was valued pretty high due to lots of misinformation, this misinformation came into the knowledge of experts in mid-2017 and investors started taking money out of the market and as the awareness spread, more people started moving their money leading to the domino effect which led to the crisis. How it all started? In 2001, as we know, the U.S. economy experienced a mild, short-lived recession which happened due to multiple reasons such as the dot-com bubble, 9/11 and multiple accounting scandals. Although the economy nicely withstood the terrorist attacks, the accounting scandals and the bust of the dot-com bubble, the fear of recession really preoccupied everybody...

Read Time - 2 mins The Recovery of financial services, especially Banks, is a mix of positive and negative growth. As we know many banks were able to come out of the global crisis without much effect, however, some banks made it with a bare minimum in their pockets to survive and all have done the aftermath really well to recover from the crisis and to generate profit for the economy. As we know that Lehman filed Chapter 11 bankruptcy with a loss of $600 billion and Merrill lynch barely made an escape with the help of Bank of America. Let's see where the top-notch banks are and how they performed over the last decade since 2008. The list of banks that we'll be analyzing will be: J.P. Morgan Wells Fargo Bank of America Goldman Sachs  Citigroup Morgan Stanley As you can see that J.P. Morgan and Wells Fargo are the only 2 banks that have advanced in a better way then they have from 1998-2008 than from 2008-2018. Goldman Sachs was able to maintain similar g...

Read Time - 4 mins History of Lehman  It all started in 1844, when Henry Lehman, a German immigrant, came to Montgomery, Alabama and started a small general store in 1844. Henry Lehman and his brothers, Emanuel and Mayer, later founded Lehman Brothers in the year 1950. The company that started by selling dry-goods moved to cotton trade. After the death of Henry  Lehman, in 1855, the other brothers expanded Lehman Brothers and started commodities trading and brokerage services. To complement the growth of the U.S. economy, Lehman Brothers prospered over the decades and reached a value of $600 billion before the collapse in 2008. Although, Lehman has overcome a lot of challenges over the years such as the railroad bankruptcies in the 1800s, the Great Depression in the 1930s, both world wars, the American Express spun off in 1994, the Long Term Capital Management collapse alongside the Russian debt defaults in 1998, the global recession or the subprime mortgage crisis wa...