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Brazil, also the host of FIFA 2014, has been gripped with a spate of controversies. Right from issues with hosting the Cup, amidst huge opposition from its people, to Neymar’s injury, the country seemed doomed says Sachin Karpe. Stunned fans have taken to streets in protest. After spending a whopping billion dollars in making itself ready for the event, the defeat with Germany has come as a major shock. Semifinal loss is the worst ever loss on the home land. Blame it on lack of confidence caused by Neymar’s injury or a sudden dip in energy levels, but the team did look off-beat in the last match. Previously, Neymar’s catastrophic injury in which his spine got hurt badly, rendering him bed-ridden for months, had done a major damage to the team’s self esteem, which had been banking on the start striker. Expectations were still afloat after the team managed a victory. However, Germany stole the show. The team which gave birth to stars like Pele and Ronaldo, will take some time to recover from the loss. May be in the next Fifa, the team will have its strategies in place. Ill then, it has been doomed to a public outrage and criticisms.
Sachin Karpe explains the shadow banking system is a network of financial institutions comprised of non-depository banks e.g., investment banks, structured investment vehicles (SIVs), conduits, hedge funds, non-bank financial institutions and money market funds. Shadow banking institutions generally serve as intermediaries between investors and borrowers, providing credit and capital for investors, institutional investors, and corporations, and profiting from fees and/or from the arbitrage in interest rates says Sachin Karpe. The shadow banking system may still be exposing the larger financial markets to excessive systemic risk. While all investments expose the investor to some level of risk, the unknown consequences of having such a large shadow banking system may lead some investors to prefer more conservative investment strategies in the years ahead. Shadow financial institutions still aren't subject to the same regulations as traditional, depository banks. This means they remain highly leveraged, with a high ratio of debt relative to their liquid assets on hand to pay immediate claims. Higher leverage equates higher returns, but it also carries outsized risk.
