A new book by Paul Schulte, CEO of Schulte Research International, shows how Alibaba may become the future of banking. In a statement from his new book, The Next Revolution in our Credit-Driven Economy: The Advent of Financial Technology (Wiley; July 2015; ISBN: 978-1-118-98960-9), Schulte points out that, ‘companies like Alibaba, Palantir, Intuit, Mint, Indinero and Tencent, among dozens of others, are at the forefront of new forms of funding, analysis, research, credit checking, trading and lending which are causing banks deep anxiety’.
According to him, banks have shown themselves to be out of touch when it comes to the allocation of capital and the management of risk. In a world where the cost of capital is zero, firms are attracted to them like a magnet to inefficient organizations which cannot change with the times and that mismanage their own core businesses.
“Central banks are accommodating this deleveraging of credit by allowing loans which can no longer be held by banks drop onto their balance sheets. So, people who say that central banks are printing money are deluded. It is simply not true. In fact, the opposite is the case,” Schulte said.
Schulte wrote The Next Revolution in our Credit-Driven Economy to show how credit markets, which drive the prices of just about everything that investors touch—equities, bonds, currencies and real estate—work. It features examples of countries which have sound and sustainable policies for their banking industries, such as Hong Kong, Singapore and Korea; as well as countries, which are likely to get into trouble for ignoring lessons from the past crises, such as Thailand and Indonesia. It also offers simple ways to understand how central bank intervention can cause countries—especially the emerging markets—to rush into trouble. The book includes examples of specific charts which will clearly illustrate where, when and how these credit crises begin.
The Next Revolution in our Credit-Driven Economy is an easy to read analysis of global financial trends for the layman readers, professional investors, MBA students and policy makers. The book will enable investors to identify growth opportunities, and regulators to create a sustainable economic environment.
The Next Revolution in our Credit-Driven Economy is now available at the publisher’s website (www.wiley.com), major bookstores and online retailers nationwide at the price of US$50.00.
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Additional Information
CABAL, Sep. 26, 2015: http://www.cabal.digital/arts/literature/the-next-revolution/
Score: 4.5/5
With over two decades of experience in banking and economic policy, Paul Schulte has worked at the White House as an economic analyst with the National Security Council, and acted as advisor to the Ministry of Finance in the Republic of Indonesia, the UK Treasury, the US Federal Reserve and the PRC State Administration for Foreign Exchange. He has also experienced firsthand the world of investment banking through his many roles at Credit Suisse, Nomura Securities and China Construction Bank and is a lauded analyst by various publications.
Schulte is currently an MBA professor at the Hong Kong University of Science and Technology and is a Senior Fellow at the Fletcher School of Law and Diplomacy at Tufts University. He also consults some of the world's largest hedge funds including three of the largest sovereign wealth funds globally, through his consulting firm SGI Ltd.