The International Capital Markets in the Post "Enron" Era

Publication date
Thursday, 21.03.2002

Karl William Viehe

International conference "Post-Communist Economic Growth" Moscow, March 20-21, 2002

To understand the impact of Enron and Global Crossing in the international capital markets, it is necessary to begin with some perspective. Over the past two years the NASDAQ market declined from over 5000 to under 1500 representing a decrease in market capitalization of over $3 trillion ( although it has recently recovered several hundred points). In the year 2001 alone more than 200 publicly traded on corporations in the United States have defaulted on more than $100 billion in bonds. Although the losses for Enron are estimated to be as much as $80 billion and Global Crossing as much as $20 billion, in the final analysis is quite likely that the "hard" losses will be significantly less.


See also:
Proceedings of the conference have been published in a serie "Working Papers" №40

Full version

Go to other releases