James Quigley speaks about the 2nd wave of the crisis

James Quigley, Chief Executive Officer of Deloitte (USA), which is among the 4 biggest auditing service companies in the world, thinks that auditors doesn’t have anything in common with the global recession started in 2008 despite that fact that auditing activities may affect major financial and business institutions.

According to him, the crisis was caused by the downfall of the US mortgage market started as financiers had been too busy “playing” with the availability of credits. Moreover numerous fake financial operations of secondary level, including the “securitization” of credits, also added fuel to the flames and increased the volume of the “financial soap bubble”, which finally burst. To his mind, auditors in their turn are responsible only for validating the operations performed by the management. It is management who is responsible for the final results of the company’s financial activities. However these words can be considered a little bit skeptically as Deloitte is engaged in consulting activity, which influences the strategic decision-making of top-level management.

According to James Quigley, the 2nd wave of the crisis is
unlikely to happen, at least he feels quite optimistic about it. He supposes that the markets of the developing countries will recover faster while the massive economies will take time to recover. Though it’s not speed that matters most of all, but gradual progress. The main attention will be focused on new and innovative markets as they can attract the biggest volume of investments. Among them are IT-markets and the segment of renewable energy.

Speaking about the current situation in the global economy Quigley notes that both big-scale investors and households are cautious about investing as the attitude towards the money and the ways of spending it has rapidly changed. During the crisis corporations learned by their own cost that risk management and financial accountability should be revised, so now they are probably waiting for better times and new opportunities. Households are simply trying to understand the sentiments and are not in a hurry to make reasoned decisions as the real-estate prices are 3 times as low as before the crisis, yet it is still unclear what is going to happen next.
James Quigley thinks that in general the crisis has “reloaded” the major elements of conducting business. Besides, the necessity of the governmental intervention aimed at overcoming the consequences of the downfall has been indicative as well.

Speaking about his company James Quigley was proud to note that over the last financial year the company with 170 thousands of personnel managed to earn 26,6 billion dollars of profit , which is worthy of respect. He doesn’t personally draw parallels between Deloitte and its rivals, referring to the clients’ opinion that Deloitte is better when it comes to working with clients. The company has managed to go with the times in terms of technologies. According to him, during the modern times of digitalization of business, when there emerge new ways and technologies of storing processing and transferring information, it is essential to make use of them. It is an important issue that can increase the efficiency of work and bring extra profit.

Expert’s opinion on the 2nd wave of the crisis.

Maxim Gun (Santiago), the head of the Department of Volume Analysis, Masterforex-V Academy, notes that whether or not the 2nd wave occurs, the market dynamics indicates that the uptrend of the world’s major currencies against the US dollar is getting more sluggish. To his mind, the market starts giving ground for a mid-term reversal. The dynamics of EUR over the last few days may serve as a good example, especially the market reaction to the Fed Reserve Chairman Ben Bernanke’s speech.


According to the analysts of the Department of studying Masterforex-V trading system, in order to understand James Quigley’s words it is necessary not to rely on them by to open the EURUSD chart and evaluate then from the standpoint of the new wave analysis by Masterforex-V. The analysts explain that there is an ABC retracement pattern of level MN currently being unfolded against the long-term uptrend 0.8225-1.6037. The mentioned bearish retracement stopped at 1.2131, which is an important level. A D1 FZR has been formed from the level, having broken through MF pivot (1.3814) of the previous movement and showing the probability of the ABC pattern termination. The AO data and the breakout of the MF SC defending the bearish movement will confirm the mentioned scenario. Otherwise, the market will show a strong downtrend in the form of wave c(C ) of level MN. That is why it is too early to put aside the “2nd wave of the crisis” scenario.


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