World Economy in 2010
by Mr. Wiseman on Sep.03, 2010, under Analysis
Introduction To World Economy
After the recession of 2008, the world economy is seen on a revival path since the second quarter of 2009. It is seen as an outcome of revised policies introduced in after the recession stepped in. Yet, the recovery is not uniform across the globe and is not robust enough to provide positive stimulus.
International Finance and Investment, Unemployment and Other factors influence on World Economy
The recession of 2008-09 was created by financial institutions and they were the worst hit. However, the cascading impact can be seen in all the economies. The foreign direct investments have gone down drastically because of funds crunch. Lack of foreign investments has dried the resource pool and many projects had to be scrapped. It had direct impact on trade and productivity declined in the absence of financial resources and led to massive lay offs adding to the unemployment rate. The number of unemployment has doubled in United States since 2007. However, the job losses are mostly in the manufacturing and export oriented sector. Labour markets are expected to remain weak in 2010. (continue reading…)
Japan’s Prime Minister Warns That Debt Could Bring a Crisis Like That of Greece
by Mr. Wiseman on Sep.02, 2010, under Opinions
TOKYO — Japan’s newly installed prime minister startled the nation on Friday by warning that it could face a financial crisis of Greek proportions if it does not tackle its colossal debt.
By The New York Times | Published: June 11, 2010
The stark words from the prime minister, Naoto Kan, followed by just hours the resignation of his banking minister and ally in the governing Democratic Party, Shizuka Kamei — an advocate of big spending. Mr. Kamei’s departure seemed to signal that the new government would focus on reducing Japan’s heavy government debt, called sovereign debt, by far the highest in the industrialized world, and cutting back on the wasteful public works projects.
“It is difficult to sustain a policy that relies too heavily on issuing debt,” Mr. Kan told the Japanese Parliament in his first policy speech. “As we have seen with the financial confusion in the European Community stemming from Greece, our finances could collapse if trust in national bonds is lost and growing national debt is left alone.”
Worried by the Greek debt crisis, policy makers around the world have increasingly raised the alarm over runaway government spending of the past two years, as the world has grappled with an economic crisis.
European debt crisis
by Mr. Wiseman on Sep.01, 2010, under Opinions
Indian Government Officials said that “we are keeping a close watch on the European debt crisis, though it has not seen any significant adverse impact on its economy”.
Indian Union Commerce Minister Anand Sharma said “We are keeping a very close watch on the situation (the European crisis). So far, there is no adverse impact of significant nature,”
Indian Union Commerce Minister Anand Sharma told reporters on the sidelines of a conference organised by the Tea Research Association of India.”I don’t foresee in the immediate context any major impact which would create an alarming situation here,” (continue reading…)
Anti Crisis Measure
by Mr. Wiseman on Mar.04, 2010, under Financial News
Russia will gradually scrap anti-crisis measures by 2015, Russian Finance Minister Alexei Kudrin said at an annual business forum in Davos, Switzerland, on Friday.
“Russia will exit the crisis in late 2012, and we will phase out [anti-crisis] measures … by 2015,” Kudrin said on the sidelines of the World Economic Forum. (continue reading…)
Central Bank, National Bank, Federal Reserve definitions
by Mr. Wiseman on Mar.01, 2010, under Wiki
A central bank, reserve bank, or monetary authority is a banking institution granted the exclusive privilege to lend a government its currency. Like a normal commercial bank, a central bank charges interest on the loans made to borrowers, primarily the government of whichever country the bank exists for, and to other commercial banks, typically as a ‘lender of last resort’. However, a central bank is distinguished from a normal commercial bank because it has a monopoly on creating the currency of that nation, which is loaned to the government in the form of legal tender. It is a bank that can lend money to other banks in times of need. Its primary function is to provide the nation’s money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a lender of last resort to the banking sector during times of financial crisis (private banks often being integral to the national financial system). It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently. (continue reading…)
Crisis of 2008: How It All Started
by Mr. Wiseman on Feb.26, 2010, under Analysis
The global financial crisis came to the forefront of the business world and world media in September 2008, with the failure and merging of a number of American financial companies. It was not a surprise — many business journals had been commenting on the stability of the leading American and European financial firms following the Sub-Prime Mortgage Crisis. Much of the American economy is built on credit with firms borrowing money from other firms and the general consumer borrowing money for homes and cars. Many people were taking advantage of the housing boom in the US when it ended, leaving both investors and mortgage companies in trouble. (continue reading…)
India and Global Crisis
by Mr. Wiseman on Feb.25, 2010, under Analysis
New Delhi, 30 Sep. It is often said that when the US sneezes the rest of the world catches a cold. This three-part series looks at how India, China, and Russia have been affected by the US financial crisis.
Before we get into detail about how much this US problem is spreading globally, we should understand the severity of it and the possible consequences in the US. How sick is the US?
Australia: The New Growth Horizons
by Mr. Wiseman on Feb.23, 2010, under Opinions
The Asian region had been largely insulated from the Global Financial Crisis (GFC) and would aggressively outperform other global economies in the medium term, financial experts at the inaugural In The Zone conference at The University of Western Australia said today.
(continue reading…)
How the Financial Crisis Happened
by Mr. Wiseman on Feb.22, 2010, under Opinions
The U.S. financial meltdown has created a worldwide crisis. Ironically, worldwide scared money is still flowing into U.S. Treasury obligations as a safe haven. This permits more U.S. borrowing, but by drying up credit overseas creates financial crises in other countries.
I’ve been posting for several years on pieces of the origins of this financial crisis. Now Robert Weissman and others have attempted to put together an overall picture of what happened in Sold Out: How Wall Street and Washington Betrayed America, produced by Essential Information and the Consumer Education Foundation. (continue reading…)
Is Brazil a Bystander of The Global Crisis?
by Mr. Wiseman on Feb.21, 2010, under Opinions
