Browsing Category: "Finance News"
Puerto Rico Self Determination Dilemma
Imagination is great and it guides thinkers and creative people to develop new means for improvement, yet imagination cannot tell the historical and political aspect of society.
De Posada’s recent article “Puerto Rico’s ‘Nuclear Option’ On Statehood” gives an un-even scenario of political irrationality founded on historical/economical/political ignorance. Find De Posada’s full article at: http://www.rollcall.com/issues/55_118/ma_congressional_relations/45328-1.html
Wizards of Magic Markets
Quite a while ago I was surprised to see former AIG CEO Maurice “Hank” Greenberg beginning to threaten the giant Goldman Sachs. Very undiplomatically, Greenberg said Goldman were to blame for the crash of the subprime market, and subsequently, the transformation of AIG from an insurance titan into a poor and pathetic cartoon. Nothing new, some would say, since similar allegations have already been in the media, many of them very well documented. But that did not stop God Blankfein personnel to keep on siphoning in search for huge profits.
United States – International Balance of Payments
Carbaugh (2009) mentions that during a recession, both saving and investment tend to fall within an affected country. The United States United States was able to recover its economy rapidly by mortgaging part of its wealth to foreigners during its recession of the early 1980s: its political stability and relatively high interest rates attracted investors from other countries to invest their funds in the United States. These funds were more than what the United States residents invested abroad. However, after World War I (1987), the United States had, for the first time incurred billion and become a debtor nation.
Commercial Doom and Gloom
Commercial real estate has been hard hit during the current property downfall, alongside the residential sector. The general outlook appears similar in various commercial markets around the world, with ever increasing supply exceeding demand.
The lack of demand has caused an excessive slump affecting developers, contractors and also investors. The rising unemployment levels combined with the general economic downturn has lead economists into a frenzy of predictions for the future of the market.
International Borrowing Vs. Direct Foreign Investment
International Borrowing
Advantages
International borrowing (Isgut 2001) is beneficial to (developing) countries: such finance can help speed up capital accumulation and encourage economic growth, allowing a smoother distribution of consumption expenses, making it possible to improve the living standard of citizens before the fruits of economic growth materialize. For example, prior to the Asian financial crisis, wealth created by export-led growth contributed to an investment boom in commercial/residential property, industrial assets and infrastructure. Thus, the construction industry flourished (i.e. more employment): much of this construction was financed via heavy borrowing from (foreign) banks, which were willing to lend as long as the value of property continued to rise (Hill, The Asian Financial Crisis).
Market Risk – Not To Be Ignored or Overlooked
First of a two part article
Fund managers, whether they be equity or bond traders, know all too well that returns are not simply a result of their asset selection prowess. Many external factors come into play. But what are the issues facing the professional money manager. Management of risk is one of the most important, and not all fund managers analyze their market risk. This is often explained as a lack of education and a failure to understand the mitigating solutions for off-setting risk.
I Found an Article That is so Good That I Must Praise It…
Regular Bukisa readers of mine know what I usually write about:
On a daily basis, I provide commentary and “a-ha” moments of insight about a particular news article.
My Bukisa articles usually expose flaws in others’ work. Such people are often well known, experts or thought leaders in their field, such as:
Sandra Day O’Connor, Supreme Court Justice.
Fareed Zakaria, bestselling author of Post-American World.
Tim Wise, “anti-racist essayist, author and educator” (I use quotation marks for a reason!)
A New Template For Market Reforms
The current economic recession which started in Dec’2007, triggered by the collapse of the US housing market and the ensuing global credit crisis, is the biggest and deepest meltdown since the great depression of the 1930s
With two successive catastrophes in the course of merely the last 80 years, serious questions have been raised about Capitalism itself .The enormous amount of .9 trillion provided to bail out banks and corporations is cause for great concern. The IMF estimates that this amount is less than one third of the requirement for quick recovery and further forecasts that the western world GDP which has never shrunk since the 1930s great depression will hopefully inch up to 1.9% in 2010.Growth of less than 2% indicates global depression.
Macroeconomics Review Guides 3
Macro Notes for Test 3
10/23
Banks stop making loans when reserves are 10% of deposits. If reserves are greater than 10% relative to deposits, banks keep making loans.
When people deposit all the money in the bank, the Money Supply will equal Checkable Deposits. MS= Bank deposits= bank reserves/desired reserve deposit ratio.
The higher the reserve-deposit ratio the smaller the creation of money by Commercial Banks.
In US, people hold 40% of money in currency. People deposit 60%. This is a concept that means we must consider people holding currency when computing the Money Supply.
The impotance of Global business for any business organization
Global Business
Nature and Trends: -growth of the global economy and changes in markets (financial/capital, labour, consumer)
Globalisation is the movement across nations of trade, investment, technology, finance and labour. In the business world globalisation refers to the process of businesses becoming transnationals and locating and conducting their operations in many countries.
The process of globalisation, assisted by the technological revolution in communications and computers, is radically altering the shape of the world markets, as well as the nature of business and everyday life
Globalisation has two main components: