Meltdown? Or financial adjustment? That's what happens when we print money out of thin air and extend credit to those who can't pay it back.
We deserve it!
Uncontrolled borrowing and spending, property over valued, credit cards used as a form of cash.
Thirty years of this and "we" expect for an overnight fix. I don't think so!
Accepting the recession trend is the easiest way to rationalize the pay cuts. The liquidity crunch and low capital is the reason for stalling new expansions or diversifications in various fields. People believe in spending less and also lower their expenses. For a company maintaining the break even point is becoming difficult and hence they have resorted to retrenchment. Another trend that is seen is pay cuts and depriving the benefit of bonus.
For a commoner recession comes with low salaries. With ad hoc family expenses, fixed spending like school fees, commuting and other vital needs the commoner is surely facing a problem. Curtailing expenditure would mean to alter the lifestyle of the family. This is a slow process but again not a difficult one. Fixed savings need to be adhered too as the future also signals that the recession spell is here to stay till the next year or more.
Seeking other means of income is almost wiped off as everywhere people are trying to manage with existing skills and manpower. The commoner has to provide for daily expenses and increasing demands of entertainment and compulsory academic needs of children. Adjustments are seen in the weekend outings, discontinuing the services of domestic helpers, cutting the visits to malls or splurging on the special wardrobe. A treat remains special now and eating outside can be well controlled by savoring home food.
Medical expenses are generally ad hoc in nature and hence it is prudent to provide for emergency situations. Financial personal planning has to be done meticulously with certain fixed expenses in mind and also trimming frivolous spends. A monthly or rather weekly budget would seem necessary. The effect of economic meltdown does have a stabilizing effect as the expenses of fixed nature cannot be reduced and hence people usually accept to change their lifestyle.
There are fewer trends in commoners indulging in parties or splurging on gifts during festive occasions. The rise in cosmetics is also making it difficult for ladies to go in for latest trends in this sphere. The membership to clubs and fitness centers is also seeing an all time low as this is also an area of cost control by the commoner. The rising costs of vegetables and grocery items are also a cause of grievance for the common man.
What we call it “Global Financial Meltdown” or “Global Economy Meltdown”, there is always one keyword – "Global". It's sad that because there is too much greed in the American financial world, and too little regulation, the whole World has to suffer. Even countries that were careful how they handle money and credit are now looking forward to stormy days.
(Resource : Compilation from Some Internet articles)
Tuesday, July 28, 2009
Monday, July 27, 2009
What is Economic Recession ?
In macroeconomics, recession is defined as a distinct decline in any particular country's Gross Domestic Product which is also called as GDP. In some other cases, when a country faces negative real economic growth, for two or more successive quarters of a year, that’s also termed as state of recession. Though, the exact definition of recession has always been controversial and economists tend to differ in defining recession.
According to ‘The National Bureau of Economic Research’ recession is defined as "a significant decline in economic activity spread across the economy, lasting more than a few months." In general, recession affects a country’s overall economic activities, including, investment, employment rate, profits data of companies etc. Recession is almost always accompanied by sharp increase in prices of commodities. When recession continues for a long duration and with severe implications, it’s termed as economic depression whereas complete breakdown of economy is referred as economic collapse.
The exact causes of recessions are a subject of hot discussions amongst the economists and academicians. However, the general rule says, it’s caused by combination of several potential dangerous factors. It could be caused by cyclical movement of economy or by some external elements. Few major causes are; inflation, currency crisis, speculation, national debt etc.
External reasons can be war and other factors which are beyond the control of a particular economy. Apart from these, other reasons can be high oil prices (as most countries depends upon oil import for industrial growth), weather conditions, some kind of national calamities among others. Several other economic factors also affect recession factor like, lower interest rates which adversely affect savings of households and consequently banks. With very little savings, banks can not provide loans and that causes severe bottleneck for major infrastructure projects which finally lead to low economic growth and impending recession.
The role of money supply is also very crucial in causing recession. Inflation of money supply or mishandling of excessive liquidity or even crunch of liquidity also invites recession. Overall, economic recession badly affects any economy. Recession implies inflation or deflation, foreclosures, bankruptcies and banks lending less money etc.
The current world economy has definitely entered into recession. The most powerful economy USA is going through recession and that has affected other economies as well. India is witnessing slow down and lower GDP growth projection but as a country it is yet to enter into recession. The big economies that enjoyed uninterrupted growth and development for decades are facing lack of demand from consumer side.
The average spending by consumers has decreased drastically. With less demand there is bound to be less production and rising unemployment condition. Many industrial and corporate houses are churning their workforce.
Stocks markets are major indicators of economy trend. A rising economy is always well reflected on the bourses. Shares prices of many renowned companies have touched the rock bottom in the current economic turmoil. Indian stock exchange has also lost considerably of its value in a period of 8-10 months. Most of the world economies including India are declaring bail-out packages for doomed industries.
Several high-flying companies have come back to earth, battered and bruised. Big shots names in financial world have gone bankrupt or acquired by other companies or nationalized. The housing bubble has sent many private equity investors into tailspin. Things are definitely not rosy as can be witnessed from falling crude prices, reducing exports, low inflation and decreasing demand from consumers.
(Resource : Compilation from Some Internet articles)
According to ‘The National Bureau of Economic Research’ recession is defined as "a significant decline in economic activity spread across the economy, lasting more than a few months." In general, recession affects a country’s overall economic activities, including, investment, employment rate, profits data of companies etc. Recession is almost always accompanied by sharp increase in prices of commodities. When recession continues for a long duration and with severe implications, it’s termed as economic depression whereas complete breakdown of economy is referred as economic collapse.
The exact causes of recessions are a subject of hot discussions amongst the economists and academicians. However, the general rule says, it’s caused by combination of several potential dangerous factors. It could be caused by cyclical movement of economy or by some external elements. Few major causes are; inflation, currency crisis, speculation, national debt etc.
External reasons can be war and other factors which are beyond the control of a particular economy. Apart from these, other reasons can be high oil prices (as most countries depends upon oil import for industrial growth), weather conditions, some kind of national calamities among others. Several other economic factors also affect recession factor like, lower interest rates which adversely affect savings of households and consequently banks. With very little savings, banks can not provide loans and that causes severe bottleneck for major infrastructure projects which finally lead to low economic growth and impending recession.
The role of money supply is also very crucial in causing recession. Inflation of money supply or mishandling of excessive liquidity or even crunch of liquidity also invites recession. Overall, economic recession badly affects any economy. Recession implies inflation or deflation, foreclosures, bankruptcies and banks lending less money etc.
The current world economy has definitely entered into recession. The most powerful economy USA is going through recession and that has affected other economies as well. India is witnessing slow down and lower GDP growth projection but as a country it is yet to enter into recession. The big economies that enjoyed uninterrupted growth and development for decades are facing lack of demand from consumer side.
The average spending by consumers has decreased drastically. With less demand there is bound to be less production and rising unemployment condition. Many industrial and corporate houses are churning their workforce.
Stocks markets are major indicators of economy trend. A rising economy is always well reflected on the bourses. Shares prices of many renowned companies have touched the rock bottom in the current economic turmoil. Indian stock exchange has also lost considerably of its value in a period of 8-10 months. Most of the world economies including India are declaring bail-out packages for doomed industries.
Several high-flying companies have come back to earth, battered and bruised. Big shots names in financial world have gone bankrupt or acquired by other companies or nationalized. The housing bubble has sent many private equity investors into tailspin. Things are definitely not rosy as can be witnessed from falling crude prices, reducing exports, low inflation and decreasing demand from consumers.
(Resource : Compilation from Some Internet articles)
Sunday, July 26, 2009
Technical Analysis : Global Recession and Indian Stock Markets
Global recession has undercut through the fault lines of Indian stock markets. FII are selling off the bourses and it has brought the stocks to a virtual landslide. Stocks with high-held head at 22000 are looking for safe nooks at around the 8000 levels. Market capitalization is at abysmal low and to add to the trauma, global cues are not getting any stronger.
In these dark times it becomes even more important to rummage through the technical analysis section of BSE/NSE before trading, investing or even speculating (we mean the quintessential day traders)
Technical analysis is the method of stock analysis either perfected by a stock expert or unassuming software with potential of grasping market clues. Technical analysis software’s can help a trader in exploiting the BSE and NSE for their diverse day trading and investment opportunities. These can be charting modules which align to methods of technical analysis and stock analysis. The software also helps in drafting the candlestick patterns. What’s more! The software provides terminus for trading in NSE listed stock and the unpredictable futures trading.
Let’s forget about the “too technical” aspect of technical analysis and center our thoughts on the largely fundamental plane. All of us know of the present market volatility in Indian market. It is funny how the ‘resistance lines’ are falling apart and ‘corrections’ have become elusive. We see ‘rallies’ but they are largely negative runs. ‘Circuits’ have become a common site given the consistently sorry hours of trading. In such times, stock investment needs a lot of grit and heart of steel but it also needs prior technical analysis advices.
Technical analysts may look for Fibonacci retracements and other technical dropdowns but they assist us in fundamental, layman based way.
Technical analysis talks about the largely expected direction of stock movement and recommends stop losses ands stop profits in advance. Technical analysis endorsements can enable a layman to decide whether to buy/hold/sell his stock. Such portfolio management by experts can yield great fruit in the long run.
The stock analysis methods can help a novice to understand the precision exit points for winning stocks. This way he can fully maximize sharp turns of a fledgling market.
The analysts track the stocks a person wishes to venture into, and then suggest precision entry levels. Technical analysis also teaches us the techniques of derivative training and asks us to make profit both while the stocks fall and the stocks rise.
There are groups providing high-class equity services. These provide new wave automated online services allowing the traders to become members and set their own terminuses. Panels of experts and technical analysis folks help in analyzing over 200 BSE scripts. The online trading system permits a trader to pursue the market through aligning to market watch, research tip receipt, stock alerts and real-time charts and news. The sites also ask you to trade any time-frame and generate few viable trading pips for you.
All these can help one trade in these tough times. Warren Buffet recently bought a lot of stocks on the falling Wall Street bourse. He proclaimed prophetically that “stocks is about being fearful when all else are greedy and being greedy when all else are fearful”
(Resource : Compilation from Some Internet articles)
In these dark times it becomes even more important to rummage through the technical analysis section of BSE/NSE before trading, investing or even speculating (we mean the quintessential day traders)
Technical analysis is the method of stock analysis either perfected by a stock expert or unassuming software with potential of grasping market clues. Technical analysis software’s can help a trader in exploiting the BSE and NSE for their diverse day trading and investment opportunities. These can be charting modules which align to methods of technical analysis and stock analysis. The software also helps in drafting the candlestick patterns. What’s more! The software provides terminus for trading in NSE listed stock and the unpredictable futures trading.
Let’s forget about the “too technical” aspect of technical analysis and center our thoughts on the largely fundamental plane. All of us know of the present market volatility in Indian market. It is funny how the ‘resistance lines’ are falling apart and ‘corrections’ have become elusive. We see ‘rallies’ but they are largely negative runs. ‘Circuits’ have become a common site given the consistently sorry hours of trading. In such times, stock investment needs a lot of grit and heart of steel but it also needs prior technical analysis advices.
Technical analysts may look for Fibonacci retracements and other technical dropdowns but they assist us in fundamental, layman based way.
Technical analysis talks about the largely expected direction of stock movement and recommends stop losses ands stop profits in advance. Technical analysis endorsements can enable a layman to decide whether to buy/hold/sell his stock. Such portfolio management by experts can yield great fruit in the long run.
The stock analysis methods can help a novice to understand the precision exit points for winning stocks. This way he can fully maximize sharp turns of a fledgling market.
The analysts track the stocks a person wishes to venture into, and then suggest precision entry levels. Technical analysis also teaches us the techniques of derivative training and asks us to make profit both while the stocks fall and the stocks rise.
There are groups providing high-class equity services. These provide new wave automated online services allowing the traders to become members and set their own terminuses. Panels of experts and technical analysis folks help in analyzing over 200 BSE scripts. The online trading system permits a trader to pursue the market through aligning to market watch, research tip receipt, stock alerts and real-time charts and news. The sites also ask you to trade any time-frame and generate few viable trading pips for you.
All these can help one trade in these tough times. Warren Buffet recently bought a lot of stocks on the falling Wall Street bourse. He proclaimed prophetically that “stocks is about being fearful when all else are greedy and being greedy when all else are fearful”
(Resource : Compilation from Some Internet articles)
Global Recession: Causes
The truth is, we are going through the most severe global financial crisis since the days of Great Depression.
Originated in USA, economic recession is affecting all the major players of world economy. Governments and major policy makers of world economy have taken notice of the urgency of the situation and frantic steps are undertaken to stem the rot. At the core of the term ‘recession’, spirals of several financial mistakes are intermingled.
The biggest problem with economic turmoil is; it creates fear and panic amongst general people. Rumors are thick and they fly, resulting into even more fear amongst the households about their savings and hard earned income. Economic problem of 2008 was of gigantic proportions. If we look closely at the problem, we find few fundamental causes. Foremost among them is, complacent regulatory norms in USA. USA has enjoyed sustainable economic development with cushion of low inflation rates over last two decades. This resulted into complete ignorance of essential business cycle of economy. The first signs of this problem were visible 30 months ago when America was struggling with excess liquidity in the market. That was an ample sign of coming of real estate bubble and asset price inflation.
Another responsible factor is cushion enjoyed by private and investment banks. Taking their cue from good economic condition, most of these high flying banks took higher risks. Most of their business deals were highly leveraged transactions. The kind of risk undertaken by investment banks proved to be their nemesis as they failed to gather enough capital to support their risky investments. Third responsible factor is size of investment banks. Many of them witnessed huge growth when economy was on the rise. They made huge profits based on their high risk propensity ventures. These FIs (financial institutions) also contributed heavily to US corporate profits.
Another important reason was failure of top echelons of management to provide sense of direction to their deal makers. Greed took over and the rest is history. However, USA has started taking serious policy decisions to control the worsening situation. The $ 700 billion bailout package was first step in helping the doomed institutions. Apart from that, taking over of AIG, orchestrating Bear Stearns’ merger with JP Morgan, taking control of Fannie Mae and Freddie Mac, merging Merrill Lynch with Bank of America are other crucial steps. Though, all these steps won’t prove to be of much help in the short term. It is being said that, it will take another one year to stabilize the market and credit flow.
(Resource : Compilation from Some Internet articles)
Originated in USA, economic recession is affecting all the major players of world economy. Governments and major policy makers of world economy have taken notice of the urgency of the situation and frantic steps are undertaken to stem the rot. At the core of the term ‘recession’, spirals of several financial mistakes are intermingled.
The biggest problem with economic turmoil is; it creates fear and panic amongst general people. Rumors are thick and they fly, resulting into even more fear amongst the households about their savings and hard earned income. Economic problem of 2008 was of gigantic proportions. If we look closely at the problem, we find few fundamental causes. Foremost among them is, complacent regulatory norms in USA. USA has enjoyed sustainable economic development with cushion of low inflation rates over last two decades. This resulted into complete ignorance of essential business cycle of economy. The first signs of this problem were visible 30 months ago when America was struggling with excess liquidity in the market. That was an ample sign of coming of real estate bubble and asset price inflation.
Another responsible factor is cushion enjoyed by private and investment banks. Taking their cue from good economic condition, most of these high flying banks took higher risks. Most of their business deals were highly leveraged transactions. The kind of risk undertaken by investment banks proved to be their nemesis as they failed to gather enough capital to support their risky investments. Third responsible factor is size of investment banks. Many of them witnessed huge growth when economy was on the rise. They made huge profits based on their high risk propensity ventures. These FIs (financial institutions) also contributed heavily to US corporate profits.
Another important reason was failure of top echelons of management to provide sense of direction to their deal makers. Greed took over and the rest is history. However, USA has started taking serious policy decisions to control the worsening situation. The $ 700 billion bailout package was first step in helping the doomed institutions. Apart from that, taking over of AIG, orchestrating Bear Stearns’ merger with JP Morgan, taking control of Fannie Mae and Freddie Mac, merging Merrill Lynch with Bank of America are other crucial steps. Though, all these steps won’t prove to be of much help in the short term. It is being said that, it will take another one year to stabilize the market and credit flow.
(Resource : Compilation from Some Internet articles)
Saturday, July 18, 2009
World Wide Economic Slow Down - Back to Nature Economic Law
Control is the key word. The slow down of economic triggered by United States economic slow down has come to a head that we should stop running for a while and start reviewing what’s wrong with this global picture.
United States dominate world’s economic for decades, after the end of cold war and the falling of Berlin’s wall, the domination by US was unstoppable and forced strategic decision of Euro currency to balance US economic power. In Asia, China was rapidly evolving into new economic strength of the east.
What about the rest of countries? Some are feeling secure with their closed economic policy like India, but for most of others, they are strongly dependable on giants. This is the nature of economic connectivity.
So, what is wrong with this picture if this condition is the nature of global economic? For illustration, what will happen if you drive a car and you are not so sure when to hit the brake or to slow down your vehicle? You may survive but you may also not survive, don’t you think? It depends on external situation, whether the street is narrow or wide, the traffic is crowded or not, and many more. But the clue is, those all are out of your control.
One fact of nature, our heart takes only little volume of blood and distributes the most of it to our body. I believe that most of us agree that heart is a crucial part and irreplaceable function (not organ) to keep us alive. Please don’t ask me the percentage of blood in human heart, but for you, doctor in economic can verify the truth of my statement to medical doctor.
Economic giants such as US should aware that they have grown into over grown or in other words, obesity economic stage. US dollar currency is being used as international payment standard and it makes distribution of US dollar as big as 60% traveling abroad. It is as simple as against the nature of law. In this case is the economic nature of law.
While US are loosing control of their rapid growth, they are facing external factor named “Market”. Now days are not an old story when one single giant dominate the world, now is not the time for competition and domination. Now is the day when we should unite the world as cooperation and interaction, regardless our personal differences. We shall believe in the best for all, not only for giants and their alliances.
To be a better giant, just as simple as follow the path of the nature has teach us.
(Resource : Compilation from Some Internet articles)
United States dominate world’s economic for decades, after the end of cold war and the falling of Berlin’s wall, the domination by US was unstoppable and forced strategic decision of Euro currency to balance US economic power. In Asia, China was rapidly evolving into new economic strength of the east.
What about the rest of countries? Some are feeling secure with their closed economic policy like India, but for most of others, they are strongly dependable on giants. This is the nature of economic connectivity.
So, what is wrong with this picture if this condition is the nature of global economic? For illustration, what will happen if you drive a car and you are not so sure when to hit the brake or to slow down your vehicle? You may survive but you may also not survive, don’t you think? It depends on external situation, whether the street is narrow or wide, the traffic is crowded or not, and many more. But the clue is, those all are out of your control.
One fact of nature, our heart takes only little volume of blood and distributes the most of it to our body. I believe that most of us agree that heart is a crucial part and irreplaceable function (not organ) to keep us alive. Please don’t ask me the percentage of blood in human heart, but for you, doctor in economic can verify the truth of my statement to medical doctor.
Economic giants such as US should aware that they have grown into over grown or in other words, obesity economic stage. US dollar currency is being used as international payment standard and it makes distribution of US dollar as big as 60% traveling abroad. It is as simple as against the nature of law. In this case is the economic nature of law.
While US are loosing control of their rapid growth, they are facing external factor named “Market”. Now days are not an old story when one single giant dominate the world, now is not the time for competition and domination. Now is the day when we should unite the world as cooperation and interaction, regardless our personal differences. We shall believe in the best for all, not only for giants and their alliances.
To be a better giant, just as simple as follow the path of the nature has teach us.
(Resource : Compilation from Some Internet articles)
Thursday, January 8, 2009
Webinar : Exam Fever : How to Avoid
Webinar : Exam Fever : How to Avoid : Tips and Tricks
What is Webinar ?Short for Web-based seminar, a presentation, lecture, workshop or seminar that is transmitted over the Web.
A key feature of a Webinar is its interactive elements -- the ability to give, receive and discuss information. Contrast with Webcast, in which the data transmission is one way and does not allow interaction between the presenter and the audience.This Webinar :
Exam Time means getting fretful and with number of sleepless nights and questions in the mind like- Why am I studying, How to study etc. But we know output would be nothing by just getting tensed before and during the exam period. The world is highly competitive. To emerge successful, one needs to face it BOLDLY. Examinations are to check student’s knowledge not to make a student scared.Whether you are taking the Board Exams or forthcoming Medical Entrance Test or appearing for any other Entrance Exam, Don’t you worry.
This Webinar will try to answer many such questions and try to overcome your fear…..For More details and Registration Visit www.myeducation.co.cc
Wednesday, January 7, 2009
Webinar : Economic Slowdown 2008-09
Webinar : Economic Slowdown 2008-09 : Solutions in Indian Philosophy
What is Webinar ?Short for Web-based seminar, a presentation, lecture, workshop or seminar that is transmitted over the Web.
A key feature of a Webinar is its interactive elements -- the ability to give, receive and discuss information. Contrast with Webcast, in which the data transmission is one way and does not allow interaction between the presenter and the audience.This Webinar :
In 2008, we went through....From bankruptcies, collapse and bailouts, the words defining economic crisis have changed a bit. Layoffs, cost-cutting, right sizing, cash conservation are the new defining terms. Yet, as the clouds hanging over the economy get darker and darker, the question uppermost on everybody's mind isn't how bad things really are, but how bad will things get. Have we seen the worst or is the worst yet to come?
Another day, another batch of warnings and data indicating the world will enter 2009 in the throes of a sharp economic slowdown, with governments scrambling to find ways to boost lending and spur growth.What is the liberal solution to economic slowdown??
2009 - The Economy, is it Going Up Or Down?For More details and Registration Visit www.preshasoftwares.co.cc
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