World Of Finance

        World of Finance by M.Vijaya Sai What's the problem in Greece? Years of unrestrained spending, cheap lending and failure to implement financial reforms left Greece badly exposed when the global economic downturn struck. This whisked away a curtain of partly fiddled statistics to reveal debt levels and deficits that exceeded limits set by the eurozone. How big are these debts? National debt, put at €300 billion ($413.6 billion), is bigger than the country's economy, with some estimates predicting it will reach 120 percent of gross domestic product in 2010. The country's deficit -- how much more it spends than it takes in -- is 12.7 percent. So what happens now? Greece's credit rating -- the assessment of its ability to repay its debts -- has been downgraded to the lowest in the eurozone, meaning it will likely be viewed as a financial black hole by foreign investors. This leaves the country struggling to pay its bills as...

          World Of Finance by Vijaya Sai.M The conventional wisdom in Washington and in most of the rest of the world is that the roaring Chinese economy is going to pull the global economy out of recession and back into growth. It’s China’s turn, the theory goes, as American consumers — who propelled the last global boom with their borrowing and spending ways — have begun to tighten their belts and increase savings rates. The Chinese, with their unbridled capitalistic expansion propelled by a system they still refer to as “socialism with Chinese characteristics,” are still thriving, though, with annual gross domestic product growth of 8.9 percent in the third quarter and a domestic consumer market just starting to flex its enormous muscles. That’s prompted some cheer-leading from U.S. officials, who want to see those Chinese consumers begin to pick up the slack in the global economy — a theme President Barack Obama and his delegation a...

        World of Finance by M.Vijaya Sai After several years of rapid growth, 2009 will prove a testing year for India. Since the whole world is in trouble with a deep recession, huge economic drop and other financial crisis we suffer a lot from problems. Even though at end of the 3rd financial quarter it show a good sign of recovery in every sector but comparatively with world developing economies we are falling down. That is Chain’s exports growth at December is 17.7% India’s exports growth at December is 15% Like this we are back at some places but overall we gain more than we loose. The various we gained are as follows: Inflation: Inflation continues to pose a threat. Inflation peaked at 12% in early August ‘08. Inflation is being caused by rapid growth (demand pull factors) but, also the cost push inflation factors (rising oil prices). Hopefully, the fall in oil prices and higher interest rates will reduce inflation...

        World of Finance by M.Vijaya Sai  It was the most subtle of gestures, but looking back, many in Dubai see it as a sign of their salvation. At the opening of the Dubai Airshow recently, the crown prince of Abu Dhabi, Sheik Mohammed bin Zayed al-Nahyan, placed his hand over the hand of Dubai’s ruler, Sheik Mohammed bin Rashid al-Maktoum. That was widely viewed among people here as a sign that Abu Dhabi, by far the largest and richest member state of the United Arab Emirates, would take care of Dubai. The question is whether that means Abu Dhabi will use its wealth to bail out Dubai, the deeply indebted emirate that shook world markets when it said last week that its chief investment arm, Dubai World, would not be able to pay its debts on time. Investors seemed to believe that the crisis would be contained. Shares in Asia posted sharp gains, making up for many of the losses. The stock indexes of Dubai and Abu Dhabi, in...

The London Summit, it was hoped, would provide the groundwork for a coherent global strategy to deal with the current financial crisis. Amidst reports of the scale of IMF investment we ask whether this was the day the world came together; or did they? British Prime Minister Gordon Brown proclaimed that the world had come together to fight the global recession at the end of the G20 Summit in London on April 2nd 2009. It ended speculation about the potential for some major rifts, particularly given the different positions of France and Germany on the matter of tougher regulation. China took what many are considering to be its rightful place on the world stage too, and any expressed differences of opinion were brushed aside. Brown said that the world leaders had agreed a plan, that wasn’t just about words but “with a plan for global recovery, reform, and with a clear timetable for its delivery”. He expressed a message of co-operation and unity, declaring that “in this new global age ou...