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International Market Watch/Business Magazine
Sep 30, 2008, 3:00:53 AM9/30/08
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The lawmakers of US from both major political parties voted against the bill seeking $700 million rescue fund to bail out the ailing institutions defying their leadership.
Economic Crisis in America: Cause and effect:
1. Banks had given mortgage loans to poor those could not afford an EMI.
2.
3. The U.S. central bank had allowed housing prices to rise too high.
4. Alan Greenspan, the former Chairman of the Federal Reserve, believed that the housing market was sound, and ignored timely measures to counter it.
5. Easy credit, and financial engineering that went so wild, and people thought that the good times are here for ever. Never saved for rainy days. Instead relied up on loans.
6. Bush ignored tighter regulation that easily could have prevented the crisis.
7. Institutions failed to hold much greater reserves.
8. There was not enough regulation of the financial industry between 2002 and 2006, when the economy was strong. Everyone taken the things for granted.
9. Wall Street increased its borrowing dramatically much more than the economic growth.
10. Lack of transparency in the system.
11. Senators Obama and Mrs. Clintons were lobbying for Freddie Mac and Fannie Mae.
12. 11. Short selling of share. Short-selling takes place when traders borrow shares in a stock from a broker to sell. If the stock price goes down, the trader buys back more shares at a cheaper price, returns the broker's portion and keeps the rest or sell when the rates are high/ already sold when the rates are high and adjust with the low priced stock before the day’s round up. In illegal short-selling, in which traders or brokers spread false information about the deals to reduce its price.
Forthcoming Crisis:
1. The turmoil might spread to commercial banks and ripple out to other segments of the economy.
2. Low lending will harm economic growth.
3. Slow down Small businesses without getting the loans investment in new factories and equipment or research. Individual’s loans stopped and sale of automobiles, houses will halt.
4. Affect global capital market.
5. Unemployment: due to concern of people to invest or lend money, lead to increase in unemployment.
6. Demand and supply is going to imbalance.
7. Next festival season will be horrible for Americans and for the world to an extent.
8. A lot of people are going to lose their jobs.
9. Taxpayers may end up inheriting the mother of all debts.
10. Those who invested in stock market will lose money eroding their long term investment.
11. Many retirement fund manageress/ pension fund managers will sink.
12. Consumer market will starve.
V Bright Saigal
www.cmaprbranding.com
--
Posted By International Market Watch/Business Magazine to International Market Watch/Business Magazine( A venture of Cm_a Capital) at 9/29/2008 11:59:00 PM
Economic Crisis in America: Cause and effect:
1. Banks had given mortgage loans to poor those could not afford an EMI.
2.
3. The U.S. central bank had allowed housing prices to rise too high.
4. Alan Greenspan, the former Chairman of the Federal Reserve, believed that the housing market was sound, and ignored timely measures to counter it.
5. Easy credit, and financial engineering that went so wild, and people thought that the good times are here for ever. Never saved for rainy days. Instead relied up on loans.
6. Bush ignored tighter regulation that easily could have prevented the crisis.
7. Institutions failed to hold much greater reserves.
8. There was not enough regulation of the financial industry between 2002 and 2006, when the economy was strong. Everyone taken the things for granted.
9. Wall Street increased its borrowing dramatically much more than the economic growth.
10. Lack of transparency in the system.
11. Senators Obama and Mrs. Clintons were lobbying for Freddie Mac and Fannie Mae.
12. 11. Short selling of share. Short-selling takes place when traders borrow shares in a stock from a broker to sell. If the stock price goes down, the trader buys back more shares at a cheaper price, returns the broker's portion and keeps the rest or sell when the rates are high/ already sold when the rates are high and adjust with the low priced stock before the day’s round up. In illegal short-selling, in which traders or brokers spread false information about the deals to reduce its price.
Forthcoming Crisis:
1. The turmoil might spread to commercial banks and ripple out to other segments of the economy.
2. Low lending will harm economic growth.
3. Slow down Small businesses without getting the loans investment in new factories and equipment or research. Individual’s loans stopped and sale of automobiles, houses will halt.
4. Affect global capital market.
5. Unemployment: due to concern of people to invest or lend money, lead to increase in unemployment.
6. Demand and supply is going to imbalance.
7. Next festival season will be horrible for Americans and for the world to an extent.
8. A lot of people are going to lose their jobs.
9. Taxpayers may end up inheriting the mother of all debts.
10. Those who invested in stock market will lose money eroding their long term investment.
11. Many retirement fund manageress/ pension fund managers will sink.
12. Consumer market will starve.
V Bright Saigal
www.cmaprbranding.com
--
Posted By International Market Watch/Business Magazine to International Market Watch/Business Magazine( A venture of Cm_a Capital) at 9/29/2008 11:59:00 PM
International Market Watch/Business Magazine
Sep 30, 2008, 3:08:32 AM9/30/08
to international...@googlegroups.com
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