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Economy
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Economics is a social science and, therefore, an inexact one. It can just help us to understand and improve an imperfect world. In the final diagnosis, it appears that it is just a set of tools. If we are to make the best use of these tools, we ought to think about what we are striving to achieve.
We must first define the ‘good life’ before economics can take us there. Here are some unanswered questions about life in 2050 worth pondering about, because the decisions that we make now will affect our future — our pattern of living.
Productivity growth
How many minutes of work will a loaf of bread cost?
It is the productivity question. Almost every aspect of economic life is a means toward this end (and other ends, too). If productivity grows at 1 per cent a year over the next half century, our standard of living will be 50-60 per cent higher by 2050. If productivity grows at 2 per cent a year, then our standard of living will nearly triple in the same time frame — assuming we continue to work hard, save and invest more and take risk.
Economic theory predicts that as our wages go up, we will work longer hours — up to a point, and then we will begin to work less.
Productivity growth gives us choices. We can continue to work the same number of hours while producing more. Or we can produce the same amount by working less. Or we can strike some balance. Let us expect, with cautious optimism, that Indians are going to make up their minds one day and decide how much they will work.
Bridging the inequality
How many people will be active?
Even if the economies of the West are booming, we find a striking dichotomy between the rich and poor.
What are we willing to promise the most disadvantaged? In market economies of the developed world there is a comprehensive social security system (called safety net). General benefits are mandated by law; healthcare is a birth right. This leads to a more compassionate society in more ways than one. Poverty rates and increase in inequality are low.
It also leads to higher unemployment and a slower rate of innovation and job creation. Workers, bundled with several mandatory benefits, are expensive. Since employees cannot be fired easily and quickly, firms are slow to hire them in the first place.
In this context we may compare the American system with that of the European. The American system is a richer, more dynamic, more entrepreneurial economy — and harsher and more unequal. It is conducive to creating a big pie in which the winners get huge slices. The European system is better at guaranteeing at least some pie for everybody. Capitalism comes in different flavours. Which one will be chosen?
Socio-economic issues
Will we use the market in imaginative ways to solve socio-economic problems?
The simplest and perhaps most effective way to get something done is to give the persons involved a reason to want it done. We all nod, as if this were the most obvious point in the world — and then go out and design policies that do just the opposite.
We have a public education system that does not reward teachers and principals when their students do well (or penalise them when their students perform badly). We assess more of our taxes on productive activity, like work, savings, and investment, when we might raise revenue and conserve resources with more “green taxes”.
If economic agents get the right type of incentives, then markets can be used to solve all kinds of problems. In truth, markets do not solve social problems on their own (or else there would be no social problems). But if we design solutions with the proper incentives, we feel a lot more like smooth sailing in a rough sea.
Role of government
Are governments redundant in an age of discontinuity?
Many countries have abandoned the central planning system in the late 1990s and have embraced the market system. Mixed economies have introduced public sector reforms, which led to a fall in the size of the government. But all these do not imply that the government has become less important over the years. Government has as much to do as ever. What keeps world leaders awake at night: Global warming? Drugs? Terrorism? Trade war? Financial crises? None of these problems can be addressed properly without government; indeed, none can be managed successfully without co-operation among governments.
Business cycles
Do we really have monetary policy figured out?
The Japanese economy, one of the largest and most productive in the world, has been stagnant for more than a decade. The Nikkei Index, Japan’s equivalent of the S&P 500, is no higher today than it was in the late 1990s. This should give us pause.
We have not conquered the business cycle (the economic ebb and flow that leads to periodic recessions).
At best, we have managed to tame it. In the 50 years before the Great Depression, the US economy was in recession roughly half the time. S...
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Growth & inflation has close relation. Till Aug. or Sept, we saw growth much better than other countries largely because there is ample liquidity into the system. Liquidity indicator is nothing but inflation figures.
Once inflation figures dry up, thats right now, liquidity crunch comes up into the market. Liquidity crunch itself indicates that immediate growth is less or no growth due to vanished consumers which becomes cashless. So its like a serpent eating its own tail. Sharp rise as well as fall in inflation does matter to growth....
In reply to:
Growth, not inflation a concern for India: 3i India
Posted by :
MMB Messenger
Anil Ahuja, MD and Co Head of Asia at 3i India feels banks have liquidity but the fear of not retrieving it stops them from lending. He said that growth is now a concern for India now and not inflation. He sees inflation at low single digits by next year and said that inflation no longer poses as a threat to the economy.
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Anil Ahuja, MD and Co Head of Asia at 3i India feels banks have liquidity but the fear of not retrieving it stops them from lending. He said that growth is now a concern for India now and not inflation. He sees inflation at low single digits by next year and said that inflation no longer poses as a threat to the economy.
...
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consumption is mostly done by service class ,in there is layoff and job insecurity,the spending habit changes,leding to low demand,low stock level,low producutivty,affecting accross all sectors.Ones the service class has a sence of job security ,the consumoption will take place which will in turn give rise to demand,supply to increase leading to production....
In reply to:
Layoffs inevitable in current climate: Labour Min
Posted by : MMB Messenger
Labour Minister Oscar Fernandes said layoffs are inevitable in the current climate. He said, “I would not like any layoff, but reality is reality. If there is no demand for things one can produce and if there is no market he has to layoff. So, we will have to discuss and see that how we can absorb these shocks.”
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Estonia---Estonia`s economy shrank again in the third quarter - by an annual 3.3 per cent, thus clocking up the second-worst performance (after Latvia) in the 27-nation European Union.
Estonia and Latvia now lead the Eastern European slowdown, following repeated warnings over the past year of about the risks of an economic `hard landing`, warnings which were not unfortunately headed due to hopes that the eurozone itself would hold out against the US downturn.
Estonia`s economy is contracting the second fastest, since Latvia`s economy shrank 4.2 per cent in the third quarter, and currently has the worst growth rate in the EU.
Latvia--Latvia`s economy shrank 4.2 per cent in the third quarter, and currently has the worst growth rate in the EU.
Its economy has entered a period of deep recession after three years of stellar growth, when it led all EU members in gross domestic product growth.
Latvia`s Prime Minister Ivars Godmanis has also said that the once vibrant 2004 European Union newcomer will fall into sharp recession next year, saying he expected the economy to contract by 1 per cent.
The International Monetary Fund expects the Latvian economy to shrink by 2.2 per cent in 2009 from its prediction of 0.9 per cent negative growth this year.
Ireland---Ireland officially fell into recession in September itself. According to the Central Statistics Office, its once-aggressive economy contracted by 1 per cent in the first six months of the year. Dubbed the Celtic Tiger during massive growth in the late 1990s, the business sector is now facing its most difficult period since high unemployment and emigration hit the 1980s.
The Department of Finance recently pointed to the crumbling property market and the international credit crunch for the alarming figures. A government spokesman said: "As expected, lower levels of new house building had a major restraining influence on growth in the second quarter, as is evident from the very weak investment figures.
Other factors at work include higher commodity prices, global financial market problems, weak demand in our major trading partners and adverse exchange rate movements."
source--The Economic Times...........
In reply to:
Are we next ?
Posted by : latikav
Singapore ---Singapore officially slid into recession in October after falling consumer demand from the US and Europe hammered its manufacturing exports.
Its economy contracted by 6.3 per cent in the third quarter, on an annualised seasonally adjusted basis, having shrunk by 5.7 per cent in the second quarter of 2008.
This forced the government to cut its growth forecast for this year from 4-5 per cent to 3 per cent.
Singapore`s economy, which is heavily dependent on exports to the developed world, was one of the first in Asia to be hit by a global economic slowdown.
Germany----------
Germany, the largest euro economy, shrank 0.5 per cent in the third quarter as its main source of growth - exports - dropped and it could no longer rely on household demand to power the economy.
The Federal Statistics Office reported that German gross domestic product contracted 0.5 per cent in the third quarter - more than the 0.2 per cent decline that had been anticipated. That follows a decline in the second quarter of 0.4 per cent, a slight revision from the 0.5 per cent drop previously announced.
German economic activity had got off to a good start in 2008, expanding by 1.4 per cent in the three months to March. But the country has been hit by slumping activity in its major export markets while domestic consumption has remained at low levels. Corporate investment has suffered as well from a sharp decline in the business outlook.
In October, German business confidence hit its lowest point in more than five years, a widely-watched survey by the Ifo research institute showed.
Italy---Italy has officially slid into a recession as the euro zone`s third biggest economy shrank 0.5 per cent in the third quarter from the previous three months, its sharpest quarterly decline since the end of 1998 and the same rate of decline reported by Germany, Europe`s biggest economy.
Italy`s economy has been hit by slowing consumer spending in the face of rising fuel and food prices.
The Rome-based ISTAT said consumer prices are up 4.1 per cent and that consumer spending for the year would grow just 0.1 per cent if it is assumed to remain unchanged for the rest of the year.
Before the release of the official data, Italy`s main business lobby Confindustria had already declared Italy in a recession.
continued......
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India will not go into recession for the next 10-15 years atleast....... I highly doubt that..... !
Regards...
In reply to:
Are we next ?
Posted by : latikav
Are we next? Ten countries that are recession-hit
World`s major economies in recession---------Policymakers` worst fears have finally come true. The worst financial crisis in 80 years has weakened the world`s major economies, with many of them heading for recession.
Apart from the US and Japan, the 15-nation eurozone has also officially fell into recession for the first time ever, as their economies shrank for a second straight quarter because of the world financial crisis and sinking demand.
France narrowly escaped, growing just 0.1 per cent in the third quarter after shrinking in the second quarter, and so have some other countries. But nobody knows how long can they be that lucky.
Here we take a look at some of the world`s major economies in recession:
United States-----------The US has finally slipped into recession and the economy is estimated to shrink 2.6 per cent in the fourth quarter, primarily stoked by worsening credit conditions.
Moreover, the unemployment rate in the country is expected to reach 7.5 per cent by the end of 2009, says a survey of 50 professional forecasters, conducted by US-based professional group National Association for Business Economics between October 28 and November 7.
According to 96 per cent of those surveyed, a recession has already begun. About half the forecasters estimate that recession - two consecutive quarters of contraction - started in the fourth quarter of 2007 or in the first quarter of 2008.
In the third quarter, the American economy shrunk 0.1 per cent and is widely anticipated to witness contraction in the coming months due to rising job losses, declining consumer spending and lack of credit availability, among others.
Japan-----------Japan`s economy shrank 0.1 per cent in the third quarter, sending the world`s second-biggest economy into recession for the first time in seven years and lagging market expectations for anaemic 0.1 per cent growth.
The contraction confirmed the global financial crisis has sabotaged growth in yet another major economy, with the euro zone already in recession, using the most common definition of two consecutive quarters of contraction.
The government also revised the second-quarter contraction to a larger 0.9 per cent slide, the biggest quarterly drop for Japan`s economy in seven years, and Taro Saito, a senior economist at NLI Research, saw more dark days ahead for the Japanese economy.
Japan`s gross domestic product figure translated into an annualised fall of 0.4 per cent, lagging a consensus market forecast for a 0.3 per cent expansion, government data showed. In a sign the global economic slowdown was dealing a blow to Japanese companies, capital expenditure fell 1.7 per cent in July-September.
Britain--It`s official now. Britain is also in recession. A forecast published by the Ernst & Young Item Club claims that Britain is now in a recession that will last for 12 months, with only a weak recovery in 2010.
Peter Spencer, the chief economist at Ernst & Young, said the economy fell sharply in the previous quarter and will shrink for three more quarters before bottoming out in the latter half of 2009. Meanwhile, GDP will drop by 1 per cent next year (the first negative growth for 16 years) and will grow by just 1 per cent in 2010.
Meanwhile, the British Chambers of Commerce has also said that it is pretty dismal and there is going to be a recession. Britain has been on the brink of recession since the end of June, when the economy came to a standstill with official growth at zero.
As the government struggles to avoid a recession, economist Roger Bootle believes that interest rates in the UK could fall below the 2 per cent mark, the lowest figure since the Bank of England was established in 1694.
Hong Kong----
Hong Kong slipped into recession in the third quarter as exports were hit by weakening global demand and consumption was hurt by a drop in asset prices and concern about the economic outlook.
Third-quarter gross domestic product shrank 0.5 per cent, seasonally adjusted, from the previous quarter.
Compared with a year earlier, GDP grew 1.7 per cent, well below an expected 2.6 per cent increase, and the government slashed its full-year growth forecast to between 3 and 3.5 per cent from a range of 4 per cent to 5 per cent.
The economy`s performance in July-September was the weakest since the SARS outbreak hammered consumer and business confidence in the spring of 2003 and highlights Asia`s vulnerability to a global economic downturn.
continued..........
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Singapore ---Singapore officially slid into recession in October after falling consumer demand from the US and Europe hammered its manufacturing exports.
Its economy contracted by 6.3 per cent in the third quarter, on an annualised seasonally adjusted basis, having shrunk by 5.7 per cent in the second quarter of 2008.
This forced the government to cut its growth forecast for this year from 4-5 per cent to 3 per cent.
Singapore`s economy, which is heavily dependent on exports to the developed world, was one of the first in Asia to be hit by a global economic slowdown.
Germany----------
Germany, the largest euro economy, shrank 0.5 per cent in the third quarter as its main source of growth - exports - dropped and it could no longer rely on household demand to power the economy.
The Federal Statistics Office reported that German gross domestic product contracted 0.5 per cent in the third quarter - more than the 0.2 per cent decline that had been anticipated. That follows a decline in the second quarter of 0.4 per cent, a slight revision from the 0.5 per cent drop previously announced.
German economic activity had got off to a good start in 2008, expanding by 1.4 per cent in the three months to March. But the country has been hit by slumping activity in its major export markets while domestic consumption has remained at low levels. Corporate investment has suffered as well from a sharp decline in the business outlook.
In October, German business confidence hit its lowest point in more than five years, a widely-watched survey by the Ifo research institute showed.
Italy---Italy has officially slid into a recession as the euro zone`s third biggest economy shrank 0.5 per cent in the third quarter from the previous three months, its sharpest quarterly decline since the end of 1998 and the same rate of decline reported by Germany, Europe`s biggest economy.
Italy`s economy has been hit by slowing consumer spending in the face of rising fuel and food prices.
The Rome-based ISTAT said consumer prices are up 4.1 per cent and that consumer spending for the year would grow just 0.1 per cent if it is assumed to remain unchanged for the rest of the year.
Before the release of the official data, Italy`s main business lobby Confindustria had already declared Italy in a recession.
continued......
...
In reply to:
Are we next ?
Posted by : latikav
Are we next? Ten countries that are recession-hit
World`s major economies in recession---------Policymakers` worst fears have finally come true. The worst financial crisis in 80 years has weakened the world`s major economies, with many of them heading for recession.
Apart from the US and Japan, the 15-nation eurozone has also officially fell into recession for the first time ever, as their economies shrank for a second straight quarter because of the world financial crisis and sinking demand.
France narrowly escaped, growing just 0.1 per cent in the third quarter after shrinking in the second quarter, and so have some other countries. But nobody knows how long can they be that lucky.
Here we take a look at some of the world`s major economies in recession:
United States-----------The US has finally slipped into recession and the economy is estimated to shrink 2.6 per cent in the fourth quarter, primarily stoked by worsening credit conditions.
Moreover, the unemployment rate in the country is expected to reach 7.5 per cent by the end of 2009, says a survey of 50 professional forecasters, conducted by US-based professional group National Association for Business Economics between October 28 and November 7.
According to 96 per cent of those surveyed, a recession has already begun. About half the forecasters estimate that recession - two consecutive quarters of contraction - started in the fourth quarter of 2007 or in the first quarter of 2008.
In the third quarter, the American economy shrunk 0.1 per cent and is widely anticipated to witness contraction in the coming months due to rising job losses, declining consumer spending and lack of credit availability, among others.
Japan-----------Japan`s economy shrank 0.1 per cent in the third quarter, sending the world`s second-biggest economy into recession for the first time in seven years and lagging market expectations for anaemic 0.1 per cent growth.
The contraction confirmed the global financial crisis has sabotaged growth in yet another major economy, with the euro zone already in recession, using the most common definition of two consecutive quarters of contraction.
The government also revised the second-quarter contraction to a larger 0.9 per cent slide, the biggest quarterly drop for Japan`s economy in seven years, and Taro Saito, a senior economist at NLI Research, saw more dark days ahead for the Japanese economy.
Japan`s gross domestic product figure translated into an annualised fall of 0.4 per cent, lagging a consensus market forecast for a 0.3 per cent expansion, government data showed. In a sign the global economic slowdown was dealing a blow to Japanese companies, capital expenditure fell 1.7 per cent in July-September.
Britain--It`s official now. Britain is also in recession. A forecast published by the Ernst & Young Item Club claims that Britain is now in a recession that will last for 12 months, with only a weak recovery in 2010.
Peter Spencer, the chief economist at Ernst & Young, said the economy fell sharply in the previous quarter and will shrink for three more quarters before bottoming out in the latter half of 2009. Meanwhile, GDP will drop by 1 per cent next year (the first negative growth for 16 years) and will grow by just 1 per cent in 2010.
Meanwhile, the British Chambers of Commerce has also said that it is pretty dismal and there is going to be a recession. Britain has been on the brink of recession since the end of June, when the economy came to a standstill with official growth at zero.
As the government struggles to avoid a recession, economist Roger Bootle believes that interest rates in the UK could fall below the 2 per cent mark, the lowest figure since the Bank of England was established in 1694.
Hong Kong----
Hong Kong slipped into recession in the third quarter as exports were hit by weakening global demand and consumption was hurt by a drop in asset prices and concern about the economic outlook.
Third-quarter gross domestic product shrank 0.5 per cent, seasonally adjusted, from the previous quarter.
Compared with a year earlier, GDP grew 1.7 per cent, well below an expected 2.6 per cent increase, and the government slashed its full-year growth forecast to between 3 and 3.5 per cent from a range of 4 per cent to 5 per cent.
The economy`s performance in July-September was the weakest since the SARS outbreak hammered consumer and business confidence in the spring of 2003 and highlights Asia`s vulnerability to a global economic downturn.
continued..........
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Are we next? Ten countries that are recession-hit
World`s major economies in recession---------Policymakers` worst fears have finally come true. The worst financial crisis in 80 years has weakened the world`s major economies, with many of them heading for recession.
Apart from the US and Japan, the 15-nation eurozone has also officially fell into recession for the first time ever, as their economies shrank for a second straight quarter because of the world financial crisis and sinking demand.
France narrowly escaped, growing just 0.1 per cent in the third quarter after shrinking in the second quarter, and so have some other countries. But nobody knows how long can they be that lucky.
Here we take a look at some of the world`s major economies in recession:
United States-----------The US has finally slipped into recession and the economy is estimated to shrink 2.6 per cent in the fourth quarter, primarily stoked by worsening credit conditions.
Moreover, the unemployment rate in the country is expected to reach 7.5 per cent by the end of 2009, says a survey of 50 professional forecasters, conducted by US-based professional group National Association for Business Economics between October 28 and November 7.
According to 96 per cent of those surveyed, a recession has already begun. About half the forecasters estimate that recession - two consecutive quarters of contraction - started in the fourth quarter of 2007 or in the first quarter of 2008.
In the third quarter, the American economy shrunk 0.1 per cent and is widely anticipated to witness contraction in the coming months due to rising job losses, declining consumer spending and lack of credit availability, among others.
Japan-----------Japan`s economy shrank 0.1 per cent in the third quarter, sending the world`s second-biggest economy into recession for the first time in seven years and lagging market expectations for anaemic 0.1 per cent growth.
The contraction confirmed the global financial crisis has sabotaged growth in yet another major economy, with the euro zone already in recession, using the most common definition of two consecutive quarters of contraction.
The government also revised the second-quarter contraction to a larger 0.9 per cent slide, the biggest quarterly drop for Japan`s economy in seven years, and Taro Saito, a senior economist at NLI Research, saw more dark days ahead for the Japanese economy.
Japan`s gross domestic product figure translated into an annualised fall of 0.4 per cent, lagging a consensus market forecast for a 0.3 per cent expansion, government data showed. In a sign the global economic slowdown was dealing a blow to Japanese companies, capital expenditure fell 1.7 per cent in July-September.
Britain--It`s official now. Britain is also in recession. A forecast published by the Ernst & Young Item Club claims that Britain is now in a recession that will last for 12 months, with only a weak recovery in 2010.
Peter Spencer, the chief economist at Ernst & Young, said the economy fell sharply in the previous quarter and will shrink for three more quarters before bottoming out in the latter half of 2009. Meanwhile, GDP will drop by 1 per cent next year (the first negative growth for 16 years) and will grow by just 1 per cent in 2010.
Meanwhile, the British Chambers of Commerce has also said that it is pretty dismal and there is going to be a recession. Britain has been on the brink of recession since the end of June, when the economy came to a standstill with official growth at zero.
As the government struggles to avoid a recession, economist Roger Bootle believes that interest rates in the UK could fall below the 2 per cent mark, the lowest figure since the Bank of England was established in 1694.
Hong Kong----
Hong Kong slipped into recession in the third quarter as exports were hit by weakening global demand and consumption was hurt by a drop in asset prices and concern about the economic outlook.
Third-quarter gross domestic product shrank 0.5 per cent, seasonally adjusted, from the previous quarter.
Compared with a year earlier, GDP grew 1.7 per cent, well below an expected 2.6 per cent increase, and the government slashed its full-year growth forecast to between 3 and 3.5 per cent from a range of 4 per cent to 5 per cent.
The economy`s performance in July-September was the weakest since the SARS outbreak hammered consumer and business confidence in the spring of 2003 and highlights Asia`s vulnerability to a global economic downturn.
continued.............
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This is fair - we do have a high salary regime which needs some downward spin and layoffs and salary reduction can make us more competitive and fuel the economy again....
In reply to:
Layoffs inevitable in current climate: Labour Min
Posted by : MMB Messenger
Labour Minister Oscar Fernandes said layoffs are inevitable in the current climate. He said, “I would not like any layoff, but reality is reality. If there is no demand for things one can produce and if there is no market he has to layoff. So, we will have to discuss and see that how we can absorb these shocks.”
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Calling upon the automobile manufacturers, realty firms and airlines to reduce prices, Finance Minister P. Chidambaram has promised to consider excise duty cut for the sectors which are facing the heat of global financial meltdown.
Finance Minister P. Chidambaram addressing industrialists at the Indian Economic Summit being organised by the World Economic Forum and the CII here. Harikrishna Katragadda / Mint “Hotels must cut tariffs, airlines must cut prices, real estate must cut rates of apartments and homes they sell, car makers and two-wheeler makers must cut prices,” he said, while addressing industrialists at the Indian Economic Summit being organised by the World Economic Forum and the CII here.
The minister also promised to examine the possibility of excise duty cut if required.
“Any sector faces problem, I am open to examining suggestions on cut in excise duty rates,” Chidambaram said.
He said that India will record satisfactory growth in the current fiscal and the Gross Domestic Product (GDP) growth rate will bounce back during the next year.
Responding to the suggestion of Chidambaram to lower rates to generate demand, CII president K.V. Kamath said that industry would cut prices.
“Price cut is an initiative that industry will take. I think this is going to happen,” Kamath, CII chief and managing director of the largest private sector lender ICICI Bank, said.
Also See: Industry bodies say lower prices possible, ‘no’ say companies
While pointing out that the time-tested response to demand slowdown has been to cut prices, Chidambaram said: “That is a much better option than allowing inventories to build up, non-performing assets (NPAs), lay off and retrenchment and digging a deeper hole.”
As profit and loss accounts will take a hit, he said: “It is much better to keep your market share, keep your loyal workers with you, taking a price cut.”
Referring to the external sector, the Minister admitted: “There is pressure on the rupee but once the flow is reversed, as we believe it will, it is quite possible that the rupee will climb upwards.”
“At the moment, there is a huge demand for dollars mainly coming from oil companies and others who have to meet the payment obligations. But it is quite possible that in a month or two that the direction of flows can reverse and the rupee will settle at a appropriate level,” he said.
Pointing out that this was not the first time that industrialised countries are going through recession, Chidambaram said: “This recession, of course, threatens to be a longer and deeper recession affecting more industrialised countries and we, in India, are experiencing the spillover effects of what is happening in the advanced countries.”
The Finance Minister said: “We are not the cause of the problem, but we are being invited to be a part of the solution to the problem.”
As regards India, he said: “The monsoon has been good. Farmers are busy with their work, they don’t look at the Sensex, or the Nifty, everyday. We will have a very substantial bumper crop.”
The services sector is mainly driven by millions of small and medium enterprises, he said, adding: “They are facing some liquidity problem. We are determined to ensure that they are provided adequate liquidity so that they can carry on their work, their business until we tide over the crisis”.
Pointing out that financial sector and large industries are indeed facing problems, he said: “We are extremely vigilant. We have been proactive. In fact, in the last 60 days both the government and the RBI have moved swiftly to take steps that will ensure adequate liquidity for industry.”
However, he added that providing more liquidity alone was not enough.
“Providing liquidity is only the first step. The second is ensuring appropriate price and the third step is ensuring that credit is actually delivered to industry, these are not insurmountable problems,” he said...
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Anant Narayan, Head of Treasury at Deutsche Bank sees inflation at 4% in three to four months. He expects key rate cuts by the RBI soon.
...
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That we know what the minister is saying tell us how much will be the impact....
In reply to:
Layoffs inevitable in current climate: Labour Min
Posted by : MMB Messenger
Labour Minister Oscar Fernandes said layoffs are inevitable in the current climate. He said, “I would not like any layoff, but reality is reality. If there is no demand for things one can produce and if there is no market he has to layoff. So, we will have to discuss and see that how we can absorb these shocks.”
US lawmakers pressing Paulson for on bailout package. May be they are under influence of lawyer obama, got recharged. But they have no exact idea of economy. So instead of pressing the giver they should keep their mouth shut & do their own job. As soon as democrats come I think equity market will be good but real economy to go worst from bad.
The modern classic economy says that every financial crisis has its solutions in tilting towards capitalist approach of economy, So not automakers from my view but financial arms needed to be funded first.
I think Paulson is right.
Actually crisis has happened due to democrats. Every time they come to power equity market & growth shoots up so high that it nears hyperinflation. So real damage control must happen that time but due to philosopher way of democracy, they don\`t exert control on economic growth. Hyper growth that we always see when democrats come is also dangerous like no growth.
So what happens equity, commodity markets see huge upside when democrats remain in power & the next time republican comes, the market sees its matured or saturated level for correction. Mwhahhaaaaaaa.. & thats the reason why US investors like Buffet like democrats. I think regulations go to sleep during democracy time. This is the story of US....
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That we know what the minister is saying tell us how much will be the impact....
In reply to:
Layoffs inevitable in current climate: Labour Min
Posted by : MMB Messenger
Labour Minister Oscar Fernandes said layoffs are inevitable in the current climate. He said, “I would not like any layoff, but reality is reality. If there is no demand for things one can produce and if there is no market he has to layoff. So, we will have to discuss and see that how we can absorb these shocks.”
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Carmakers in US asking for USD 25bn. But I dont understand, if there is nobody to buy the car what is the use of that pumped money? What is the use of new car manufacturing for some time to come? Just to build inventory.
I think that USD 25bn should be given to people who are going to buy new cars ahead. Mwhahaaa....
