Global Economy

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Raghav K
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Re: GLOBAL ECONOMY

Postby Raghav K » 16 Feb 2009 07:55

Japan’s GDP Shrinks 12.7% :eek: , Most Since 1974 Oil Shock

Feb. 16 (Bloomberg) -- Japan’s economy shrank at an annual 12.7 percent pace last quarter, the most since the 1974 oil shock, amid an unprecedented collapse in exports and production.

Gross domestic product fell for a third straight quarter in the three months ended Dec. 31, the Cabinet Office said today in Tokyo. The median estimate of 26 economists surveyed by Bloomberg News was for an 11.6 percent contraction.

Exports plunged a record 13.9 percent from the third quarter as global demand for Corolla cars and Bravia televisions evaporated. Toyota Motor Corp., Sony Corp. and Hitachi Ltd. -- all of which are forecasting losses -- are firing thousands of workers, heightening the risk a slump in household spending will prolong the recession.

“The economy is in terrible shape and the scary part is that we’re likely to see a similar drop this quarter,” said Seiji Adachi, a senior economist at Deutsche Securities Inc. in Tokyo. “All we can do is wait for overseas demand to pick up.”


http://www.bloomberg.com/apps/news?pid= ... refer=home

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Re: GLOBAL ECONOMY

Postby svinayak » 16 Feb 2009 11:45

Actually, most of the people who structured RMBS were not MBAs--it's much more math intense than that, so most folks that structured RMBS were more of the "quant/physicist/PhD" vein. And most MBAs were not sales traders for such products either--very few MBAs go into sales, and most stay in more traditional areas of I-banking like (vanilla) fixed income underwriting, equity capital markets, research or corporate finance. But you keep believing what you hear on CNBC!

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Re: GLOBAL ECONOMY

Postby Sanjay M » 17 Feb 2009 04:53


Sanjay M
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Re: GLOBAL ECONOMY

Postby Sanjay M » 17 Feb 2009 10:18

Businessweek

Special Report February 2, 2009, 6:39PM EST

Mexico Outsourcing: Violence Worries Rise

A surge in murders and other crime linked to drug trafficking is solidifying Mexico's reputation as a risky outsourcing site

John Snow
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Re: GLOBAL ECONOMY

Postby John Snow » 17 Feb 2009 11:55

Not long ago people were bitching about US economy consuming too much resources and advocating cut down in consumption. People were alos advising savings should go up domestically. Now they have their wishes come true how come people want US to consume more and go back to the addicted ways?

US is consumption driven economy like hippo on which many parasites depend.... :mrgreen:

SwamyG
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Re: GLOBAL ECONOMY

Postby SwamyG » 18 Feb 2009 00:55

Singha ji:
Here is one article that validates (yet again) your point of USA standard of living going down

Americans' Standard of Living Permanently Changed

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Re: GLOBAL ECONOMY

Postby Vipul » 18 Feb 2009 01:55

G-20 summit may offer ‘grand IMF bargain’ to India, China.

London, Feb 17 (IANS) Emerging economic powerhouses China and India may be encouraged to strike a “grand bargain” at a coming London summit in which they will take on a greater role in the international financial system in exchange for keeping down protectionist barriers.

The deal could be struck at the April 2 summit of the Group of 20 (G-20) countries in London - to be attended by US President Barack Obama - and forms part of British Prime Minister Gordon Brown’s efforts to seek sweeping reforms of the International Monetary Fund (IMF)

Brown is meeting European leaders and heads of the IMF and the World Bank this week in order to press for major reforms in the backdrop of the current global economic downturn that has developed into a recession, particularly in developed countries, including Britain.

The diplomatic drive is aimed at showcasing the G-20 summit as “a turning point in remaking the international economic order,” primarily through the reform of the IMF’s governance, funding and surveillance powers, Gordon Brown’s office said.

Brown, in alliance with the Australian prime minister Kevin Rudd, wants to increase the funding of the IMF, speed up a review to give China and India “clearer voting rights”, and give the fund powers to direct governments to respond to its surveillance reports, according to The Guardian Tuesday.

Brown also wants the G-20 to have a permanent secretariat, a move that would make it a powerful body overseeing finance and largely eclipse the Group of Eight (G-8), which is composed of the world’s eight most industrialised countries.

Brown told a seminar on the G-20 summit last week: “If people feel that the IMF is simply the representative of the richest countries with very little say for the poorer countries, if people think that the World Bank is similarly constructed, then people are going to either seek to have other institutions or going to reject the existing institutions, and of course the danger of that at this time is protectionism.”

The Guardian said Brown’s aim is to develop a “grand bargain” in which there is a greater role for emerging economies such as China in the IMF, and easier access to its financial assistance, “in exchange for such countries playing by the global rules and not trying to build up surpluses and reserves as an insurance policy.”

India too has long argued the need for IMF reform, with its Planning Commission Deputy Chairman Montek Singh Ahluwalia telling the World Economic Forum in Davos in January that the IMF in its present shape was “not capable” of dealing with the global meltdown.

Noting that developing countries had seen an outflow of $300 billion of foreign exchange reserves following the financial meltdown, Ahluwalia said: “The global community should put in place an institutional mechanism that will restore this flow.”

“Let us restructure these institutions. We have got a huge crisis, and the way institutions function needs to be rethought. What we are doing is… putting bandages and all kinds of bits and pieces,” Ahluwalia added.

Finance Secretary Ashok Chawla, who attended a G-20 preparatory meeting in London last month, told IANS that India was keen to see greater capital flows through international financial institutions such as the IMF to help bridge current shortfalls.

Meanwhile, Brown is to meet IMF Managing-Director Dominique Strauss-Kahn and World Bank President Robert Zoellick in London Wednesday, before travelling to Rome Thursday for talks with Italian Prime Minister Silvio Berlusconi, the current chair of the G7 Group of countries (G-8 minus Russia).

Brown flies to Berlin Sunday for a meeting of European members of the G-20 chaired by German Chancellor Angela Merkel, where leaders will discuss a joint European strategy for the G-20 summit.

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Re: GLOBAL ECONOMY

Postby Sagar » 18 Feb 2009 02:58

Vipul wrote:G-20 summit may offer ‘grand IMF bargain’ to India, China.


that has developed into a recession, particularly in developed countries, including Britain.



Brown told a seminar on the G-20 summit last week: “If people feel that the IMF is simply the representative of the richest countries with very little say for the poorer countries, if people think that the World Bank is similarly constructed, then people are going to either seek to have other institutions or going to reject the existing institutions, and of course the danger of that at this time is protectionism.”



The current economic crisis must focus attention on the the words I have highlighted above.

Developed, rich, poor - all depend on the metrics used to measure them.

As a PRC official, IIRC quoted in WSJ a few months ago said, "We are all developing countries".

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Re: GLOBAL ECONOMY

Postby Ananth » 18 Feb 2009 03:26

Englishman: "Tsk Tsk Gungadin here take this bone, now where is the gold you were talking about?"

Gungadin (The resident DIE): "Gora Sahib is great! He gives us the bone." (Gungadin genuflects before the Englishman like no tomorrow)

Gungadin: "The whole economy is yours, Saar! We are ready to serve you at your will, saar. Saar I naat wonlee open my economy, I even open my daughter for you Saar. Would my lord be kind enough to give her "fundamentals" of life tonite"

(Now a skeptic who just read the report, pops the party.)

Skeptic: Grand bargain, you say, right willie? Little Gungadin here gets voting power in a decaying system while you get to keep factories humming to maintain your unsustainable lifestyle at the cost of Indian Industry and consumers. All the while the real ability to influence financial decision still rests with the City and their cousins at wall street.

Skeptic to Gungadin: Abbe Gungadin, IMF ka acchar dalega kya?? It is only a collection of buildings with some phds thrown in whose salary you have to pay even though you have not hired them

Skpetic: Who still has the right to print the reserve currency? Who still has the right to fix the prices for any commodity that might be of value? IMF does not. Moreover it comes with liabilities.

Englishman: Well Gungadin, your daughter will definitely receive wisdom of this Englishman tonite, but for fckking Chirst's sake fix this skeptic will you? Look Gungadin, one has to learn to walk before sprinting. Your turd-world society is still not matured from the middle ages to understand the complexity of high finance. Didn't Danny Boyle showed the state of your society recently? Danny learnt it from experts! Look, you will ultimately rule the world. But first learn it from the current people who run it.

Gangadin: Youuuuu Fundamentalist, fasict, Genocidal, Rascal, skeptic. You dare to questions (sic) the genorisity of Englishman who wants to give wisdom to my daughter tonite. Rascal!!! (Gungadin furiously dails the number of other members of DIE-NASTY club to fix the skeptic)

Satya_anveshi
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Re: GLOBAL ECONOMY

Postby Satya_anveshi » 18 Feb 2009 03:43

^^^ROFLMAO! :rotfl:

Trust me that I had typed something similar only to remove it.

Somewhere in Delhi a phone rings: Tring.. Tring..
Gungadin picks up the phone: Koun hai be harami..
Firangi voice the other side: Hello Mr. Singh
Gungadin: Oh..Yu..Sorry Sorry....How is my daughter sir?
Firangi: Hm..well. You see..I wanted to talk to you about...
Gungadin: My wife has gone outside, my mother died a year ago
Firangi: No, Mr. Singh...I am talk'n about opening up...
Gungadin: everything will be open sir. Don't worry. I will tell her
Firangi: See Mr. Singh...the economy is bad and I want you to...
Gungadin: Sir..you don't have to pay sir. I am here..no?

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Re: GLOBAL ECONOMY

Postby Shivani » 18 Feb 2009 09:03

Another multi-billion criminal. Who knows how much more filth will rise to the surface as the churning continues unabated. The media are idiots, they keep addressing this creature as 'Sir'.

US tycoon Allen Stanford charged over $8bn fraud
BBC wrote:Texan billionaire and cricket promoter Sir Allen Stanford has been charged over a $8bn (£5.6bn) investment fraud, US financial regulators say.

Image

The Securities and Exchange Commission said the financier had orchestrated "a fraudulent, multi-billion dollar investment scheme".

The SEC said the fraud was "based on false promises and fabricated historical return data".

English cricket bosses have pulled out of sponsorship talks with Sir Allen.

The charges against Sir Allen, three of his companies and two executives of those companies followed a raid by US marshals on the Houston, Texas, offices of Stanford Financial Group.

A US judge has frozen the assets of Sir Allen and the other defendants as well as those of the Stanford Group, its Antigua-based subsidiary Stanford International Bank (SIB) and another subsidiary, investment advisor Stanford Capital Management.

A receiver has been appointed to "preserve assets for investors", the SEC said.

'Close circle'

Sir Allen last year promoted the Stanford cricket series which saw a West Indian all-star team - the Stanford Superstars - beat an England team for a $20m prize.

The England and Wales Cricket Board (ECB) suspended sponsorship negotiations with him following the fraud charges.

The ECB has a five-year deal to play games against the Stanford Superstars.

The SEC said that the Stanford International Bank - the largest in the Caribbean - sold approximately $8bn worth of certificates of deposit to investors, promising "improbable and unsubstantiated high interest rates".

The bank was "operated by a close circle of Stanford's family and friends", the SEC said in a statement.

"We are alleging a fraud of shocking magnitude that has spread its tentacles throughout the world," said Rose Romero of the SEC.

The SEC began investigating Stanford Group last year and intensified their probe following the arrest of US financier Bernard Madoff in December over an alleged $50bn (£35bn) investment fraud.

In the wake of that scandal, SIB falsely told its investors it had no exposure to the funds involved in the alleged Madoff fraud.

The Stanford Group lists its worth as more than $40bn. Antigua and Barbuda granted Sir Allen citizenship about 10 years ago and knighted him in 2006.

Forbes magazine lists him as the world's 605th richest man, with assets of $2.2bn.

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Re: GLOBAL ECONOMY

Postby Singha » 18 Feb 2009 09:41

from SwamiG's article:

david w - Tuesday February 17, 2009 01:09PM EST

A few days ago I would say that this guy is way off base. Then today I saw someone stop their car to pick up a road kill rabbit. Last year dead deer would rot by the roadside, not any more.

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Re: GLOBAL ECONOMY

Postby Vipul » 19 Feb 2009 23:12

China, India, Brazil join inner regulatory circle.

LONDON, Feb 19 (Reuters) - China, India and Brazil have joined the inner circle of a top global financial regulation forum on Thursday as part of wider efforts by policymakers to formally recognise the three countries' growing economic clout.

The International Organisation of Securities Commissions (IOSCO) groups watchdogs from over 100 countries representing more than 90 percent of the world's securities markets.But the key standards-devising work is done by its technical committee of just 15 members, including the United States, Japan, Germany, France and Britain.

It has left out watchdogs from countries such as China, now the world's third biggest economy and with a fast growing financial market.

"The changing landscape of the international financial system in this time of crisis demands that organizations, such as ours, reflect such changes in the composition of its membership," said Kathleen Casey, chairman of the technical committee and a commissioner at the U.S. Securities and Exchange Commission.

IOSCO's move mirrors broader trends as the ability of just a handful of countries to determine global financial rules is increasingly seen as untenable.

Global leaders have agreed to draw regulatory lessons from the credit crunch via the Group of Twenty (G20) countries so that nations like China, Brazil and India have a say.

The Financial Stability Forum (FSF), a body aimed at ensuring market stability, is made up of government and central bank officials from 12 countries and several financial institutions, is expected to be expanded.Haggling over which new countries may join the FSF continues behind the scenes and some observers expect China, Brazil and India to be given a seat.

The G20 holds a summit on April 2 in London to agree on a more detailed set of actions to reform financial market regulation and oversight.

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Re: GLOBAL ECONOMY

Postby Arya Sumantra » 20 Feb 2009 04:39

UBS refuses US demand

WASHINGTON - SWISS banking giant UBS on Thursday refused a US government demand to provide information on 52,000 US clients, requested in a lawsuit filed earlier in the day as part of a tax fraud investigation.

The US government filed a lawsuit in Miami, Florida, asking the court to order UBS to reveal to the US tax authorities the identities of the bank's US customers - identified with the moniker 'John Doe' - 'with secret Swiss accounts,' the Justice Department said.

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Re: GLOBAL ECONOMY

Postby sarulan » 20 Feb 2009 10:30

BofA and Citi shares fall on nationalization fear :mrgreen:
http://finance.yahoo.com/news/BofA-and-Citi-shares-fall-on-rb-14414973.html

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Re: GLOBAL ECONOMY

Postby sarulan » 20 Feb 2009 21:16

De Beers gets $500 million loan to weather hard times
http://economictimes.indiatimes.com/International-Business/De-Beers-gets-500-mn-loan-/articleshow/4162452.cms
The world's largest diamond group, De Beers, said its three shareholders have agreed to loan the company $500 million to help it weather the economic downturn, following muted sales in 2008

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Re: GLOBAL ECONOMY

Postby Bade » 20 Feb 2009 22:45

"It is only a matter of time," he believes. "The recovery will not be as fast as we wish, but the economy will recover." He believes that people from India who seek work visas need to understand that the US is not the dreamland people perceive it to be; when you get here, he says, you are forced to tone down your expectations. "When I came here, I wanted to buy a car in my second year and a home in my fourth year, but all that has to change," said Sharma.
:eek:
H1B: Waking up from the American dream

I know people who have been in the US for the last 20 yrs, worked hard through graduate school and still do not own a home. I have no sympathy for the new kids on the block who think the world is very unfair onlee to them now. :lol:

Raghav K
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Re: GLOBAL ECONOMY

Postby Raghav K » 20 Feb 2009 23:38


Ananth
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Re: GLOBAL ECONOMY

Postby Ananth » 21 Feb 2009 00:05

Well this is interesting. Yesterday I was watching Modi's interview: http://deshgujarat.com/2009/02/18/naren ... punevideo/ posted in Nukkad, where he makes a point about dirty money getting into official channels and using it as a levearage for their nefarious purposes. Wonder of wonders, now I come across this news:

http://www.reuters.com/article/marketsN ... 9620090125
UN crime chief says drug money flowed into banks
he United Nations' crime and drug watchdog has indications that money made in illicit drug trade has been used to keep banks afloat in the global financial crisis, its head was quoted as saying on Sunday.

Vienna-based UNODC Executive Director Antonio Maria Costa said in an interview released by Austrian weekly Profil that drug money often became the only available capital when the crisis spiralled out of control last year.

"In many instances, drug money is currently the only liquid investment capital," Costa was quoted as saying by Profil. "In the second half of 2008, liquidity was the banking system's main problem and hence liquid capital became an important factor."

The United Nations Office on Drugs and Crime had found evidence that "interbank loans were funded by money that originated from drug trade and other illegal activities," Costa was quoted as saying. There were "signs that some banks were rescued in that way."


Profil said Costa declined to identify countries or banks which may have received drug money and gave no indication how much cash might be involved. He only said Austria was not on top of his list, Profil said. (Reporting by Boris Groendahl; Editing by Charles Dick)


You see the wall street and their inbred cousins at the City were converting worthless junk into gold by stamping them AAA and selling it off to the world. Now there is so much "prestige" associated with the FII/FDI money that every government is competing for it. What if the money that is getting funneled by the same entities which sold AAA junks is just a cover for this dirty money. Despite the KYC norms mandated by SEBI et. al. we know there are several large loopholes like PN etc.

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Re: GLOBAL ECONOMY

Postby SK Mody » 21 Feb 2009 00:41

Clock ticking for Swiss bank secrecy - BBC

he decision by Switzerland's biggest bank, UBS, to hand over details of a few hundred US clients to the US authorities has shocked the Swiss banking community, and led many to the conclusion that the days of Swiss banking secrecy are now numbered.


...

But many Swiss politicians and bankers are outraged at what they see as the Swiss government's weakness in the face of unfair pressure from the US.

"This is a clear case of power triumphing over the law," said Gabi Huber, member of parliament with the centre-right Radical Party.
"Switzerland's banking secrecy has been put under real pressure." Hans Geiger, emeritus professor of banking at the University of Zurich, said he was astonished at the "unbelievable weakness" of the government. And Toni Brunner, president of the right-wing Swiss People's Party, went even further. "We are a sovereign state, and other countries should not be able to tell us what to do," he said. "It's time to enshrine banking secrecy in our constitution."

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Re: GLOBAL ECONOMY

Postby SriKumar » 21 Feb 2009 01:27

SK Mody wrote:Clock ticking for Swiss bank secrecy - BBC

he decision by Switzerland's biggest bank, UBS, to hand over details of a few hundred US clients to the US authorities has shocked the Swiss banking community, and led many to the conclusion that the days of Swiss banking secrecy are now numbered.

And a damn good thing too, I might add. The Swiss banks, with all the shady people who deposit their money there, have blood on their hands. Some banks had a lot of Nazi items looted from the Jews and the bank(s) did their best to stone-wall any efforts by Jews to recover (or even reveal) what the Nazis had stored at those banks (forget which one). It was the secrecy that allowed them to rebuff all actions. Around '96, some Jews finally filed a suit in New York city and forced the bank to respond, which the bank had to if they wanted to do business in the US.
http://www.washingtonpost.com/wp-dyn/ar ... Apr15.html

Here's another story where they stole money from holocaust Jews' accounts and tried to cover it up, with secrecy being their main weapon. http://www.reuters.com/article/worldNew ... CV20081211

Only the US govt. has the clout to pry open the vaults to this stinking Swiss cesspool of financial impropriety (to put it mildly). And with the public outcry, I am hoping it will happen. The world will be a better place for the average man when the high-flying criminals of the world are denied safe havens to store their loot.
Last edited by SriKumar on 21 Feb 2009 02:09, edited 1 time in total.

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Re: GLOBAL ECONOMY

Postby Arya Sumantra » 21 Feb 2009 01:29

E. Europe currencies flattened by global economic crisis

Central banks, which face interesst rate decisions next week in Poland and the Czech Republic, are caught caught between raising interest rates to support crumbling currencies or lowering them to save jobs.

The Baltic states are in perhaps the worst shape. On Wednesday, Latvia's Finance Ministry announced its economy will shrink 12% this year, a huge downward revision from an already bleak 5% decline. The country has already received a massive bailout from the International Monetary Fund.

In neighboring Estonia, the economy contracted 9.4% in the fourth quarter from a year earlier. The crunch is all the more painful after years of economic growth as high as 10.4% in 2006.

How did poster children for capitalism become a subprime neighborhood? Heavy foreign and local borrowing helped put countries like Ukraine and Latvia in the hole.

Hungary and Ukraine, both with huge budget deficits, have also gotten IMF loan bailouts, while the Russian banking system is staggering.

Even Poland, which many analysts still expect to post positive growth this year, has had to cut its estimates from around 3.7% to 1.7 and find savings of almost 20 billion zlotys ($5.5 billion) in the 2009 budget.

Under normal circumstances the prospect of such a deep recession should lead to lower borrowing costs but the pressure on the region's currencies has led policymakers to indicate that the pace of rate cuts may have to slow in the months ahead.

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Re: GLOBAL ECONOMY

Postby achit » 21 Feb 2009 01:32

Bade wrote:
"It is only a matter of time," he believes. "The recovery will not be as fast as we wish, but the economy will recover." He believes that people from India who seek work visas need to understand that the US is not the dreamland people perceive it to be; when you get here, he says, you are forced to tone down your expectations. "When I came here, I wanted to buy a car in my second year and a home in my fourth year, but all that has to change," said Sharma.
:eek:
H1B: Waking up from the American dream

I know people who have been in the US for the last 20 yrs, worked hard through graduate school and still do not own a home. I have no sympathy for the new kids on the block who think the world is very unfair onlee to them now. :lol:


So true!! When I stated on H1 in 2000, first car used to be 100K + miles honda civic type for 2-3K. I bought one for 2K and used it for 4 years before buying a new one. Next bay, 2 of my co-workers recently (last 2 months) bought brand new cars ($20k,30K) and they work for Desi body-shopper, not even a perm job.!!

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Re: GLOBAL ECONOMY

Postby John Snow » 21 Feb 2009 01:37

The pressure of Swiss banks should have come right after the 9-11 when USG put an end to the Hawala business and alqeda Pakis were rounded all over the world, which sent Alqaeda to get into diamonds as barter and storage of money , then into drugs money moved via swiss banks.

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Re: GLOBAL ECONOMY

Postby SwamyG » 21 Feb 2009 01:44

One of my pet "theories" is that Toyota and Honda were selling so many cars in USA because of the desis :rotfl: Except the "elite" or the "daring" few, everybody bought Japanese cars. With the steady influx of desis in the last decade, there was this steady demand for used Toyota and Honda cars. If the car was not a "runner" then the desis took care of it well. And I know several folks on H1 who paid zero or near-zero down payment while buying a house.
Last edited by SwamyG on 21 Feb 2009 02:25, edited 2 times in total.

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Re: GLOBAL ECONOMY

Postby SaiK » 21 Feb 2009 01:56

imho, this melt down should be blamed by capitalistic deamons and dragons at helm who pockets all money, and when push comes to shove, they send this alarm and as it is american society is panic stricken one.

ripple effects could have been avoided..

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Re: GLOBAL ECONOMY

Postby Singha » 21 Feb 2009 01:58

many h1 desis took houses at 5-10% down and paid the extra credit insurance.
I was quite amazed at the 'bold' and 'deft' moves by the next-gen desis who
followed my dinosaur gen to US.

these were guys looking to twist, use and abuse the system to fullest extent from day1.

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Re: GLOBAL ECONOMY

Postby svinayak » 21 Feb 2009 04:00

Singha wrote:many h1 desis took houses at 5-10% down and paid the extra credit insurance.
I was quite amazed at the 'bold' and 'deft' moves by the next-gen desis who
followed my dinosaur gen to US.

these were guys looking to twist, use and abuse the system to fullest extent from day1.


This ease of credit was only after 1999-2000 and lot of loan people pushed this product.

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Re: GLOBAL ECONOMY

Postby Vipul » 21 Feb 2009 05:29

One of the guys who came on H1 in my company last year bought a Lexus.I was shocked and asked him the logic for this reckless action.He retorded that he had left behind a Honda City back home (was a mid level techie in Oracle Bangalore)and did not see any sense coming to the US and driving a lowly Carolla. :roll:

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Re: GLOBAL ECONOMY

Postby sudarshan » 21 Feb 2009 08:48

BTW, guys, I'm seeing this ad pretty often on TV, here in the USA, saying "send us your old and broken gold/silver/platinum jewellery, and we'll pay you hard cash for it." Is this somebody's grand plan for further hoodwinking the American public? Pretty soon cash might well be worthless, while gold and platinum will be kings. How is the USG allowing ads like this? Or is there something I'm missing?

Sudarshan

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Re: GLOBAL ECONOMY

Postby ArmenT » 21 Feb 2009 09:52

Are you talking about Cash4gold by any chance? They're quite the scam artists -- they offer 1/3 the going price or so.
Link about one person's experience

Fun part is that when you search for cash4gold on google, the above website appears right below the cash4gold website. Solution: Cash4gold tried to offer him a bribe to take that article off his website. Apparently they succeeded in buying off another consumer site, but not this one.
Link about bribe attempt here

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Re: GLOBAL ECONOMY

Postby Nayak » 21 Feb 2009 10:03

In Parched Argentina, Worries Over Economy Grow

By ALEXEI BARRIONUEVO
Published: February 20, 2009

BUENOS AIRES — Cows are dying by the thousands in the baking sun, and crops are being lost before their seeds even break the soil.

Argentina’s worst drought in more than 50 years is magnifying the country’s chances of suffering another economic crisis, and the lost farming revenue will complicate the government’s efforts to meet more than $18 billion in debt obligations this year, economists said.

With congressional elections now only eight months away, the drought is also putting political heat on the country’s first couple, President Cristina Fernández de Kirchner and Néstor Kirchner, the former president. It comes as Argentina is struggling to contain double-digit inflation and growing unemployment.

Mrs. Kirchner late last month declared an “agricultural state of emergency” and said the government would give some farmers and ranchers a one-year reprieve on paying provincial taxes on produce and livestock that had been affected by the drought.

But a mood of opposition has gripped parts of the country, especially rural areas that helped usher Mrs. Kirchner into power in 2007. Still seething from last year’s battle over export taxes, farmers have been threatening to stage yet more strikes unless the Kirchner government rolls them back.

Mr. Kirchner, who last year called farmers “coup mongers,” has tried to calm tensions. “To those that insist on confrontation, we ask for humility,” he said this month.

After talks broke down between the government and farming associations, producers said on Friday that they would halt sales of grain and beef products until Tuesday.

As much as the Kirchners are trying to avoid it, the elections figure to be a national referendum on their waning popularity and their ambitions to remain in power after 2011.

While Mrs. Kirchner is the president, few doubt that Mr. Kirchner, who leads the Peronist party, is the couple’s chief political strategist and plays a strong role behind the scenes in guiding the economy.

Mr. Kirchner lately has been meeting with provincial governors and considering whether to run for Congress in the province of Buenos Aires to shore up the couple’s political power. He is seeking to negotiate alliances with Peronists who pose a competitive threat to the Kirchners, said E. Federico Thomsen, an economist who runs a consulting firm in Buenos Aires. But on Tuesday, Carlos Reutemann, a senator and former governor of Santa Fe Province, dealt a blow to that strategy when he announced he was leaving the government’s Victory Front bloc because of personal and political disagreements with the administration.

The Kirchners have been particularly stung by the drought — which has lasted five months and is also wreaking havoc in Uruguay, Paraguay and parts of southern Brazil — because Argentina’s economic situation was already more precarious than that of neighbors like Brazil and Chile.

Not only does Argentina have high debts, but it also saved less of its profits during the recent commodities boom. That has given the government less flexibility to enact economic stimulus measures.

Still, the prices of food crops have not fallen as severely as those of commodities like oil and copper, which some other South American nations, including Venezuela and Chile, rely on for their economic growth.

“Argentina could have claimed to come out of the crisis relatively unscathed,” Mr. Thomsen said. “But here comes the drought to complicate things.”

Economists expect overall production in Argentina’s agriculture and livestock industry to fall by at least 15 percent this season compared with last year, and for state revenues from the industry to fall by more than $5.5 billion. The drought has been especially devastating to the wheat and corn crops and to cattle production.

Argentine ranchers have lost an estimated 1.5 million head of cattle, said Ernesto Ambrosetti, the chief economist at the Institute of Economic Studies at the Argentine Rural Society. Ricardo Theill, a dairy farmer in Ceres, in Santa Fe Province, told a radio station last week that he lost 106 cows in three hours when they abandoned their parched pasture, gorged on soybean plants and died from indigestion.

“It took five years of investment and work for these cows to enter into the dairy farm,” Mr. Theill said.

The United States Department of Agriculture last week dropped its estimate of Argentina’s corn crop to 13.5 million tons, down 35 percent from the department’s estimate last year.

Argentina’s most important export crop, soybeans, has thus far not been as badly affected because farmers were able to delay planting in some fields a little longer in the hope that enough moisture would finally seep into the soil. So far this month, there has been more rain on average than in January, and that is bolstering hopes.

A separate problem is that the country’s supply of dollars is falling as demands increase and capital flight continues, said Daniel Kerner, an analyst at Eurasia Group, a risk consulting firm. That could add pressure on the government to tap Central Bank reserves or to severely devalue its exchange rate. Last year, Argentines pulled out about $25 billion from the country, Mr. Kerner said.

Though most economists say they believe the government can squeak by and avoid another crippling default on its debts, sidestepping a major devaluation of the currency, the peso, will be a more delicate dance.

For now, the Kirchner government appears committed to gradually devaluing the peso to avoid stoking a widespread panic.

With the cash that the government seized from private pension funds and other instruments, it can shave down a $10 billion financing gap this year to a more manageable $2 billion, said Esteban Medrano, an economic adviser at LatinSource, a consulting firm.

He said a steep drop in production could be offset somewhat by millions of tons of grains that farmers stored last year when they were battling the government.
Next Article in World (8 of 18) » A version of this article appeared in print on February 21, 2009, on page A8 of the New York edition.


sudarshan
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Re: GLOBAL ECONOMY

Postby sudarshan » 21 Feb 2009 10:36

ArmenT wrote:Are you talking about Cash4gold by any chance? They're quite the scam artists -- they offer 1/3 the going price or so.
Link about one person's experience

Fun part is that when you search for cash4gold on google, the above website appears right below the cash4gold website. Solution: Cash4gold tried to offer him a bribe to take that article off his website. Apparently they succeeded in buying off another consumer site, but not this one.
Link about bribe attempt here


Yes, that's the one I'm talking about. I was ROFL at reading the stuff in the first link you posted. The person who wrote up that stuff seems to think he's a pretty shrewd, hard-headed type, and his final suggestion is "with cash4gold, go with the second offer." I've got news for you buddy. You'd be a moron to go even with the second offer-- in fact, if you have gold or platinum at hand, you'd be a moron to go for any cash offer, right now. Well, I know I could be suckered too in many other ways by some sweet-talking con-artist, but this cash4gold thingy seems the limit.

Sudarshan

Satya_anveshi
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Re: GLOBAL ECONOMY

Postby Satya_anveshi » 21 Feb 2009 10:44

The real users of these services are the cheaters who are cheating the whole community (you know which one) that generally keep a lot of gold with them and have assign religious value to it.

In my friends colony, 32 homes have robberies and in each one of them (belonging to the certain community hinted above), the robbers have only taken away the gold.

Local pawn shops and these gold 4 cash are major avenues to these guys. It is almost like, I wanted to find these pawn shop guys on late evening on their way home, grab their testimonials to get to know who is behind all these.

Police does not act because these appear to happen to only this community.

I still have to figure out whether giving more publicity / visibility to this issue, there by making certain things about tis community pulblic, does good or silently working with law enforecement and bringing some high level pressure is good.

Singha
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Re: GLOBAL ECONOMY

Postby Singha » 21 Feb 2009 20:19

Chip Maker’s Units File for Chapter 11

By REUTERS
Published: February 20, 2009

Two American units of the insolvent German memory chip maker Qimonda filed for Chapter 11 bankruptcy protection in United States Bankruptcy Court in Delaware, according to court documents. Qimonda Richmond and Qimonda North America said they intended to locate a buyer for their assets. Qimonda filed for insolvency in January in Germany. The company, based in Munich and a majority-owned subsidiary of Infineon Technologies, is the world’s fourth-biggest maker of DRAM memory chips, used mainly in PCs.

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Tax the rich. Help the poor. Cut defense expenditure.

Postby Shivani » 22 Feb 2009 07:59

Obama Has Plan to Slash Deficit, Despite Stimulus Bill

The New York Times wrote:By JACKIE CALMES
Published: February 21, 2009


Image

WASHINGTON — After a string of costly bailout and stimulus measures, President Obama will set a goal this week to cut the annual deficit at least in half by the end of his term, administration officials said. The reduction would come in large part through Iraq troop withdrawals and higher taxes on the wealthy.

Mr. Obama’s budget outline, which he will release on Thursday, will also confirm his intention to deliver this year on ambitious campaign promises on health care and energy policy.

The president inherited a deficit for 2009 of about $1.2 trillion, which will rise to more than $1.5 trillion, given initial spending from his recently enacted stimulus package. His budget blueprint for the 2010 fiscal year, which begins Oct. 1, will include a 10-year projection showing the annual deficit declining to $533 billion in the 2013 fiscal year, the last year of his term, officials said.

While that suggests a two-thirds reduction, exceeding Mr. Obama’s goal of at least half, advisers note that the current deficit as a starting point is inflated by one-time expenses to stimulate the economy.

Measured against the size of the economy, the projected $533 billion shortfall for 2013 would mean a reduction from a deficit equal to more than 10 percent of the gross domestic product — larger than any deficit since World War II — to 3 percent, which is the level that economists generally consider sustainable. Mr. Obama will project deficits at about that level through 2019, aides said.

In his weekly radio and Internet address on Saturday, Mr. Obama said his first budget was “sober in its assessments, honest in its accounting, and lays out in detail my strategy for investing in what we need, cutting what we don’t, and restoring fiscal discipline.”

“We can’t generate sustained growth without getting our deficits under control,” he added.

The president will propose to tax the investment income of hedge fund and private equity partners at ordinary income tax rates, which are now as high as 35 percent and could return to 39.6 percent under his plans, instead of at the capital gains rate, which is 15 percent at most.

Senior Democrats in Congress joined with Republicans in 2007 to oppose that increase. But with Wall Street discredited and lucrative executive compensation a political target, the provision could prove more popular among lawmakers.

Mr. Obama will also call for letting the Bush tax cuts on income, dividends and capital gains lapse after 2010 for individuals who make more than $250,000 a year. But while the top rate for income would rise to 39.6 percent, the top rate for capital gains and dividends would be 20 percent.

As a candidate, Mr. Obama called for immediately repealing those tax cuts. He decided instead to keep them in place through 2010, as scheduled, reflecting the widespread belief that raising taxes further depresses economic activity. :)

As for war costs, Mr. Obama’s campaign projected that withdrawing combat troops from Iraq would save about $90 billion a year. But it is not clear how much any savings would be offset by increased spending in Afghanistan, where Mr. Obama has ordered an additional 17,000 troops, bringing the total there to 56,000.

The budget will provide the first clues to how Mr. Obama will reassert fiscal discipline after signing into law a $787 billion economic recovery plan. As difficult as cutting the deficits will be, much of the reduction by the end of his term will simply reflect an end to spending from the two-year stimulus package and — assuming the economy recovers — higher tax revenues and lower expenditures for safety-net programs like unemployment compensation.

Mr. Obama will propose cutting a variety of programs, including the Medicare Advantage subsidies for insurance companies that cover seniors who can otherwise acquire health coverage directly from the government. Another target is spending on private contractors, especially for defense, which spiked during the Bush administration. And he will scale back some promises, including his proposal to double money for foreign aid.

The budget on Thursday will come amid a week of reminders of the nation’s fiscal plight. On Monday Mr. Obama will hold a “fiscal responsibility summit” at the White House with members of Congress from both parties, economists, union leaders and business representatives. On Tuesday he will make a televised address to a joint session of Congress — the equivalent of a State of the Union speech for a new president — that advisers said would focus on the economy. Meanwhile, Congress will debate $410 billion in overdue appropriations for this fiscal year.

Yet Mr. Obama will inflate his challenge by forsaking several gimmicks that President Bush used to make deficits look smaller. He will include war costs in the budget; Mr. Bush did not, and instead sought supplemental money from Congress each year. Mr. Obama also will not count savings from laws that establish lower Medicare payments for doctors and expand the alternative minimum tax to hit more taxpayers — both of which Mr. Bush and Congress routinely took credit for, while knowing they would later waive the laws to raise doctors’ payments and limit the reach of the tax.

Full details of Mr. Obama’s budget for the 2010 fiscal year will be released in April. The outline on Thursday will make clear that he intends to push ahead on promises to contain health care costs and expand insurance coverage, and to move toward an energy cap-and-trade system for controlling emissions of gases blamed for climate change.

“The president believes there are essentially three areas that have to move forward even as we pare back elsewhere — health care, energy and education,” said David Axelrod, his senior adviser. “These are the bulwark of a strong economy moving forward.”

While some people have predicted that Mr. Obama would have to shelve his priorities given rising deficits, his determination to proceed, especially on health care, reflects his economic advisers’ conviction that the government cannot control its finances without reforming health care. The ballooning cost of health care, and thus Medicare and Medicaid, is the biggest factor behind projections of unsustainable deficits in coming decades.

“He wants to present an honest budget, he wants to focus on health care, and he will cut the deficit by at least half by the end of his first term,” Peter R. Orszag, director of the White House Office of Management and Budget, said in an interview.

Mr. Obama will suggest in his budget that expanding health coverage to the more than 46 million uninsured can be done without adding to the deficit, both by making cost-saving changes in the delivery of care and by raising revenues. Advisers declined to identify the tax source.

Changes to the health care system will require investments in disease prevention programs, health information technology and research on cost-effective treatments, among other steps. Some money was included in the stimulus package. Even so, many health analysts believe big savings cannot be realized soon.

On energy policy, Mr. Obama’s budget will show new revenues by 2012 from his proposal to require companies to buy permits from the government for greenhouse gas emissions above a certain cap. The Congressional Budget Office estimates that the permits would raise up to $300 billion a year by 2020.

Since companies would pass their costs on to customers, Mr. Obama would have the government use most of the revenues for relief to families to offset higher utility bills and related expenses. The remaining revenues would cover his proposals for $15 billion a year in spending and tax incentives to develop alternative energy.


I hope this new US administration takes some bold steps. This is not the time to be irresolute and hesitant. Kill the expensive F-35 JSF program. Cancel the US Navy's DDG-1000 Zumwalt Class program, and reduce their budget.

The deficit must be contained.

Moderator note: Please don't editorialize press articles with your own political slant by replacing 'Obama' with 'Hussein'. This is the global economy thread; no petty domestic US politics here. The next case of the same will merit a warning. Thanks
Last edited by Suraj on 22 Feb 2009 08:18, edited 1 time in total.
Reason: Deliberate political baiting

Shivani
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Re: Tax the rich. Help the poor. Cut defense expenditure.

Postby Shivani » 22 Feb 2009 13:50

Suraj wrote:Moderator note: Please don't editorialize press articles with your own political slant by replacing 'Obama' with 'Hussein'. This is the global economy thread; no petty domestic US politics here.


The one way psy-ops are too much to bear. Common citizens like myself are forced to do this because the Indian media is useless :((. It should be 'tolerated' at Bharat Rakshak (if not necessarily encouraged or appreciated). End of whine. :oops:

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♪ We both go down together ♫

Postby Shivani » 22 Feb 2009 20:27

"China Must Continue to Invest in U.S. Bonds" : Hillary Clinton

Fair use excerpts:
The Washington Post wrote:BEIJING, Feb. 22 -- Secretary of State Hillary Rodham Clinton on Sunday urged China to keep investing its substantial foreign-exchange reserves in U.S. Treasury securities, arguing "we are truly going to rise or fall together."

The Washington Post wrote:Treasury bonds are "a good investment [and] a safe investment," Clinton told the interviewer Sunday.


Turning point. The issue now becomes mainstream and not just 'a theory' of alarmist bloggers and columnists. US administration has been forced to acknowledge reality very publically.

Yogi_G
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Re: ♪ We both go down together ♫

Postby Yogi_G » 22 Feb 2009 21:46

Shivani wrote:"China Must Continue to Invest in U.S. Bonds" : Hillary Clinton

Fair use excerpts:
The Washington Post wrote:BEIJING, Feb. 22 -- Secretary of State Hillary Rodham Clinton on Sunday urged China to keep investing its substantial foreign-exchange reserves in U.S. Treasury securities, arguing "we are truly going to rise or fall together."

The Washington Post wrote:Treasury bonds are "a good investment [and] a safe investment," Clinton told the interviewer Sunday.


Turning point. The issue now becomes mainstream and not just 'a theory' of alarmist bloggers and columnists. US administration has been forced to acknowledge reality very publically.


You hit the nail on the head, I think Hillary has taken to China a very important message from the American leadership...What happens when foreign countries stop investing in bonds, only slowly the reluctant and dodging US has begun to answer the question.....

Raghav K
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Re: GLOBAL ECONOMY

Postby Raghav K » 22 Feb 2009 23:16

Cramer: Nationalization Would Crush America.
He talks about social unrest,chaos,complete collapse.

http://www.thestreet.com/video/10465193 ... erica.html


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