My Finance Journal

Given the recent spate of bad economic news and statistics, there is now no doubt that the American political class has failed miserably over the past few years when it comes to operating a healthy, growing economy. All of the recent political class economic programs have been ineffective relative to their objectives including Cash For Clunkers, First Time Home Buyers Rebate Program, mortgage salvation programs such as HAMP, and worse of all, the economic stimulus program. All these economic failures did was to add to the skyrocketing national debt without providing any long lasting economic benefit.

The economic stimulus program was the worst culprit, if only because it wasted the most amount of taxpayer money, 0 billion, according to the latest Congressional Budget Office estimates. The economic models used to predict what would happen with increased government spending were disasters from a prediction perspective.

read more »

The economic growth in India is on a rampant move with Mr Pranab Mukherjee hoping the gross domestic product to reach 9 per cent as he said while addressing the India Economic Summit (IES) 2010.The economic growth in India is all set to surpass the developed countries as it rides high on back of manufacturing and an overall positive investment climate in India. The companies in India are all set to harness the potentials being created by the robust economic growth in India. The foreign companies in India are glad to be part of the investment climate in India, as the economies of the developed countries struggle to stay intact.The investment climate in India is also representative of the growing Indian economy and the prospering business opportunities in India. The soaring sales being highlighted by the companies in India are reflective of the potentials of the investment climate in India. The investment climate in India is very much dependent on the consumer and the Economic Growth in India is boosting on basis of the latter.

read more »

Nowadays, the National Bureau of Stats will release the main macro-financial info in April, though the major institutions are expected to have a extremely nice macro-economic information, but some foreign specialists trotted out the “China collapse theory”, whilst many domestic economists also publicly said that with the gradual disappearance of the result of stimulating investing and get measures to curb genuine estate speculation and other overheated, about to announce a significant quantity of month-to-month financial information may possibly demonstrate that China’s expansion momentum will have started to peak.     Slowing financial growth in the chain     In the April forecast of economic info, several economists predict the information published more than the prior year will be substantially enhanced, but this is primarily based mostly on final year’s low base, is also likely to cover up the truth that the slow growth of the chain.     UBS economist Wang Tao in Beijing (blog) said, April’s industrial manufacturing growth fee could be only 18%.

read more »

Indian Economic/Statistical Services Exam is conducted by the Union Public Service Commission to recruit Grade IV officers for the Indian Statistical Service (ISS) and Indian Economic Service (IES). The exam is generally conducted in the month of November. Out of the many careers offered by the Government sector, Indian Economic Service is one of the most attractive among the young post-graduates. Selected candidates are placed in the Planning Commission, Labour Bureau, Central Electricity Authority, Economic Advisers to many ministries, Forward Market Commission, Tariff Commission, Planning Board, Tariff Commission National sample survey and other allied offices where specialists in Economics are required. An illustrious yet highly specialized service where the appointees are giving critical inputs in the policy making of the financial and economic affairs, and, additionally, they can go on deputations to different agencies of United Nations.

read more »

During the beginning of my trading career it was difficult to decipher the numbers that were released with economic data.
One of the biggest challenges is to determine which category of information is more accurate and the market will react to.

For example, often times we will see economic data released that not only has the headline numbers for the report but also core numbers.  It was said for some time that it was mostly the US that chose to focus on core numbers. While many disagree with this idea of looking at core numbers because it often skews the data, it does pose a problem because of all the confusion.

At the moment economic data is released most news traders will simply listen to the headline numbers and make a decision.  However there are often times subcategories which the markets/traders will often want to focus on.  If you are not aware of the specific report you are trying to trade and spend some time studying the details and reactions for some time, I would be very cautious trading real money on a gamble like this.

read more »

Many experts have articulated that Vietnam is the new economic hotspot and has the potential economic growth and development China once had. Vietnam has a population of over 86 million, making it the 13th most populous country in the world; at the current growth rate it may soon reach the top 10 spot. Vietnam is a young country with an outstanding 65% of its population under the age of 30. Traditionally a rural agrarian society, the race is on for the move to the cities, like Thailand and Malaysia before it.  Vietnam has an annual GDP (nominal) per person of only $1,000, similar GDP that made China & India the world number one place for labour and outsourcing. Despite economic instability Vietnam still manages to maintain high consistent economic growth.

Vietnam has its fair shares of people in rural areas as to educated urban/city areas. This gives the best of both worlds; business labouring and industrial establishment will be beneficial aswell as quality service outsourcing and other tertiary sector businesses. They have greater population, economic growth, and more competitive GDP per capita than rival neighbours, this is the imitating competitive edge China had that made them one of the most powerful country on earth.

read more »

An economic situation in which a country’s gross domestic product or output is sustaining a negative growth for at least two consecutive quarters or six months is called an economic recession.  For the National Bureau of Economic Research (NBER), “recession is a significant decline in economic activity lasting more than a few months”.

Economic recession lasts for eleven months and may reach until two years.  While a recession that is short lived is called economic correction.  Meanwhile a sustained recession turns into a depression.

What causes recessions to happen?

There are complex reasons as well as simple reasons why economic recessions happen.  John Maynard Keynes states that there are “animal spirits” as driving elements for a recession.  “Animal spirits” could be confidence, uncertainty, and pessimism.  These “animal spirits” prevent objectivity and quantitative analysis.

read more »

The global economic market being sluggish and not likely to get back into shape anytime soon, it only makes sense to live prudishly and economize on expenditures. There are a lot of ways to wade through these financially troubled times. Such economically distressing phases are characterized by a general sense of fear- fear of losing jobs, fear of losing invested money and the like. Here are a few steps to help you get by and survive an economic depression.

Most of the time, we may be physically prepared for a bad phase like an economic depression, for example, have enough savings in the bank; however, very few of us are psychologically prepared for the hard times. Economic depression can also lead to emotional and mental depression as a low economy means restricting many lifestyle activities such as cutting down on impulsive shopping, holidays, and the list goes on. Therefore psychological preparation for an economic depression becomes as important as having some spare cash for a rainy day.

read more »

China’s economic has grown very fast since its reform and opening-up policy began 1978.  But this year the domestic growth is expected to slow as exports to foreigner countries are hit by the USA economic crises and it affect on global economies.  Although the United States government passed a $700 billion “rescue” package to stabilize the crises, the rippling effect is expected to have a slowing effect on China’s brisk economic growth making it the slowest since 2002..

According to the National Bureau of Statistics, China’s share of the world’s combined gross output rose to 6% in 2007 compared with just 1.8% in when its reform and opening-up began 1978.  The growth over the last 30 years has moved China’s GDP ranking in the world from 10th in 1978 to 4th exceeded only by the United States, Japan and Germany.  World Bank ratings show China’s developing economy in the category of lower middle class income with per capita between $936 and $3,705.  Per capita income rose from $190 in 1978 to $2,360 in 2007 and China’s GDP grew at an annual average rate of 9.8%, much higher than the world average during the same period.

read more »

The Bad News

The U.S. economy may have finally slipped into a recession and all sectors of the economy are rightfully concerned. Credit markets are freezing and citizens are losing their homes. The Dow Jones Industrial Average dropped under 10,000, for the first time since October 2004, a number that represents a large psychological blow to the American psyche. Despite extraordinary government intervention, the nation is gripped in fear that any effort to try to reverse the unraveling of once-solid companies may not be enough.

Don’t think that the economic crunch is the problem of the U.S. alone. The fear of a worldwide recession is growing each day. Ireland has fallen into recession as the country’s economy dropped by 0.5% in the second quarter. Analysts are saying that Germany and Spain could be next. Iceland, once a nation that gave its citizens one of the world’s highest per capital incomes, is on the brink of becoming the first “national bankruptcy” of the global financial meltdown. The Nikkei has plummeted more than 9 percent and other Asian and Pacific markets suffered heavy losses. All over the world, stocks and bonds are falling-and there is no end yet in sight.

read more »