The world’s second biggest economy is into deep trouble. Japan’s exports have plummetted to a record 27% from last year. This means that Japanese production slowed down significantly. Either that or demand for Japanese products really dropped. But one thing is for sure, Japan, which is in recession, is likely to experience more economic inactivity as production facilities are being closed and workers are being laid off. Sounds very familiar with the situation back in the United States. It then appears that the world’s largest economies are failing. However, there is a wide belief that after this crisis the economies of the industrialized countries will revive. That is, the current economic failures shall serve to fix the current complexities in the world market. After the dusts have settled, a new world economic order will definitely surface.
Posted by Jones on December 29th, 2008 :: Filed under
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Banks and lenders have reacted strongly against the new rules on credit card practices. The new rules impose stricter regulations in raising interest rates on credit card transactions.the regulations, which was adopted by the Federal Reserve and other federal regulators, also require credit card issuers to give sufficient time and notice to card holders before raising interest rates and making their payments. The issuers warned the new rules would reduce credit for consumers.
As expected, the banks would naturally react against the imposition of the new credit card rules. The banks’ reactions are totally out of place. With the bailout in place, the banks should not oppose the imposition of the regulations on credit card. After all, the financial mess is of their own wrongdoings. The government is just fixing the problems the financial insitutions have brought. So it is only right to protect the consumers, just as the government saved the asses of the banks’ “strategists” who brought the financial turmoil.
Posted by Jones on December 28th, 2008 :: Filed under
EVERYDAY MONEY STUFF
It seems then the OPEC action to cut production boomeranged on its face. The oil production cut is obviously a ploy by the cartel to spur another wave of oil price increases. By reducing production, the supply will drop and hence demand will rise, which could then result to an increase in oil prices. However, with the way things are going, the OPEC move is not effective, which is also good for the consumers. Let’s just hope oil prices will be stable in a long run.
However, the drop in the oil prices took its toll on the utility companies. Shares of the utility companies dropped sharply in the stock market. The recent announcement by OPEC to slash oil production did not have any effect, as crude oil costs fell even lower. But analysts said the weakening electricity demand is the primary reason in the drop in the utilities’ shares.
Posted by Jones on December 27th, 2008 :: Filed under
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General Motors is to announce the release of tis redesigned Chevrolet Equinox. The 2010 Equinox will debut at the North American International Auto Show next month. Well, nothing is quite intriguing about this new product. It just means that GM is still in the business. However, this will certainly give rise to the question, is GM really troubled? The company has been asking for financial aid from the government. The automaker said its financial chest is drained out. But with the release of the new and redesigned Equuinox, GM seems to be still on the right track. So, would it really need financial help from the government? is it really worth to shell out taxpayers’ money to this company?
Posted by Jones on December 26th, 2008 :: Filed under
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The United States may slightly miss its target production of biofuels by 2022. According to government estimates, the country’s total biofuel production by 2022 may reach only 30 billion barrels, 6 billion barrels short of the mandated objective. Government officials said the the current technologies for biofuel production is not enough to meet the mandated target.
Not a great news. If such thing is true, that means the country will still rely on crude oil. The environment is already reeling on the effects of climate change brought by the use of oil and other pollutants. The government ought to speed up biofuel production and double its efforts towards innovating new technological advancements so that the environment-friendly biofuels can replace oil. The pressure will be on the government.
Posted by Jones on December 25th, 2008 :: Filed under
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After an almost untimely and stunning collapse, Morgan Stanley is finally showing signs of life. With fund infusions coming from the U.S. government through the bailout package and Japan’s Mitsubishi UFJ Financial Group, the American bank is able to buy back its own debts. Such anactivity shows that Morgan Stanley is ready to become an active player in the financial market.
It seems that the bailout plan worked, at least in the case of Morgan Stanley. However, the bailout package should be the last to be approved by the government. In the future, the government should not use the taxpayers’ money to rescue the ailing companies, whose failure were of their own doings. And the lesson that can be learned on this financial crisis is that banks should be more careful in introducing new products. Complex and risky financial products now proved to be unhealthy investments.
Posted by Jones on December 24th, 2008 :: Filed under
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As Christmas time is in the offing, last-minute holiday shoppers flocked to the stores this week to buy gifts and other discounted items. Shopping malls and retail outlets have been crowded by people who are on the shopping-spree. This last-minute shopping frenzy shows that despite the ongoing fiscal slump, people still want to buy gifts for their loved ones this Christmas. The spirit of gift-giving and the tradition of being with the family for the holiday season is still strong as is evident now.
This activity at the shopping malls may be good to the economy. Consumer spending is really needed to boost the economy, which is now brought to its knee by the financial crisis. Perhaps with the flow of money going out now, the financial sector will be bolstered.
Posted by Jones on December 23rd, 2008 :: Filed under
EVERYDAY MONEY STUFF
An allegedly long-running pyramiding scheme run by investment strategist Bernard Mardoff has rocked the entire financial and business world. The scheme, popularly called as the Ponzi scheme, has taken the government by surprise and left many investors shocked most particularly those investments affected in the scandal.
This case is really aweful. It is surprising that the government has not detected the scheme, which has been said to have been running since 1999! What has the government been doing? Are the officials sleeping on their jobs? The current financial crisis is already crippling the economy, and the addition of scandals such as this is really unbearable. This could aggravate the the already volatile condition of the financial market. The scandal is a real pain in the neck.
Posted by Jones on December 23rd, 2008 :: Filed under
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The world’s largest cartel, the Organization of Petroleum Exporting Countries (OPEC), has announced that they will reduce their oil production by 4.2 million barrels per day. The oil production cut was a result of the decline in oil consumption around the world. Well, it is only right to reduce oil production since consumption has slowed down.
However, this announcement is suspicious. When the oil prices went soaring this year, the cartel was slow to move to avert the situation. But now that the prices of crude oil is stabilizing, and may have been going down, the OPEC’s reaction is quick by immediately announcing a production cut. Does this mean the cartel is cooking up on something?
Posted by Jones on December 22nd, 2008 :: Filed under
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The recent interest rate cut, even at a record-low, seemed to have failed to lift business confidence. Today (December 18), stock trading at the Wall Street fell. The Dow Jones industrial index plunged by 1.12% or 99.80, the Nasdaq stock market index also fell 0.67% or 10.58 and the Standard & Poor’s index dropped 0.97% or 8.76 points. While some economists previously said the interest rate cut would boost business confidence, the outcome so far was the other way, the investors’ confidence seemed still reeling the effects of the financial turmoil.
The question that needs an answer will be, “When will this financial crisis really end?” the crisis has already brought the economy at its heel. It has been going on since december last year. It seems the government is not quick at resolving the crisis, although Pres. George W. Bush was very quick at dodging away at the shoes thrown at him in Iraq.
Posted by Jones on December 22nd, 2008 :: Filed under
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