The Economic Crisis

[FXexpert]

Despite the ongoing international economic crisis, there are clear glimmers of hope showing through the financial cloud. Since the bank bailout in the United States, people have been able to put money in the bank without worry, causing the national savings rate in the United States to rise by a significant percentage.

Just last week, retail sales fell but not nearly by the margin experts expected them to drop by.

The stock market finally showed significant gains last week, rising for three consecutive days for the first time since January.

These three indicators, among many others, show consumer confidence is on the rise, hinting that consumers as well as investors may see an eventual end to this economic crisis.

 

[andy003]

According to the Director of the White House Economic Council Larry Summers the “economic freefall” maybe come to an end in next couple of months in the US economy.

Equally hopefully, he said there seems to be some reduction in credit conditions. Summers made his remarks before the National Economic club of Washington, D.C.

However, Larry also added that he is not sure in the future if America will be the main power behind world economic development.

During his speech, the former Treasury Secretary also addressed the matter of market-to-market accounting, saying that in his outlook it is not at the centre of the present financial crisis.

Larry also remarked on the G20 meeting which was held in April 2 in London. He said the conference help to support other nations to entrust to adopting measures, which would boost global development.

 

[andy003]

Even though it seems that the speed of the global financial crisis is starting to slow down the UK economy may resume struggling in the forthcoming periods.
The main reason of concern is that the UK economy cannot be able to spend any longer, as the viewpoint on public finance is getting very serious. In the last weekend, the Treasury said that the government is building requirements to cover the losses stalked by the financials save packages. So far, UK is the first to confess that the taxpayers will support to banking system sufferers, although more countries determined to invest funds in the banking system.

 

[2jessica]

Thank you for sharing useful information.When the Great Depression occurred it took down the rest of the world's economies back then too. And then, the economies weren't nearly as interconnected as they now are. The other people to blame are greedy companies like the banks who gave out risky loans, OPEC which hiked up oil, speculators which hiked up oil, China and India which subsidized fuel and other commodities increasing the demand and raising the prices of commidities around the world.

 

[andy003]

The world financial system is in a tremendously doubtful mode at the moment, irresolute between the hope and optimism that the global financial system may be over the most horrible and the information that "bear market rallies in a recession are the rule not the exception".

 

[bestforexsoftwares]

The current crisis is going to take many years ...the de-leveraging process is still undergoing and extremely severe ...

For every $100-$1000 out there...it was borrowed with only $1....how do you make up for this deficit? Lots of bad debts to be absorbed...😕