2008 Economic Crisis

growth and inflation

There was no recession in 1998. See the NBER website for US data.

President Dwight D. Eisenhower, near the end of his second term.

In 1931, Austria's largest bank failed. In Asia, both farmers and urban workers suffered as the value of exports fell by half between 1929 and 1931. As European and United States demand for such Latin American products as sugar, beef, and copper dropped, prices collapsed.

No , but that has contributed to it.

Originally massive bank were lending to corps and businesses ( that is the money you put in the bank ) and all of a sudden , everyone wants their money back. You can see what's going to happen... The banks don't have enough money to give to people , they go out of business etc Businesses are going out of business because they don't have a bank to lend from.

Everyone has less money and the government is still stealing money from us.

Like the VAT cuts makes a difference.

Matty

Most recently because of the turmoil in the Middle East.

IMF

It is not heavily affected but it is slightly affected. Companies that are export oriented have started reducing the number of people they recruit every year. Companies have started to tighten the appraisal & performance management process and the low performers have been asked to leave. The hikes that the employees may get seems very small for the next financial year because all companies want to play it safe and are not ready to commit for high pay budgets for the next financial year.

The Financial Bailout and the Big 3 bailout

1. Heavy Traffic

2. Trash

3. Flooding everytime there is rain

4. High crime rates

5. Drugs

6. Poor Educational System

7. Poverty as seen in the squatter areas

8. Too much politics

9. Pollution

10. Poor healthcare

11.corruption

The first and probably most obvious way is by giving people jobs. It is an oft cited statement that the quickest way out of poverty is to be employed. Less obvious ways are by delivering goods more and more efficiently (and thus at cheaper prices. read: Wal-Mart) and by inventing new goods.

Wal-Mart is a prime example of businesses helping poverty simply by means of doing business (Someone is bound to complain that Wal-Mart hates poor people. Save it, I'm merely using Wal-Mart as an easy example). Wal-Mart's business model is having goods at the lowest possible price. This allows poor people to purchase goods they would not be able to have at higher prices. It keeps inflation down, which is very good for the poor.

The invention of new goods drive the cost of other goods down. For instance, if a cheaper substitute for milk was invented, more people would buy that, thus providing profit for the company that invented it. And businesses exist for profit, so there is incentive to find cheaper ways of doing things.

Yes, they are.

Due to a sub-prime mortgage crisis financial problems became too out of reach to solve and many people rushed to Northern Rock to withdraw their money.

Hello,

From what I know, it is:

( (Total unemployed)/(Total Employed + Total Unemployed) ) x 100% to get percentage on unemployment in a country.

Of course you must know what it means to be unemployed. To be unemployed one must be able to work and actively searching for a job but not in a job.

Hope I Helped

when x is inferior and y is normal then price of increase

Poor monitoring by the US of the banks lead to banks loaning money to people that were not able to pay them back.

And/or interest rates went up and many were not able to pay and the US banks were not making money.

Now the banks don't have as much money to loan to people and no one has money.

Most banks in the world are tied into the US banks and so they have less money too.

also,

tony Blair and George Bush had tea with kim jong il

:)

I don't yet please make an analysic of it

http://wiki.answers.com/Q/What_are_the_advantages_and_disadvantages_associated_with_Net_present_value_and_internal_rate_of_return_as_methods_of_investment_appraisal pls. what is answer provided for the qustion above

There is a school of thought, supported by the IMF, that the rest of the world can pull the world economic engine despite the likely slowdown in the US. Current economic data from Europe and Asia support this view. The Fed presented an optimistic outlook for the US economy as recently as August 7 but has now changed its prediction. The housing market slowdown has escalated into a liquidity crisis of global proportion. I believe that the US economic growth during the rest of 2007 will be lower and led by weakness in consumer spending. Going forward, a consumption-led slowdown in the US economy should have an impact on its trading partners. The Indian economy has grown at more than 9 per cent in 2005-2006 and projections indicate robust performance in the coming years. India's exports may record a decline if the US slows down. In 2006, roughly 18 per cent of India's exports - about 15 per cent of India's GDP - was directed to the US. The negative impact can be partly offset by exports of services. As the US slows down, an effort to reduce costs could boost outsourcing of services. The IT sector has made and will make impressive strides. Possible setbacks from weakness in capital spending in the US may be insignificant. On the financial side, equity markets have posted losses and are likely to move in tandem with events in the US. The Sensex for instance posted declines in 2001 when the US was in a recession. Institutions in India holding US mortgage-related securities are likely to suffer losses. On the credit side, the Indian corporate sector raised about $15 billion from external sources in the first five months of 2007. At the extreme, Indian corporations could face higher costs of borrowing through this channel due to increasing credit market spreads. Firms would have to tap into the domestic credit market as an alternative, thereby exerting upward pressure on domestic borrowing costs. This could whittle down the economic growth rate. These are the possible channels through which the US crisis could affect the Indian economy. Precise estimates of these repercussions would need a more thorough analysis, which is premature given the short life of the crisis. In sum, the spill-over effects of the US financial crisis to the Indian economy may not be significant enough to overwhelm the positive economic momentum already in place.

by coducting open market operation.

It can work both ways as you can say it helps small businesses grow and create more jobs helping the economy grow. But in the other hand it can cause the4 average working family to fall deeper and deeper into debt. It can be good if you can manage the repayments OK. But if not it can leave some people wanting to just give up. So I'd say it has its pro's and con's

liquidity position of a firm is the amount of liquid assets ,that is, cash ,bank balance and those assets which can be converted into cash as and when required by the firm which is owned by the firm currently.

I am sure this is going to work.

Put a bunch of Rubber Band inside a big plastic cup.
And then put 2 pieces of tissue, then tape the egg to your protection.


It will work for sure!
It work fore me just today!

By the concept of Elasticity in the context of running a business.. the best view is taken in the elasticity of demand. Goods and Services are either highly elastic or low elastic. A good with highly elastic demand will have higher changes to quantities demanded for relatively small changes in price. Whereas something with a lower elastic demand, will not have major changes in demand for a small change in price. So for example, the price of a diamond is highly elastic, a small change in say a fall of diamond prices will have a huge impact, whereas something like salt, an increase or decrease in price will not affect the amount demanded. Thats how useful the concept of elasticity is in running a business successfully.