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2008 Economic Crisis
A sub-category dedicated to the economic crisis that has affected us all
810 Questions
Who are the culprits of the housing bubble?
The number of culprits is almost infinite. While President Carter started the issue with the community reinvestment act, we all, as Americans, created the issue.
For some strange reason we believe that all Americans deserve to own a home, have children and health care. The result is that we forced banks to make poor loans. We tax working people ever more and then ask them to give health care to the laziest portion of society at the expense of our children.
There is no right to own a home. There is no right to a living wage or health care. When we make false "rights" for people, we take away the needed drive to push forward. When there is no drive to move forward and a right to the finer things of life. You get chaos and failure. Other countries certainly promote our desire to implode. It makes their lives easier. If America fails, every other country wins. When we wish to make friends with other countries, the easiest way to to promote our failure.
Being greedy and wanting to make friends with other countries is the problem. Everyone is to blame.
The concept of maximizing share holder wealth is a goal that encompasses everything that is expected out of a management.
when would share holder wealth increase?
Either by dividends or by increase in value of the shares.
When can a company declare dividends or when would a company's share value increase?
when its profits increase, its net sales and revenue increase etc.
so indirectly by trying to achieve one goal we are attaining some other goals that are very important for a company's existence.
Do American consumer benefit from international trade?
Yes! Global trade benefits U.S. consumers by giving them access to a variety of goods and services!
Why did the us real estate market crash?
Trying to cash in on the heavy demand for residential properties, real estate majors started promoting a huge number of residential projects. This led to overbuilding. This resulted in a surplus inventory of homes which eventually caused the real estate prices to decline by the end of 2006.
Ease of availability of loans coupled with the assumption that property prices would continue to move upwards prompted a lot of subprime borrowers to buy houses. Once the housing prices started to fall, the interest rates on loans started to rise. Most of the borrowers were unable to make their payments on time and also due to unavailability of refinance options default on loans started to increase. For most home owners, their outstanding amount on the mortgage loan was much more than the value of their houses. This motivated home owners to walk away from their property in spite of the fact that it would impact their credit ratings.
The Sensex would remain volatile until the global economic crisis subsides. People are very cautious about investing in the share market hence the ups and down in the index would continue for a few more weeks
Once the global situation improves we can expect the sensex too to rebound and reach its Jan 2008 highs...
What industries are least affected in times of economic uncertainty?
Consumer goods, oil & petroleum, power etc.
What is the advantages and disadvantages of foreign trade multiplier?
advantages of foreign trade multiplier
How many consecutive quarters of negative GDP growth is considered a recession?
Two consecutive quarters.
When the dollar is under a flexible exchange rate regime
Does the stock market always go up?
But in my honest opinion I believe the market will always have to fluctuate upwards.
What are salient features of developing economy?
These economies are the mid-point between developed and undeveloped economy. It has got the features of both the developed and undeveloped economies. Developing economies refer to India, Pakistan, Brazil, Indonesia and etc.
Important features
Dominance of agricultural sector:
Major source of income in case of undeveloped and developing economies is agriculture. A large section of population earns living through agriculture. Agriculture is the primary sector of these economies
Small and large scale of production:
Both the private and public sectors exist in the economy side by side. Goods are produced on large and also on small scale by public and private sectors.
Production for self-consumption:
A large amount of goods and services produced is consumed by the producers themselves. Majority of farmers grow props for their own consumption.
Illiteracy:
The important feature of developing economy is its illiteracy. Though efforts are made to eradicate illiteracy but there is still considerable illiteracy and unskilled labour.
Under utilisation of resources:
Developing economies have got significant amount of natural resources and large number of labour force. Due to lack of technical knowledge, natural resources are not discovered and fully utilised.
Preference to labour intensive industries:
Unemployment and underemployment are also the problems of developing economies, so small scale and cottage industries which absorb large number of hands are preferred.
Vicious circle of poverty:
Poverty is the vicious problems of developing economy due to poverty there is low income, lesser investment, lesser product in and the result is the poverty again.
Our Indian economy is also termed as developing economy. We have achieved considerable amount of industrialisation at faster rate. In certain industrial and technological field we are at par with developed economies
Did discover bank receive tarp monies?
yes What was the total amount of money that Discover Bank received from the Economic Stimulus (bailout) plan?
Effects of the current global economic meltdown on the ghanaian economy?
The economy of Ghana is expected to pick up late in the year with the creation of new oil fields. The country has a weak currency and allegations of high-level corruption. Democracy in Ghana is keeping the country stable and moving towards an improved economy.
It's a unit of power. MW- Mega Watt and 1MW= 10^6 Watt (or 1000 kW).
O2 is a cell phone company. Their mission statement is as follows: "To enable our customers to make the most of their world and its possibilities through the services we offer."
What is universality and diversity in the psychosocial theory?
It means you can stick it up your cause idont know it.
What caused rapid expansion of global economic commerce and manufacturing?
The Spanish conquest of large quantities of New World gold and silver
What is meant by weekly overhead?
weekly overheads also known as fixed costs are costs which do not vary with the number of items sold or produced in the short term.
things such as rent must be paid whether or not the business is producing a unit or selling a unit/making any income at all. these costs must be paid.
