Posted on 25 November 2009
Tags: Asian countries, central bank, China, dollar, Europe, Financial Times, interest rate, recovery, sales, US, world bank
The World Bank published a report today in The Financial Times, saying that rapid interest rate increases aimed at surrounding inflation in product and asset prices, could give way to another recession in US and European countries, as their economies are recovering quite slowly.
The World Bank President, Robert Zoellick, said in the report that waiting for bubbles to burst and then cleaning up the aftermath is now a new lesson of what not to do.
According to him, the interest rates, tightened too much could lead to another downturn, especially in the case of countries that are showing weak recovery signs.
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Posted on 14 July 2009
Tags: agricultural products, Asia, Asian Financial Crisis, bank, Bank Accounts, bank deposits, bank savings, bank shares, Bert Ely, BFM FHLMC Mortgsecurities Fund, Brazil, British government, Business_Finance, central bank, Central Banking Corp., Chairman, Channel Islands, China, congress, Dow 30, Dutch government, Economic history of the United States, economics, Emergency Economic Stabilization Act, Enron, Enron Creditors Recovery Corp., Europe, Fannie Mae, Federal Government, Federal Reserve System, Financial crises, freddie Mac, GBP, Great Britain, Inc., Indonesia, industrial infrastructure, insurance fund, International Monetary Fund, Internet startups, Japan, JP Morgan, JPMorgan Chase & Co, Latin America, Martin Upton, MCI, MCI Worldcom, Mexico, Microsoft, Microsoft Corporation, Netherlands, Northern Rock, Northern Rock Plc, oil, oil prices, Real Estate, real estate prices, real estate values, Russian government, senior management, social and municipal services, South Korea, speculative real estate bubble, Stock market crashes, Stock Markets, supervision agencies, Sweden, Thailand, Thailand’s government, The Bank of England, The Netherlands, the United States, Tokyo, Tripartite Authority, Turkey, united states, United States housing bubble
If we look into history of different countries we will find that different countries faced the financial crises at different times. As the world is facing now financial crisis now also, the question comes in mind that who are those who run this finance horse, what are the reasons which leads to financial crises? Or is there is someone who is holding all the strings and keep them pulling? So many questions come in mind when mind starts thinking about it.
Well I had searched about this and compiled these ten nasty crises. Check out these ten dramatic crises.
1 – Argentine economic crisis (1999 – 2002)
Argentinean economy was destabilized in 1980s when Latin American Crisis struck it. Argentine was an import dependent country where people usually convert their peso into dollars to feel secure. The high inflation rate leads its currency to lose the confidence and adding oil to fire the government that time spent generously on itself while ignoring the country’s crumbling industrial infrastructure.
Mexico and Brazil were the major trade partners of the Argentine in 1980s both countries suffered the economic crises which spread out in Latin America. Brazil’s currency was devalued in 1999 that damaged a lot Argentinean exports and adding fuel to fire the dollar was revalued giving a harsh blow to Argentinean Peso.
Till 1999 the country was having 3rd consistent year of economic decline but the government haven’t devalued the peso, which made the crisis worse. In such conditions the investors ran on banks for dollars to send abroad for safety. Meanwhile the government freezes everyone’s bank accounts. This step of the government raised violence amongst citizens and protests through out country were started. The government was collapsed in 2001. While in crisis the people were bartering for goods because lack of cash, many people eked out a living by scavenging cardboard for recycling plants.
The new government 1st tried to setup a third currency between dollar and peso but that failed. Then it instructed the banks to convert all dollars into pesos. That step worked and peso was lead to diminish in value. Because of that exports got higher and in meanwhile the government tightened its tax policies, improves social welfare, encourages business growth and put the reserve dollars up for sale in market. The country got the surplus trade because of its agricultural products anyhow its still struggling with inflation.
Lesson
Freezing bank accounts leads the crises to get worst. It can’t be a smart step to tackle the crisis.
2 – Russian Financial Crisis (1998)
The Russian government in 1993 introduced inflation-free short-term treasury bills known as GKOs to finance the country’s deficit. GKOs were traded on currency exchanges. Most of it was state owning while only 1/3 of funding came from foreign speculators who were attracted by high interest rates. Like a classic Ponzi scheme the government used proceeds from sales of new GKOs to payoff interest on matured bills.
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Posted on 03 April 2009
Tags: causes of inflation, central bank, cheap chinese goods, China, chinese goods, Currency, demand, Dependence on Foreign Oil, economic growth, economic myths, energy, energy prices, expensive oil, financial markets, food, foreign oil, higher oil prices, imports, India, inflation, inflation myths, international trade, money supply, oil, oil prices, rising oil prices, supply, supply and demand, united states
Minds of most Americans have been corrupted with many economic myths by mainstream economists and so called experts, which are reinforced by the media and often repeated on the streets. These myths are false in most cases, and based on half truths in others. We constantly hear things like: inflation is caused by rising oil prices; consumption is the most important element for economic growth; government expenditures help stimulate the economy; and many others.
In this article, First in a series of two, I will explore some popular myths regarding Inflation and Energy matters. In the second article, I will write for you about common myths about Consumption.
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Posted on 08 August 2008
Tags: Air Canada, Alabama, Alaska, all, America, American Express, American Institute, American Legion, American Society, American State Bank & Trust, Anaheim, Arizona, Arizona Cardinals, Arizona Diamondbacks, Arizona State University, Arkansas, Atlanta, Atlanta Braves, Atlanta Falcons, Atlanta Thrashers, Austin, Baltimore, Baltimore Orioles, Baltimore Ravens, Bank of America, Bank of America Efectiva, Bank of America MilesEdge, Bank of America PetRewards, Bank of America WorldPoints, Bank of Hawaii, Bank of Iowa, Bank of Louisiana, Bank of Marin, Bank of St. Louis, BART Rider, Blanche Card, Boone County, Boston Bruins, Boston College, Boston Red Sox, Buffalo Bills, Buffalo Sabres, Calgary Flames, California, California Association, California Lutheran University, Cash Rebate, Chairman, CHICAGO, Chicago Bears, Chicago Cubs, Chicago Sky, Chicago White Sox, China, Cincinnati Bengals, Cincinnati Reds, Cleveland, Cleveland Browns, Cleveland Indians, Club of America, Colorado, Colorado Rockies, Colorado State University, Columbia, Connecticut, Connecticut Sun, Contractor, Credit Cards, Dallas Cowboys, Dallas Stars, Delaware, Denver Broncos, Derby, Detroit Lions, Detroit Pistons, Detroit Shock, Detroit Tigers, Executive Business Card, First American Bank, First Bank & Trust, First National Bank & Trust, Florida, Florida International University, Florida Marlins, Florida State University, Green Bay Packers, Handyman, Houston Astros, Houston Comets, Idaho, Idaho State University, Illinois, Illinois State University, Indiana, Indiana Fever, Indiana University, Indianapolis, Indianapolis Colts, Indy Racing League, Internet Visa, Iowa, Iowa State University, Jacksonville Jaguars, Kansas, Kansas City Chiefs, Kansas City Royals, Kentucky, list, Long Beach, Los Angeles Dodgers, Los Angeles Sparks, Louisiana, Louisiana State University, Major League Baseball, Major League Soccer, Manhattan College, Maryland, Massachusetts, MasteCard, Miami, Miami Dolphins, Miami Heat, Miami University, Michigan, Michigan Association, Michigan State University, Milwaukee Brewers, Minnesota, Minnesota Lynx, Minnesota Twins, Minnesota Vikings, Mississippi, Mississippi State University, Missouri, Montana, national city, National Team, Nebraska, Nevada, New England, New Jersey, New Jersey Devils, New Jersey Nets, New Mexico, New Orleans, New Orleans Saints, New York, New York Giants, New York Jets, New York Liberty, New York Mets, New York Yankees, North Carolina, North Carolina State University, North Dakota, Oakland Athletics, Oakland Raiders, Ohio, Ohio State University, Oklahoma, Oklahoma State University, Olympics, Omaha, Omaha BucksBack, Oregon, Oregon State University, Orlando Magic, Pennsylvania, PGA Tour, Philadelphia Eagles, Philadelphia Phillies, Phoenix Coyotes, Phoenix Mercury, Pittsburgh Pirates, Pittsburgh Steelers, Portland State University, Premier, Princess, Princeton University, Sacramento Monarchs, Sam Houston State University, San Antonio Silver Stars, San Diego, San Diego Chargers, San Diego Padres, San Diego State University, San Francisco Giants, Seattle Mariners, Seattle Seahawks, Seattle Storm, Smith Barney, South Carolina, South Dakota, South Dakota Democratic Party, Southern Illinois University, Sportsman, St. Louis Cardinals, St. Louis Rams, Tampa Bay Buccaneers, Teacher, Tennessee, Tennessee Titans, Texas, Texas A&M, Texas Rangers, The Bank of Kentucky, Thomasville, Toronto Blue Jays, Turkey, united states, University of Arizona Athletics Platinum Visa, University of Arkansas Credit Card, University of California-Los Angeles, University of Chicago, University of Chicago Student Credit Card, University of Cincinnati Platinum MasterCard, University of Delaware, University of Florida, University of Georgia, University of Houston, University of Idaho, University of Illinois Credit Card, University of Iowa, University of Kentucky, University of Kentucky Visa Credit Card, University of Maryland, University of Maryland Visa Credit Card, University of Memphis, University of Miami, University of Minnesota, University of Minnesota Visa Credit Card, University of Missouri Alumni Association Credit Card, University of Nebraska, University of North Carolina Credit Card, University of North Texas, University of Oregon, University of Pittsburgh, University of South Carolina, University of Southern California, University of Tennessee, University of Virginia, University of Virginia Visa Credit Card, University of Washington Alumni Association Credit Card, University of Wisconsin, US, US Tennis Association, Utah, Utah State University, Virginia, Virginia Tech, Visa Card, Washington Redskins, West Virginia, Western Kentucky University, Wisconsin
I have tried to include all credit cards issued in US. If you think if I have missed any, please leave a comment. More than 1200 cards have been included.
1. AAA Credit Card
2. AAA Rewards Visa Credit Card (Northern California, Nevada, Utah)
3. AAdvantage American Express from Citi
4. AAdvantage Bronze MasterCard from Citi
5. AAdvantage Bronze MasterCard from Citi for College Students
6. AAdvantage Gold World MasterCard from Citi
7. AAdvantage CitiBusiness Card
8. AARP Platinum Visa
9. AARP Rewards Platinum Visa Credit Card
10. AARP Travel Plus Visa Signature Card
11. Abercrombie & Fitch Credit Card
12. Academy of General Dentistry Platinum Visa Card
13. AccountNow Prepaid MasterCard
14. Adirondack Trust Company MasterCard or Visa
15. Advanta Platinum BusinessCard with Rewards
16. Advanta Life-Of-Balance Platinum Card
17. Advanta Platinum BusinessCard
18. Aer Lingus Rewards MasterCard
19. Agriculture Federal Credit Union Visa
20. AICPA Platinum Visa Card
21. Air BP Visa
22. Air Canada MasterCard
23. Aircraft Owners and Pilots Association MasterCard
24. Air Force Association Platinum MasterCard
25. Air Force Sergeants Association MasterCard
26. AirTran Airways A+ Business Card
27. AirTran Airways A+ Visa Signature Credit Card from Juniper Bank
28. Alabama Central Credit Union MasterCard or Visa
29. Alaska Airlines Visa
30. Alaska Airlines Visa Business Card
31. Albina Community Bank Loop Card
32. All-Access Visa Prepaid Card
33. Allow Card Prepaid MasterCard
34. Alternatives Federal Credit Union Visa
35. Amalgamated Bank MasterCard
36. Amalgamated Bank Union MasterCard
37. Amalgamated Bank Secured Gold MasterCard
38. Amazon.com Business Credit Card
39. Amazon.com Platinum Visa Credit Card
40. American Association of Neurological Surgeons Credit Card
41. American Bar Association Visa
42. American Boating Association Credit Card
43. American Canine Association Platinum MasterCard
44. American Chemical Society Credit Card
45. American DreamCard MasterCard
46. American Eagle Outfitters Credit Card
47. American Express Business ExtrAA Corporate Card
48. American Express Business Gold Rewards Card
49. American Express Business Green Rewards Card
50. American Express Business Membership Rewards Card
51. American Express Business Platinum Card
52. The American Express Card
53. American Express Card for Students
54. American Express Cash Rebate Card
55. American Express Corporate Card
56. American Express Executive Business Card
57. The American Express Gold Card
58. American Express Golf Card
59. American Express IN:CHICAGO Card
60. American Express IN:LA Card
61. American Express IN:NYC Card
62. American Express Optima Card
63. American Express Optima Platinum Card
64. American Express Platinum Business Credit Card
65. American Express Platinum Business FreedomPass Credit Card
66. American Express Platinum Card
67. American Express Platinum Cash Rebate Card
68. American Express Preferred Rewards Gold Card
69. American Express Preferred Rewards Green Card
70. American Express Rewards Plus Gold Card
71. American Express SimplyCash Business Card
72. American Institute of Architects Credit Card
73. American Kennel Club Rewards Visa
74. American Legion Auxiliary Visa
75. American Legion Visa
76. American Medical Association Business Credit Card
77. American Medical Association Platinum Visa Credit Card
78. American Medical Student Association Credit Card
79. American Paint Horse Association Credit Card
80. American Photo Visa Card
81. American Quarter Horse Association Business Credit Card
82. American Quarter Horse Association Credit Card
83. American Savings Bank Secured Visa
84. American Savings Bank Student Secured Visa
85. American Savings Bank Visa
86. American Savings Bank Visa Gold
87. American Skiing Company Edge MasterCard
88. American Society of Civil Engineers Credit Card
89. American Society of Mechanical Engineers Credit Card
90. American State Bank Credit Card (Iowa)
91. American State Bank & Trust Visa (North Dakota)
92. American State Bank Visa (Texas)
93. American Taekwondo Association Credit Card
94. American University MasterCard
95. America’s Christian Credit Union Credit Cards
96. Amtrak Guest Rewards MasterCard
97. AmTrust Bank Rewards American Express Card
98. AmTrust Bank WorldPoints Credit Card
99. ANB Financial MasterCard or Visa
100. AnimalSafe MasterCard Read the full story
