The rapid growth of telecommunication with the emerge of IT industry has kept the GDP and different growth parameters steep rising post 1990s.However far beyond the imaginations and expectations of researchers, experts, analyst across the globe the recent turmoil in credit market, banking sector in the banks of USA, European and few Asian banks are the largest since 1929.
The somewhat grim financial situation we now find ourselves in indicates a strong need to redefine existing economic and financial models. It is too early to tell when or whether financial rescue packages recently put in place will turn the economies of the USA, Europe and Asia around. Initially these bailout packages have done little to stop the slide in stock indexes.
The demise of larger financial institutions such as Lehman Brothers was not totally surprising to everyone. An analysis of Lehman Brothers business model, their policies, lending strategies and basic business practices would seem to make the eventual downfall of the company inevitable. It is strange that with an abundance of danger signals that the fall of the company was not predicted much sooner or at least in time to have done something constructive about it. Instead employees and shareholders were left holding a rather empty bag.
The question has to be asked as to what if anything financial institutions have learned from this experience. Will they accept the bailout packages and continue with business as usual or will they use this financial assistance to buy time enough to redefine and retool their business models? This would seem imperative if we are to experience solid and sustainable economic growth once again.
Ironically at the present juncture economies like China and US who always stand Back to Back have without joining their had are trying their level best to save their economy which in turn, though un-intentional is helping other countries to recover from the same.
The practice of instituting financial rescue or bailout packages begs the question as to how long and at what cost will financial institutions and economies be able to withstand the pressure leading to future debacles. While the financial situation is under repair the investor has to review is or her own patterns of investment to determine how, from this time forward, to gain a sustainable growth rate.
So it is really up to the political leaders of the affected countries to step up and cooperate in finding the means not only to reverse the current situation but to prevent a reoccurrence as well. Until that happens the small investor, and perhaps the large investor as well, needs to be very cautions as to where they are putting their money.
All to often when we read the news about the plunging stock market we may feel unaffected unless we ourselves are players in the market. What is not always so apparent is the slowdown in the economy, noticeable loss of jobs and lowering of wages resulting from loss of share values. The average citizen needs to be aware of the effects of what is going on in the marketplace on his or her own well being. The road to recovery isn't just about saving major financial institutions but also about educating the average citizen about what this all can mean to him or her. - 16492
The somewhat grim financial situation we now find ourselves in indicates a strong need to redefine existing economic and financial models. It is too early to tell when or whether financial rescue packages recently put in place will turn the economies of the USA, Europe and Asia around. Initially these bailout packages have done little to stop the slide in stock indexes.
The demise of larger financial institutions such as Lehman Brothers was not totally surprising to everyone. An analysis of Lehman Brothers business model, their policies, lending strategies and basic business practices would seem to make the eventual downfall of the company inevitable. It is strange that with an abundance of danger signals that the fall of the company was not predicted much sooner or at least in time to have done something constructive about it. Instead employees and shareholders were left holding a rather empty bag.
The question has to be asked as to what if anything financial institutions have learned from this experience. Will they accept the bailout packages and continue with business as usual or will they use this financial assistance to buy time enough to redefine and retool their business models? This would seem imperative if we are to experience solid and sustainable economic growth once again.
Ironically at the present juncture economies like China and US who always stand Back to Back have without joining their had are trying their level best to save their economy which in turn, though un-intentional is helping other countries to recover from the same.
The practice of instituting financial rescue or bailout packages begs the question as to how long and at what cost will financial institutions and economies be able to withstand the pressure leading to future debacles. While the financial situation is under repair the investor has to review is or her own patterns of investment to determine how, from this time forward, to gain a sustainable growth rate.
So it is really up to the political leaders of the affected countries to step up and cooperate in finding the means not only to reverse the current situation but to prevent a reoccurrence as well. Until that happens the small investor, and perhaps the large investor as well, needs to be very cautions as to where they are putting their money.
All to often when we read the news about the plunging stock market we may feel unaffected unless we ourselves are players in the market. What is not always so apparent is the slowdown in the economy, noticeable loss of jobs and lowering of wages resulting from loss of share values. The average citizen needs to be aware of the effects of what is going on in the marketplace on his or her own well being. The road to recovery isn't just about saving major financial institutions but also about educating the average citizen about what this all can mean to him or her. - 16492
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