World of economy

Paul Krugman: America Not as Reliable

11. August 2011.
Krugman feels that two facts need to be borne in mind to understand the present situation in America. The first is that America is no longer a stable and reliable country, and the other is that rating agencies have no credibility.

Krugman considers that the US credit rating downgrade which occurred on Friday should not be taken seriously. Continue reading →

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Bankruptcy Threatens Planet

10. August 2011.
Ever since last Friday, stock on the Belgrade stock exchange has been dropping by 6% a day on average. The RSD has in just 2 days dropped by over 2%, while the auction of state treasury notes which finance, among other things, the budget deficit, ended by selling merely 2.95% of the state notes. All this despite the fact that the state offered an extremely favorable interest of as much as 14.5%.

The great fall of global stock markets is flowing over into the Balkans after the US credit rating downgrade. Continue reading →

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Investors Swarm to India

10. August 2011.
Foreign Direct Investments (FDI) had in India in June grown by over 300% to USD 5.65bn from 1.38 bn from the same period last year.

Foreign Direct Investments (FDI) had in India in June grown by over 300% to USD 5.65bn Continue reading →

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Not the End of the World, but It Feels Like It

8. August 2011.
"It’s not Armageddon, but feels like it. I assess that Hang Seng could completely plunge below 19.000 points o r a further 5% before we see it recover ", announces a stock market analyst in Hong Kong, Francis Lun.

The Asian stock markets reacted today with a strong fall of stock value to the US credit rating downgrade. Continue reading →

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America to Go Broke on August 2?

15. July 2011.
If the Democrats and the Republicans don’t agree by August 2 on how they will fill the empty state treasury, the US won’t have the money to return its debts. In that case, the most powerful agencies for assessing finances would mark the purchase of US security bills on the debt market as risky, which might put the stock exchange into panic, jeopardize investments and shake up the economy of the leading global force, but also the rest of the planet.

If the Democrats and the Republicans don’t assent by August 2 on how they will fill the empty state treasury, the US won’t have the money to return its debts. Continue reading →

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Italy the Next Weakest Link

14. July 2011.
Although so far managing to skirt the problems, Italy could become the next weakest link after Greece, Ireland, Portugal and Spain.

Although so far managing to skirt the problems, Italy could become the next weakest link after Greece. Continue reading →

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Panic in the Euro zone

13. July 2011.
Panic in the Euro zone

A dramatic situation on the financial markets in euro zone countries. Investors fear that the new victims of the debtor’s crisis could be Italy and Spain. The EU is giving more powers to its bail-out fund for euro zone members. Continue reading →

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Serbian Public Debt at June End – 40.6% of GDP

12. July 2011.
Serbian Public Debt at June End – 40.6% of GDP

Serbia’s public debt had in late 2011 been around 13.29bn, which is 40.60% of the GDP. Continue reading →

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Spiegel: Germans Requiem of the Euro

12. July 2011.
The shock therapy should work as follows: euro zone countries would leave Greece up to its destiny when they become disappointed in the realized small advancement and the lack of light at the end of the tunnel. After billions spent, they no longer want to give anything to Athens. Greece would soon become insolvent because it couldn’t come by loans. Since the Greek credit institutions are still propping a large portion of the state debt, the banking sector might befall chain bankruptcy. Such an approach threatens to contaminate the other states too. If Greece goes into bankruptcy out of every control, investors would probably refuse to invest into other sick state. So other banks would be jeopardized in such a caused chain reaction.

The frustrated Greeks are attacking the Germans, and the Germans are attacking the Greeks, Portuguese, Spanish and Italians. Continue reading →

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Be the Dinar Weak or Strong, Prices Keep Rising

12. July 2011.
Be the Dinar Weak or Strong, Prices Keep Rising

When the RSD strengthened, the prices of imported products weren’t lowered, and now rises in price are being announced. Continue reading →

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