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If you guys had observed the world economy for the last one year or so it is in its doomsday. Has anyone tried to visualize the global picture of what are the possible reasons for this downfall well I tried and here are a few I thought so…

Corrupt politicians, Inappropriate use of funds, Forbidden procedures of handling public sector banks & companies. To be more specific it’s due to the sub prime crisis. Actually sub prime crisis means that banks lend money at a rate which is a loss for them i.e.

To break even in a bank

Formula is:

Lending Interest = borrowing interest + cash reserve ratio + Establishment cost

So most of the banks are in a view to capture the market share started giving at a lower cost facing deficits. This led to the falling economy which brought about this economic depression of our generation.
Moreover it is also due the inappropriate use of money by many companies i.e. an inaccurate or exorbitant budget plan which was above the profit levels which caused bankruptcy over a period of time.

So people it is now up to us, how we fight this battle and rise back to normalcy

Everyone have to contribute in a small or big way up to their potential

Don’t forget an ocean can only be formed

With

Billions of drops of water … each of us are one

I would like to add a quote here

“Existential glory is that all of us are born equals at birth
Human glory lies in ensuring that we don’t die as equals”

The best method to overcome from this economic condition we to make our savings properly and try to invest atleast small amount somewhere so that we can secure the future of ours and later generations. The best and safest method for investment is certificate of deposits.

The international summit on financial markets and world economy were held in London on the 2nd of April, 2009. In which heads of governments from all the G-20 countries participated and also some regional and international organizations attended this summit which was primarily held for discussing the issues regarding the present economic slowdown and the ways and means to get out this depression.
The agenda of the function included

• To have coordinated macro-economic actions to revive the global economy, stimulate growth and employment.
• Form reforms and improve the financial sector & systems.
• Also improve international financial institutions like (IFIs) - International Monetary Fund (IMF), Financial Stability Forum (FSF) and the World Bank.

Moreover one of the other important factors of this meeting is the money raised in this summit for the world development in times of this global slowdown. An amount of $1.1 Trillion was raised, this is the world’s biggest economic bailout package ever raised and the target is to achieve $5 trillion by the end of this year. Moreover many countries have promised cost cutting in the interest rates and provide a boost to industrialization.

They have also pledged to help the under development countries of the world in achieving their Millennium development goals and also promised to allot funds for reducing global warming and low carbon recovery.
List of Few International leaders who participated in the summit:
• Barrack Obama
• Gordon Brown
• Manmohan Singh
• Hu Jintao
• Dmitry Medvedev
• Nicolas Sarkozy

Hope all these leaders from around the world can jointly bring us a change…

suhag

American Ministry of Finance announced on Monday the details of a plan which would encourage private investors to help the local banks to get relieved from problematic assets.

The Government will generously appropriate support to public-private investment program, in which the ministry will pay 75 to 100 billion dollars from an existing fund to save banks, which the U.S. Congress approved last fall.

While the ministry, together with private investors decided to provide initial funds for the program, Federal Deposit Insurance Corporations (FDIC) and the Central American Bank Fed will be involved in the offer of additional funds.

According to one component of the plan, the ministry will provide up to 80 percent of initial capital, in parallel with the investment of private funds. FDIC would then need to provide debt financing worth up to six times greater than the amount in the fund.

Within the specific components of the plan of U.S. central bank Fed would expand credit program TALF, worth 200 billion dollars, to 1000 billion, and begin to accept as credit guarantees older securities based on mortgage and other securities.

In addition, the ministry will appoint up to five managers for asset management, with documented good results, which will buy securities. These managers will receive a specific deadline for raising private capital and the same will amount enclosed ministry. These would be funds from banks to buy securities that they wish to solve.

American Minister of Finance considers that his plan will help determine the price for problematic assets, remaining after the breakdown of U.S. real estate markets.