How could anyone imagine the US could bury the previous recession by infusing trillions of funds into financial markets during 2008. It's only by either borrowing again or printing excess money resulting in inflation. Days are not so far for the current crisis to unleash its actual wrath with a more intense battering of the global markets to butcher everyone on the streets. More financial institutions will bite the dust taking the world economy to the brink of collapsing by mid of next year. No amount of Fed rate cuts or bailout packages can salvage the US economy from plunging into poverty. The crisis is going to be more painful and worse than the subprime crisis of US. Mark my words. - Prof AsgarJamal Daruwala (Retd)
Re: Get ready for doom
by Solnishka on Aug 10, 2011 07:39 AM
If that happens (God forbid) then the oldkids and the new kids all over the world will be crawling on the streets ............. mark these words too ......
S&P must have been well aware, for the past few months at least, about the necessary to downgrade the US rating and it cannot be a overnight development. Considering the havoc any decision on downgrading can cause to the various economies, S&P must have warned the US (at least privately) and also cautioned the major investors like China about the risks associated with their investment in the US about 9-12 months back and in case no tangable improvements have been noticed, then it could have downgraded the rating. Various reports we are seeing do not suggest such methodology was followed; instead an announcement was made overnight to cause great panic amongst world economies. It appears S&P followed a procedure that it would otherwise be following in rating a small company and not a country that has been enjoying a rating for about 70 years uninterruptedly. Present turmoil, especially in the stock markets, which even otherwise turn turtle, if the crude rate goes up by 1%, could have been avoided.
Rating agencies are inaccurate most of time. These are the agencies which gave good ratings to the junk bonds which lead to sub prime crisis and thus 2008 collapse.
Lesson is " Dont be overly bullish or overly bearish. Be moderate in your risks and investments"
For a country waging continuous wars on many fronts (and still trying to start new wars) and has huge expenses for its homeland security for an indefinite period, this downgrading was bound to happen.
And Obama does not have magic wand to improve the econmic slide.
This is the beginning of the end of US as an economic powerhouse!
Re: Re: America's Waterloo
by ARUN PATIL on Aug 09, 2011 12:23 PM
Glass Steagall Act/ Gramm-Leach-Bliley/Dodd-Frank is not the answer but creating new set of problems. What they need is Glass-Steagall as a base & plugging the loopholes and regulating it should be the mantra.
Re: America's Waterloo
by Kondiparthy Rao on Aug 09, 2011 11:04 AM
americans should at once stop aid to pakistan and take out the troops from pak and afghan borders to come out of the red.which will benefit the fight against terrorism
Re: America's Waterloo
by abdul narayan on Aug 09, 2011 11:09 AM
But many "rangbadlathopaisawapas" folks were gyrating their backsides round and round to the cacaphony of "Yes we Can" "Yes we can" What happened to that tamasha?
Stupid headline. Are u trying to make him a suicide bomber type figure? This man gave top rating for many banks that busted in 2009 financial crisis. He is a glorified idiot. This is the result of America's domestic politics and Obama's penchant for populism
Re: Re: That Indian is a glorified Idiot
by VipertheSniper on Aug 09, 2011 11:25 AM
Good Idea, But I doubt it will be neutral. As is in the case of all the movie awards, paisa do aur award lo". Many parties will come out with such awards and confuse people.
An article in 2009 in The New York Times explains:2 "The banks pay only if [the ratings agency] delivers the desired rating. . . If Moody's and a client bank don't see eye-to-eye, the bank can either tweak the numbers or try its luck with a competitor like S&P, a process known as ratings shopping."
it was a known fact by all that usa economy will collapse and they will go bankrupt by 2012.it is a capitalist economy hence there are no cushions. indian economy is controlled by babus who go by rule books and hence we are strongly positioned.there will not be much effect per se. yes we will be hit badly on our exports and ipo.
Re: total bankruptcy
by Kondiparthy Rao on Aug 09, 2011 10:54 AM
yes our economy is built on individuals thinking twice before he spends , where as the americans dont see for tomorrow ..Luxury is thy name of americans even if they earn little they show that extravaganza.AmericaN GOVT SHOULD ALLOW SMALL STORES IN LOCALOITIES AND ALSO MOTORCYCLE AND SCOOTERS TO BE ENCOURAGED FOR TRANSPORTATION FOR SMALL DISTANCES, WHICH IN A WAY REDUCES THE CONSUMPTION OF PETROL AND ALSO IT WILL GIVE THE AMERICANS MUCH NEEDED ECONOMY
Re: Re: total bankruptcy
by sundaramoorthi on Aug 09, 2011 11:41 AM
In the world every body like European culture,study, work system,method & infrastructure and they are always in leading if compare with any Asian country in any kind of activity. But now they are facing jobless, poor economy & bankrupt. In Asian country china and India are leading in economy position but china is in leading economy, it is not a high achievement because of communism policy but democracy India remain in same in standard good economy which is reflects that our policy better than European country.
Re: total bankruptcy
by Bharatiyan on Aug 09, 2011 10:55 AM
u r wrong!
America might be in debt, they have already defaulted 3times in history, but they do have all the resources to bounce back.. and we don't have anything.... we sold everything...
