On November 25 when Dubai World announced the news that they were seeking a debt extension on $59 billion of their liabilities, shock waves reverberated throughout the world’s credit markets as investors grappled with whether the news represented a one-off problem with Dubai or did it represent a more systematic risk from the region or developing world.
Since that time investor’s fears have been arrested as the U.A.E. central bank announced its support of Dubai along with Abu Dhabi throwing its hat into the ring as someone who would be willing to help.
While the immediate concerns surround Dubai has faded, the news did revive concerns among EM investors as to whether this episode is just the beginning of a possible cascade of events that could result in additional problems within the Middle East, Eastern European or LatAm markets.
These fears were further sparked this morning by news from S&P who stated they were considering downgrading Greece’s long-term sovereign credit rating as the government continues to struggle with its finances. The rating agency placed Greece’s A- ...
Sovereign lending, throughout history, has been marked by occurrences of partial default and repudiation by governments of all kind; from medieval princes to dictators to democratic regimes. In the 1970s lending to lesser-developed countries led to the rescheduling and partial defaults in the 1980s. Even the sustainability of the debt of nations such as Belgium, Canada, Italy and even the United States is not free from suspect.
The attacks of 9/11 resulted in history’s longest stock market shut down since the 1930s. The New York Stock Exchange remained closed for six days after the attacks. Furthermore, Davis (2011) reports that upon reopening, the New York Stock Exchange fell almost seven hundred points, the biggest one day loss in history. Additionally, Jackson (2008) reports a 14% decline in the Dow Jones, a loss the Dow still felt almost a year later. But, it was American Airlines and United Airlines that experienced the greatest loss. Following the reopening of the stock market, American experienced a 39% decline and United experienced a 42% decline (Davis, 2011). However in face of discouraging numbers, Jackson (2008) reports that the U.S. markets rebounded second only to Japan, showing the great economic resilience of the U.S. While the stock markets present a bleak outlook immediately following the attacks, the financial loss is far from reassuring.
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On a day described as the ‘Flash Crash’, the U.S stock market experienced one of the most severe price drops in its history. In the matter of five minutes, the Dow Jones Industrial Index declined by 900 points, and then recouped the balk of those losses within the next 15 minutes. This unprecedented and unexplained volatility has fired public debate ever since.
During the 1800’s Great Britain’s empire stretched around the world, and with raw materials easily available to them this way, they inevitably began refining and manufacturing all stages of many new machines and other goods, distributing locally and globally. However, despite being the central ‘workshop of the world,’ Britain was not producing the highest quality of merchandise. When comparing factory-made products made in England to surrounding countries, most notably France, those products could not compare as far as craftsmanship and sometimes, simply innovation. It was suggested by Prince Albert that England host a sort of free-for-all technological exposition to bring in outside crafts into the country and also show their national pride.
Historically, financial crises have been followed by a wave of governments defaulting on their debt obligations. The global economic history has experienced sovereign debt crisis such as in Latin America during the 80s, in Russia at the end of the 90s and in Argentina in the beginning of the 00s. The European debt crisis is the most significant of its kind that the economic world was seen started from 2010. Financial crises tend to lead to, or exacerbate, sharp economic downturns, low government revenues, widening government deficits, and high levels of debt, pushing many governments into default. Greece is currently facing such a sovereign debt crisis and Europe’s most indebted country despite its surplus in the early 2000s. Greece accumulated high levels of debt during the decade before the crisis, when the capital markets were highly liquid. As the crisis has unfolded, and capital markets have become more illiquid, Greece may no longer be able to roll over its maturing debt obligations. Investment by both the private and the public sectors has ground to a halt. Public sector debt has increased substantially as the state had to rely on official assistance to payroll expenses, fiscal deficit and fund social payments.
...Lower Public Debt, Structural Reforms Critical, says IMF’, IMF Country Report. International Monetary Fund, Washington, D.C. No. 11/181.
The rating agencies are making predictions and thus warn the territories under the risk about the possible downgrades and climate risks. The U.S. is among the countries suffering from significant losses due to the climate change effects, and the estimated
The article titled “You Are What You Owe,” centers around the recent gridlock in Washington over the debt ceiling (Mallaby, 2011). The article explores what would have happened had the United States government not come to an agreement on the American debt ceiling. The article also relates the United States crisis to previous counties that have faced this crisis in the past (Mallaby, 2011). The article reports on the finance and economic conditions in 2011 in the United States during the debt crisis (Mallaby, 2011). The article also discusses the American credit and bond strength and government’s securities, as well as the United States federal debt (Mallaby, 2011). The Gross Domestic Product or GDP, for different countries is also discussed in this recent article (Mallaby, 2011). The United States foreign economic relationships are also explored in the article titled, “Yo...
When you associate anything with New York City it is usually the extraordinary buildings that pierce the sky or the congested sidewalks with people desperate to shop in the famous stores in which celebrities dwell. Even with my short visit there I found myself lost within the Big Apple. The voices of the never-ending attractions call out and envelop you in their awe. The streets are filled with an atmosphere that is like a young child on a shopping spree in a candy store. Although your feet swelter from the continuous walking, you find yourself pressing on with the yearning to discover the 'New York Experience'.
Since 2008 there has been an ongoing financial debt crisis that has affected the majority of the world states. However, the most disastrous economic decreases have been witnessed in the European continent. Therefore, this crisis is widely known as the European Sovereign Debt - Crisis. The aim of this document, however, is to analyze and discern possible policies focusing on providing a set of solutions that may help the Greek government in regards to their financial debt within the larger European crisis. As such the prime focus of the forthcoming analyses and policies will focus on the handling of the Greek government debt and recommended policies. Additionally, the paper will provide the summary of the economic crisis and the implications of the international community (mainly, the European Union and the International Monetary Fund).
Warwick J. McKibbin, and Andrew Stoeckel. “The Global Financial Crisis: Causes and Consequences.” Lowy Institute for International Policy 2.09 (2009): 1. PDF file.
• JPMorgan Chase’s operations are subject to risk of loss from unfavorable economic, monetary and political developments in the U.S. and around the world.
UAE consists of seven emirates : Abu Dhabi ,Dubai , Sharjah, Ajman, Fujairah , Ras Al Khaimah and Umm Al-Quwain which is a federal state. Sheikh Zayed is one of the foundations of the Union on the second of december 1971 , where the Sheikh Zayed converts Emirates of empty desert into a green paradise . Consists state emblem is a science that combines four colors red , white , green and black . National anthem is the anthem Emirates National , which echoes in every morning in most government and private institutions . Abu Dhabi is the capital of the United Arab Emirates Abu Dhabi is one of the most world cities sophisticated in terms of modern infrastructure fit its position as a hub economic and political to the United Arab Emirates are They combine its role as a destination for business and tourist destination from shopping in shopping malls Superior to swap in traditional markets as well as enjoy the miles of sand golden beaches to break in one of the public parks in the city and dine at five-star hotel to the safari distinctive and enjoyable , and famous Emirate and the largest in terms of area is Dubai . Arabic is the official language of all the people of the United Arab Emirates . System of government is a federal system known from time immemorial . The head of state , Sheikh Khalifa bin Zayed Al Nahyan , who is also Ruler of Abu Dhabi , who succeeded his father, Sheikh Zayed , the Minister is the Minister Sheikh Mohammed bin Rashid Al Maktoum . Emirates has an area of approximately 83,600 km 2 ( 116 ) and estimate the proportion of water in which 1.1 percent , also the population of the United Arab Emirates to a 8.264 million rate of a million that have been counted in 2011 before 3 years . The population density of t...
The Dubai real estate is relatively a mature marketplace and gives an opportunity to build wealth and establish the financial security. The current economic condition offers perhaps the best chance for homebuyers and investors to appreciate the long term cyclical nature of the real estate market.