As the common masses reel under the historic austerity measures imposed by the Government, the latest numbers suggest that the Spanish Economy seems to be reaching its recovery targets. The fifth-largest Economy in Europe has seen some unprecedented hardships, ever since its real estate bubble busted around 2007-08. Spain’s Government deficit shot up to 11.1% in 2009, much to the annoyance of the European Union.
Wednesday, December 22, 2010
Wednesday, November 24, 2010
Now, that the Commonwealth Games 2010 are over and the results pouring in, the regulators and investigation have started their probe into what can turn out to be one of India’s largest financial scams so far. The original budget for the Games was set at Rs. 3,800 crore. However, on the basis of the Joint Parliamentary Committee’s (JPC) findings, the opposition has alleged that the actual expenditure in hosting the games was to the tune of Rs. 70,000 crore! The Government has declared an expenditure of Rs. 30,000 crore, squarely blaming the escalation on ‘rising’ prices. This is especially interesting in the light of the fact that Beijing concluded the entire Olympic Games within Rs. 28,000 crore barely two years ago.
Tuesday, November 16, 2010
Looking at the magnificent opening and closing ceremonies, smooth organization during the event, the enthusiasm of the spectators, and the hype around the 19th Commonwealth Games, it is hard to imagine how miserably it fell behind its goals in financial terms.
Sunday, August 29, 2010
The latest numbers for the lagging US economy are disappointing. The unemployment rate is running the highest in 26 years, the manufacturing output is low, the housing sector remains fragile, and the overall Q2 2010 results have been weaker than expected. As per Reuters and University of Michigan, the August consumer confidence index has failed to recover amidst the flurry of dismal economic news from almost all the quarters. The major corporations and industry watchers have downgraded the projections for the third quarter. While the Fed chief, Ben Bernanke dismissed the fears of a further slide, maintaining that the Central Bank has enough measures to support the long-term recovery, he refused to divulge any concrete measures.
The survivors of the aftermath, like BOA-Merrill Lynch and Goldman Sachs, disagreed with Fed’s claim of a potential upturn in the last quarter of 2010. With the chances of a double-dip rising from the previous 15 percent to the 25 percent currently, the analysts are of the opinion that the Fed chief is buying time and adopting a wait & watch policy rather than charting a definite plan of action. Bernanke, in turn, talked about maintaining low interest rates for extended periods and other traditional bank measures, like buying of long-term securities, at the annual meet of the Central Banks of the world. However, he cautioned that such actions are not likely to have an immediate impact on the sagging economy. Apart from unemployment, one of the main concerns of the policy makers is to prevent the current disinflation in the US economy from spiraling down into deflation. As the US reels under the pressure of its own faulty regulatory system, it remains to be seen how the good old tenets of macroeconomics bail it out of the current crisis.