Recession and the world

Sunday, October 05, 2008

Written by: Faith ._. Love

Why, I've got to make a little rant about yesterday. Oh well, I had a big event that popped up, and prevented me from posting for the readers. Sorry! Thus, here's a post to make up for the missing post yesterday.


Let me start off seriously - Recession, World Economy's going way down.

Currently I'm having my End of Year Examinations, of course TV will be lowest priority on my to-do list. It was one day when I decided to turn on that TV of mine and watch some news.

I almost wish I didn't.


The first thing I saw was about US Five Biggest banks that closed down. Followed by the biggest Insurance company going down too. It came as quite a big shock to me. The next thing I did was asking my mum if her insurance company would be affected - thats what a young kid always ask right?

Now, US economy has slowed down in year 2008, and is poised to move into a recessionary period. It would mainly have been caused by tighter policies,contracting liquidity and a peak in corporate profits.

Khuram Chaudhry, chief European quantitative strategist said that in the future months, the direction of interest rates will diverge mainly between the developed and developing countries, as the spot light shifts to Asia and Middle East.

Arjun Murti, managing director of Goldman Sachs investment research, had also gave his views on an important factor and object in the world, oil. Oil prices have gone up very quickly, causing many car-holders to empty their pockets everytime they drive into the petrol stations. Murti said that the global oil market will rebound by the fourth quarter of 2009, as the world is yet to sort out its supply side.


Now, after going through the research that I've made, lets dump in some personal views for that.

As a young kid, what can I think of? Of course I'm afraid. I've heard many times about the recession that happened years ago, and how many countries went through underhand means to bring the country back on the track again. However, this time, it seems to be more serious. Five biggest banks in US have collapsed, and that surely meant more collapse in the other countries.

It was then when I turned on the TV the other day, when I saw AIG going down. That came as quite a shock, I didn't expect this big company is going to collapse. So I asked my mum is Great Eastern will be affected.

Definitely it will, without the buyers to buy insurance from the agents and managers, how are they going to earn money? Thus, not being fired and being fired seem to just have a little difference. However, a few days later, it seems that the Asia stocks have came up again. Is it really true that Asia countries won't be affected as much as the others? The situation seems to show that, however it might not be, since US is the biggest country that seems to supply all the money and everything.

Aye, many terrible things are happening, including China Products being contaminated, causing me to starve as some of my foods are being taken away.


Hence, with all the ranting and researching above, I shall end this serious post.

Labels: Rant

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Article Posted: Sunday, October 05, 2008 at 15:53.
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