According to the Australian Bankers Association, “Australia has not had a thorough bank failure in the modern era*, and so has not experienced the fallout from a collapse first-hand.” However other countries have had their share of bank of bank failures. Some examples are: 1970 USA US Penn Central Bank – collapse of market liquidity …
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In response to falling sales many car makers around the world have announced temporary shutdown of their assembly plants. The severity of the situation was evident from the recently published photos of unsold new cars parked in ports, factories, etc. in various countries. A sample photo is shown below. Photo: Imported cars stored at Sheerness …
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1. The financial crisis and economic downturn are likely to put upward pressure on government debt. The trouble is, according to OECD in Figures 2008, public debt (general government debt, which includes central and local government) had already risen quite sharply in the OECD as a whole since 1987, from 59% of GDP to 75% …
Continue reading ‘Knowledge is Power: Ten Great Wines Edition’ »
On March 5, the Mortgage Bankers Association announced that mortgage delinquencies continued to rise in the US. The press release said “The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 7.88 percent of all loans outstanding as of the end of the fourth quarter of 2008, up …
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On February 10, I wrote about savings rate in the US in the article How High Will The US Personal Savings Rate Go?. As a follow up to that piece, here is a chart showing household savings in the UK, USA, France, Germany and Japan since 1980: Source: The Global Economic Crisis: Systemic Failures and …