The latest IMF Country Report for U.S.A released yesterday says that the financial strains are still high and the recovery is likely be gradual. Some of the key takeaways from this report are listed below: Exports of goods and services would be restrained due to the sluggish growth in countries with which the U.S. trades …
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In an article titled Barometer on China’s Health: Shippers the Wall Street Journal noted yesterday that “If China’s economy is faltering, the global shipping industry will be among the first to reveal it.” Most of the commodities such as oil, iron ore, wheat, etc. are shipped worldwide are transported by ships. The article added “The …
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In my opinion, the U.S. economy is unlikely to recover without growth in lending by banks. As the world’s largest consumption-driven economy credit is the lifeblood that keeps our economy running smoothly. Despite the billions in bailout money given to banks by the government banks are not lending. Today’s WSJ article Loans Shrink as Fear …
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Source: National Institute of Economic and Social Research The above chart compares the current recession in U.K. to past economic slumps.
In the U.S., the pension plans of state and local governments have a large portion of their assets in equities. Due to this high exposure to equities, the plans suffered severe losses as the markets fell hard until March this year. The average asset allocation of U.S. Define Benefit (DB) plan has 60% in equities, …