The auto industry is one of the largest sectors of the economy in USA and Europe after housing. The industry is also important because of the multiplier effect on the economy. For example, one auto industry job indirectly creates many more jobs. According to one study, each auto job creates five jobs among suppliers.Others peg …
Continue reading ‘New Car Registrations in Europe Fall 27% in January’ »
The housing sector is the root cause of the current credit crunch. For more than a year the economy has been suffering from a severe recession and home foreclosures are rising day after day. As the economy worsens further and unemployment level increases foreclosures are bound to skyrocket as well. In this scenario, preventing closures …
Continue reading ‘US Home Foreclosures: Caught In a Never-Ending Vicious Cycle?’ »
Each year investors eagerly await the release of the Global Investment Returns Yearbook by London School of Business (LBS). This year’s yearbook was sponsored by Credit Suisse Research Institute and the researchers were Elroy Dimson, Paul Marsh and Mike Staunton of LBS. The authors urge investors to keep the faith with equities. What is the …
Continue reading ‘Summary of Global Investment Returns Yearbook 2009’ »
This week the Organisation for Economic Co-Operation and Development (OECD) released the OECD Private Pensions Outlook 2008 report. This report analyzes the private pension systems in various countries and compares their performance in terms of fees, risk allocation, etc. One of my key observations in this report is that the pension funds in the USA …
Continue reading ‘Will US Pension Funds Suffer More Losses in 2009?’ »
The personal savings rate in the US has been going up in the past few months. This has implications for the economy as the consumption rate decreases. Since consumption forms a major portion of our GDP it pays to keep a close on the savings rate. The New York Times published an article titled “Consumers …
Continue reading ‘How High Will The US Personal Savings Rate Go?’ »