Sub-Prime Economy

On the one hand, there have been only two recessions of any real lasting power over the past twenty years. The first was in the early days of the Reagan Administration, when aggressive budget cutting and revenue loss occasioned by the David Stockman “supply side” economic strategy took an enormous bite out of government spending power, forced massive public borrowing, and triggered a recession. The economy soon grew itself out of recession, either through growth or excessive government deficit spending, depending on one’s point of view.

In 1990, another recession ensued, partly as a belated result of the 1987 Stock Market crash. This downturn lasted about two or three years, and the economy expanded once again. After a lengthy period of prosperity, the Clinton Administration declared the business cycle dead, and boasted that the combination of fiscal and monetary policy had permanently rendered it obsolete.

The bursting of the dot-com bubble allegedly triggered a recession in 2001, but it was short-lived enough to be barely noticeable (except, of course, to those who had their entire net worth tied up in it), and was soon replaced by a real estate bubble. By the time the powers that

Economy Power

The founders of EP took advantage of the final phase of the UK’s electricity industry deregulation in the late 1990s to set up a company specializing in the supply of electric power to small and medium enterprises (SMEs). Aiming at a well identified ($4 billion) niche in a large ($34 billion) total market, they chose their company name with good reason. They saw an opportunity to offer lower prices to a steady market segment, provided that they could run their new operation in a very lean and efficient way. The traditional Public Electricity Supply (PES) companies had a high-overhead infrastructure and still carried a heavy bureaucracy from their pre-deregulation days.

Economy Power had to be fleet of foot in all aspects of the business and most particularly in customer acquisition, billing and cash management. From its entry to market in July 2000, the company aimed at SME commercial customers who have higher energy consumption than domestic consumers, and who would be easier to transfer to a new supplier on the basis of price than larger corporates might be. While the PESs shaved their prices to the big boys, they paid little attention to cutting prices for SME

Investing in a Global Economy

In the past many people contributed to a 401K or invested in company stock not knowing what risk was involved. Most people would expect a 6-8% return on their investments and not think twice about where there funds were allocated or how to diversify their portfolio. The stock market crash of 2008 began to change the way most investors handled their finances. Many investors saw a 0% return on their investments from 2000-2010. This fact has many people interested to learn more about finances and how to properly invest in a dynamic, ever-changing, global marketplace.

The first step investors should take is to learn what strategy fits their long term goals. When initial research is begun on how to invest, one will find that many different strategies exist and some often contradict the other. The key is to know what risk levels you are comfortable with and the ultimate goal of your investing strategy. Some novices are very timid to invest now that most economies are interlinked, but one must also realize that there is a lot opportunity to be had as well.

On our MBA International trip to Austria and Germany we had the pleasure

Ignore Economic Woes in Personal Finance

Are you planning your financial decisions based on where you think the economy is headed? Maybe even saving more money, reducing your risk exposure, or avoiding investment opportunities in the hopes of weathering financial crisis? Maybe you feel things are improving economically, and financial rebound is just over the horizon, and so are adjusting your financial decisions accordingly. If either of these are the case, your focus is misplaced and I will outline why.

Your personal financial decisions need to be founded upon solid principles that do not need adjustment based on the financial winds of the economy. Your focus should be on sound, financial common sense, that is unaffected by whether the economy is growing or contracting, principles that are as poignant in a stagnant economy as a booming one. If your personal fiancé focus is on anything beyond spending less than you earn, reducing your expenses and pursuing opportunities you are needlessly overreaching and overcomplicating the issue.

If your personal financial makeup needs adjusting like the sails of a ship to catch the fluctuations of economy there your foundation is shaky. Up or down, maintaining a focus on creating value and service for those

Manufacturing vs Service

Perhaps paradoxically it is the recession (and its end) that created the climate for such positive figures – the weak pound and moves to restock as global demand returns – rather than any sort of added robustness of the manufacturing sector itself.

The reality is that service and industrial economies both contracted during the past two years. As global and domestic demand fell, the major manufacturing countries were hit hard (Japan down 8.6% and Taiwan down 14.5%). While closer to home, a comparison between the service-based UK (down 6%) and Germany’s industrial economy (down 6.7%) reveals a broadly similar contraction rate.

What’s differentiated recovery rates to date is not so much whether an economy is manufacturing or service-based, but rather individual country responses to the downturn. In Germany, for example, the creation of a ‘bad bank’ would effectively ring fence bad assets for a long term management approach, enabling credit markets to operate.

In the UK the dominance of the finance sector resulted in a longer, but some people would argue shallower, downturn. However, the continuing dysfunction within the banking sector has restricted the access to credit – resulting in high levels of default and

Investing In A Developing Economy

No doubt, Nigeria is an investment haven with countless and lucrative investment opportunities including oil and gas, solid mineral, agriculture, tourism, telecommunication, power and steel, transport, trade processing zone, financial sector, real estate / property, manufacturing, sport and entertainment, and fashion industry. Investors have a wide range of opportunities to choose from. It is important to note that the rate of growth of investment is fantastic and exponential in any of these sectors. Investors are at advantage of presenting their products and services to already-made market taking advantage of the population of over 140 million.

In telecommunication, statistics reveals that mobile phone users in Africa were about 280 million, overtaking United States and Canada with their 277 million users in the opening quarter of 2008. With 70 million connections in 2007, the Continent became the fastest growing region in the world, representing a growth of 38 per cent, ahead of the Middle-East (33 per cent) and the Asia-Pacific (29 per cent).It was also revealed that the fastest growing markets are located in northern and western Africa, representing altogether 63 per cent of the total connections in the region. The record showed that Nigeria, Zambia, Tanzania, The Democratic

Steps to Regaining Control of Your Finances

For those people I offer in this article, five steps to financial freedom, steps by which you can seize control of your finances. These steps are based upon the model for self motivation. They serve the dual purpose of not only helping you get back on track, but also keeping you motivated to stay on track.

  1. Step One: The first thing you need to do is to understand why you want to seize control of your finances. The more valuable a goal is, the more likely you are to achieve it. So write down all the positive reasons for why you want to regain control of your finances. What will you gain? reduced stress? the ability to buy things you need? a feeling of pride at how responsible you are? Also write down what will happen if you fail to make this change. Will you have to file bankruptcy? Will you lose your house? Will you be miserable and depressed and disappointed in yourself?
  2. Step Two: Determine exactly what regaining control of your finances means in your situation. Clarity is motivating, so the clearer you are on exactly what you are moving toward, the more likely you are to get there. Here are

Finance, Credit, Investments

The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:

1) “…Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;

2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national

Manage Personal Finances

If you were a true member of the “wealthy class” in America at the time of the economic tsunami and not overly burdened with debt or other forms of exposure to financial loss, you are probably still relatively comfortable and perhaps even profit from the current economic situation digital signature online.

If you and yours resided within any level of the “Great American Middle Class”, the odds are better than even that you’re experiencing some degree of financial hardship. The economy has taken a long-term change for the worse, presenting you with the challenge to survive and overcome.

The weak financial foundations of an alarming number of Americans were exposed by the meltdown of “08-09”. Too many individuals/households, some with excellent incomes, were living on the bubble while not employing sound principles on how to manage personal finances.

Those who were experiencing the most financial distress may have also suffered through bankruptcy and/or a home foreclosure. Now, as we wrestle with the post-collapse “New Economy”, what will it take for working-class /middle-class Americans to regain viable financial status and direction? What should we be doing now?

It is probably accurate

Accounts Receivable Financing

India has the third largest economy and the second fastest growing economy in Asia. It has a vast pool of professional talent and an enormous reservoir of intellectual capital with a growing middle class.

India’s dense population creates economic opportunities and pressing internal social problems such as overcrowding, environmental degradation, poverty and social unrest. The economy and society are in a state of rapid transition. There are pressing environmental issues because of overpopulation such as air pollution from industrial effluents and vehicle emissions, water pollution from poor sanitary conditions and soil erosion.

According to the World Bank, about 380 million people in India live in poverty on less than $1 a day; this is about one-third of the population. Nevertheless, middle and upper class Indians have created immense wealth in an economy bursting with opportunities. India’s business climate is changing rapidly.

This social paradox is in some ways similar to the controversy in the U.S. over big box stores and their effect on smaller retailers. The same issue is debated in India regarding Western style supermarkets versus mom and pop stores. India has a child labor problem; the U.S. has a problem with illegal immigrants