Global Economy: The Current Situation
Where is The Global Economy Heading? Market analyst, especially those who have found a good hold in the media are lately into this practice of foreboding a very bleak future for the global economy. Complementing this is the fact that the well being of people in the future is also being jeopardized. However, if the information here speaks the truth, then the future foretelling of these people certainly is fast becoming a reality.
The global stock downturn is said to have begun on Thursday when the Dow fell to a two-year low, dropping 3% in the process. This has led to fear on Wall Street that rising prices and tighter finances will force Americans to curb spending and send the economy into recession, though this is not exactly a new worry. In fact Global stock markets are tumbling in response to a sell-off that has been sparked by concerns about the global economy and the recent record price of a barrel of crude oil.
The hardest hit has been the Dow Jones in New York, which closed having lost nearly a percent of value. Paris and Frankfurt closed that day down 0.6% whilst the slightly more extreme Asian markets in China and India dropped by 5.3% and 4.3% respectively. At the same time a barrel of crude oil now costs in the region of $142 after concerns regarding supply have led to another price rise.
In comparison US consumers received positive news with the economic stimulus package, which will hand out in the region of $107bn to American this year. The news led to a household budget boost and had a knock on effect of consumer spending rising by 0.8%. Some experts have remained pessimistic though as most of the rebates have been placed in savings accounts rather than being spent.
Comparatively speaking things this side of the Atlantic are positive. The FTSE shrugged off early losses and battled up to a 0.2% rise. The current problems in global credit prices find their roots in the American sub-prime crisis and as the economic situation of different elements of the world are so closely tied together the FTSE will only be able to survive a global stock fall for so long before it too begins to suffer. Further it suggests that the current high mortgage rates and difficulty of securing credit don’t look like they’ll be alleviated in the near future.
The global economic situation is a tangled web, finding it’s roots in stocks and shares, global oil prices, and a credit shortfall world wide as institutions try to protect themselves. This in turn leads to higher living costs as petrol becomes more expensive, transport of food leads to increases in supermarket costs etc. Saving money, therefore, seems like the best idea, but it does not help to stimulate the economy.
For the moment, it seems like the global downturn is going to stick, and for many it’s just going to be a case of holding tight and riding it out.
About the Author
Andy Angelo is author of this article on current accounts. Find more information about loans here.
Previous Article - Next Article
Add Your Picture
Article Submitted By:
Thomas Kerrin5
Subscribe To: Thomas Kerrin5 Rss Feed
This Article Has Been Read 307 Times
Publish/Share this article
Remember: The article body, title, author bio and links may not be changed or removed. By publishing this article, you agree to all the terms in our Terms of Service.
Rating: Not yet rated
More articles in this Category
No Credit Car Loans are Available to Consumers
Va Streamline Refinance Solution
Get A Merchant Cash Advance To Grow Your Small Business
Personal Loans – A Necessary Evil
Acquiring The Fast Cash Advance Loans You Want Right Now
Debt Consolidation Home Loan Calculators Make Clearing Debt Easy
Bad Credit Home Loans in Australia
Instant Payday Loans Solutions for Immediate Cash
Understanding Credit Reference for Your Mortgage Loan
If Banks are slow and time is money, look at the smarter choice to Finance your equipments.
Who Owns Intelligent Finance?
Bad Credit Home Loan Rates
Learn About What a Lien Is All About
What information do lenders have about you
Bargain Deals and Money Management
Commercial Car Loan or Finance Lease?
Online Transaction and Payday Loans
Business Equipment Finance
Are you eligible for payday loans
How To Reduce The Cost Of A Personal Loan
Treat Yourself to a New Car with the help of a Car Finance Broker
What Do You Do When You Need Money Fast?
Want to Buy a New Car? Look Online for Advice
The Importance of Your 3-in-1 Credit Report And Score
Compare personal home owner Loans Before You Sign
Stay at Home to Organize your Car Loan
Can A Bad Credit Payday Loan Help You?
What can you get in $800?
Methods Of Applying For Fast Payday Loans
