... Businesses May Be Next Target of Higher Taxes
– Corporate earnings are also vulnerable to the strengthening dollar, which reduces the value of
revenue from exports and foreign earnings by U.S. multinationals. And exports and foreign
earnings of U.S. companies are under pressure, especially in develo ...
Schroders plc – Statement of financial position
... The distributable profits of Schroders plc are £2.3 billion (2014: £2.1 billion) and comprise retained profits of £2.4 billion (2014: £2.2 billion),
included within the ‘Profit and loss reserve’, less amounts held within the own shares reserve.
The Group’s ability to pay dividends is however restric ...
08.20.09-salef - First Metro Asset Management Inc
... money market remains wide, i.e. investors are
shifting away from money market to stocks due to
the low returns of the former combined with the
positive momentum of equities. “Free liquidity” (or
the supply of cash that is in excess of what is
needed to fund the economy) will add to the cash
(that wi ...
The Global Financial Crsis and The World Economy
... Capital market liberalisation
Global macro imbalances
Global savings glut
Accomodative monetary policy
Strong global growth
The ‘end of boom and bust’
The search for yield and underestimation of risk
... business and household debt amid a global credit crunch.
But the lawmakers noted that the facility funded only $1.7 billion in loans in April, "a figure that was
dramatically less than that provided by the program when it was first rolled out in March.“
"To what extent has the lack of demand for sec ...
Shock Therapy Economic Subordination Sham Stablization
... After 1998 foreign investors withdrew assets
and capital flight resulted out of fear of default
Fiscal deficit forced government to borrow
more, while interest rates continued to climb
causing them to borrow even more.
In 1998 debt servicing by the government
increased from 14% to 50% of federal rev ...
... ECON 203 – Quiz 3 - Key
1. In symbols, the equation of exchange says
MsV = PY
2. High interest rates will stimulate investment, for people will want to consume less.
3. A budget deficit occurs when
government expenditures are greater than tax receipts during a year
4. Assume a relatively small ...
... price loss to “Captive Investors” – pensions, insurance companies, local governments.
* Cash Flow Analysis – higher timely liquidity and increased safety, reduced market risk.
Focus – increase income – budget – lesser degree – market price fluctuations.
Balance of Payments Accounts
... Official Reserve Assets
— are assets, other than domestic money or
securities, that can used in making
... repayment capacity. For that reason, it would be in the households’ interest to use credit cards
as a means of payment and to prefer consumer loans for their financing needs.
In 2007, the leverage ratios of firms declined and the upward trend in their profitability ratios
continued. Despite limited ...
... Today’s Dilemmas
• Monetary policy doesn’t work
• Interest rates can’t be pushed below 0%
• But prices are falling ==> real rates are positive
... order to reduce their debt levels and improve their balance sheets has contributed to the global supply
Saving and Capital Formation
... remember that interest rates, like prices, are a
result of supply and demand, not a cause.
Higher investment is a “good thing” from the point of view of economic growth,
but it is compatible with either higher or lower interest rates.
wells fargo investment management
* The Dollar Still The Dominant “Key Currency” In World
Trade And Finance
--Diminishes With U.S. Output Share, Euro Acceptance
the credit crunch
... a state of shocked disbelief…
I made a mistake in presuming that the
self-interest of banks and others was such
that they were best capable of protecting
their own shareholders”
Slide 1 - World Bank
... How much should we change our economic
• How will Latin American countries fare?
National Finances and MNCs
... Impacts: it is generally good that a state has positive capital flows
because such flows tend to stimulate economic activity by making
capital available for start ups, expansion, research and development
and other uses.
However, a large proportion of foreign investment that constitutes a
positive ca ...
Asia and the Emerging Global Economic System
... – New version of Triffin paradox
– Economic circumstances in reserve currency
country may differ from those of others—conflicts
of interests in “supply” of reserves
– Money that is put aside in reserves is money not
spent—contributing to lack of global aggregate
– Developing countries lend mo ...
Lecture / Chapter 3
... Objective information sources about the Subject are
difficult to obtain
Comparable property data is limited
Reliable price quotations are not available on a
Typically only a select amount of buyers/sellers in a
Transactions are cumbersome, time-consuming,
Global saving glut
Global saving glut (also global savings glut, GSG, cash hoarding, dead cash, dead money, glut of excess intended saving, shortfall of investment intentions), describes a situation in which desired saving exceeds desired investment. By 2005 Ben Bernanke, chairman of the Federal Reserve, the central bank of the United States, expressed concern about the ""significant increase in the global supply of saving"" and its implications for monetary policies, particularly in the United States. Although Bernanke's analyses focused on events in 2003 to 2007 that led to the 2007–2009 financial crisis, regarding GSG countries and the United States, excessive saving by the non-financial corporate sector (NFCS) is an ongoing phenomenon, affecting many countries. Bernanke's ""celebrated (if sometimes disputed)"" global saving glut (GSG) hypothesis argued that increased capital inflows to the United States from GSG countries were an important reason that U.S. longer-term interest rates from 2003 to 2007 were lower than expected.Alan Greenspan testifying at the Financial Crisis Inquiry Commission in 2010 explained, ""Whether it was a glut of excess intended saving, or a shortfall of investment intentions, the result was the same: a fall in global real long-term interest rates and their associated capitalization rates. Asset prices, particularly house prices, in nearly two dozen countries accordingly moved dramatically higher. U.S. house price gains were high by historical standards but no more than average compared to other countries.""An 2007 Organisation for Economic Co-operation and Development (OECD) report noted that the ""excess of gross saving over fixed investment (i.e. net lending) in the ""aggregate OECD corporate sector"" had been unusually large since 2002. In a 2006 International Monetary Fund report, it was observed that, ""since the bursting of the equity marketbubble in the early 2000s, companies in many industrial countries have moved from their traditional position of borrowing funds to finance their capital expenditures to running financial surpluses that they are now lending to other sectors of the economy."" David Wessell in a Wall Street Journal article observed that, ""[c]ompanies, which normally borrow other folks’ savings in order to invest, have turned thrifty. Even companies enjoying strong profits and cash flow are building cash hoards, reducing debt and buying back their own shares—instead of making investment bets."" Although the hypothesis of excess cash holdings or cash hoarding has been used by the Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund and the media Wall Street Journal, Forbes, Canadian Broadcasting Corporation, the concept itself has been disputed and criticized as conceptually flawed in articles and reports published by the Hoover Institute, the Max-Planck Institute and the CATO Institute among others. Ben Bernanke used the phrase ""global savings glut"" in 2005 linking it to the U.S. current account deficit.In their July 2012 report Standard and Poors described the ""fragile equilibrium that currently exists in the global corporate credit landscape."" U.S. nonfinancial corporate sector NFCS firms continued to hoard a ""record amount of cash"" with large profitable investment-grade companies and technology and health care industries (with significant amounts of cash overseas), holding most of the wealth.By January 2013, NFCS firms in Europe had over 1 trillion euros of cash on their balance sheets, a record high in nominal terms.