... Strongly consider benefits of Non-Qualifieds
The Current Financial Climate
... Response of Businesses
• Look for creative micro and small
business opportunities in sectors
such as agriculture and tourism
PowerPoint - Global Financial Integrity
... The Emerging Economies
• Lost financing for development, through profitable private and
public investments in a world with increasing inequality
• IFF from the developing world 500-1000 billion USD/yr, exceeds
net legal capital inflow to the developing world and many times
• Capital outflows inc ...
Great Depression II (averted)
... • Low interest rates
• TARP (Troubled Asset Relief Program) for
injecting credit and buying “toxic assets”
• Stimulus bill ($790 billion)
• Nationalize US auto companies
• Incentives to buy cars, houses
Learning Outcome One
... Keynes: The Return of the Master (2009), Robert Skidelsky
• "One of the main causes of the Great Depression, [Keynes]
believed, had been a global 'saving glut' originating in the
United States. The US's accumulation of gold through its
current account surplus had forced other countries on the gold
We need to save more whe...are good | Interest.com
... but it's not a promise that things are always going to be that way," says Reeves.
Foss says we should be saving more not just to survive the next coming storm but to capitalize on it.
Hard economic times often produce low prices.
When the bottom fell out of the economy and housing market in 2008, it ...
Segregation of Duties - Cash
... The following matrix is to be used as a guide to determine if segregation of duties is sufficient to
provide reasonable assurance that University assets and employees are protected. Consult with the
Office of Business Affairs if your department needs assistance obtaining segregation of duties.
... increases as well as reductions to tax credits and deductions
The US consumer will be deleveraging and increasing their
Unemployment will be higher than expected
Real Estate prices will be softer, rents will decline
US Federal Debt levels will be a major concern
Re-regulation of ce ...
1 - BrainMass
... b. Since all firms borrow from the same financial markets, all firms have the
same required returns on debt
c. For any given firm, the required return on debt is always greater than the
required return on equity
13. which of the following items is not considered a receipt in a cash budget?
Global Imbalances Ford Ramsey, Claire Huang, and
... Global Imbalances were the prime cause for the
economic crisis as they depressed interest
rates which incentivized investors to make risky
Global imbalances and lax financial regulation
in the United States worked in concert to create
the current financial crisis.
Flexible labor markets
... • 1980-2000 1.7% (including China and India)
• The same figures are 3.2% and 2.1% for developed
Growth failure has been particularly noticeable in Latin America
and Africa, where neo-liberal programs were implemented more
thoroughly than in other regions. (in Africa there has been even
... The global financial crisis, which started in the Unites States of America in the second half
of 2007 and expanded its area of impact by subsequently spilling over to Europe and Asia,
entered a new phase when Lehman Brothers–one of the leading investment banks in the US–
filed for bankruptcy protect ...
Review Guide 2
... The bank has $500 in reserves, and the reserve-deposit ratio is 5%.
The Federal Reserve conducts open-market operations to stimulate
the economy, and purchases bonds for $100. Assume the $100 from the
Federal Reserve is deposited completely into the bank.
What was the money supply before the Fed’s a ...
Special Bulletin - September 2011
... delicate balance of reducing government debt in the long run without cutting so
aggressively in the short run that damage is done to economic growth.
6. While slower growth will be evident in the developed economies, it is
expected that emerging economies will still experience strong growth. Many
The blurry frontiers of economic policy
... will have longer-term adverse effects. For the
most part, the latter fear appears overblown,
though the risks caused by unexpected policy
shifts and related financial adjustments should
not be underestimated or dismissed.
The emerging economies generally have the
policy instruments, balance sheets, ...
... government net tax collections over spending (T –
– Government budget deficit is the excess of
government spending over net tax collections
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.