Posts Tagged ‘Economy’
And when you find Corporate and Financial Sectors posting higher profits, you would normally expect that the Living conditions would improve and the economy would fare better.
Whenever you find a problem in Economy, there is a chorus for better Reforms_meaning sops for the Corporate and financial institutions
Have the Corporate and Financial Sector been improving in terms of profits over the years?
Look at the Statistics.
Thirty years ago, the financial sector claimed around a tenth of U.S. corporate profits. Today, it’s almost 30 percent. As a result, it’s supplanted manufacturing as the biggest profit center in the economy, a transformation I’ve graphed out below. The red line is manufacturing. The blue line is the finance sector chowing down like Pac Man on corporate America’s bottom line.
Now onto Employment.
Some more Data.
Now you know for whom the Reforms are intended for.
- The Unsustainable US Financial Sector (azizonomics.com)
The following is a Guest Blog by Celina Jones.
Financial experts advise against accumulating debt unless there is a situation where it is necessary. In the current economic climate, it is more difficult than ever to get credit on decent interest rates and repayment is also hard to make on time. This is why you should avoid borrowing any amount, no matter how small, if you have any other option for getting the money. One type of debt which is unavoidable to a great extent is student debt. If you want higher education, you have to pay for it.
However, the cost of higher education has gone up over the years. Adding the expenses for books, tuition, stationery and all other things required increases the cost that you have to bear. You might also have to pay for accommodation while you are in college or university, making it more expensive for you. Since students don’t have the kind of jobs required to bear the cost, borrowing money is the only way they can get through college. Hence, student debt has been on the rise over the years.
The Convenient Choice for Students
It seems like a convenient option for students to borrow money and then pay it over a number of years. They can borrow the money they need now and then the repayment would be spread over 5 to 10, even more years. That way, the amount is broken down into smaller chunks making it easier to repay. However, the uncertain financial climate has made it hard for students to keep up with the repayment schedule and bear the costs associated with it.
In some cases, they require debt settlement services to find a way to deal with the debt if they are having a hard time paying back the money. When the students finally settle down and get married, they have to continue paying off their debt. At present, over 20% of all households are dealing with student debt. The sheer volume of total student debt has grown exponentially, nearing $1 trillion this year.
The problem which most borrowers are facing is that they aren’t aware of the terms and conditions which apply to their loans. Hence, they face trouble paying the amount back. The growing link between student debt and higher education means that debt is becoming a major part of the economic insecurity faced by students after graduation. They have to pay off the amount they have borrowed for the next few years which means it is going to affect a significant part of their lives.
The main issue here is that even students with degrees from known institutes are finding it extremely difficult to find a high paying job. There was a time when having a degree virtually guaranteed you a good job with a six figure salary. With the recession taking its toll on the economy, the number of jobs available to them upon graduation has been receding for the past couple of years. This is the reason why the unemployment rate for people aged 20 to 24 is around 25%.
Even those students who get good jobs after graduating have to pay hundreds or thousands of dollars every month as part of the repayment plan. On average, a student has to pay the lender $800 to $1,500 unless the amount borrowed is exceptionally high. Even if the student makes a decent amount of money, the repayment takes away a considerable chunk of it. This leaves a small amount for them to get by and have a family.
The students have a hard time making any major economic decisions. They have to think twice before opting to buy a home or investing some money in any asset as most of their money is going towards the student debt they have accumulated. Moreover, having a family is another decision which they have to put off so that they don’t have to get by on a meager income, especially if they have to raise children.
There is no doubt that student debt is contributing to the growing divide in the relationship between student debt and economic insecurity. If the economy doesn’t improve in the next year or so, it could be some time before students are able to graduate with economic security For information on debt consolidation companies, you are advised to visit ConsolidatedCredit.org.
- Student loan debt could be the next economic bubble (suntimes.com)
Walmart, the retail Chain released its earnings recently.
It shows how the US has virtually been taken over in an important segment.
We do not know at what cost, as yet.
How about the small Traders and producers?
Retail behemoth Walmart released earnings Thursday, and many have used the report as a way to gauge how the American consumer feels. (Still strained, for the record.) That’s because Walmart is the country’s biggest retailer. Take a look at this animated GIF map by Excel Hero that illustrates the wildfire-like spread of Walmart stores that led to its domination of the United States.
You’ll need an equidistant map like this one, in order to plot the coordinates easily. If anyone knows the mathematics needed to transpose coordinates so they can be plotted on the more common map projections where the border between the USA and Canada is curved, please let me know! I have not figured that out yet.
- Walmart Earnings Just Okay (WMT) (dailyfinance.com)
If one were to take statistics,bad debts would have come from corporate, large companies and individually wealthy people.
Small business men and individual borrowers especially the poor lower,middle and middle class would have cleared the loan.
Occupy Wall Street is to be supported because of this.
All the much touted banks are in the list.
One does not find a smaller bank, say Vijaya Bank,KVB,CUB.
Surprising Indian bank does not figure in the list.
May be theydid not meet the minimum NPA to be included in the list.
Some banks have even shown growth in NPA.
Good governance by the Economist Prime Minister.
Net NPAs: Rs 12,347.90 crore
Gross NPAs: Rs 25,326.29 crore
The gross non-performing assets (NPAs) of public sector banks increased by 20 per cent during June-September 2011.
Standard & Poor’s, which had in September downgraded standalone ratings of State Bank of India, said high credit risks in the Indian banking sector reflects that the country has a weak payment culture and legal system that often result in low recoveries and delayed settlement of foreclosures.
(NPA figures are for the year ended March 2011, Source: RBI)
Net NPAs: Rs 2,407.36 crore
Gross NPAs: Rs 10,034.26 crore
ICICI Bank has the highest NPAs among private sector banks. ICICI Bank has slightly improved its net bad debts to 0.90 per cent from 0.91 per cent in the earlier quarter.
Indian banks face challenges like increase in interest rates on saving deposits, a tighter monetary policy, restructured loan accounts and increasing infrastructure loans.
3. Canara Bank
Net NPAs: Rs 2,347.33 crore
Gross NPAs: Rs 3,089.21 crore
Canara Bank’s gross NPA ratio increased to 1.73 per cent (Rs 3,793 crore) for the quarter ending September 30 from 1.49 per cent (Rs 2,636 crore) in the year-ago period. The net NPA ratio stood at 1.43 per cent (Rs 3,117 crore) in September.
Net NPAs: Rs 2,038.63 crore
Gross NPAs: Rs 4,379.39 crore
The NPAs of Punjab National Bank (PNB) rose by 29 per cent during the July-September quarter to Rs 5,150 crore.
Net NPAs: Rs 1944.99 crore
Gross NPAs: Rs 4,811.55 crore
The bank’s gross non-performing assets (npas) stood at 3.02 per cent, up 33 basis points sequentially, while net NPAs stood at 1.98 per cent, up 71 basis points sequentially.
Net NPAs: Rs 1,824.55 crore
Gross NPAs: Rs 3,150.36 crore
As NPAs mount, UCO Bank is eyeing a 20 per cent growth in its business and a reduction in its non-performing assets (NPAs) to less than 3 per cent in FY12.
7. Union Bank of India
Net NPAs: Rs 1,803.44 crore
Gross NPAs: Rs 3,622.82 crore
The system based NPA recognition method has led to a rise NPAs. Compared to the manual method, the system based study gives an accurate picture of bad loans.
However, the Union Bank is optimistic about cutting down NPAs. It expects gross NPAs to be below 3 per cent in the coming quarter.
8. IDBI Bank
Net NPAs: Rs 1,677.91 crore
Gross NPAs: Rs 2,784.73 crore
While IDBI’s gross NPA rose to 2.47 per cent from 1.88 per cent, net NPA shot up to 1.57 from 1.19 per cent in the second quarter.
Net NPAs: Rs 1,328.42 crore
Gross NPAs: Rs 3,089.59 crore
The gross NPA stood at Rs 3,090 crore in March 2011, as against Rs 3,611 crore in March 2010.
In percentage terms, the gross NPA ratio was 2.72 per cent as on March 2011 compared to 4.47 per cent in March 2010.
10. Syndicate Bank
Net NPAs: Rs 1,030.84 crore
Gross NPAs: Rs 2,598.97 crore
While the net non-performing assets (NPAs) increased to Rs 1,052 crore for the second quarter ended September, as against Rs 917 crore in the year-ago period, the percentage of net NPA declined marginally to 0.93 per cent, as against 0.97 per cent in the same period last year.
The repressed anger of the people against the Governments being run by proxy by Corporates is understandable.
While austerity measures are meant for the ordinary Joe, the Corporates go scot free.Take the instance of Goldman Sach-.The Comany had to be bailed out by the government, but the executives granted themselves Bonus.It required the arm twisting of Obama to make them drop the move.
By reckless spending the Corporates squander money, borrow outrageous loans from financial institutions with the help of crooked auditors and cooked books,evade taxes,get themselves paid enormously and post losses, which is only in the books.
Then they approach the Financial Institutions additional loans to help them pay the original loan.Banks, afraid of losing the original loan advances them more and yet the corporates fail again.
Then they go the Government ,blackmail them stating that the economy will be ruined and unemployment will rise.
The Government ,partly because of economic non sense and partly because they need corporates‘ money for election offer a bail out.
This is the story through out the world.
Now for a failing airlines owned by Liquor baron in India the Government is arm twisting the banks into lending him with out sufficient security and is also considering a bail out.
For all this shenanigans the financial institutions are hands in glove with the corporates.
Unless this is checked, ordinary working people will be in the streets.
These atrocious greed of the corporates makes one ,despite one’s revulsion,to think of Communism as an alternative.
The Occupy Wall street Movement must be supported by all those who think right and it has to be led properly to end the menace of Corporate greed.
- 12:18 pm: triumphant marchers returning to Liberty Square
- 12:14 pm: global solidarity actions: Occupy LA blocking bridge into financial district;Occupy Portland closes Steel Bridge; 30,000 march in Greece; more updates to come.
- 11:55 am: one of many video streams, TheOther99, breaks 20K current viewers, nearly 170K total views
- 11:52 am: counterterrorism agents spotted, appear oblivious to economic terrorism
- 11:44 am: thousands marching on Wall Street under red and black flag, police rush to erect barricades
- 11:34 am: sign reads: “Arrest one of us, and two more will appear. You cannot arrest an idea.”
- 11:32 am: barricades removed from south side of Liberty Square.
- 11:20 am: Liberty Square re-occupied: Bloomberg, NYPD struggle to quash Occupy Wall Street.
- Morning Read: Occupy Anniversary; More Trouble for Vito Lopez; Powell for Congress? (timesunion.com)
- Occupy Wall Street Occupies Wall Street: #N17 (boingboing.net)