Global Financial Crisis Holds Lessons for the Caribbean – Davies Posted on January 31, 2009January 31, 2009 by Your Financial FactSheet Jamaica Observer: Opposition spokesman on finance Dr Omar Davies has argued that the current global economic crisis demonstrates the full extent of the interdependence of the world’s economies and the dominance of the United States, factors which provide many salient lessons for the Caribbean. Jamaica Observer: “US Economist Sees Hope for Emerging Market Countries” Prominent economist Carl Ross has said that while there is reason for short-term pessimism for emerging market countries like Jamaica in the global financial crisis, a confluence of factors internally and externally creates a rosier forecast for such nations in the long term. Jamaica Observer: Seaga Chides Government Over Interest Rate Hikes On the same night he was honoured as an architect of Jamaica’s capital market, former Prime Minister Edward Seaga launched a scathing attack on the Government’s high interest rate monetary policy, labelling it as counter-productive to meaningful economic growth.
Fed ready to provide fresh aid to revive economy Posted on January 28, 2009January 28, 2009 by Your Financial FactSheet Aversa, AP (Economics Writer): Fed ready to provide fresh help to stem economy’s slide; rates will stay at record lows The Federal Reserve signaled Wednesday that it stands ready to use new unconventional tools, or expand existing ones, to spur lending and consumer spending that could help lift the economy out of a painful recession. The Fed also agreed to keep the targeted range for the federal funds rate between zero and 0.25 percent for “some time” to help brace the economy. Jamaica Observer: “Prices Soar in January” The downward spiralling dollar, which has dropped in value against its major trading counterpart – the US – by almost six per cent since the start of 2009, has prompted distributors to increase their prices by as high as 15 per cent, while others who operate in highly competitive market segments have begun seeing huge foreign exchange losses pose the threat of closing them down altogether.
Britain in recession… Posted on January 23, 2009January 23, 2009 by Your Financial FactSheet Pylas, London (AP) The British economy has officially sunk into recession, government statistics showed Friday, with output falling 1.5 percent in the fourth quarter of last year as the financial crisis ravaged banks, retail and manufacturing. Hemerling, BusinessWeek: “In Recession, Focus on Emerging Markets” By focusing on rapidly developing economies during this global slowdown, Western companies can turn economic crisis into global advantage
Credit markets closed to Caribbean needs Posted on January 16, 2009January 16, 2009 by Your Financial FactSheet Jamaica Observer: Credit rating agencies are already confirming that the need for new money of Caribbean nations and companies is finding doors closed in financial markets. Seabury, Investopedia: “Recession and Depression: They Aren’t So Bad” Recessions and depressions have occurred many times throughout history. To many, they bring fear and uncertainty, but they are actually a natural part of the economic cycle. Unfortunately, there are a lot of myths surrounding market cycles, but in order understand them, we must look beyond these myths.