Posts Tagged Russia
BRICs in Bloom
The bottom line: U.S. still economic leader though increasing debt and entitlements could limit growth, U.S. dollar still reserve currency but interest rates will have to rise, Russia still overly dependent on oil and other commodities and vulnerable to future economic shocks, China’s influence growing and economy will continue upward, Brazil outlook very positive, and [...]
Funding for Emerging Markets
A big difference between the current economic crisis and other post World War II downturns is that there are no safe shores now. In 1998, when the Asian financial crisis knocked emerging market economies there was still a great deal of liquidity in the World as well as plenty of markets for exports. This is [...]
Market Intervention Follies…continued
Here at BOZONGO…we are not gloating over the news that oil prices dropped after OPEC announced production cuts. As this article from www. timesonline.co.uk proclaims, the market intervention/manipulation by OPEC could not keep prices from falling, nor will they in the future. OPEC member and other producers will maintain oil flows in an attempt to [...]
OPEC and the Folly of Market Intervention
The folly of market intervention by governments and monopolies can best be illustrated by that of OPEC. Although recently proposed cuts in production by OPEC members and non-OPEC producers like Russia will certainly raise the price of oil…at least temporarily…they have side effects that are contrary to the interests of those same producers.
Emerging Protectionism in Emerging Markets?
One of the primary factors that changed a recession into the Depression of the 1930s, was protectionist legislation enacted in the United States. This set off retaliatory moves by other nations that led to catastrophic reductions in global trade. Ultimately, protectionism combined with increased taxation, pushed the World into Depression as well prolonged it until [...]
No Auto Bailouts in Emerging Markets
It is no news that the Global Economic Crisis has had a huge effect on car sales in both mature and emerging markets. In the United States, three domestic manufacturers-General Motors, Ford and Chrysler- are facing bankruptcy while the United States Senate debates whether to proceed with a “bailout.”
In all economies, frozen credit markets [...]