Finance, Projects and Charity

Ben Bernanke Management is doing the same mistake which Allan Greenspan has done before the arrival of recession. Allan Greenspan's idea is to keep the interest rate low, pumping in more money to produce more and alas the money landed in Stock Market, Commodity Market and in the Mortgage Market. United States Dollar[$] had already been a margin currency, now it's planning to move up.  Markets too, did'nt appreciate the move. Dow Jones did'nt show any sign of life whereas commodity market dipped too. Federal Reserve Meeting July edition confirmed that USD$ 85 Billion quantitative easing is on till the end of the year. The biggest mistake is that to keep the interest rate down, as money starts moving not to add products but will land in Stock Market, Commodity Market or even Forex Market. But what about creating Macro-Demand in the market. Pumping or Moving money to the stock market will not do anything good, but producing something will be creating value. Never judge...

Consumer Confidence Index had fallen to five years low at 80.3 below the median of 81.3. The Confidence Index has come down, but consumer started purchasing cars, buy homes and other appliances. Employers too started to do more investment, creating more intakes of employees for creating more products for the future. Even people started buying cars too. United States Corporate Management started to achieve profit after a big gap after recession. Housing Market started to take-off and this is the best time for investment. Because still the market is below the Housing median and more growth is in the ample. Job Market is improving and cost of Real Estate is very low, so gain from your investment by investing now. The other market is timber market, which will improve as housing demand increases. Labour market too found more improvement in the past six months as employment increased by 200,000 a month than the past six months from 180,000 per month. Market will go up as unemployment w...

Finance, Projects and Charity: Make USA No: 1. : United States Management can once more become the best economy in the world, but it had it's own implications. Education sector must ...

United States Economic Management is on the path of recovery. The expectation of the people are more too. This concept had been derived by looking at the Consumer Sentiment Index which has risen to 85.1%, ie., an increase of 1% compared to last month's 84.1%.  But if you compare with last year, same period, it had increased by whopping 17.7%. But people are not investing nor consuming as they expect the interest rate to rise in the near future. We expect the saving trend can go up.  Consumer whose income is more than or equal to USD$ 75,000 started investing in Housing sector [25%] as compared to 6% in June 2012. Though everyone is optimistic about growth, but we see the spending is increasing slightly by mere 0.3% this May 2013. Optimism is there, still people are worried to invest nor spend. High income groups started investing in Housing sector, Stock Market and will be benefitting from it, but lower income group stands out of it.  Retail sector, a booming secto...

Goldman Sachs has commented that Gold will reach the remarkable price of USD$ 1400/Ounce this calender year. The reason for this is that Federal Reserve Management had come up with the idea of tapering of Bond Purchases amounting USD$ 85 Billion nor stopping it at once. So we see the galloping price of Gold, Silver, Copper, Crude Oil and other metals in the commodity market. This suggestion is wrong and can be proved wrong with the following details. Please don't invest in this metal unless it reaches the bottom of the pyramid [USD$ 800/Ounce].  Gold prices started inflating after the Federal Reserve started the stimulus package of USD$ 85 Billion Bond buying policy in the year 2010. But now, they'ad almost reversed the policy. They did'nt stop it, but started curbing it. Due to this US Dollar which were pumped in plenty will be less in the world market. This money got siphoned in the commodity market and started ballooning it. China and India which were at the peak hav...

United States Management can once more become the best economy in the world, but it had it's own implications. Education sector must be enhanced in the Primary and the Second level School classes accompanied by Vocational skills program to create work. Retirees must be provided adequate pension plan with built-in inflation benefits. Provide them due medical benefits too and use them to train other students, teens and people related to that field. Immigration, a headache now seen in United States Economy, but will be providing skilled manpower to fill the gaps of technology, engineering, etc in the current scenerio. Trade is not a one way affair, must provide ample opportunities for importing countries to provide products to United States Market, plus gives them US Dollar[$], which in turn can create export from the United States Market. Slight import-export gap can be resolved in a cheeky way, but constraints can't do any benefit. Actually the number of product...

Realtors Management of USA had released the Sales Report of Real Estates which magnifies increase in sale up to 15% compared to last year, but In June 2013, its Vice Versa shown a dip in sale of 1.2%. The reason being the mortgage rates are higher in key areas like New York, California and Hawaii, increase in inventory levels and lack of speeding activity kept the demand low. Mortgage Rates had increased due to recent curbing of  Bond Buying worth USD$ 85 Billion/Month by the Federal Reserve and everyone expected the increase in Interest Rate respectively. In May 2013, due to high Interest Rate prediction also shown the increase in sale of houses, ie., temporarily started to create more demand in the existing market. But after that,  Inventory level kept on rising tempted the drop in supply of houses too. Apart from that diminishing number of deals were done due to foreclosures, short sales and discount sales. But the National Median Prices keep on increasing...

Detroit Management , considered to be the mayhem of auto-makers around the world is in the realm of bankruptcy today. The World's famous three auto-makers ie., Ford, General Motors and Chrysler were in the same situation in the year of 2008 recession. American Government pumped in Billions of Dollars to save the auto-makers at that time. By the way, the Government did'nt do anything to save the city, Detroit. Detroit is facing bankrutcy for about USD$ 18.5 Billion. This crisis happened due to benefits provided by municipal authorities to corporates of 2008 recession on an uneven basis. Now, the city though rejuvenated from crisis in 1950's were having more pensioner's than working population. This created more liabilities than providing value or recreating it by producing cars or other automobiles to the world economy. Investors in Municipal Bonds of the city had lost value and started dumping it. Now the city Detroit, is waiting for the guile of United States Mana...

The prices of vegetables are getting costlier in developing countries due to wrong Management advices put forward or directed by G-7 countries. Today we've another news that onion prices are all time high in India due to decline in supply from the farm. The reason is the drought season last production year and demand is already high now. But the growth of India was above 9% in the year 2011, but now it'as been reduced to below 6%. Liberalization, Privatization and Globalization already gave India and the world, some good thoughts. But now, we're on the beating end. These liberalization created a big gap between the Rich and the Poor. Apart from that there's a gigantic gap between the Industrialist and Agriculturist. These gaps were created because the benefits of government policies are favoring the Industrialists. They make lot of money, where Agriculturists, having small size farms, low productivity, low on technology, never benefit from it. So, these policies cre...

John Paulson, Hedge Fund Management plus Billionaire is still betting on Gold and United States Real Estates. The reason behind it is that Gold will be best investment in the time of inflation and will crop-up as United States Management had pumped USD$ 85 Billion per month for couple of years to fight recession. As all the money pumped in, Not later than ever it will create inflation in the market, which automatically the price of needy items and after that shift to luxuries. To curn inflation, United States Management will increase the Interest Rate, which provides a vital platform for Gold to flourish. But before that, European Economy Management like Greece, Portugal, Ireland, Spain, etc will have to sell Gold to bring the Euro back to a comfortable position.   But, i too bet more on United States Real Estates than Gold . In the year 2008 recession, all the Real Estate market were crashed due to mortgage problem. It had reached the lower ebb after that. Now, we see a sm...

Indian Government Management is worrying about the fall of Indian Rupee[INR], earmarked more than Rs. 60/US Dollar. This is not due to outflow of Foreign Direct Investment’s[FDI’s] nor Foreign Institutional Investment’s[FII’s]. The main reason for this crisis is the Indian Government Management stopped Financial Reforms in the mid-2008 and keep on gaining the benefits from the past reforms. The economy was growing at about 9% and Management thought that it will continue without doing any reforms. Reserve Bank of India Management was trying to bring the interest rate down as inflation eases, but due to heavy fluctuation of Indian Rupee, they put a cap for overnight borrowing till Rs. 75000 cr. If the BankingManagement want to borrow more, they have to purchase at the rate of 10.25%. To curb the excess money in the market, Reserve Bank Management is trying to issue Government Bonds worth Rs. 12,000 cr. Bank Rate had been increased to 10.25% from 8.25%.  The Governme...

United States Finance is growing, the third example being Goldman Sachs Management has earned an increase in revenue of 30%. The total earning is considered to be USD$ 1.96 Billion this quarter. The main earnings of Management is from Bond sale, which accumulated by USD$ 658 Million. This has tripled its investment which had been done by Goldman Sachs Management . This profits had come due to Government policy of keep the interest rate near to zero. JP Morgan Investment Banking, Citigroup too had benefited from these interest rates. The Management had provided 50 Cent per share as dividend to the shareholders. Goldman Sachs Management too was investing in Shares, Bonds and Loans, which produced the revenue 7 times nearby. The stocks paid nearly above 10% return in the last quarter and this quarter respectively. Return were nearby 30% for Goldman Sachs Management before the recession happened in 2008. The net income of Goldman Sachs Management had increased from USD$ 927 milli...

United States Economy Management was done by Federal Reserve in the time of recession, 2008 - 2011. This is now earmarked by the Citigroup Management, as they created better-than-expected results on the market front. The better results had pushed the Citigroup Management by a record 2.1% rise in the value of shares. Due to the movement of the shares, Dow Jones Industrial Average moved forward, but that's short lived. The adjusted earnings of Citigroup Management was USD$ 1.25 per share this quarter compared to USD$ 1.18/share. This is done due to 42% rise in profits emulated by the Citigroup Management . This was done by the mortgage losses and the rise in growth of bonds trading. The Management got most of the revenue from the United States market. The Citigroup Management received three stimulus package from the US Government to come out of the crisis. Securities and Banking Division got most of the profits for the Citigroup Management where bond revenue rose 18%, stock...

United States Banks started to create profit, that means the Marketing Management is growing. This is due to the Management done by Federal Reserve by implanting cheap money policy. Quantitative Easing, not only made the United States Banks stronger, but also made ways to enhance the Marketing Management by creating investments through Banks. JP Morgan, pioneer in Marketing Management in investment banking[USA], right now created a profit of USD$ 6.1 Billion, which is considered to be the vital sign of growth. Due to cheap money policy set forward by Federal Reserve from 2008, borrowed money and consumers to refinance mortgages. The vital sign now given by the Federal Reserve is that, stimulus is slowing but not stopping instantly. If the Bank Rates goes up, still they're good enough to create to do more Marketing Management business. And for Banks, rising Bank Rates means, more interest to come and create more Marketing Management profit. The worrying thing, loan disburse...