‘Guaranteed to Fail’ is a book written by Lawrence J., Viral V. Acharya, Matthew Richardson, Stijn van Nieuwerburgh White can help you to learn a lot about such important things as how poorly designed government guarantees for Fannie Mae and Freddie Mac led to the debacle of mortgage finance in the United States, weighs different reform proposals, and provides sensible, practical recommendations.

The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history.

The bailout has already cost American taxpayers close to $150 billion, and substantially more will be needed. The U.S. economy—and by extension, the global financial system—has a lot riding on Fannie and Freddie.

They cannot fail, yet that is precisely what these mortgage giants are guaranteed to do. How can we limit the damage to our economy, and avoid making the same mistakes in the future?

You can find this book, ‘Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance’, on Amazon right now.

Euromonitor International’s Consumer Finance 2011: Trends, Developments and Prospects global briefing offers insight into the size and shape of the Consumer Finance market, highlights buzz topics, emerging geographies, categories and trends as well as pressing industry issues and white spaces. It identifies the leading companies and offers strategic analysis of key factors influencing the market. Forecasts provide an invaluable perspective onmarket evolution and the criteria for success. The briefing leverages Euromonitor International’s 360-degree coverage of the global payments’ landscape including insight on consumer debt.

If youb are interested in more information or to purchase this report, go to: http://www.fastmr.com/prod/123356_consumer_finance_2011_trends_developments_and_prospects.aspx

Buying this report you can
Get a detailed picture of the Consumer Finance market;
Pinpoint growth sectors and identify factors driving change;
Understand the competitive environment, the market’s major players and leading brands;
Use five-year forecasts to assess how the market is predicted to develop.

Id like to say something good, but despite the common European efforts the euro is dropped to a 14-month low against the dollar Wednesday as fears over the spreading euro-zone debt crisis again hammered markets, Wall Street Journal reports. Investors are deeply concerned that the EUR110 billion aid package to Greece will neither ensure solvency in Greece nor contain the spread of the crisis to other fiscally troubled euro-zone countries.

Concern is mounting that Portugal, Spain and other weaker economies in the euro zone could run into similar problems and require significant aid. As in Tuesday’s sessions, the negative sentiment cut across all asset classes, with investors fleeing to the perceived safety of the dollar, yen and the government debt of the US and Germany in choppy trade.

A warning by Moody’s Investors Service that it could cut Portugal’s Aa2 sovereign rating by up to two notches fueled the sense of crisis, sending the euro to $1.2803, its lowest level since March 2009. So far this year, the euro has lost roughly 10.45% against the dollar since exiting 2009 at $1.4316.

Despite the best efforts of European officials to pacify investor concerns, the combination of contagion fears in CDS market and the alarming pictures of riots across Greece (where there is already a death toll of 3 from today’s protests) EURUSD has dropped sickeningly quickly down to lows of 1.2803 from early highs of 1.3040. Ratings agency Moody’s added to the grim sentiment by saying there was a “very strong” likelihood of following through on Portugal downgrades after the 3-month review, and even the better than expected Eurozone retail sales (-0.1% YoY vs. -0.5% expected, last month revised up to -0.2% from -1.1%) could not keep the pair supported.

In other news, the Norges Bank hiked interest rates 25bps to 2.00%; forecasts had been mixed between those anticipating a hike and those looking for an unchanged decision which made for a lively reaction to the decision, with EURNOK to selling-off rapidly from 7.8675 levels to 7.8080 on the immediate announcement. There has been further downside for EURNOK to lows of 7.7785 as the EUR has weakened in the afternoon, but this move has come in spite of a more dovish statement and press conference from the Norges Bank’s Gjedrem. It was acknowledged that the NOK was “strong” and that debt turmoil in Europe may impact future rate setting in Norway.

In the US session, the ADP employment report (a crucial early indicator for Friday’s non-farm payrolls) came out at a robust +32k in April (+30k expected), and last month’s disappointing -23k print was also revised up markedly to +19k. Meanwhile the ISM non-manufacturing survey came out at a solid 55.4 (56.0 expected).

Singapore is one of those unique countries which continue to attract several thousand entrepreneurs to setup their latest venture in the country. However, it is not simply a coincidence that so many entrepreneurs are looking for Singapore company incorporation each year.

It is a direct result of the business friendly policies of the country which makes it so attractive for all entrepreneurs and existing business organizations. Also its position in the heart of the Asia-pacific region makes it even more attractive to any company looking to grow further in the Asian region.

Since the 1960s, Singapore has been following policies which would encourage companies to setup in the country, thereby increasing foreign direct investment, employment opportunities for locals and become a strong force in the business world. Today Singapore is considered as the leader in business laws and the primary choice for all entrepreneurs looking for the best location for their new company.

To attract foreign companies, Singapore offers 100% foreign ownerships, several taxation and other benefits, bilateral treaties to avoid double taxation etc. They have also made it as easy as possible to enhance the business operating experience of all companies based in the country. With flawless infrastructure in place, it is a boon for companies who need a sound environment to operate and grow.

With renewed focus on business and infrastructure development, Singapore will continue to attract thousands of businesses and will be able to easily retain its position as the most business friendly country in the world.

What will happen when the next shock hits? We believe we may be nearing the stage where the answer will be – just as it was in the Great Depression – a calamitous global collapse. The root problem is that we have let a ‘doomsday cycle’ infiltrate our economic system. This is a quote from very interesting article, titled ‘The doomsday cycle’ by Peter Boone and Simon Johnson.
“So where are we going with our current reforms? It is now obvious that risk taking at banks will soon be larger than ever. Central banks and governments around the world have proved (once again) that they are willing to bailout banks at enormous public cost when things go wrong. Markets are now again providing very cheap loans to banks, with the comfort that the state will bail them out.

Today, Bank of America and the Royal Bank of Scotland are each priced to have just 0.5% annual risk of default above their sovereigns during the next five years in credit markets. This is a remarkably low implied risk considering that both banks were near to collapse just a few months ago. Creditors are clearly very confident that they will be bailed out again if necessary. Indeed, they are more comfortable lending to large risky banks than to many successful corporations.

There is no doubt that the regulatory environment is going to be tougher for the next few years. But nothing has changed to make us believe the regulatory system will succeed this time, when it has failed so enormously – and repeatedly – in the recent past. To bring about the dramatic change that is needed also requires international cooperation and consistency. We doubt such change is truly on the table as so few policy-makers seem to demand it.

Many of our current policymakers – Ben Bernanke, Mervyn King, Alistair Darling and Gordon Brown – are the same ones that inflated the last bubble. So we know with great confidence that they are the types that will bail us out each time things go wrong. They are all currently on course for seeding our next rise and collapse. Cheap rates and credit, with large moral hazard, are the initial stages of each cycle. Very few of these people, apart from Mervyn King, appear prepared to recognise their past role in creating our current problems and then to discuss resolutely how to change it.

The danger this system poses is clear, as Figure 1 shows. With our financial system now well oiled to take on very large risk once again, and to gamble excessively, can we be sure that we can continue this cycle of bailing out eventual failures? At what point will the costs be so large that both fiscal and monetary policies are simply incapable of stopping the collapse?

Last year, we came remarkably close to collapse. Next time, it may be worse. The threat of the doomsday cycle remains strong and growing.”

Youcan read complete text here – http://voxeu.org/index.php?q=node/4659

This information was prepared by the Latvian Ministry of Economics.
On 29 September, the Ministry of Economics informed the Cabinet of Ministers on Latvia’s macroeconomic situation and stressed that further growth and economic recovery would be determined not only by global economic recovery, but also by the effectiveness of the Latvian government’s economic policies.

According to the International Monetary Fund’s corrected prognoses, the world’s economy has begun to recover from the unprecedented recession of the last decades. Nevertheless stabilization is not unequivocal and the expected recovery is going slowly. Financial conditions have improved faster than expected mainly due to active measures undertaken by countries. New data indicates that the shrinking of the economy has slowed down. Notwithstanding positive tendencies, the global recession has not been fully overcome, recovery is slow, and financial systems have not fully stabilized.

The Economics Ministry’s economic prognosis for 2009 and 2010 is based on weak external demand and a shrinking internal demand. If the 2008 economic recession was determined by a decrease in internal demand, then the main factor in 2009 has been reduced external demand. Most likely, the 3rd quarter of 2009 will reveal a sharper GDP decrease then first two quarters. However, it is anticipated that GDP reductions will gradually diminish until mid-2010, when Latvia’s economy will hit the lowest point of its recession. Compared to the previous report on the macro economic situation Latvia, the prognosis for 2009 remains constant, and anticipates an 18% decrease of GDP. The government will continue to consolidate the state budget in 2010 and plans to substantially reduce government expenditure. As the result government and private expenditures will continue to fall. Restricted access to credit will restrict investment. Weak internal demand will decrease the volume of imports. On the other hand, as external demand grows in the second half of 2010 and manufacturer competitiveness improves, it is expected that export levels will exceed the 2009 figures. Despite positive tendencies for the second half of 2010, overall GDP could face a 4% decline in comparison with 2009.

Latvia’s economic recovery could begin in 2011, if the world’s financial markets fully stabilize andcredit availability is renewed. This would provide a positive stimulus for domestic business and
ensure a steady growth in demand for products and services in Latvia’s primary export market countries. GDP growth in 2011 is expected to increase by 1,5% in comparison with 2010. According to Economics Ministry’s experts, labour market recovery is expected a year later then the recovery of overall economic growth. It will be based on productivity and not on the number of employed. Social problems related to low employment will remain an issue for the next 3 to 4 years. The decrease in demand for labour will experience its biggest reduction in 2009 and 2010.

It is projected, that in 2009 the number of people employed will decrease in all sectors, and unemployment figures, in comparison with 2008, will increase sharply.

Standard & Poor’s 500 as well as Dow Jones now are on maximum levels since Barack Obama was elected in November of last year as US president, has reported Bloomberg Agency.
Nasdaq has reached the highest point since October, raised 12 trades successively. Such long period of lifting has not been fixed from 1992.

“With the round number of 9,000 not being there for a significant amount of time, it’s encouraging,” said Michael Koskuba, a New York-based fund manager at Victory Capital Management Inc. – “It’s really a result of companies reporting better-than-expected news.”

Index Dow Jones Industrial has grown on 2, 12 % – to 9069, 29 points on Thursday, Standard & Poor’s 500 has increased the results of the trades by 2, 33 %, having made 976, 29 points, Nasdaq Composite Index for a day climbed on 2,45 % – to 1973,6 points.
From the beginning of current year Dow Jones increase on 3, 3 % and S&P 500 – 8, 1 %.

Index Nasdaq has added of 25, 15 % this year. At the same time, in the morning on Friday futures for the American indexes decrease moderately.
Citigroup Inc. raised its 2009 and 2010 profit estimates for the S&P 500 by 9.8 percent and 11 percent respectively, citing better-than-expected earnings. Experts Citigroup expect that the profit of the companies from S&P 500 during the current year will make $56 per share against earlier expected $51. The forecast for the next year has been raised to $62 per share from $56.
It’s been a good earnings season, given the backdrop that was there,” said Sarah Hunt from Alpine Mutual Funds. “When you look at some of the estimates, they are expecting a better second half.”
The Internet shop eBay stock value has jumped up on Thursday on 11 %. The results published by the company testify the stabilization in the online trade market. EBay has got in the second quarter profit at a rate of $327 million, or 25 cents per share, in comparison with $460 million, or 35 cents, one year ago. The gain has made $2, 1 billion without single factors the company has earned 37 cents per share. Analysts expected 35 cents at a gain in $1, 99 billion.
Ford increased 9.4 percent to $6.98. The only from the largest American auto manufacturers, which not using the help of the state, has won in April-June net profit after four quarter losses.
AT&T rose in price for 2, 6 % also because of positive financial results. The largest American telephone company has lowered net profit in the second quarter on 15 % – to $3, 2 billion, or 54 cents counting per share.
A gauge of homebuilders advanced 5.2 percent after sales of existing U.S. homes rose 3.6 percent in June to an annual rate of 4.89 million, the National Association of Realtors said in Washington. Economists in a survey had forecast an increase of 1.5 percent. D.R. Horton jumped 7.6 percent to $11.17.
3M have risen in price for 7, 4 % that became a record gain among the companies from Dow Jones. The company which produces about 55 thousand of names of the goods – from electronics to stationery, in the second quarter has reduced net profit to 17 % – to $783 million, or $1, 12 per share. However without some expenses the company profit has made $1, 2 on the action against 94 cents expected on the average by analysts.
The Fifth Third Bancorp surged 14 percent to $8.01 to lead a measure of financial shares in the S&P 500 to a 3 percent advance. Ohio’s largest lender posted second-quarter earnings of $1.15 a share, compared with a loss of 37 cents a share a year earlier.

In October 2008 Paul Krugman, a professor of economics and international affairs at Princeton University believed that increased public spending — akin to the efforts of the New Deal during the Great Depression — is the best way to escape the financial crisis and regain American global leadership, npr.org. reported.

“It’s politically fashionable to rant against government spending and demand fiscal responsibility. But right now, increased government spending is just what the doctor ordered, and concerns about the budget deficit should be put on hold.”

Ehat’s tiday? What’s the matter with Europe now? Many countries in Western Europe have weak financial sectors with high systemic risk. We know about the collapse in Iceland and no doubt thsi is not an isolated incident, but rather a harbinger of things to come for smaller countries with large financial sectors such as Austria, Denmark, Ireland, Sweden and Switzerland and even the United Kingdom are waiting now their turn.

As you know promotion is one of the most effective tools which give an opportunity to improve the work of your company. Of course you can admit that much of the success lies in the product itself because people need particular qualities or unique design. And of course prices matter. That is why you try to optimize the work of your company. But in fact it is only partially true because if nobody knows about your product nobody is going to buy it. It is 100% true. That is why you must invest great financial resources in promotion and advertising your company products. That is why many companies order promotional items from the best well-known producers which can meet the requirements of every business. For example, you can order specially designed real estate promotional products if you are involved in this sphere of business. Everything which is required form you is to make and order.

Afterwards managers will choose promo products which suit you most. For example, they can offer you custom mugs with the logo of your company. This is a perfect choice because you can deliver such advertising gifts both to your managers and of course to your potential customers and business partners.

The worst economic turmoil since the Great Depression is not a natural phenomenon today Guardian totes, but a man-made disaster in which we all played a part. In the second part of a week-long series looking behind the slump, Guardian City editor Julia Finch picks out the individuals who have led us into the current crisis

So, who are those who led us down the Road to Ruin?

Alan Greenspan, chairman of US Federal Reserve 1987- 2006
Bill Clinton, former US president
Gordon Brown, prime minister
George W Bush, former US president
Senator Phil Gramm
Abi Cohen, Goldman Sachs chief US strategist
“Hank” Greenberg, AIG insurance group
Andy Hornby, former HBOS boss
Sir Fred Goodwin, former RBS boss
Steve Crawshaw, former B&B boss
Adam Applegarth, former Northern Rock boss
Ralph Cioffi and Matthew Tannin
Lewis Ranieri
Joseph Cassano, AIG Financial Products
Angelo Mozilo, Countrywide Financial
Stan O’Neal, former boss of Merrill Lynch
Jimmy Cayne, former Bear Stearns boss
Christopher Dodd, chairman, Senate banking committee (Democrat)
Geir Haarde, Icelandic prime minister and others.