American Economy strike of world recession

Now these days every body talking about the recession in American economy. The reason of recession in american economy is sub prime mortgage. due to sub prime mortgage banks and financial institutions has already lost his billions of dollers in 2007 and now last week the europes largest bank and worlds largest wealth management bank has declare he will write off 14 billion dollers due to sub prime mortgage, and many more banks are trying to gain courage to do same. Now question raise what would be the result of all this, there will be a great financial crunch in near future and it will spread over to globe. If the big economies of the world are facing this problem then what will happen for the small economies.

Last week almost all the major stock market of the world saw a great fall from south east asia to america, as a measuring step federal bank has to cut interest rate 75bp the biggest rate cut of the history, after few days another rate cut of 50bp. what would be the effect of rate cut on economy means more money will be available to market. and there would not be any shortage, another side companies are cutting there jobs, last week in almost 17000 jobs has been cut in industrial and trade sector as well as in agriculture sector due to lower of production. Now slowly it has been seen that recession is spreading out in other sectors of economy. if the companies will cut their job recession will spread because people would not have money to spend. what would be the effect on world economy if america continuing facing recession in his economy, because most of the world economy is depending on american economy. In my view some how recession is good for American economy because since last 10-12 years world is heating in every sector of economy, specially oil, gold and construction sector. in this sector most of the world economy has shown sustain growth that was amazing and some across intentionally created. due to this and higher demand of commodities inflation has raised and the price of basic need commodities had also raised and they were out of reach to common people, and life was more difficult to common people, to control this some of central bank of major economies had raised their interest rate. but they could control the inflation to some extend. this problem does not persist not only in european economy but also in asian economy like china and india. Since last 10-12 years two asian economy china and india has also shown tremendous growth in economy. they attain 9-11% annual growth in economy, in spite of poor economy earlier. specially china shown a immense growth due to higher exports of cheap goods and attract worlds dollar currency, through this created the world biggest foreign currency reserve, stepping down the japans and other nations and shown itself as a dominant economy of the world who can control the worlds economy to some extent. By the huge reserve of foreign currency now china is funding to poor countries, those cannot be funded by the world bank and International monetary fund due to any reason weather political instability, war or not able to maintain the standards of financial institution. by funding to these countries china getting some rights like exploration of mineral and ore, making big construction project like road, dam, harbour, railways track, electric power houses etc. by getting this rights china has access to the mineral or ore of that country and the same has imported by the china their country for consumption, meet out his production demand. by getting contracts of construction work china exporting his production to that country and using his excess labour to finish up work. The biggest example of this is Africa, in almost all the country of africa, China has funded them and getting mineral and ore rights for exploration and big construction contracts, as well as appoing their labour to finish up these contracts, this can be easily seen in most of the african countries, there chines labour is working on the roads, railways projects, dam etc. and through all of this china gaining more and more foreign currency. Now it has been also heard that china is creating billions dollar fund for investing in financial sector of Europe and America, and every body knows that chinas every step is in the interest of china itself not in the favor of rest of world. But with the biggest foreign currency reserve has one adverse line for the china economy, due to heavy inflow of foreign currency, inflation has raised in china also and the effects of the raising inflation is being shown in chines economy. most of the export of china and india is to america and europe. Now what will happen when recession continue in american economy and this recession spread out to europe and it has already. export of this two country will go down, this already happend the growth of IT industry in india is not as much as it was earlier, due to depreciation in dollar because It is totally depend on the america, this is an example. when the depreciation of dollar has so much impact, then what would be the impact of real recession in american economy.

Global Financial Crunch

last week was the shocking week for the global financial market. BNP paribas biggest bank of the france blocked his two funds for repatriation of money, due to huge loss in investment in US sub prime lending market. The sub prime lending market is mortgage credit to borrowers, and due to provide credit to poor rating clients, they unable to make the repayment that credit and result losses. But all of this was not suddenly, this was raising since last 3-4 months when number of defaulter's were increasingly of repayment of mortgage loan and home loan. but till funds and institutions were managing them selfs and try to wipe off big mortgage loan from their accounts. and another side property rates were also showing downfall and result came as huge down fall in global stock markets. all most all major stock market tumbled significantly when BNP paribas freezed two of its funds due to huge loss relating to investment in US mortgage securities. with this shocking news all Europeans stock market fell sharply and as reaction Dow Jons and Nasdaq were also tumbled sharply. reason was only showing bad performance in mortgage and housing loans and mortgage securities in US. As a rescue measure taken by the ECB, it pumped billions of euros in the market in the expectation that other might have face same problems as BNP faced. Not only

Indian Economy

In the month of may 2007 some unexpected incident happened suddenly USD is very lower in comparison to INR, and no major step had been taken by the RBI or government of india. earlier in 2006 the prices of all most all metals iron, copper, zinc, aluminum, raised due to high domestic demand. All most all sector of economy was showing tremendous growth, real estate, construction, automobile, trade, industries, stock market also shown a record high, foreign companies made a huge investment foreign currency reserve reached at a new high, companies were depositing more money in their advance taxes but at the other hand agriculture production was decline buffer stock of wheat was going down, production of major crops like wheat, rice, pulses was going down, due to all this inflation raised sharply and when the prices of basic commodities raised sharply then government took some steps to control the inflation. as a control measure, first of all RBI increased its repo and reserve repo rate to control the flow of money in market but these step were minute to control the inflation. then to as a major control the flow of money in the market RBI had to increased its SLR and CRR. but as a effect of slr and crr money sweep out from the market but the prices of basic commodities remained unchanged, instead of going down prices remained stable at that label. due to increase in slr and crr banks also faced shortage of money and they compel to increase the interest rate due to this now borrowing were also gone costly and result of this would be seen in the near future but as a increase in rate of interest of housing loan, those person who took loan earlier at flexible interest rate option were now in difficulty now they had to pay more installment on their housing loan so it was extra burden on there pocket. they were already in trouble due to increased price of basic needs commodities, now this created more trouble for them. now banks are increasing their deposit rates to attract the deposit to meet out their money demand, this action of bank will also against the stock market.

Living in luanda

Living in luanda is very tough job if one can work here, he can live in any part of the world. luanda is very crowded, heavy traffic, rough road, pollution, snatching cases, and long power cut, occasionally fresh water in tap, last 10 days I dont have power in my house, thank god I have generator. earlier no water for 4 days that time in whole luanda there was no running water in tap. these all problems shared by all persons when they meet. In spite of all Luanda is luanda,


fabulous is very nice place, sour randed by clear and white send beaches a good place for relaxing on weekend. I often go to Ilha de Luanda there is very long road along side the ocean and at the and there is one light house and lots of good restaurants, you will find lots of persons there expats as well as local. But if you are vegetarian, please forget vegetarian food, no body know about vegetarian food, if you will ask for vegetarian food they will serve you fish.

If you go to the suburbs of Luanda cacuaco, this is in the north east of the luanda and along side the coastal. this is also very nice place, having big local market of vegetables, means real vegetables, to reach there you can go by your own car or can take blue taxi and big buses these are the local transport but very crowded. if you go more beyond the cacuaco you will reach to Pangila. there you will find fresh water river which merge into the ocean. people go there for fishing and for picnic. beyond the cacuaco one barro de dandee fine fresh water river good place for boating and picnic.

south of luanda aprrox. 70-80 k.m. barro de kwanza quite and calm, good place for weekends. kwanza river is flowing in his full swing and pouring in atlantic ocean there are few hotels for staying on river and ocean bank one can enjoy both at a time and can spend long time in fresh water river as well as fresh water ocean.

In the crowded, heavy traffic, rough road, pollution, snatching cases, and long power cut, occasionally fresh water in tap, of Luanda there is one oasis, The Mussolo mussolo is small island situated south of luanda not far from luanda only 15-30 minute from the center of the city. to reach there you have to take a boat, so you can enjoy the boat riding and there you will find peace. wow what a peace there you can listen the hamming of birds, few restaurant

Markets

1. Sao Paulo:- The main market of the Luanda there you can find everything very crowded so becareful pick pocketing and snatching is common. but if you are unable to find something in other market, you can find it here.

2. Roque:- No words for this market, largest market of the western africa under the open sky scattered around a 4 squ. k.m. everything is available here.

3. Kinaxixi.

Supermarkets.

1. Jumbo
2. shoprit
3.Afribelg
4. Martal
5. Intermarket
6. Casa Fresco

Bekari.

Neloºs
Lots of other small bakersi sales pao