Malaysian Economy MAY contract by 1.19% in 2009 -
If some of us are getting worried here about the economy, I think that we should be thankful we are here and not in the other countries that the following articles relate to.KUALA LUMPUR: The Malaysian economy will most probably see a full blown recession this year given the steep deterioration in recent economic activities both locally and globally.
http://biz.thestar.com.my/news/story.asp?file=/2009/3/5/business/3408526&sec=businessTelegraph: Europe’s banks face a $2 trillion dollar shortageThe BIS said European and British banks have relied on an “unstable” source of funding, borrowing in their local currencies to finance “long positions in US dollars”. Much of this has to be rolled over in short-term debt markets. The currency mismatch has become a potential risk for banks as the dollar continues to climb against the euro and Swiss franc, and especially sterling and Sweden’s krona.
http://www.telegraph.co.uk/finance/financetopics/recession/4939796/Europes-banks-face-a-2-trillion-dollar-shortage.htmlThe Market Oracle: Subprime Eastern Europe to Bankrupt Western European BanksEastern europe threatens default on $2 trillion of debt bringing European banking sector liabilities to $23 trillion.
http://www.marketoracle.co.uk/Article9241.htmlBloomberg: More Than 8.3 Million U.S. Mortgages Are Underwater8.3m U.S. mortgage holders owed more on their loans in Q4 08 than their property was worth as the recession cut home values by $2.4 trillion last year, First American CoreLogic said. An additional 2.2m borrowers will be underwater if home prices decline another 5%, First American, a Santa Ana, California-based seller of mortgage and economic data, said in a report today. Households with negative equity or near it account for 1/4 of all mortgage holders. Prices in 20 U.S. cities fell 18.5% in December from a year earlier, the fastest drop on record, according to the S&P/Case-Shiller index. U.S. foreclosure filings exceeded 250,000 for the 10th straight month in January, RealtyTrac Inc. reported. An average of 230,000 borrowers a month slid to negative equity in Q4 08, First American said.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOpE4o.BuHfM&refer=homeBBC: Problems mount at sub-prime firmUK sub-prime lender Cattles says there has been a failure of internal accounting controls at the firm and it is suspending three senior managers. The firm currently has a market value of £15m, but borrowing of 2.4 billion.
http://news.bbc.co.uk/2/hi/business/7920772.stmReuters: Bank of England set to boost money supply as rates near zeroThis article suggests that the amount of QE will be 100 billion. To put that in perspective, there are 20 million workers in the UK, everybody else is either a dependant or a state dependant. Thats 5000 per worker. I hope this is just talk to move the market, because that seems a bit too much for my liking. Maybe the intention is to trickle feed the money a bit at a time.
http://uk.reuters.com/article/topNews/idUKTRE5232RC20090304The Times: UK Food prices surge 9% despite inflation fallShop price inflation rose last month because of the increasing cost of meat, fresh produce and tinned goods, with overall prices up at an annual rate of 9 per cent, from 7.5 per cent in January. The cost of fresh food was 10.4 per cent higher in February than the same month last year. But the cost of ambient goods, such as tinned food or ready meals was also pushed higher as the cost of imported food rose because of the weak pound. The cost of an average basket of 24 staple items in the supermarket was 17 per cent higher last month than in February 2007, a separate survey by mysupermarket, the price comparison website, showed recently. The cost of an average basket of 24 staple items in the supermarket was 17 per cent higher last month than in February 2007, a separate survey
http://business.timesonline.co.uk/tol/business/economics/article5844672.eceBBC: Canada Cuts Rates to Record Low"Canada's central bank has cut its key interest rate from 1% to 0.5%, a record low, as it tries to stem the effects of the global economic downturn. Canada has been hurt by the recession in the US, its biggest export market, and the decline in commodity prices".
http://newsvote.bbc.co.uk/1/hi/business/7921580.stmFT: Ukraine risks unrest as ills worsenOlexander Pavlenko, a young computer programmer, is one of tens of thousands of Ukrainians who cannot get their money out of the bank. He stood in line in Kiev at Nadra Bank and Ukrprombank, two big troubled banks, planning to withdraw more than $10,000 (€7,950, £7,125). But like many others, he was told the cash was not available.
http://www.ft.com/cms/s/0/67fba682-075a-11de-9294-000077b07658.html?nclick_check=1
Topic: March 2009 World economic and property articles (Read 1741 times)
February 28, 2009, 01:33:08 PM