The Finance Media Blog

Archive for the ‘Global Issues’ Category

The cash for clunkers scheme initiate by the US govt. has picked up a lot of speed in the recent times and there are confirmed reports that over 250,000 vehicles have been sold under the banner of the scheme.

Aimed at bolstering the falling sales of car companies this scheme has seen many Americans making the most benefit of it by purchasing new car models for a credit facility of a fixed amount as decided by the govt.

However the debate rages as to whether all the deals that have been made will be cleared by the govt. as it has been said that due to the amounting workload related to documentation and scrutinizing of documents it will take a while before normalcy is restored and the confirmation process begins.

Thus to bring about economic stability the Obama Govt. is doing sufficiently enough to beat the odds reckoned with a falling market section.

The recession that hit the world mid 2009 has been tentatively been brought under control by stringent govt. norms and regulations.

Since the buying out of multinationals like AIG and other defaulting companies the

American economy has stated making efforts to get back on its feet.

Though insurance claims and other credit facilities are being given a shake of the head it will be soon before the financial institutions will have to start entertaining them again.

Special steps have been incorporated to check the background of those applying for loans, mortgages etc. so as to avoid instances of fraud that were responsible for the many foreclosures that brought down the economy. Property rates that hit an all time low have been resurrected over these few months and are now standing at a less ignominious figure.

However, NYSE has picked up significantly and is sure to make a decent comeback in the long run provided the financial status remain stable.

The world financial scenario was jolted tremendously during the recession period. However with the growing lending and borrowing going on in the markets it still remains to be seen whether analysts come up with a requisite solution to the problem.

Money for the stock market is compared to oil in the engine. Without money the engine may splutter and seize causing instability in the running of the machinery; only here it is the financial machinery.

Solutions that have been thought of by leading analysts and financial advisers are as follows:

• Investor’s money should be guaranteed by payment using the funds meant for the tax payers.

• Secondly bailout packages that relate to the buying out of financial institutions with ever increasing sums of tax payers funds.

• The banking system needs to be revolutionized thus bringing into scope new regulation and directives that keep a watch on the lending schemes and thus help to avert exorbitant lending sprees that may lead to a financial catastrophe once again.