FINANCIAL

MELTDOWN
Before, understanding
“Recession”,
we need to understand the
market
economy;

TWO STAGES OF MARKET ECONOMY

A] TWO STAGES OF MARKET ECONOMY

A1 ] Growing Market
Economy

A2 ] Declining Market
Economy
 A1 ] Growing Market
Economy

Starting Point =
Willingness to buy
 A2 ] Declining Market
Economy
Starting Point =
Unwillingness to buy
 What is Recession?

Recession is the economy shrinking for two

consecutive quarters (=6 months) with a
decrease in the GDP (=Gross Domestic Product)

GDP = Value of all the reported goods and services

produced by the people operating in the country

GDP = MONEY VALUE OF { C + I + G + ( X – M )}

C = Consumables , I = Gross Investments , G =

Government Spending ,
X = Exports , M = Imports
GDP GROWTH TREND
Overview of the World Economic Outlook Projections

  Year over Year

      Projections

  2007 2008 2009 2010

World Output 5.1 3.1 -1.4 2.5

Advanced Economies 2.7 0.8 -3.8 0.6

United States 2 1.1 -2.6 0.8

Euro area 2.7 0.8 -4.8 -0.3

Germany 2.5 1.3 -6.2 -0.6

Japan 2.3 -0.7 -6 1.7

Africa 6.2 5.2 1.8 4.1

Russia 8.1 5.6 -6.5 1.5

China 13 9 7.5 8.5

India 9.4 7.3 5.4 6.5

Middle East 6.3 5.2 2 3.7

Brazil 5.7 5.1 -1.3 2.5

Months of year-on-year negative growth
rates (sorted by decreasing order)
Trade turnover: Year-on-year monthly
growth rates, January 1965 to March
2009
Some who have been heavily effected by
the financial meltdown
Company Worth Loss
Lakshmi Mittal Arcelor £33.24bn £21.4bn
These are
billionaires
& family Kim
Vladimir (June 08)
Kazakhmys £4.05bn £3.28bn among the big
losers of the
Anil Agarwal (May 08)
Vendanta £4.287bn £2.95bn 2008 financial
Mike Ashley Resources
Sports Direct £1.169bn £1bn meltdown
((Feb
May 08)
Joe Lewis Bear 07)
Stearns £670m £602m
Bruno (Dec 07)
Schroders £1.521 £508m
Schroder
Michael & (Sept 07) 08)
ICAP (Jan £895 £483m
family
Spencer
THANK YOU
http://www.ft.com/indepth/global-financial-crisis

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

http://en.wikipedia.org/wiki/Bailout

http://www.imf.org/external/pubs/ft/weo/2009/update/02/index.htm
http://www.econ.yale.edu/~shiller/data.htm
http://rapidlibrary.com/index.php?q=latest+recession+ppt
http://www.google.co.in/search?hl=en&source=hp&fkt=6484&fsdt=14687&q=reces
 
http://www.oecd.org/document/15/0,2340,en_2649_33715_1873295_1_1_1_1,00.html#emplo

Well AIG certainly knew what to do with the bailout money.

http://rainbowwarrior2005.wordpress.com/2008/10/08/guess-what-aig-did-after-the-ba

nber- national be of economic and research

imf
 
http://www.tourismeconomics.com/docs/financial_crisis_update(ja
pdf