Light at the end of the tunnel?

Concerted action is taken around the world to rescue the financial system.


After the past few weeks, in which the financial system almost ground to a halt, governments of the industrialised world seem at last to have found the right tools to get credit markets moving again. Officials in Europe, America and Asia announced unprecedented and comprehensive plans to prop up failing banks, guarantee their loans and flood the world with cash by providing unlimited dollar funds through central banks. At first blush the new plans seem to be working. Stockmarkets rose around the world this week, although the real sign that the situation is improving will come in the credit markets by the end of the month.

Joannes Verhoest

Source: The Economist

Gold makes the world go around

In these times, where bankruptcies seem to swallow all our money, there is maybe one safe and even profitable solution: Gold. Despite the high course of gold -last Friday a kilogram of gold would’ ve cost you 21.550 euros - demand is increasing. Suppliers had to tenfold the production in order to keep up. And if we can trust analysts, investors in gold have reasons to do so, as the gold price is believed to reach unseen heights the coming months.
(Standaard, 11&12 oktober); Laure Willemen

Even the oldest profession of the world suffers from the financial crisis!

While the stock markets continue to decrease, the incomes of prostitutes in Spain fall as well.
The video, which can be viewed on the website http://www.depers.nl/video/?ID=297643&ref=rss , says that women of pleasure earn 30 till 40% less then a couple years ago.
Laura, one of the prostitutes, mentioned that more and more Spanish women search a solution for there high bills in paid love.
This means that the concurrence is becoming harder, but at the of the story men remain men and they will have always money for their pleasures.

Joris Verhoeven

Nationalization of banks?

Now the bank crisis is officially the most severe since 1930, the nationalization of certain banks is food for thought. Since several banking institutions, for example Fortis (Picture: Manager Filip Dierckx), face serious debt issues, bringing them under public ownership seems to be the last resort. Since this measure conflicts with every single basic principle of capitalism and free market, most bank managers plead for financial socialism rather than nationalization. Is this cry for help during harsh times not a bit hypocritical though, when for the past few decades banks have done everything in there power to avoid governmental influence?

Sanne Verbiese

US unveils $250bn rescue plan

Yesterday, the US government unveilled a historic rescue plan for its banks, a plan that includes $250bn. As part of the plan, the government will inject it's banks with half the total, $125b, and under a take-it-or-leave-it offer, the banks will recieve additional funds in return for non-voting preference shares for the government.
All banks will get these funds on the same terms, and the cost of securing loan guarantees will depend on the size and strength of each bank.
All other US financial institutions eligible for the plan have to decide by November 14 whether to participate on these terms.

Simon Zutterman

Source: Financial Times
http://www.ft.com/cms/s/0/395a0fa6-99f2-11dd-960e-000077b07658.html

5.2% inflation in the UK

The inflation in the UK has reached his highest level since March 1992.
In September the inflation rose to 5.2 per cent, the major causes were the sharp increases in gas and electricity bills. But also the Bank of England’s Monetary Policy Committee is responsible, they focused too much on the prevention of a recession, and lost sight of the rising inflation. According to Jonathan Loynes, economist at Capital Economics, we have reached the peak, and the inflation will drop back in the future.



Financial Times : http://www.ft.com/cms/s/02fce3aa-99cc-11dd-960e-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F02fce3aa-99cc-11dd-960e-000077b07658.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fworld%2Fuk


Greg Van Wijnendaele

PEOPLE Before PROFIT

Because of the planned government bailout of the banks in the UK, a group of 150 people protested outside the Royal Exchange in London.
The protesters, who were led by organisers from the Socialist Workers Party and joined by some student groups, wanted to know why they should pay for someone elses crisis. The police had to be involved to block the protesters, because they tried to get in to the Royal Exchange building. But there were no fights or people getting arrested, so on the whole the protest march against the bailout was quite peaceful.

Yarne Wullaert

(Bron)

Entrepreneurs in search of funds

Because of the present economic situation, banks and investment companies tend to be more selective nowadays in terms of lending to entrepreneurs or investing in their companies. However, it is still achievable for businesses to acquire new funds. Companies will have to comply with more rigorous conditions. Good characteristics, such as a stable business setting and good leadership, will definitely have a beneficial influence on getting the request for finance approved by the bank or investment company.

Gerald Vermeire

Source: http://business.timesonline.co.uk/tol/business/entrepreneur/article4704084.ece

Financial crisis cut back pension plans.

In times of economic uncertainty people easily cut back on their pension contributions. In england already one in ten people have cancelled their savings for retirement because they have more pressing financial needs such as paying the food and fuel bills or they want to avoid investing in the stockmarket where the share prices of pension funds are falling down. Nevertheless people who now stop their pension contributions will have to make bigger future contributions to fill the gap they have left. So it is important that people make well-informed choices about their pension plan despite the financial crisis and the fact that their retirement could be a long way off.

Marjolein Deroose

link: http://www.timesonline.co.uk/tol/money/article4936009.ece

How a banking crisis brought down a small economy

Iceland has been growing from a nation of farmers and fishermen to a small economy in recent years, but on these sound foundations, it has also built a financial house of cards.
The country has low unemployment and income per person is above the average in the EU.
Since two of the country's largest banks were privatised in 2003, they amassed huge assets abroad but most of them were funded by lenders in fickle wholesale markets.
Under the pressure of the recent credit crisis, the country's banking system, credit rating and currency collapsed and the government had to nationalise the three largest banks!

Jeroen Vanhoutte

Bron: http://www.economist.com/finance/displaystory.cfm?story_id=12382011

Stock market wonder becomes billionaire in only one month!

Most Americans lose all their savings because of the credit crises, but one man has become a lot richer: stock market wonder Warren Buffet. On the first of October, Forbes announced that Bill Gates isn't the richest man in the United States any more but stock broker Warren Buffet has taken his place. Warren claims the secret of his succes is 'buying stocks at the right price'. He is one of few people who have won from America's economic difficulties.

Source: http://www.nieuwsblad.be/Article/Detail.aspx?ArticleID=G7B21NEFO#

Elien De Both

How to solve the financial crisis?

The U.S. government tries to solve the financial crisis with a direct capital infusion. This is a essential short-term measure to ensure the viability of the banking system. This measure is intended to stimulate interbank lending and the commercial paper markets, whose stagnation pushed the economy into recession. This measure is not intended to take over the free market but to preserve it.

Dries Verhaeghe

Bron: http://www.reuters.com/news

Global crisis versus Nordic Europe.

The consequences of the global economic crisis seem ‘not’ to hit Nordic Europe.
After the European financial recovering plan was revealed, Finland, Sweden and Norway made clear this governmental aid would be unnecessary in their region. The Nordic banks have hardly been exposed to the US real estate market and they rely considerably more on depositors than others. According to the financial ministers of the mentioned countries capital injections are out of order, which doesn’t mean that no action will be taken but the needs of reconstruction are not as great.

Karen Van Obbergen

www.ft.com

Pope versus Financial crisis

The worldwide Financial crisis shows the transitoriness of money and ambition.
The pope claims that the collapse of the bancs proves that money is easily wasted and has no real meaning in life.
“Who builds his life only on visible and material goods, such as succes, carreer and money, builds it on sand”, explains the pope. He also added that only God’s word leads to the real truth.

Jeroen-Jan Vroman

bron: het Nieuwsblad

A safe alternative

With al the bad news from financial markets last weeks, some have found an alternative: the safe! Many people have lost their faith in the banks and the stock markets, so now they want to keep their money “safe” and close to them. Sales of safes have boomed this year, with an average sale of four in a week compared to the one a week from previous years. Although the safe doesn’t provide you with an interest, you’re very sure your money is preserved.

http://www.nieuwsblad.be/Article/Detail.aspx?ArticleID=G7B21NFPU

Kristof Huyghe

Future of investment banks

Due to the credit crunch, sustainabiltiy of investment banks are worsening, do these banks still have a future? Since the start of the worldwide financial crisis, profits of investment banks have decreased rapidly. Some even had to be taken over by universal banks (eg Bear Stearns). Nevertheless there are still investment banks that remain independent (eg Morgan Stanley), they can grab the oppurtunity to increase their market share.

Daan Van Parys

Source: The Economist

US unveils $250bn rescue plan

The US has announced that it is going to inject $250bn of public money to fight the financial crisis. This is the first step in their $700bn plan to rescue the US banking system. The institutions have been given a deadline of mid-November to decide whether they are willing to participated in the US recapitalisation plan. Due to this measurement the stock markets are already gaining again, but we still have a long way to go...

Link: http://www.ft.com/cms/s/0/395a0fa6-99f2-11dd-960e-000077b07658.html

19th century banking regulations

According to Harvey Pitt, SEC (securities and exchange commission) chairman until 2003, we have a 21st century financial services market place but a 19th century regulatory model. The collapse of several Wall Street banks has raised the critics on the SEC and on Mr. Cox, the current SEC chairman during the past weeks. According to Mr. Pitt he is doing a remarkable job by dealing with today’s problems on the financial markets. To prevent a next financial crisis in the future, governments desperately need more power to regulate the financial markets and ensure transparency so we can see problems before they become a crisis.

Raf Van Bulck
Source: BBC

Mighty green

Despite the global economic setbacks, the dollar has been doing remarkably well.
A recent study concerning the dollar and its strong growth discovered that, opposite to what the financial theory would predict, foreign investors are still keen for American assets, despite the fact that they are strongly correlated to their disappointing domestic ones.
Another important factor is that foreign investors are still attracted to invest in America because of its size, liquidity, efficiency and transparency.
For now the dollar might look safe as a reserve currency, it’s still vulnerable to the euro.

Benjamin Wauman

Bron: http://www.economist.com/finance/displaystory.cfm?story_id=12341545

The clock strikes $10 trillion

The National Debt Clock has run out of digits, since the national debt level reached the $10 trillion point last month. The clock was constructed in 1989 in order to highlight the $2.7 trillion debt back then. Nowadays, the clock displays an astonishing amount of 10,228,388,628,932 US dollar! Some economists even expect a further increase to a level of $11 trillion, due to the $700 billion bail-out plan for stricken US financial institutions.

Tom Demaecker
Source: http://news.bbc.co.uk

Cut down of the Rainforest more expensive than actual financial crisis

The dissapearing of the rainforest, costs the world economy on an annual basis more than the financial crisis in the banks. A study of the European Commission took the economic surplus value of the Rainforest, by clearing water and air, and calculated the total cost for the world economy every year…..They found that the cut down of the Rainforest costs 2 to 5 billion dollar, compared to 1 to 1.5 billion dollar that Wallstreet lost because of the bank crisis. And even worse, not only the environment damage costs a lot more, the expenses are continious and growing every year, without any hysteria like now for the financial crisis…(http://www.metrotime.be/digipapernl.html?pag=16&kdate=)
Lien Merci

Green investements finally pay off

Times have arrived where green investements can be as cheap as non environmental responsible investements. Nowadays the governement offers a tax reducement of 40% if you have expenses that saves on energy and if you're house can get the label of "passive house" (a house with almost perfect isolation), you can reduce you're annuel taxes with 780 euro a year.

Source: Knack Nr. 36
Michaël Verdonck

Who is not affected by the financial crisis?

Google appears to be immune for the global financial crisis. Online advertisement can be measured perfectly and in these difficult times it is important for advertisers that they can measure the efficiency of their investments. That is why the advertiser's spendings at Google, which is the most important online advertiser in the world, are not affected by the financial crisis. Apparently not all sectors are affected by the crisis, it is even possible that companies like Google and online advertisement can benefit from it.

(De Financiële Morgen, 11 October 2008)

Iris Van den Sande

Crisis but Fortis organizes party!

While the whole financial world is in deep trouble ... Fortis Insurance Belgium organizes an exclusive culinary event for 50 guests in Hôtel de Paris, the most expensive hotel in Monaco. Last week, Fortis presented their guests a dinner in Louis XV, number 8 on the list of the most famous restaurants in the world. The insurance group spended almost € 150.000 to please their guests but underlined that the event was especially for the independent insurance agents who are allied to Fortis. While the reactions on the timing of this "party" didn’t stay off, Fortis reported that the trip was organized months ago and fitted into their commercial actions.

Valerie Van Vooren
(Link: http://www.z24.nl/bedrijven/finance/artikel_34911.z24)

End of the financial crisis?

After a black week, the stock markets made high profits all over the world.
Yesterday, the American and Asian stock markets recorded the biggist one-day gain.
Those increasements are due to the mesures that all the countries made to improve bank liquidity and to garantee deposits. Let's hope this positive boost continues...

Source: http://www.deredactie.be/cm/de.redactie/economie/Beurscrisis


Tine Van Landeghem

Bank or Safe?

Last months the sales of safes went up 30%.
Since the big financial crisis, people don't trust the banks anymore. There are people who withdraw all their savings because they are scared they will never get their money back otherwise.
The question is ofcourse: "Does this action help or rather harm the financial crisis?".

Source: Vrt één nieuws thursday 9 October 19:00h


Lotte Van Meirvenne

Bankers celebrate for 725.000 Euros

The worldwide financial crisis doesn’t seem to alarm a group of well paid bankers of the British bank Barclays. In spite of the injection of a few billion euros by the British government in Barclays, the bankers threw a decadent party in the luxurious Villa Erba, near the Como Lake in Italy. More than 300 guests were invited to taste the best wines and dinners and to enjoy the best entertainment at their educational seminar, as the British bankers named it their selves. Earlier a hundred staff members of the Barclays group went to a hotel to the French Riviera spending 1.800 pounds a night, and this whilst the whole world is suffering from the financial crisis.
http://www.nieuwsblad.be/Article/Detail.aspx?ArticleID=GBE21JIF4
Ben Van Lancker

Bank Accounts

When selecting a bank account, we are paying a lot of attention to the advantages and disadvantages of each account.
Everybody chooses the bank account of which he thinks it will offer him the most profits. High interests, benefits, special services, different types of cards(cashcard, switch card, a cheque guarantee card) and ... all of them have a big influence on us when we are making a decision regarding bank accounts.
These extras are very tempting but we have to be alert for snakes in the grass, because not all bank accounts are offering these conditions whitout any advantages for themselves.

http://www.bank.org.uk/bank-account/


Stijn Van Kerrebroeck

Problems for other sectors due to the financial crisis.

The financial crisis has not only consequences for the banks in Belgium but also the Hotel and Catering Industry, travel agencies and the real estate sector feel the effects. The decline in the travel sector is mainly due to the decrease in business trips, this also results in less clients for the hotels and restaurants. Another reason for the problems is that companies economize and want to save on costs of congresses, business diners and business trips.
The decrease of activities in the Hotel and Catering Industry creates pressure on the prices of this sector.

Mathias Vanderdonckt

http://www.deredactie.be/cm/de.redactie/economie/1.395630

Historic stap of £37bn

To calm the financial panic, the British government has decided to fund Royal Bank of Scotland, Lloyds TSB and HBOS at a cost of £37bn. The government has also set up a plan in which they want that these 3 banks scrap their dividend payments until they have repaid £9bn in preference shares. This mesure will result in the UK banks being some of the best capitalised in Europe. Other countries will follow according Gordon Brown's government.

Source: http://www.ft.com/cms/s/0/83bc2cea-98ef-11dd-9d48-000077b07658.html

Nick Colman

Money saved in socks again

More and more people move their money from their bank account to a private locker at home, due to the financial crisis. Although it’s common that there is a lot of money taken from the accounts in vacation periods, now it’s more alarming. People lost their faith in the banks, according to a recent study from the European Central Bank, which says that the money turn has increased last week from 11,5 to 693,2 billion euro. All this leads to the need of government support, or the banks would go bankrupt.
Jana Jonckheere
(http://www.tijd.be/nieuws/economie-financien/Gezinnen_potten_geld_op.8089328-600.art)

Making money off your blog

Digital web logs are no longer only seen as a hobby, but also as a serious source of income since bloggers are earning an income with their sites.
They can simply sell the ad space on their web log to Google's free Adsense service and wait until a visitor clicks on an ad to get paid, after giving a small share of the revenue to Google. Or they can start up an on-line shop at CaféPress.com, add a link to their blog and after paying the base price of the sold product to CaféPress, keep the markup as a profit. But these are not the only ways to make money as a blogger; you can also add a donation button to your profile or receive a small commission every time a visitor buys a product from one of the companies that are advertising on your blog.
Flore De Sloover
http://www.washingtonpost.com/wp-dyn/articles/A43241-2005Jan27.html

Store cards: the debt that can last a generation

Store card debts can last for 15 years or more if you choose to make the minimum monthly repayment. The minimum monthly repayment combined with high interest rates – up to 30% - can make even a small debt last a lifetime. Not only will it last a generation to pay off your debt, you will also have paid more interest than the amount you borrowed. Monyfacts has calculated that a store card debt of £1,000 with minimum monthly repayment would take 16 years to pay off and you will have paid £1,213.10 in interest.

Kit Van Wesepoel

(Link: http://www.independent.co.uk/money/loans-credit/store-cards-the-debt-that-can-last-a-generation-944677.html)

Selling apples on Wall Street

Wall Street is known around the world as the financial centre of New York, but today (30th of September) apples, not shares, were sold here at the New York Stock exchange building. This way 13-year-old Jeremy Conroy refers to the 1930s stock market crash. Back then victims of the Great Depression tried to survive by selling apples from their gardens. Even though young Jeremy made us remember the awful social consequences of the 1930s crash, the United States government stays reluctant to interfere in its own economy.

Felix Braeckman

Iceland bank crisis causes panic

The government of Iceland holds crisis meetings every day and night, with representatives from the IMF, all the banks and the central bank.
Furthermore, there is a run on the banks going on today: people are hoarding foreign currencies and banks are now rationing dollars and euros. Some banks have run out.

The CEO of one of the leading oil companies says there are not enough dollars to buy and import more oil and reserves will last for a month if no hoarding.
The same story in low-cost grocery store chains: there is not enough currency to import more food and the population remains in panic. (Duncan Van Limbergen, news.bbc.co.uk)

Africa's prospects

Africa has a reasonable chance to survive the current financial crisis less bruised than some other parts of the world. The continent has been damaged by excessive regulations and conservatism of African banks, such as controls on foreign exchange and unusually limited foreign ownership of banks, in the past, but these factors may now be working in its favour. Africa will feel the effect of the crisis eventually. The demand for Africa’s oil and minerals will probably decline, so will foreign capital and aid money.

Margarita Wilson

Bad or worse?

Due to the worldwide financial crisis, economies
are threatened by a lack of credit.
This holds back economies from making investments
and their main fear is global recession.
Therefore central banks are taking serious measures
and all lowered their interest-rate.
Nevertheless the IMF expects the global economic growth
will fall to 3% in 2009 and predicts a global recession.

Delphine Pattyn
http://www.economist.com/finance/displaystory.cfm?story_id=12381879

sport stars, not left to fend for themselves anymore

BNP Paribas Private Banking took one’s chance with ‘ Etoiles de sport’ ( sport stars) in order to assist young athletes concerning their financial life. Paribas will give them a hand to enter easily into the sports world and advise them about special taxes, specific insurance,… Their objective is to support those young sporting athletes during their careers and afterwards. The bank disposes of their initiative by organizing workshops and individual interviews on 2 annual events: a gathering week at La Plagne and the Summer University. hanne van waes

Iran celebrates global meltdown

Iran is the only country celebrating the financial crisis and the “collapse of global capitalism”. Iran has not yet been affected by the crisis and they see the global meltdown as a “punishment” of God. Not yet, because the dependency of Iran on oil exports and the prospect of a fall in the oil price may hurt there economy which is already at a 25% inflation rate.

Iran may celebrate, for a while, but eventually capitalism will hit them where it hurts.

Geoffrey Van de Voorde

Link

Banking in accordance with the rules of the Shariah

Islamic Banks have the same intention as the traditional banks, except they serve in accordance with the Shariah. Their basic principle is the fairly sharing of profits, losses and risks between the bank and their client as well loans with interests are not allowed (riba). In an Islamic mortage transaction the bank doesn’t lend money to the client, but they buy the item theirselves and sell it to the client at a profit. Its clientele is not limited to the Muslim countries, but spread all over the world.

Eva Van Isterdael

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

A modern Gold Rush

Gold prices have recently risen a lot, despite of the plummeting stock markets. While all confidence in stock markets is gone, investors found a safe-haven for their money: gold futures. Gold has climbed above $900 an ounce due to an increase in demand. It is seen as a more effective way to cope with inflation than shares.

Yannick Thuy

Link