Money Matters

Money Matters

2011-2012 Issue 2(3rd August)

US debt deal: Tightening spending to set back world economy

The long drawn debate among the Republicans and the Democrats regarding raising the ceiling for US debt has finally concluded. A deal struck over the weekend to cut $2.4 trillion or more off budget deficits over a decade marks the beginning of a prolonged effort to put the government’s finances into better shape. Economists’ prediction of the impact of these measures and the overall economic scenario in US is rather gloomy as the spending cuts are supposed to inhibit short term economic expansion. However, the immediate impact of the news on the stock market was positive. Markets across the world saw a rise in their benchmark indices with the lifting of the dark veil of an impending US default. Read more about how the events are expected to unfold at the link embedded in the title. Some more info can be found at: http://www.guardian.co.uk/world/2011/aug/01 /us-debt-crisis-deal-reached-obama

RBI hikes key rates for the eleventh successive time

The much anticipated hike in the key rates came in last week and with it came rounds of comments from industry and political circles about its impact. Tata group Chairman Mr. Ratan Tata criticized the policy by saying that “self-imposed fiscal prudence to tackle inflation, mainly in India and China could lead to another global slowdown. Read how the policy change can affect you in the link embedded in the title. Mr. Ratan Tata’s views can be read at: http://www.businessstandard.com/india/news/tata-raises-redflaganti-inflation-stance/443202/

Anshu Jain appointed Deutsche Bank Co-CEO

Anshu Jain, former Head, Corporate and Investment Banking in Deutsche Bank was appointed its Co-CEO. He was born in Udaipur, Rajasthan and completed his undergraduate studies from SRCC, Delhi before his MBA from University of Massachusetts Amherst. Read more about him at the link.

Key economic indicators (changes for the fortnight...