Category: Markets

S&P Defends US Downgrade, Warns of Further Downgrade in 6-24 Months

Amidst heavy criticism from US politicians over its decision to downgrade the US economy from AAA status to AA+ for the first time in history, Standard & Poor’s took another unprecedented step on Saturday when it held a conference call with reporters to vigorously defend the rationale behind its decision.

Describing the political lead up to the recently concluded debt deal as a “debacle,” S&P officials warned that further downgrades could await the US economy.

EconHumour: What if Economists Were Computer Viruses?

Have you tried to understand the difference between economic systems in different countries – but simply can’t get your head around it? Last time out, EconomyWatch.com used cows as an analogy. This time, we’re using something that affects many of us in our daily lives, especially as we grow increasingly reliant on computers and the internet: Computer Viruses.

European Debt Crisis Rages On, US Stocks Nosedives and Other News

Here’s a weekly look at the top business, finance and world economy news.

World Economy

With the US debt ceiling crisis dominating the headlines this week, little attention has been paid to the crisis that still continues to engulf Europe.

Japan Intervenes to Prevent “Over-Valued” Yen From Rising Further

Japan has begun efforts to weaken the ever-growing yen by intervening in currency markets, after the yen rose to its highest level against the US dollar since World War II.

According to Reuters, Japanese Finance Minister Yoshihiko Noda told the media on Thursday that the Japanese government had decided to act on its own after one-sided rises in the yen threatened to derail the country’s economic recovery from the earthquake and tsunami disaster suffered in March.

Economic Policy Institute: US Debt Deal Will Cost 1.8 Million Jobs

As US politicians from both parties continue to pat themselves on the back for successfully reaching a compromised debt deal, the Economic Policy Institute (EPI), a top nonpartisan think tank, warned on Monday that the deal struck to raise the nation’s debt limit may end up costing the economy 1.8 million jobs by 2012.

Debt Deal Ok’ed – US Debt Ceiling Now $14.29 Trillion

The House passed a $2.4 trillion debt-ceiling increase Monday night with the Senate planning to follow on Tuesday, after one of the most ferocious fights ever over government spending. Congressional approval, along with President Barack Obama’s signature, would raise the government’s debt limit just before the U.S. government would begin defaulting on its obligations.

The Ramadan Economy

Ramadan is the ninth month of the Islamic calendar and a time when Muslims around the world fast for 30 days and devote themselves to prayer. In countries where Islam is the majority religion, daily work schedules are often turned upside down during Ramadan.