What does everyone need to know about the debt crisis and how can you beat the bad economy? FOX Business Network stocks editor and reporter Elizabeth MacDonald has been closely monitoring the debt crisis currently enveloping the United States. It’s an issue that extends beyond the US and one with many complexities, MacDonald takes time to weigh in and break it down in this exclusive interview.

Q. What are 5 things every American needs to know about the debt crisis?

What does everyone need to know about the debt crisis and how can you beat the bad economy? FOX Business Network stocks editor and reporter Elizabeth MacDonald has been closely monitoring the debt crisis currently enveloping the United States. It’s an issue that extends beyond the US and one with many complexities, MacDonald takes time to weigh in and break it down in this exclusive interview.

Q. What are 5 things every American needs to know about the debt crisis?

A. The debt deal doesn’t fix the long-term trajectory of U.S. debt, which is growing as the baby boomers retire and Social Security and Medicare come under duress. Also Medicaid is handling half the uninsured via health reform, so there’s more debt there too coming.

Both Moody’s Investors Service and Standard & Poor’s  want a credible plan on long term U.S. debt reduction on the order of at least $4 trillion.

S&P has been notably pointed in its criticisms. [quote]John Chambers, its head of sovereign ratings, said on a client conference call late last week that $4 trillion in cuts is just “a good start;” it wants more to stabilize the United States’ annual budget deficit-to-GDP ratio, now at more than 9%. The International Monetary Fund has said that a healthy ratio here is 7.5%.[/quote]

Chambers also indicated that the “acrimonious” fights in Washington were the most “detrimental” to the U.S. credit rating outlook. The plan’s new three-step process under which the government would raise the debt ceiling may risk more uncertainty and infighting, which S&P has already frowned on.

S&P was first out of the ratings agencies to say that the U.S. had a one in three risk of a downgrade, after stating earlier this year the odds of a downgrade were 50-50. It said it put the U.S. on a fast-track the possible downgrade because of the fights in D.C.

Changes in ratings are usually lagging indicators; they usually follow, rather than cause, economic chaos. Chambers noted that the threat to downgrade the U.S. rating didn’t come from “external” shocks, but were “self-inflicted” by the partisan gridlock and disruptive fighting in D.C.

Q. There are many reasons why a US credit rating downgrade is bad for the country, but can you tell me any reasons why a downgrade wouldn’t be so bad?

A. A downgrade would be bad, no question. Outside the deflationary environment we are in now, yields on Treasury notes and bonds would spike higher, up by at least a percentage point or more. And that means borrowing costs would go up.

But the ten year just broke down to 2.72% in trading today. That’s deflation, and a flight to safety. Eurozone bonds remain dubious, and Asia debt markets are largely illiquid. The US debt market is the biggest and most transparent. Also, the issue now is, the U.S. can print its own money, pure and simple, which supports its bond borrowing at teaser rates.

Q. Will raising the debt ceiling only buy time until the roof eventually comes down – or is it a realistic solution to America’s debt crisis?

A. Having gone through the exercises that brought us to the brink of a debt deadline, questions are being raised over whether it is even worth having a debt limit. Nothing in the Constitution says we should have one, and it hasn’t ever stopped the government from spending money, since the limit is always raised. Moody’s Investor Services, in threatening a downgrade to the U.S.’s triple-A, said this: “We would reduce our assessment of event risk if the government changed its framework for managing government debt to lessen or eliminate that uncertainty.” Translation: Moody’s is asking the U.S. government to toss the limit, and instead have a framework based on the size of the total budget to keep borrowing in check. Can that work?

But that wouldn’t work in an environment where the White House has called the Republicans’ “Cut, Cap and Balance” bill arbitrary, in a statement saying “neither setting arbitrary spending levels nor amending the Constitution is necessary to restore fiscal responsibility.”

Problem is, DC has always treated the debt ceiling as an “arbitrary spending level,” raising it about 100 times since 1939. This is D.C. political dysfunction in high definition, which looks more like the fighting in Italy with each passing day, because as baby boomers retire en masse and the government cashes out its bonds in the Social Security trust funds, the ensuing bond market melee from the flood of all those securities could spike yields higher and make US Treasuries look more and more like emerging market debt.

So again why go through the trouble? Because as little that got done this go around, even less would have been accomplished without a debt limit. The problem is, the U.S. historically has blunted the twin blade of the scissors to cut the deficit, a debt ceiling and a balanced budget amendment to the Constitution, which takes two-thirds of Congress and three-quarters of the states to pass. Congress has consistently been unable to pass a balanced budget amendment.

So that leaves the debt ceiling as just one blade of the scissors. And when history repeats itself, things get more expensive, as the history of the debt ceiling fights proves.

Q. How can you beat the bad economy?

A. Unfortunately, you can’t beat it. You have to sit tight and weather the fainting spells the markets will go through until this problem gets settled, which looks to be years away.

Find out more about Elizabeth MacDonald

The post EconomyWatch Exclusive: FOX Business Expert on the US Debt Crisis appeared first on Economy Watch.

1 August 2011.

One out of 6 people in the world live in India. But just how big is India? And how can we think about the country and its economy when its population and GDP varies so vastly from state to state? One way would be to look at the size of each state, in relation to its GDP and population. But what would the numbers really mean? Another way would be to compare each state to a country (with one third’s of the world’s population, each state really is that significant!).

1 August 2011.

One out of 6 people in the world live in India. But just how big is India? And how can we think about the country and its economy when its population and GDP varies so vastly from state to state? One way would be to look at the size of each state, in relation to its GDP and population. But what would the numbers really mean? Another way would be to compare each state to a country (with one third’s of the world’s population, each state really is that significant!).

According to the 2011 census, India’s population grew to 1.2 billion in the past decade by 181 million people – that’s the population of Brazil. In 2010, India’s GDP was the top 4 in the world, but its GDP per person was ranked 126 in the world; at US$3,339 it’s US$10,500 below the world average. Making Indian’s among the poorest in the world.

It’s even more shocking when the GDP per person of each state in India is compared to another country in the world. The Indian equivalents show up as the poorest countries in the world. Madhy Pradesh, has the same GDP per capita as Benin of about US$1,500 – making it among the poorest countries in the world. See how GDP is distributed per person across India’s states and their global equivalents;
 

Not only is wealth unevenly distributed geographically, so are scarce resources. Combine that with high population growth and you get serious social issues. One of them is unemployment and the lack of employment opportunities. While India has experienced massive industrial growth, there has been virtually no increase in the demand for labor with increased machinery in the agricultural sectors. For most of the population, this signals a shrinking job market.

India’s other concern when it comes to its rapidly growing population is that its population growth might outstrip increases in food output. For many Indians, life is a big enough struggle just to put together the bare essentials for survival, but shortages of resources makes things even worse, especially for the poor and underprivileged.

While India’s economy as a whole was resilient throughout the global financial crisis, the total figures simply don’t paint the real story. Poverty, famine and unemployment remain massive social and economic issues for the emerging economy. People are starting to wonder; will these problems derail India’s economic growth story?

Some states with the lowest GDP per capita have decent GDP comparisons, with richer countries starting to show up on the map. Countries like Singapore, Qatar and Angola. Due to India’s large population, there’s more hands to distribute wealth to – but is wealth in India evenly distributed?

India is also among the most corrupt countries in the world according to our Corruption Perceptions Index with a score of 3.3 (out of 10). Struggling and exploding rural populations with little way of means of making a living are believed to be the biggest problem when it comes to low level corruption in India. As the country’s global economic potential continues to boom, will its exploding population hinder its success and create a larger wealth divide?

Some suggested a one-child policy in India to control the population.

The BJP-led NDA government had presented a new population policy years ago. The essence of the population policy was that by taking away the electoral rights of states whose population is growing too fast (i.e. the states in the Hindi belt), somehow the population of these states will come under control. Not only was this an unrealistic assumption, it was also discriminatory and unethical under India’s constitution. Although claiming to incorporate new and more effective incentives for population stabilization, a close examination of the policy revealed that it was lacking in concrete measures.

Comparing India’s population to other countries reveals the most populous nations in the world. While in China, the country might get old before it gets rich, will India get too big to be rich?

Images from The Economist 

The post Comparing India to The World appeared first on Economy Watch.

21 July 2011.

Now let’s get this right: Singapore is a great place to do business. It’s the gateway to Asian economies and where businesses big and small base themselves to trade with the rest of South East Asia – and the world. But as much as Singapore prides itself in being the best place for business in Asia, underneath the sparkling facade of its Central Business District and well-dressed, well-spoken and good-looking frontline representatives lies fundamental practices – things just aren’t right.

21 July 2011.

Now let’s get this right: Singapore is a great place to do business. It’s the gateway to Asian economies and where businesses big and small base themselves to trade with the rest of South East Asia – and the world. But as much as Singapore prides itself in being the best place for business in Asia, underneath the sparkling facade of its Central Business District and well-dressed, well-spoken and good-looking frontline representatives lies fundamental practices – things just aren’t right.

On another note, Singapore, as a young, successful and aspirational nation does cop a certain amount of scrutiny. As any nation laying stakes in ‘Best in The World’ would. From the best airline, airport, and zoo to the best place for business in South East Asia – Singapore does have everything to offer. Superficially. The skyline is pretty, the roads are clean, tax is low and the weather is glorious.

However, it’s the people that make a place. Singaporeans are hardworking, loyal and well-educated. Everyone speaks good English but “ask them to jump from A to G and forget about it.” The nation abides by a system of strictly-adhered rules and processes. And let’s face it, business doesn’t come packaged in a box with instructions. Even if it means getting it wrong; the average Singaporean professional would rather do the wrong thing, the right way – than the right thing the wrong way.

Why? Because there’s no accountability in mistakes from executing them the ‘right’ way’, and too much risk involved deviating from procedure – even if it means success. It’s ingrained in the culture; to follow step-by-step instructions religiously, without question. The penalty for doing things any different than set out is humiliation and guaranteed failure. Even if the alternate plan could have worked, anyone caught operating outside the guidelines is immediately pulled back in by a nervous manager before the plan even had a chance to succeed.

In a nutshell, the Singapore workplace from an employee perspective is about receiving instructions, following them closely to protect from accountability, and continue on a  crooked path – as long as it was the one set out. And if you’re asked to innovate new solutions? Freeze until further instruction and solid approval.  The trouble is, everyone wants to play it safe.

So what about employers and senior managers? Are they more encouraging of innovative solutions and swifter practices from employee feedback and experimentation? Things are changing, but for the majority, the same rules apply: no instructions, no work. Senior managers are always out to cover their backs with set guidelines and approved plans. Employers shy away from innovative solutions they know will bear fruit in the long run, they want to see instant results.

In recent years the Singapore government started movements to encourage innovation and productivity in the workplace. All very vaguely, but I see what they’re trying to do. The impression you get from the campaigns is they want Apple to be created in Singapore. When its really just a simple matter of introducing innovative thinking in business, encourage risk taking to trial new ways of doing things, resulting in higher productivity with better practices in place.

Related: Would Apple Ever Have Been Created in Singapore?

The funny thing is, I can actually see things changing in Singapore and these goals being achieved (in time to come). Skeptical as I was coming back to Singapore after working in Australia for 5 years – and knowing the difference in business environments; One prospective employer warned me “This is not Australia where you clock off at 5 and go for a beer. In Singapore, people work late.”

To be completely honest, Australians achieve more in the workplace leaving a 5pm than Singaporeans leaving the office at 10pm. Poor leadership and unmotivated teams mean people wait around for instructions, and then run in circles trying to get a job done they don’t know how to carry out without proper guidance.

Luckily, the company I did go to work for, gets all this. Buzzing with intelligent, talented individuals in hardworking teams and innovatively in-tune bosses, all passionate about doing the best job and trying new solutions for the best outcome – because they love and care about what they do. I suspect this is a rarity in the Singapore business landscape. So why can’t all businesses in Singapore operate more progressively?

Related: Go Social or Die

The biggest problem with the Singapore workplace is  the lack of passion. You don’t get a sense of get-up-and-go in the air. Just “My mother told me if I studied this I’d make a lot of money” disappointment. Where is the sense of purpose? As for senior managers and employers, they expect miracles without a touch of their own magic. They have to realize that they play an integral role in shaping employees in their roles and careers – so that they’re willing to go out on a limb and apply themselves innovatively.  All for the success of the business.

Another interesting observation is the process of learning, information exchange and brainstorming in the workplace. Both young and seasoned professionals in the workplace are adverse to being taught what to do versus told what to do. Innovation comes from experience and fresh ideas, combined with a good opportunity to step outside the box. An undertone of “I know it all, already” and “You can’t teach me what I already know” exists in the Lion City. As well as pessimism over new ideas. I get the feeling it’s the sense of Singapore pride in being the best – and adverse reaction to being taught something new, bruises fragile egos. Lest we forget, the fear of flying.

That’s an easy fix: employers and employees have to adopt ‘people skills’. The professional interpersonal relationship skills it takes, to guide and mentor employees and provide feedback positively. Motivate staff so they can be the best they can be in their roles. Employees need to be open to feedback and take to guidance and learning – and be resilient. Keep working on those ideas and solutions, it’s perfectly natural to get it wrong the first few times. Take feedback onboard positively and make it work for the group. After all, everybody is working on the same goal “Out with the old, in with the best”.

The role of the Singapore government in all this? Fund more projects. It absorbs the risk, for a time, so businesses are willing to innovate – think of it as training wheels that will eventually come off. And perhaps it will happen sooner than later, the more risks Singapore takes.

Liz Zuliani,

EconomyWatch.com

The post The Trouble with the Singapore Workplace appeared first on Economy Watch.

4 July 2011.

China is one of the top fastest growing economies in the world, and some economists believe China will overtake the US with a larger GDP in a matter of a few years. Last year, the number of millionaires in China grew 12 percent, and while the US still has the most millionaires – they’re 15 years younger in China.  According to some reports, sources suggest China is set to have almost doubled the figures of their billionaire headcount.

4 July 2011.

China is one of the top fastest growing economies in the world, and some economists believe China will overtake the US with a larger GDP in a matter of a few years. Last year, the number of millionaires in China grew 12 percent, and while the US still has the most millionaires – they’re 15 years younger in China.  According to some reports, sources suggest China is set to have almost doubled the figures of their billionaire headcount.

The Hurun Research Institute found 55 percent of China’s millionaires have acquired their wealth through private businesses, 20% percent are property developers and 15 percent are stock market speculators. The remaining 10 percent are company executives.

But while China’s rich lead the emerging superpower’s economy, vast income disparities still exist.

In 2009, the number of households with more than US$1 million reached 670,000; ranking China the third in the world for millionaires behind the US and Japan. However, the wealthy in China only account for 0.2 percent of households. A proportion that is far lower than other countries.

China’s economy has grown exponentially in the last 50 years (even during the global financial crisis) – and it’s expected to continue on the same path without much foreseeable threat.

Except one: its own ageing population.

With more than 160 million people over the age of 60 and its ageing rate gaining pace, China is facing a curious problem: it is greying while still in development, a challenge other economies have only had to face at a more advanced stage.

With life expectancies high in China and an already aged population, economists are asking: Will China get old before it gets rich?

In 2040, the proportion of over-60s in the population will rise from the current 11 per cent to 28 per cent – and possibly even as high as 32 per cent, the year when communist leaders are confident that fast growth will have brought China close to challenging the economic power and strategic size of the United States.

By then the country will have almost 400 million elderly people who, unless broad pension schemes are started soon, will have no support. Although China has a healthy national savings rate of 40 per cent, households provide only a tiny proportion of savings and most are invested in dwellings.

The issue puts a huge strain on families – and the next generation of Chinese youths who will be (culturally) expected to look after their elderly family members. Ordinary Chinese are coping with a 4-2-1 inverted pyramid, four grandparents to two parents, and all the responsibility of an only child.

[break]

Could the One-Child Policy be to blame?

Wang Feng, director of the Brookings-Tsinghua Center for Public Policy, who specializes in China’s demographics believes China’s one-child policy is to blame for an ageing population; and the strain on China’s young to care for a graying population.

In a report by Goldman Sachs;

A change in the one-child policy would help sustain China.s population growth in the long run and improve its demographic structure. In our view, a gradual and conditional easing of the one-child policy beginning in 2010 would significantly boost the total population by 2050. The government is reported to be considering a gradual lifting of the one-child policy from as early as 2010. A World Bank proposal (which we think has a high likelihood of being adopted) would allow each woman aged 35 and over to have two children (regardless of gender), beginning in 2010, followed by an annual lowering of the 35-year age limit by one year.

Initial shocks from a relaxation of birth quotas may cause an upsurge in fertility rates in the early years. Ultimately, birth rates are likely to stabilise at a level that is higher than in most developed countries, but lower than that in most developing countries.

However experts say the government will be reluctant to abolish the one-child policy – how would China feed its people who account for around one-fifth of the world’s population if the population boomed? Have your say below.

Liz Zuliani, EconomyWatch.com

Hear what Robin Niblett has to say about China’s rush to riches before it grows too old:

The post China’s Ageing Population: Will the Country Grow Old Before It Gets Rich? appeared first on Economy Watch.

27 June 2011.

CFOs across the US plan to implement policies to reduce their reliance on oil in the future as prices continue to soar, it has been found. The survey, conducted by Duke University/CFO Global Business Outlook survey, found that 53 percent of the 499 US based CFOs interviewed, were increasing their use of communications via technological advances such as teleconferencing which enables them to cut fuel consumption by holding conferences remotely.

27 June 2011.

CFOs across the US plan to implement policies to reduce their reliance on oil in the future as prices continue to soar, it has been found. The survey, conducted by Duke University/CFO Global Business Outlook survey, found that 53 percent of the 499 US based CFOs interviewed, were increasing their use of communications via technological advances such as teleconferencing which enables them to cut fuel consumption by holding conferences remotely.

Related: Oiling the Wheels: When Oil Prices Bite

Related: Oil Prices Drop Below US$100 a Barrel…Can Consumers Breathe A Sigh of Relief?

[quote]“We’re seeing more companies embrace ‘green’ initiatives and position themselves to become less reliant on oil in the future” said John Graham, professor of finance at Duke’s Fuqua School of Business and director of the survey.[/quote]

This comes following the findings that the rise in fuel is having a significant impact on many companies, according to four out of five CFOs, with 48% saying that they were were cutting travel costs. Another initiative that has become a viable alternative, is the use of telepresence, where compression technology advances are enabling high quality video feeds, and opening up the market of telepresence, not just exclusively to the largest companies. These alternative communication methods are increasing in popularity in favour of traditional face-to-face conferencing, in light of recent fuel hikes and have recently been adapted by companies such as Verizon and Tata, so that Verizon customers can can have sessions with Tata customers, and vice versa.

CFOs have found themselves in positions whereby they need to remain vigilant and strategic in their financial business practices, and need to move forward in adapting to change such as finding ways around ever increasing fuel costs.

The post Rising Oil Prices Drive Green Initiatives appeared first on Economy Watch.

It’s already June. Where has the year gone? For some who’ve made personal finance and investment goals to grow rich this year or increase your company profits by tenfold your New Year resolution for 2011 – you might start to hear that countdown clock to 2012 ticking already.

It’s already June. Where has the year gone? For some who’ve made personal finance and investment goals to grow rich this year or increase your company profits by tenfold your New Year resolution for 2011 – you might start to hear that countdown clock to 2012 ticking already.

Forget those passé get-rich-quick schemes of the 90’s. Anyone who bought into those ideals then, let their greed play them out to the 411 scams of the millennium. And while opus magnum ideas do propel some from obscurity to the financial superstardom – it’s best to go along with better laid plans, just in case.

Great financial goals are great thing to have, though can be frustrating during the best of times, and the worse of times when we feel we’re just not doing well enough. Let’s face it, times are tough. Most of us carrying on with business and employment may be just starting to forget the last financial crisis – and trying to ignore the news of Europe’s immanent collapse. And pray it don’t affect the rest of the world.

So if you’re stuck in a mid-year rut, here’s some money advice from the world’s filthy rich to inspire:

1. Read The Richest Man in Babylon. Some say it’s the money-equivalent of The Secret when it comes to becoming money savvy. They say anyone who’s ever made any money in business and investing calls this book their bedtime story. What have you really got to lose?
    
2. Manage your personal finances. Review your budget regularly — see where your blind spots are. I know people who don’t count entertainment or alcohol or whatever — everything must be accounted for. Even a tiny leak can sink a ship. The same with finances. – Donald Trump 
    
3. Don’t spend, reinvest: The temptation to spend money can be huge, but if you’re following in the footsteps of Warren Buffet you should reinvest your earnings.
    
4. Maintain austerity in prosperous times (in times when the cow is fat with milk); it accelerates corporate development and avoids the need for drastic change in times of crisis. – Carlos Slim
    
5. Patience is a virtue. “I think in business, you have to learn to be patient. Maybe I’m not very patient myself. And I think what I’ve learned the most is be able to wait for something and get it when it’s the right time.” – Bernard Arnault
    
6. Be determined to succeed and create wealth. “Everyone experiences tough times, it is a measure of your determination and dedication how you deal with them and how you can come through them.” – Lakshmi Mittal
    
7. Invest for long-haul. We are now investing in each of our businesses to achieve substantial earnings growth in the future and create further value for millions of our shareholders. – Mukesh Ambani
   

Related: The 10 Richest People on the Planet: Where All that Stimulus Money Went

Related: Asia’s Millionaires Overtake Their European Counterparts

Related: The 10 Richest Young People in the World

The post Money Advice from The World’s Filthy Rich appeared first on Economy Watch.

17 June 2011.

Casinos. Where dreams of becoming an overnight millionaire are made – and mortgage payments are broken. The house always wins. But it doesn’t seem that way, by design. The poker-faced dealers hardly look like sharks and the only people having a good time it seems, are the customers. Who would know their life savings were disappearing down the little black hole in the corner of the roulette table?

17 June 2011.

Casinos. Where dreams of becoming an overnight millionaire are made – and mortgage payments are broken. The house always wins. But it doesn’t seem that way, by design. The poker-faced dealers hardly look like sharks and the only people having a good time it seems, are the customers. Who would know their life savings were disappearing down the little black hole in the corner of the roulette table?

Casinos are glamourized, popularized and highly addictive. In America alone, problem gambling affects more than 15 million people. And the economics of it all? Well according to PriceWaterHouse Coopers, the global casino industry is predicted to be worth $120 billion in 2011, up from $100 billion in 2007.

And the Asia Pacific region is leading the growth, growing at a rate of 15 percent per year, compared to 2 percent growth in Europe and 7 percent in the US.

The US is the top, making up $58 billion of world casino revenues, followed by $41.2 billion in Asia Pacific, $16.5 billion in Europe, $4 billion in Canada and $594 million in Latin America.

Now, when it comes to top casino markets, Macau leads the way with 33 casinos raking in $28.4 billion. Las Vegas is behind with $10 billion and in third place, the latest addition to the casino industry: Singapore with $5.5 billion. And the Lion City is set to overtake Las Vegas for the No.2 spot.

Shares of Las Vegas Sands (LVS), the operator of the Palazzo and Venetian resorts, are down 1% this week on news Singapore’s tourism authority will block the company from selling the shopping mall at its casino in the country until after March 2017. The statement from the tourism authority comes just a week after Las Vegas Sands said it was hoping to sell the mall within two or three years for about $4 billion to recoup some of its investment in the property, Reuters reported.

Viva Las Singapore

The Marina Bay Sands reports:

Singapore is set to become the world’s second largest gambling hub in dollar value, with forecast earnings of $6.4 billion this year overtaking Las Vegas which is projected to earn $6.2 billion. Making this projection at a gaming conference in Macau, the American Gaming Association president Frank Fahrenkopf said Singapore’s two casinos had exceeded expectations and turned the city state into Asia’s second global gaming hub.

Las Vegas, which lost its No. 1 spot to Macau in 2006, earned $5.8 billion in casino revenue last year, but is a mature market with little potential for big growth. Fahrenkopf made the prediction at the start of a gambling industry conference in Macau.

Gambling revenue in Macau, the world’s most lucrative gambling market, hit $23.5 billion last year and monthly revenue has grown by at least 42 percent from February to May. Fahrenkopf warned that Macau faces several problems that could put a damper on continued growth, including a labor shortage and lack of infrastructure as well as a government cap on the number of new gambling tables until 2013.

But Macau is expected to remain the top gaming hub in the world, with its more than three dozens of casinos having earned $23.5 billion in revenue last year. Media reports said Las Vegas’ popularity was declining due to America’s ailing economy and stiff competition from Macau and Singapore casinos.

Singapore is also known as a safe haven for tourists in South East Asia but Singapore has been concerned the introduction of casinos into its city state may invite trouble. It’s still to early to tell.

In a story from BusinessWeek:

Singapore’s per-capita crime rate of 684 per 100,000 people in 2008 was about a third that of New York City, Law Minister K. Shanmugam said last year. The “handful” of casino-linked cases so far hasn’t contributed “significantly” to the Singapore Subordinate Courts’ caseload.

Prime Minister Lee rejected a proposal for casinos in 2002 when he was heading a committee to seek growth strategies for Singapore. He said they could lead to “undesirable activities” such as money laundering, illegal lending and organized crime.

Three years later, Lee justified the decision to allow gambling by saying the country had “no choice but to proceed” with the casinos to keep attracting tourists. Tourism receipts account for about 5 percent of the economy. The city aims to boost revenue to S$30 billion by 2015 from S$12.8 billion last year, the Singapore Tourism Board said.

And the casino is a big part of that plan for growth in Singapore.

[break]

Online Gambling Revenues

So what about online gambling?

Internet gambling is the latest trend that has become a big hit among people from all walks of life, young and old alike. People who have the passion for casino gambling have found it more convenient to play casino gambling games in the virtual casinos. The desire to have fun and make money is so intense that people become too much addicted to internet casinos.

Internet gambling statistics revealed that the trend of virtual gambling will continue to rise.

It’s a huge global market in itself and if we think about the fact world casinos are expected to make $120 billion this year; online gambling raked in $25 billion in 2010 and has been growing exponentially since 2001.

Liz Zuliani, EconomyWatch

 Source: Oggs

The post The House Always Wins: World Casino Takings appeared first on Economy Watch.

EconomyWatch brings you a comprehensive insurance directory to find out all you need to know about insurance for your car, home, business, health, travel and more.

When it comes to insurance, a good plan and policy can cover you when you least expect it. Having sound insurance policies to cover your health, home, business or income is key in protecting your wealth and assets – and should be a priority in managing your personal finances.

EconomyWatch brings you a comprehensive insurance directory to find out all you need to know about insurance for your car, home, business, health, travel and more.

When it comes to insurance, a good plan and policy can cover you when you least expect it. Having sound insurance policies to cover your health, home, business or income is key in protecting your wealth and assets – and should be a priority in managing your personal finances.

In this section you’ll find essential information on every type of insurance; from auto, mortgage and personal insurance to boat, builder’s and farmer’s insurance.

And if you’re ready to buy your insurance now, our World Insurance Directory can help you find the best insurance companies in your country.

The post Insurance Directory appeared first on Economy Watch.

14 June 2011.

In May this year, Deutsche Bank Chief Executive Josef Ackermann appeared in a Munich court to testify in a lawsuit against the bank by fallen German media mogul Leo Kirch.

The spat: Kirch wants 2 billion Euros from the bank he alleges triggered the Kirch Group’s collapse by questioning the creditworthiness of his media empire in a 2002 Bloomberg Television interview.

Ackermann is the main witness. And 84 year old, virtually blind Kirch has had little luck claiming damages. You don’t want to mess with this guy.

14 June 2011.

In May this year, Deutsche Bank Chief Executive Josef Ackermann appeared in a Munich court to testify in a lawsuit against the bank by fallen German media mogul Leo Kirch.

The spat: Kirch wants 2 billion Euros from the bank he alleges triggered the Kirch Group’s collapse by questioning the creditworthiness of his media empire in a 2002 Bloomberg Television interview.

Ackermann is the main witness. And 84 year old, virtually blind Kirch has had little luck claiming damages. You don’t want to mess with this guy.

Now, he’s at the forefront of the European sovereign debt crisis as European Union policy makers clash over how to prevent the currency region’s default after 256 billion Euros in bailouts to Greece, Ireland and Portugal failed to stop the debt crisis.

Related: A 2008-Scale European Financial Crisis This Year? Niall Ferguson

Deutsche Bank had sovereign risks worth 1.6 billion euros tied to Greece. In the last 12 months, the bank’s shares have fallen 3.3 percent.

Ackermann says, [quote]”We believe there is still significant upside potential in the bank’s share price” and “Despite all adversities, we can look ahead to the future with great confidence”[/quote]

Reiterating the bank’s full year operating profit target of 10 billion euros helped by gains in investment banking and expansion in Asia where the bank aims to be among the top 3 in the region.

But the high targets in time of crisis can only mean one thing: encourage bankers and traders to take more risks and employ lots of leverage to fuel profits.

Some economists say, only banks that know they would be rescued if they ran into trouble (Too Big To Fail) would take such risks.

Ackermann emerged from the panic of 2008 after pledging 8.5 billion Euros to bailout a big German bank on the brink of collapse. He is at the centre of more power circles than any other banker in the Continent.

And he’s helping shape Europe’s economic and financial future. From advising politicians and policy makers on the Greek debt crisis to economic relations in Europe and the ECB’s future.

Make no mistake, Ackermann’s allegiances lie with the banks.

He insisted providing debt relief for Greece would be a huge mistake.

Why? After all, European banks, including Deutsche Bank holds billions of Euros in Greek government bonds, and the banks would lose big of those debts were restructured.

More bailout money and more austerity on the other hand means: buying time without hope of recovery.

So what about tighter regulations learning from the crisis in the financial industry?

Never. Ackermann like other banks such as Goldman Sachs, Morgan Stanley and Citigroup believe reducing use of leverage will reduce their profits and, wait for it:

Cause a credit crunch.

Europeans say: they’re paying the price for the excesses of bankers.

When it comes to the Greek crisis, Ackerman doesn’t think the country can repay its debts. And cautions the existence of the euro would be in jeopardy if investors lost confidence in other weak economies in the 17-member monetary union.

“The biggest challenge now is to convince people of any country to help Greece even more” he said in an interview and called on European governments to devise a “Marshall Plan” for Greece offering more aid while forcing the country to sell billions of euros’ worth of state assets and provide a framework for rebuilding its economy.

European governments have followed that advice.

But Ackermann opposes the German government and sides with the ECB when it comes to restructuring the Greek debt, which would force investors and banks to share Greece’s debt.

In a speech about the loss of confidence in the banking industry, Ackermann proclaimed:

But the bank was a big player in the toxic collateralized debt obligations that Wall Street sold during the US mortgage bubble.

This year, the bank continues to churn out CDOs even as the market collapses.

In March, the bank was ruled to compensate a small business customer for losses incurred as a result of interest rate swaps.

In the US, MortgageIT, a bank subsidiary was accused of lying about the quality of home loans it handled under a government program and demanded the bank repay hundreds of millions of dollars.

Ackermann’s defense: That happened in 2007. We’re changed since the crisis.

Liz Zuliani, EconomyWatch.com

The post Josef Ackermann: The Most Dangerous Banker in the World appeared first on Economy Watch.

The Dow Jones Industrial Average ($INDU) is 7% off its end April high, and has broken decisively down through its 50 Day Moving Average.

The Fed and its supporters in the economist brotherhood (yes they are mostly men) have described this as a ‘soft patch’.

The markets are not so sure, and there are a confluence of factors suggesting the Dow and many other global stock markets are about to go bump in the night …

The Dow Jones Industrial Average ($INDU) is 7% off its end April high, and has broken decisively down through its 50 Day Moving Average.

The Fed and its supporters in the economist brotherhood (yes they are mostly men) have described this as a ‘soft patch’.

The markets are not so sure, and there are a confluence of factors suggesting the Dow and many other global stock markets are about to go bump in the night …

Graph: Stock Charts

2011 is creepily shaping up to look like 2008. Here are the 10 clues Wall Street is about to crash again:

1. Major banks are planning lay-offs.
   
2. Bad news reported day in and day out, lowering consumer confidence.
3. OPEC annouces oil production level will not be raised, which also means oil prices are likely to go up this week.
4. Pimco’s co-chief investment officer, Bill Gross, is telling investors that for the Fed it will “be difficult to initiate a QE3,” but without artificial stimulation the U.S. economy may start really struggling again.
5. Moody’s warns it may downgrade the debt ratings of Bank of America, Citigroup and Wells Fargo.
6. Standard & Poor’s changs its outlook on US.government debt from “stable” to “negative” and warns U.S. could lose its AAA rating – and China has been dumping short-term U.S. government debt.
7. US consumer confidence is lower than it was back in September 2008 when Lehman Brothers collapsed.
8. Mike Riddell, of M&G Investments in London, tells CNBC, “It seems that almost every bit of data about the health of the US economy has disappointed expectations recently.”
9. Nouriel Roubini warns about the next financial crisis.
10. 48% of Americans believe that it is either “very likely” or “somewhat likely” that the United States will experience a “depression” within the next 12 months.

Do you think we’re in store for another financial crisis? Tell us what you think and find out what others are thinking on EconomyWatch Consumer Confidence Index.

The post Ten Clues that Wall Street is About to Crash Again appeared first on Economy Watch.