As the US government spends an unprecedented amount of money to fix the nation's economy, there is an equally great need to raise the cash to pay for it. This is accomplished through borrowing, whereby ‘US Treasury’ sells Treasury securities of varying maturity.
For investors, the government bills, notes and bonds are considered a safe financial product because they have a guaranteed rate of return, based on faith in future US tax revenues. The government has been partially funding operations via Treasury securities for decades. This borrowing adds to the national debt, which is now above $11 trillion and is rising every day. Much of that debt is held by private sector, but about 40 percent is held by public entities, including parts of the government. Here's who owns the most.
1. Federal Reserve & Intragovernmental Holdings- $4.806 trillion
2. Mutual Funds- $769.1 billion
3. China- $739.6 billion
4. Japan- $634.8 billion
5. State & Local Governments- $522.7 billion
6. Pension Funds- $456.4 billion
7. Other Investors- $413.2 billion
8. Oil Exporters- $186.3 billion
9. Caribbean Banking Centres- $176.6 billion
10. Brazil- $133.5 billion
11. Insurance Companies- $126.4 billion
12. United Kingdom- $ 124.2billion
13. Russia- $119.3billion
14. Luxembourg -$87.2billion
15. US Depository Institutions- $107.3billion
I believe even if 5% holdings of all these entities enters the stock market of this world the volatility of the market will try to smoothen up and it would bring comfort and confidence to the financial market. Every entity being futuristic is still ready to hold and borrow more and more debt from an economy which is said to be the sole cause for this recession.
Ref.- CNBC
Credits - Manik Gursahani
Showing posts with label USA. Show all posts
Showing posts with label USA. Show all posts
Sunday, March 29, 2009
Saturday, March 21, 2009
Citigroup: Crisis along with Shake-up
Citigroup, is changing its way significantly. Gary Crittenden as the new Chief Financial Officer, is being made responsible to manage all its underperforming and toxic assets. Crittenden has earned the confidence of the financial community. It is a welcome relief for the firm as they want to release these assets as soon as possible.Gary Crittenden along with Vikram Pandit wants to live with the dream to restore the third-largest U.S. Bank even after $38.5 billion in losses over five quarters.
Citigroup is also involved in some financial gymnastics to raise its sunken share price. Citigroup is planning a reverse stock split-equivalent of giving $10 billion to its investors in exchange for split. This lead to a short term rally in the share price of Citigroup since the beleaguered company is earning profits in the first two months of this year. To my view this won’t make a significant change in its fundamental outlook for the company. In financial terms a reverse stock split reduces the number of shares outstanding and therefore the share prices also increases proportionately. This financial housecleaning will also help in the bailout plan to go smoothly.
Credits : Manik Gursahani
Citigroup is also involved in some financial gymnastics to raise its sunken share price. Citigroup is planning a reverse stock split-equivalent of giving $10 billion to its investors in exchange for split. This lead to a short term rally in the share price of Citigroup since the beleaguered company is earning profits in the first two months of this year. To my view this won’t make a significant change in its fundamental outlook for the company. In financial terms a reverse stock split reduces the number of shares outstanding and therefore the share prices also increases proportionately. This financial housecleaning will also help in the bailout plan to go smoothly.
Credits : Manik Gursahani
Wednesday, February 25, 2009
Saturn is Dying... !!!
In this recession, when General Motors are into tough times, they have decided to give a planned death to one of biggest sub-brands it used to have, "Saturn".
Saturn was a unique car,launched by GM to compete with the japanese cars. But with time,brand Saturn faded. Declining sales and cash crunch have compelled GM to end the brand "Saturn". If the brand would have been managed well, with all the sources upfront, then Saturn could have been the flagship brand of GM.
Saturn, a great product, a great idea, superb positioning, and a great brand.
Just lost its sheen, as GM didn't handled this brand consistently with time, neither provided it with enough marketing resources.
Monday, February 23, 2009
World going GungHo... on "Jai Ho"
Congratulations to Mr.Rehman, Mr.Resul, Slumdog's Team!
Also, congratulations to the team of "Smile Pinki".
India rocked at the Oscars!!!
What if, this movie have been produced and directed by Indians?
I guess, there would have been no oscars!
Is this irony, tragedy, racism or what?
You Decide!
Nevertheless, I am proud of you Rehman!
And as Amitabh Bachchan says,'Rehman doesn't need an Oscar to prove that he is the best.He is better than the best!'
Also, congratulations to the team of "Smile Pinki".
India rocked at the Oscars!!!
What if, this movie have been produced and directed by Indians?
I guess, there would have been no oscars!
Is this irony, tragedy, racism or what?
You Decide!
Nevertheless, I am proud of you Rehman!
And as Amitabh Bachchan says,'Rehman doesn't need an Oscar to prove that he is the best.He is better than the best!'
Saturday, January 24, 2009
G for "Greed" or "Generosity"... !!!
Gone are the days when in business, the letter G denoted "Greed". After crisis, people of Europe, Japan and prominently USA are disgusted with these greedy corporations. As if they no more believe in the brands, they trusted before. Now no more, they follow brands blindly. Common man believes that the greediness of these brands and corporations led to downfall of their economy.So what to do, to win back the trust of the common man!
I guess, corporations need to understand that in today's business arena, there is no room for greed.
To succeed, the letter G should be replaced to "Generosity"!
A corporation need to be more customer responsive, ethical and value driven. Brands need to crush their arrogance and should communicate their "Generosity" through Public Relation (PR)campaigns, Corporate Social Responsible (CSR) Activities and by providing more value to customers through their products and services.
Thus, it introduces new form of marketing, as "Generosity Marketing".
Trendwatching.com discusses this concept and explains how could corporations and brands can have long term success, and can be a step ahead from their greedy competitors.
Friday, January 23, 2009
What's your Facebook status... ???
Can you imagine, what is the impact of Facebook in the world's most powerful country, USA ?
Let me be blunt and straight.
A man brutally attacked his wife with knife and killed her.
So what’s so special about it?
He killed his wife just because, she changed her profile status on Facebook from married to single !
As per news from BBC, "Edward Richardson, 41, was found guilty of stabbing Sarah Richardson to death. He killed the 26-year-old hairdresser at her parents' home in Brown Lees, Staffordshire, on 12 May, 2008."
Among all the social networking websites, Facebook is the biggest phenomenon among US citizens.
I am speechless !!!
Let me be blunt and straight.
A man brutally attacked his wife with knife and killed her.
So what’s so special about it?
He killed his wife just because, she changed her profile status on Facebook from married to single !
As per news from BBC, "Edward Richardson, 41, was found guilty of stabbing Sarah Richardson to death. He killed the 26-year-old hairdresser at her parents' home in Brown Lees, Staffordshire, on 12 May, 2008."
Among all the social networking websites, Facebook is the biggest phenomenon among US citizens.
I am speechless !!!
Thursday, January 22, 2009
U.S.Future in Safe Hands... ???
George W. Bush is gone, after having two successful terms at the highest level, as the President of USA.
And here we welcome, Mr. Barack Obama, as the new "hope", as the new President, who promised "Change".
I still don't know, whom to laugh at, Mr. Obama, or his campaign "Change".
Or at the 2 million people of US, standing near Capitol and White House, just to be a part of inaugral ceremony, as if Mr. Obama is the saviour arrived, who has the magic wand and will "Change" the future of capitalistic US.
Could someone, please give me the rationale behind this!
Well, congratulations, to Mr. Obama.
When there is so much of uncertainty, its better to laugh at the picture beneath.
Future of USA, in the hands of both the leaders. Watch out for the reactions!!!
HA HA HA....
And here we welcome, Mr. Barack Obama, as the new "hope", as the new President, who promised "Change".
I still don't know, whom to laugh at, Mr. Obama, or his campaign "Change".
Or at the 2 million people of US, standing near Capitol and White House, just to be a part of inaugral ceremony, as if Mr. Obama is the saviour arrived, who has the magic wand and will "Change" the future of capitalistic US.
Could someone, please give me the rationale behind this!
Well, congratulations, to Mr. Obama.
When there is so much of uncertainty, its better to laugh at the picture beneath.
Future of USA, in the hands of both the leaders. Watch out for the reactions!!!
HA HA HA....
Calvin and Hobbes... view on Crisis... 15 years back !!!
My dear friend Sumit Gahoi mailed me this cartoon which is suggestive of today's economic crisis and bail-out packages.It clearly depicts today's scenario in a form of cartoon.
"Calvin's explanation of his Lemonade Stand's business perspective has a resonance to the American Banking and Auto industry's position in the economy. Remember that this cartoon was drawn over 15 years ago!"
"Calvin and Hobbes is a comic strip written and illustrated by Bill Watterson, following the humorous antics of Calvin, an imaginative six-year old boy, and Hobbes, his energetic and sardonic—albeit stuffed—tiger. The pair are named after John Calvin, a 16th-century French Reformation theologian, and Thomas Hobbes, a 17th-century English political philosopher. The strip was syndicated daily from November 18, 1985 to December 31, 1995. At its height, Calvin and Hobbes was featured in over 2,400 newspapers worldwide. To date, more than 30 million copies of the 18 Calvin and Hobbes books have been printed."
"Calvin's explanation of his Lemonade Stand's business perspective has a resonance to the American Banking and Auto industry's position in the economy. Remember that this cartoon was drawn over 15 years ago!"
"Calvin and Hobbes is a comic strip written and illustrated by Bill Watterson, following the humorous antics of Calvin, an imaginative six-year old boy, and Hobbes, his energetic and sardonic—albeit stuffed—tiger. The pair are named after John Calvin, a 16th-century French Reformation theologian, and Thomas Hobbes, a 17th-century English political philosopher. The strip was syndicated daily from November 18, 1985 to December 31, 1995. At its height, Calvin and Hobbes was featured in over 2,400 newspapers worldwide. To date, more than 30 million copies of the 18 Calvin and Hobbes books have been printed."
Sunday, December 7, 2008
Exciting American Bailout...!!!
My friend Manik Gursahani mailed me, these interesting facts about American Bailout. I couldn't resist it posting it on blog.Read on.
"Adding in the Citi bailout, the total cost now exceeds $4.6165 trillion dollars.
Some what around $7 trillion after auto bail out.....
People have a hard time conceptualizing very large numbers, so let’s give this some context. The current Credit Crisis bailout is now the largest outlay In American history.
Crunching the inflation adjusted numbers, we find the bailout has cost more than all of these big budget government expenditures – combined:
• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est),Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion
TOTAL: $3.92 trillion"
Source : http://boingboing.net/2008/11/25/bailout-costs-more-t.html
"Adding in the Citi bailout, the total cost now exceeds $4.6165 trillion dollars.
Some what around $7 trillion after auto bail out.....
People have a hard time conceptualizing very large numbers, so let’s give this some context. The current Credit Crisis bailout is now the largest outlay In American history.
Crunching the inflation adjusted numbers, we find the bailout has cost more than all of these big budget government expenditures – combined:
• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est),Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion
TOTAL: $3.92 trillion"
Source : http://boingboing.net/2008/11/25/bailout-costs-more-t.html
Sunday, February 3, 2008
KFC -- "Kentucky Fried Cruelty"
As soon as you enter Forum Mall, our taste buds gets flooded with a yummy feeling. Reason? KFC !!! Many of my friends, love to eat at KFC. Those who love chicken dishes, prepared in american style, can't resist KFC.But PETA has started an advertisement campaign against KFC. They have come up with very interesting billboards, print ads, posters, leaflets, stickers to spread awareness to boycott KFC globally.
PETA says,"KFC suppliers cram birds into huge waste-filled factories, breed and drug them to grow so large that they can’t even walk, and often break their wings and legs. At slaughter, the birds’ throats are slit and they are dropped into tanks of scalding-hot water—often while they are still conscious."
They raised this issue in 2001 and soon when they found that KFC is coming up with false promises to improve,they went a step ahead by using advetisement campaign. Here are some interesting ads by PETA.
source : PETA
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