Hey friends..

Hope you all are having great time...!!

So wats up these days....

rather my question should be...

Whats up with Slow down or Recession that was expected..??

First talking about the Recession or Slowdown that has hit the economy world wide let it be USA or Euro -Zone..

In the last post as I stated that S&P has reduced USA ratings from AAA to AA+ on account of debt-ceiling crisis..

One thing I can Say is US, European economies still tenous. In USA The growth expectations are downgraded because of expected slower pace of income and spending growth and the rate of U.S. hiring slowed and the jobless rate,exceeds 9 percent.

About Euro-Zone crisis I can say that The GDP growth estimates are reduced by a full percentage point for this year and the next year owing to softening domestic demand in the core countries. This could affect the euro area as a whole, slowdown in global trade momentum marked by deceleration in manufacturing indicators, difficulties faced by banks in accessing term funding at reasonable rates and likelihood of increased funding costs that could impact investment projects.

The saviour factor for USA would be last round of Quantative Easing(QE),which will keep the interest rates low till 2013 and thereby lifting the economy and Federal Cheif Ben Bernanke has stated Strong fundamentals will drive US out of recession.Their exporting market is largest,and the recovery there is modest.

and the redeeming factor for Euro-Zone would be they have taken very important steps. Many countries have announced additional austerity measures and are accelerating their deficit cuts. The other thing they have done is to agree to increase the flexibility of the European stabilisation fund and according to European Financial Stability Fund and Deutsche Bank central bank toolkits will be able to keep banks alive, at the cost of interest margins and reduce the amount of investment funds that are borrowed.There banks may likely face some problem but Liquidity crisis unlikely to hit European banks.

and and and other thing..gear up for placements..All the Best...Do well..!!!!