Middle class
March 25, 2013
Global Unemployment The phenomenon of growing unemployment across the world has become a regular feature across daily news stories. This is not restricted to one nation […]
February 7, 2012
Global Stock Brokers across continents are either firing hundreds of workers or are totally closing down. The reasons for this downsizing of operations by brokerages is
a) The Financial Industry has become too large to the size of the global economy particuarly in countries like USA
b) The reduction in risk and capital means that big financial companies are reducing and selling their operations
c) The Broking Sector has seen a Peak in 2008 and now the only place to go for the next few years is Down
January 12, 2012
The Financial Industry will shed another 150,000 jobs according to Richard Bove, an analyst at Rochdale Securities LLC . Royal Bank of Scotland the bankrupt UK bank that was taken over the British government is going to kill a number of investment banking divisions and will fire 3500 people. RBS has already fired thousand before in wholesale and corporate banking . Now RBS will completely exit from a number of divisions like M&A, Cash Equities etc. which will mean thousands of firings . In an environment when financial jobs are scarce , this means that the fired thousands will have a tough time getting into the workforce again.RBS is going to fire 3500 people in addition to 2000 already announced. This would bring down the 24,000 pre crisis headcount by almost 45% .
January 7, 2012
Financial Jobs are being let go in the tens of thousands by European and USA Financial Institutions. The Financial Industry has become too huge as a percentage of the global economy with any value creation to say something like the IT industry. The share of the market cap of the stock market had become too high during the boom boom years of 2008 and it is continuing to go down.Despite the best (some would say the worst) effort of the governments to prop up the Too Big to Fail Banks,jobs are being let go as there is not enough work. European Banks are shrinking their balance sheets as they are too leveraged and insolvent. Without the ECB crutch,almost all of them would go under.
April 10, 2011
India's Income Disparity is not growing among the rich and the very poor but also widening between its super rich and middle classes.Note India's Middle Class is not as big as a percentage of the population in the developed countries and its per capita income is also much lower.However India's Middle Class is growing as the economy grows by 8-9% and despite the lopsided economic growth some of the massive wealth that is being generated does trickle to the middle class.However those gains are being eroded by a Persistent Double Digit inflation which has entrenched itself.Despite periodic interest rate increases,India's Central Bank has miserably failed on the Inflation Front in the last couple of years.First it was having too loose a policy to overcome the effects of the global eco crisis in the aftermath of the Lehman collapse.Now it was too slow to raise rates as commodity price increased dramatically.
March 31, 2011
The French President Sarkozy has become the first international leader to visit Japan after the Fukushima Dai-ichi Nuclear Disaster which has simmered for more than 3 weeks.Japan and France do not have a strategic relationship like USA and Japan does nor do these countries have shown great friendship in the past.So it surprising why Sarkozy has gone to Japan on such a short notice to pledge all French help to the Japanese in the wake of the radioactivity leaking from the reactors in northern Japan.Note France has been the leader in the Libyan no fly zone as well calling for Western intervention in a mostly domestic civil war.France has not got too much involved in other civil wars raging in the Middle East.It has been selective over it choice for jumping up and down over human rights.The glaring Western and French silence over the Saudi invasion of Bahrain and violent suppression of its citizens by the Middle Eastern dictators tells of a hypocrisy.
March 19, 2011
The United Nations has voted on enforcing a "No Fly Zone" in Libya as Colonel Gadhaffi's forces backed by aircraft and artillery have bombed their way to a winning position in Libya.The democratic protests in Libya has been violently suppressed by the despotic regime over there which has appeared at times as mad and lunatic.The rebels despite popular support have been cowed down by the massive military power of Gadhaffi and his mercenaries.This has finally made the United Nations Security Council decide on attacking Libyan army by Air and enforcing a "No Fly Zone'.Note this has been done despite misgivings by China and others who abstained.However the West led by France has been adamant on helping democracy.
March 16, 2011
The Western Nations have maintained a deafening silence as the Gulf Cooperation Council (GCC) which is the gang of Sunni nations in the Middle East has used Apache Gunships against unarmed citizens of Bahrain.The US and the western media (blogs as well) have been strangely silent on this murderous attack on peaceful citizens.Bahrain has been on the Boil as Shia citizens have been demanding their legitimate rights this rich island nation.However the rulers which are from the Sunni minority have not budged instead they have called foreign troops to kill their own citizens.Global "Human Rights Champion" the US and its leader Clinton and Obama are hypocritically silent,so is the normally frantic Sarkozy.
May 30, 2010
The spectacular growth in Asian economies like China,South Korea,HK,Taiwan over the last two decades has raised millions from poverty to a middle class life.This has led […]