Stiglitz on Mexico's reaction to crisis

Joseph Eugene Stiglitz (born February 9, 1943) is an American economist and a professor at Columbia University. He has won two Nobel prizes, and he is also the former Senior Vice President and Chief Economistof the World Bank. He is known for his critical view of the management of globalization, free-market economists (whom he calls "free market fundamentalists") and some international institutions like the IMF and the World Bank.

Recently, Stiglitz stated that Mexico's reaction to the global economic crisis has been one of the worst anywhere.

"Statistics showing growth have been very weak and pessimistic" for Mexico, Stiglitz said. "The combination of a very weak recovery in the United States and a fiscal policy that doesn't stimulate the Mexican economy is worrying." Stiglitz spoke to attendees of an event organized by Grupo Mexicana and Grupo Posadas, two major Mexican companies.

El Universal reported that Stiglitz said Mexico's position in the face of this crisis was "unusual."

"In contrast, countries such as Australia, which was the first country in the developed world to emerge from the recession," Stiglitz said, "applied strong measures through a packet of well-defined incentives."

Although Mexico is dependent on the U.S economy, that represents a risk, he warned.

"Many people hope that a recovery in the U.S will be the solution," he said. "But Mexico needs an alternative."

Read More......

Economic Crisis continues

The financial crisis of 2007–2009 has been called the worst financial crisis since the one related to the Great Depression by leading economists, and it contributed to the failure of key businesses, declines in consumer wealth estimated in the trillions of U.S. dollars, substantial financial commitments incurred by governments, and a significant decline in economic activity. Many causes have been proposed, with varying weight assigned by experts. Both market-based and regulatory solutions have been implemented or are under consideration, while significant risks remain for the world economy.

About all this situations of the economic crisis that has been taking place in this few years the most serious problem, is that Europe and the USA face not just a financial crisis but a major economic crisis.

New official statistics appear every day telling us that consumer demand is weakening, order books are slack and unemployment is rising.

It is the coincidence of continued global financial crisis and recession in the real economy which makes the current situation so dangerous; indeed, it is precisely this combination - together with wrong headed government policies - which can turn a recession into a depression.

Read More......

CRISIS CRISIS AND MORE CRISIS!!

Things haven't been so good with this crisis. Enterprises are cutting more jobs each time. General Motors (GM), one of the biggest car companies announced they're cutting off about 10,000 jobs. The Canadian car parts firm Magna was making a deal to buy the European car unit Opel, but the consequence was to cut off jobs about the same number as GM. Magna's plans for job cuts at Opel and Vauxhall totalled 10,500. Final result: GM denied.

Unite, the main union at Vauxhall, which employs 5,500 people, said its task was to minimise the number of jobs lost, and to ensure they are voluntary. GM's announcement was made by its vice-president John Smith, who did not indicate where the 10,000 cuts are likely to fall. However, he said GM hoped to be able to present the details to European governments "very soon", with agreement in place with governments and unions between January and March of next year.

Read More......

We need this taxes

After reading my daily blog-reading i found one very interesting blog post. It was about a rich guy in Germany that wants to sign a petition so that the goverment starts charging taxes to reach people(over 500,000 euros) The blog post is very interesting so I will just a general idea. The guys that have signed already the petition are wealthy men that are willing to pay more for the economic stabilization of their country because they are tired of seeing how a goverment spend millions in saving the banks but does nothing for society.

The Deal is:

-5% of their total money will be payed in 2009 and 2010

-After 2010 peopple with over 500, 000 euros will pay 1% of their money

The problem:

-The "liberal" administration of Angela Merkel will never allowed this to happen.

This is just a quick glance, I will upload the link to the blog.

I really think that this is what wealthy people could do.

But as said in the blog post here in Mexico nor Slim nor Salinas would pay even a cent. I really would like that they found this blog contribution so that thye could realize how sellfish MISER they are.

Link: http://hazmeelchingadofavor.com/index.php/2009/10/24/a-que-le-tiras-cuando-suenas-aleman/

Read More......