As an entity, the European Union is the biggest economy in the world. But sovereign debts are causing it to coming unglued. Greece had 3 bailouts. Spain just received a massive $125 billion for its banks.
The US, second largest world economy was already reported by the CBO to be close to falling off a fiscal cliff. It would be utter chaos and ugly if and when it happens.
Among the BRIC nations, India is under pressure to be the first to be downgraded by Standard & Poor. The Telegraph reports:
The rupee weakened and shares tumbled after Standard & Poor's warned that a slowdown in economic growth and the political paralysis on economic development gripping the country carried the risk of re-rating.
Currently India's BBB- rating is just one level above junk status and the lowest in the Bric 'club' which has Brazil, Russia and China as its other members.
Joydeep Mukherji, a New York-based S&P analyst, said: "Setbacks or reversals in India's path toward a more liberal economy could hurt its long-term growth prospects and therefore its credit quality."
Not only is India slowing, Japan and China, among the biggest Asian economies, are slowing growth. China is the first country to react with an interest rate cut.
Do investors get the message that world markets are slowing?
Do governments have limitless power to prevent financial meltdowns? How would a slowing economy affect you?
What are your thoughts?
The US, second largest world economy was already reported by the CBO to be close to falling off a fiscal cliff. It would be utter chaos and ugly if and when it happens.
Among the BRIC nations, India is under pressure to be the first to be downgraded by Standard & Poor. The Telegraph reports:
The rupee weakened and shares tumbled after Standard & Poor's warned that a slowdown in economic growth and the political paralysis on economic development gripping the country carried the risk of re-rating.
Currently India's BBB- rating is just one level above junk status and the lowest in the Bric 'club' which has Brazil, Russia and China as its other members.
Joydeep Mukherji, a New York-based S&P analyst, said: "Setbacks or reversals in India's path toward a more liberal economy could hurt its long-term growth prospects and therefore its credit quality."
Not only is India slowing, Japan and China, among the biggest Asian economies, are slowing growth. China is the first country to react with an interest rate cut.
Do investors get the message that world markets are slowing?
Do governments have limitless power to prevent financial meltdowns? How would a slowing economy affect you?
What are your thoughts?
No comments:
Post a Comment