US Economic Crisis 2008

Archive for 'US Economic Crisis 2008'

Citigroup Bailout and The Expat

Wednesday, November 26th, 2008 at 12:02 am

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Citigroup Bailout Will Lower Dollar’s Value

How will the US pay for these bailouts? They will issue T-bills. This has the same effect as printing of money. It creates additional credit and credit expands the number of dollars out there by a factor of about 10. When you deposit cash, it allows banks to about ten dollars to every dollar you deposit. That is if they banks will loan it. Right now, they will not do it so the lender of last resort is the government and the government is going to loan and loan big.

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US Credit Strain Causes Net Cash Outflows

Saturday, October 18th, 2008 at 6:23 pm

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The US Economic Downturn causes a net Outflow of Foreign Cash In The Philippines

The Inquirer.net is reporting that according to the Philippine Central Bank there has been a large outflow of foreign investment for the year. This is mostly from foreign investors converting their Peso into their native currency.

For the January-September period, foreign portfolio investments registered a net outflow of $487.52 million, in sharp contrast to a net inflow of $3.4 billion in the same period last year.

There are many causes for this but large investors need dollars. Banks in the US refusing to make loans with the impending recession slows the creation of dollars. It would appear that other currencies are in demand as well.

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Economic Crisis of 2008 & the US Expat

Sunday, October 5th, 2008 at 8:40 pm

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Economic Crisis of 2008 and the US Expat

If you are anything like me, you’ve been confused about this economic crisis of 2008. I am not the typical US Expat. I had a head start over many people. I had, at least been educated on such things 25 years ago. Of course, in the day to day lives of most American’s the need for high finance that I learned back then was limited. I wasn’t working as an accountant any longer. For the last 15 years or more, my main professional interest have been computers. Though I admit, I’ve been torn between financial issues and computers. The mundane task of finance had left me hating the site of any form, especially income tax forms. But, accounting in general was causing me to break out in virtual hives. Still having spent a lot of time studying such issues, may have helped me to recall the fundamentals I learned in my youth.