Summary
Once the stimulus bill is approved and the funds are released it will be of numerous benefits to the struggling US economy and it will impact the whole towards global recovery as Jobs will be created,consumer spending will be triggered and the fBank will regain the lending esteem.There is hope of recovery world wide
Analysis
The Global crisis and the US economic reccession has had alot of
effects world wide.The consumers spendings are low and this means that
most of the manufacturers cant produce at maximum and this has led to
numerous job losses/cuts world wide,company mergers to withstand the
crisis.
The banks are not lending and all the assets on mortgage like property
are not bought.The recent decision by ADM to lease all the cooperative
assets in Brazil is a sign that the credit crunch is bitting hard.Most
of the banks have lost the lending esteem and are keeping their assets
in reserve minerals notably Gold as they watch the steps to global
recovery.
In africa,the situation is worse since most of the African economies
and the developing nations at large are donor financed.ACloser look at
the budgets of these ecomomies are debt financed.The crisis is
straining the source of funding yet there are so many projects in
Africa along HIV/AIDS,Poverty eradication,education,water and
sanitation among others.
The International agencies are considering pulling out of operaitons in
Africa.some have scaled down the operations by resorting food rationing
especially in war ravaged areas of Darfur,Eastern DR congo and Somalia
to mention a few.
Most of the Commodity trading companies are scaling down their
operations.AGRI-Products are price volatile and any impact on the
NYBOT.LIFFE. the WALL STREET all affect the operations of these
companies .In china the milling operations are down and since china
consumes 40% of the world cotton.The credit crisis is affecting the
apparel and textile markets.
The major impact of the sTIMULUS BILL wll restore confidence in the
world economies.It will redeem the lending confidence of
banks.Manufacturing companies will regain control,more jobs will be
created,all sectors from agriculture,manufacturing,trading among other
will regain strength world wide and more money will be available to
foster world wide recovery because once the US economy is
down all countries are greatly affected.The Stimulus bill is timely to
economically revamp the world.
