Hungary is in great needs of funds but now it will be much more difficult for the country to borrow money. The biggest problem is that due to the recession of 2008, Hungary has already borrowed a lot of money. In 2008, Hungary was forced to ask for 25 billion dollar package from IMF and EU. The new government still says that it can manage big tax cuts which it promised to the Hungarians during the April election campaign.

 Another issue is the fact that many Hungarians have taken mortgages in Swiss Franc since the interest rate is low in Franc. Hence with the devaluation of the Forint, homeowners will have to pay lot more mortgages. Experts are scared as the Forint devalues more, a banking crisis may emerge in Hungary.

 Presenting false data by a nation is becoming quite a problem as the examples of Greece and Hungary emerge.

This unintentional misconduct by JP Morgan though didn’t cause the clients any losses but according to rules client’s money should always be in a separate account. This is done to ensure that we protect the client’s money even if the financial firm becomes bankrupt.

JP Morgan’s support during the investigation allowed it to get 30% discount on the fine. Apparently during the seven years, the client money put at risk by JP Morgan was between 1.9 billion to 23 billion dollars. With this fine, a message is sent out to all firms that they need to provide full safety to clients’ money.

 Greece, Portugal and Spain have seen a massive increase in their borrowing costs. Also other EU members have become cautious after seeing the condition of countries like Greece. Germany despite being Europe’s biggest economy is also following suit.

On the other hand, Geithner mentioned that the world economy can’t depend in future on the US consumer spending as it has happened in the past. According to Greither there is a heavy decrease in the spending of US consumer and the world needs to figure out new ways to compensate for that. One of the ways is to improve your domestic demand and hence creating a market for the goods in your own country.

 Recession and a bunch of economic troubles have caused the US consumers to be less source of demand for the world in the coming years. Till now the world economy has been very dependent on the US consumers but now they definitely need alternatives.

Olli Rehn also praised the EU and IMF program and stated that the program will help Greece to stabilize its economy.

Moreover, all EU countries have agreed on the loan to Greece and according to the commissioner 110 billion Euros will be enough for Greece’s economy to come back on track. Apparently there have been demonstrations by citizens against the government economic reforms in Greece. France and German governments have both shown their support to the Greek government.

It is very important for all of Europe to support Greece especially when they use a common currency. An improved Greek economy will be a favorable step for all economies around the world.

Government’s support to the industry allowed the economy to grow at 7.9% in the second quarter. Growth decreased to 6% in third quarter due to the contraction of agriculture production by 2.8% and slipping of community, social and personal services by around 2.2%.

When you think about economic growth analytically, we realize that a country should be looking for balance between economic growth and development.

As we can see that growing economies like India have a high growth rate but their development rate is low. In simpler terms you can determine development rate by the amount of money/wealth that gets trickled down to poor people. This is because a high economic growth never tells us how much of that money is reaching the poor people. It is generally not advisable in a country if the rich just keep getting richer while the poor keep getting poorer. India should ensure they can turn their high economic growth to high development rate as well.

With everything going great with the Chinese economy, many experts believe that China is creating what is called a “bubble” economy, the economy that will burst for sure one day. The American economy burst happened because of them providing very easy credit. In the case of China, they are giving loans to just about everyone. From the beginning of this year till now, 1.27 trillion dollar has been given by China as loans to Americans.

A study has shown that lending by China has reached 140% of GDP at midyear. This kind of lending has created crises earlier. A lot of Chinese money is going into projects which are unlikely to generate great revenues. According to some leading economists, these loans are allowing manufacturing of goods at large scale which isn’t needed since consumption isn’t increasing at such a large level.

Though it seems the China has realized the problem. Chinese officials are debating how to recover their loans faster. Also, their loan giving rate was much higher in the beginning of the year as compared to what it is now. Also, China plans to solve the problem of excess capacity in certain sectors by forcing factories to shut down and forcing few to go for mergers.

We just hope that we don’t have to face a new recession soon.

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Also, the whole of Europe including the countries not using Euro grew 0.2% in 3rd quarter and hence coming out of the recession. While others have grown, UK’s economy has gone down by 0.4% in the 3rd quarter. The economy has been going down for six consecutive quarters.

The German economy has come out of the recession much faster and earlier than many experts had predicted. The main concern is UK’s economy, the second biggest economy of Europe, which is still contracting. This shows how hard hit was UK by the global recession. UK’s financial sector accounted for bigger portion of their economies and hence UK was affected more because of the recession.

Leaving Spain and UK, every other economy in Europe has recovered from recession.

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According to the economist at Federal Reserve Bank, William Strauss, the survey conducted by NABE is a clear indicator of the fact that the U.S. economy is improving continuously. This news will bring big relief to all the people who are currently facing the economic crisis by loosing their jobs.

The job cut is slowing down when compared to the previous quarter. Also, 12% firms are adding job as compared to 6% in October. Yet at the moment unemployment rate is at an all time high in States with 9.8% and government needs to take all possible steps to decrease the job cuts.

The loan comes with certain terms and conditions. One of them being that the finance minister of the country ensures that money isn’t invested in other projects. The country is really suffering to get foreign currency. Zanu-PF party of President Mugabe has blamed the opposition, MDC, for not trying to get donor funding for Zimbabwe. MDC attacked back by accusing Zanu – PF for the human right abuses. This loan also puts an end to speculations that the Zimbabwean dollar will soon be restored and it seems that U.S. dollar will remain the official currency.

According to local news, Gideon Gono, the central bank Governor, will soon be meeting Tendi Biti, the Finance Minister, to discuss the possible ways the money can be used in rebuilding the Zimbabwean economy. The central bank of Zimbabwe has been highly criticized for its handling of country’s resources in the past.

In a statement made by The Chief Executive, Robert Iger, Disney believes that the addition of Marvel in the list of unique brands of Disney will create opportunities for growth and productivity in future. Marvel is a strong player in the action hero and comic book department with the characters like Spider-Man, X-Men, Fantastic Four and many more. Marvel last summer financed Iron Man which turned out to be a mega success.

According to the Ike Perlmutter, the chief Executive of Marvel, this takeover is a good opportunity for Marvel to improve on its brand through the support of Disney, a truly global organization. He also added that Disney is a master when it comes to expansion in content creation and in the licensing of businesses. The news of the buyout has caused the shares of Marvel to increase 27% during the morning trade.