A record number of 659 members joined Boeing Employees’ Credit Union in Seattle on Saturday. Similarly, Texas credit union saw many new customers join.

These credit unions can’t sell stocks and don’t have to pay taxes unlike giant banks.

There is still no specific number of how many people actually moved their bank accounts on Bank Transfer Day. This might have been a loosely coordinated event but due to recent events such as major banks (especially Bank of America) charging their customers a fee to use their debit cards, the move has harnessed a lot of attention.

You might expect the big banks to get worried over this but that’s not the case? Why? Because generally the people that move to credit unions are not profitable customers. They have small balances and buy very few products from the bank.

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.

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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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.

The leading suitors for the car firm are Magna, Belgian financial group RHJ etc. Magna has already promised to keep the job loss to minimum in Germany where around 25,000 people are employees of Opel. The chief negotiator of GM, John Smith, will soon be talking to deputy economy minister Jochen Homann regarding the whole Opel matter on Tuesday.

GM filed for bankruptcy protection on June 1st and since then the control of Opel has been give to a trust. This is a German – led trust whose approval is necessary for any solution. It will be interesting if GM, once the world’s largest carmaker, will be able to save Opel or not. It is yet unclear how much support GM will get from U.S. government after the statement of President Obama who thinks that day – to –day operations at GM should not be interfered by others.

Guaranty Bank has been closed down making it the third largest bank to fail in the year 2009. Till now, 81 banks have failed in the year 2009. The Federal Deposit Insurance Corporation, FDIC, will receive the 13 billion dollar assets and 12 billion dollar deposits of Guaranty Bank. The bank had 162 branches in Texas and California.

Guaranty also is the 11th largest bank to fail in United States. It shares this spot with First City Bancorporation which failed in 1988. FDIC will have to bear a 3 billion dollar cost due to the failure of Guaranty Bank. Though many bid for the assets of the bankrupt bank, including a private equity group led by Gerald Ford, BBVA Compass, a U.S. subsidiary of Spanish bank Banco Bilbao Vizcaya Argentaria, was the winner.

According to Jose Maria Garcia Meyer, chairman of BBVA Compass, this whole transaction made a lot of sense from a strategic point of view. This whole transaction is also important as this is the first time that a foreign bank has bought a failed U.S. bank.This bank failure is the fourth bank failure in Texas this year. It seems U.S. economy is still struggling and recession is still at large.

With the exit, the CEO will be paid off €50 million while the finance chief will get €12.5 million. Wiedeking will be replaced by Michael Macht who is currently the Production head of Porsche. Wiedeking has always been against the idea of Volkswagen buying Porsche.

Currently the Piech and Porsche families completely own Porsche with 100% decision making power and have also tried their best not to sell any stakes to any outsider. But it seems that now the Porsche and Piech clans are ready to give up some of their influence at the maker of the 911 sports coupe.

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