Que: Does the sub-prime mortgage meltdown underway have the potential of bringing down the U.S. economy? (Alan Marshall, Plymouth, Mich.)

MANAGEMENT GURU

Ans: Meltdown is a good word for the unfolding sub-prime mortgage mess, but the answer to your question is still “No.” This is not the savings and loan disaster of 1989, which helped send the U.S. economy into a recession. Today’s economy is so much more broad based and global, and its financial markets so much more liquid, that it can handle this relatively small problem without serious long-term damage. Of course the problem doesn’t feel small to the people living it. Thousands of families are being forced to move out and unload their properties. And in the companies that made the sub-prime loans, employees are facing layoff s in a weakened industry. Even with those disheartening stories, it’s important to recognise that sub-prime mortgage business is just a small percentage of a $15 trillion economy. Indeed, you can already see the economy’s overall resiliency and liquidity in the activities of several investment companies, such as Goldman Sachs, that are buying up portfolios of sub-prime loans at distressed prices.

We’re not saying the sub-prime crisis should be pooh-poohed. But even with its spillover effects it won’t kill the economy. Think big blip, not blowout.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Que: Does the sub-prime mortgage meltdown underway have the potential of bringing down the U.S. economy? (Alan Marshall, Plymouth, Mich.)

MANAGEMENT GURU

Ans: Meltdown is a good word for the unfolding sub-prime mortgage mess, but the answer to your question is still “No.” This is not the savings and loan disaster of 1989, which helped send the U.S. economy into a recession. Today’s economy is so much more broad based and global, and its financial markets so much more liquid, that it can handle this relatively small problem without serious long-term damage. Of course the problem doesn’t feel small to the people living it. Thousands of families are being forced to move out and unload their properties. And in the companies that made the sub-prime loans, employees are facing layoff s in a weakened industry. Even with those disheartening stories, it’s important to recognise that sub-prime mortgage business is just a small percentage of a $15 trillion economy. Indeed, you can already see the economy’s overall resiliency and liquidity in the activities of several investment companies, such as Goldman Sachs, that are buying up portfolios of sub-prime loans at distressed prices.

We’re not saying the sub-prime crisis should be pooh-poohed. But even with its spillover effects it won’t kill the economy. Think big blip, not blowout.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Article, Visit Below....
Management Guru 's Speak on IIPM
IIPM going global
IIPM Management Guru India, Planman Consulting India
Management Guru 's Message
IIPM : EDITORIAL & RESEARCH
The maverick management guru
IIPM Alliances
IIPM Academics : Curriculum
On "IIPM - Arindam Chaudhuri - Planman"

Etihad flying on a bidding ride

MANAGEMENT GURU

Etihad Airways, a UAE-based airline devises to invite aircraft makers Airbus and Boeing to bid a call for single and twin-aisle aircraft in forthcoming year. As Abu Dhabi government plans to expand its network in Middle East and other nations like India, Etihad had an eye on new long range aircraft s including Airbus’s new A350 and Boeing’s 787 Dreamliner. Etihad, which has 25 aircraft s under its net, intends to add routes to growing markets like India, specifically to high potential destinations like Calcutta and Bangalore. Etihad estimates its revenues to rise 60%, boosting sales to $1.25 billion this year. This can be due to its expansion scheme as compared to that of 0.78 billion last year while managing 2.83 million passengers.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Article, Visit Below....
Management Guru 's Speak on IIPM
IIPM going global
IIPM Management Guru India, Planman Consulting India
Management Guru 's Message
IIPM : EDITORIAL & RESEARCH
The maverick management guru
IIPM Alliances
IIPM Academics : Curriculum
On "IIPM - Arindam Chaudhuri - Planman"

The Flip Side

MANAGEMENT GURU

The Indian textile sector looks well on its way to create a strong foothold in the global arena, but there are quite a few bottlenecks, which are adequate enough to lead to a doom for the loom. Even today, the so-called Indian labour welfare policies are so complicated that the dragon nation is stealing the show by attracting much higher FDI into its textile sector. Moreover, Man Made Fibre (MMF), which dominates the total textile consumption of the world, is also subject to a high import duty of 10%. With definite conviction, if the duty is removed, the exports are bound to surge northwards. The government should also inject investment in veins of the industry by extending the TUF Scheme beyond March 2007, so that the Indian textile industry gets into a strong position to face the growing competition. “The industry has just started meeting global challenges and we need more funds for technical upgradation,” supports C. L. Rathi, MD, Birla VXL Ltd.

The need of the hour is to rationalize the government policies and further enhance co-ordination with the industry. This will greatly assist the Indian textile companies in their hunt for the golden treasure trove. With proper direction from the policy front, India can establish a fanatically flamboyant brand identity for itself across the planet. So it’s high time to get all hands on deck and get the Indian textile ship moving on an odyssey towards global dominance.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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