The American economist Nouri Roubini predicted that growth in the U.S. will be “well below 1% for the third quarter and said that the chances of a new recession are 40 percent. Roubini, who is chairman of Roubini Global Economics LLC suggests that the government will revise the data for growth in the second quarter, cut them into 1.2%. “All directional winds from the first half of the year, now turned against us,” he said giving example of the effect of the government plan for 814 billion dollars to stimulate the economy and tax credits for families buying property for the first time. As the best scenario seems Roubini “anemic growth” for many years, indicating the need to reduce debt levels of households, governments and financial system as a whole. “With the sluggish growth of up to 1% risk stock markets suffer sharp downward correction. At the same time credit and interbank spreads have increased and increased global risks, “he said. “Thus, the negative signals sent between the real economy and markets for risky assets can easily lead to double economic recession. Roubini warns that the two recessions will occur immediately one after another.
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Let’s discuss today why online tradeshows are more affordable than traditional fairs. First of all, since tradeshows such as franchises tradeshows or Product Promotional Trade Shows are usually international, if not global, events, they used to mean a lot of travelling. This means air fair and in some cases visas, time-consuming documents organizing and so one. Second, tradeshows meant not only sending a team of organizers but having company representatives attend the sets of other businesses which meant extra expenses on human resources. Third, the show itself demanded a high quality display of good and services where money was everything. One needed to pay for promotional literature and gifts for fair attendees, technical services and maintenance and cleaning of the stalls, not to mention the salaries of designers and market researchers. Additional expenses included accommodation and meals, internet expenses, security and so on. The nature of online tradeshow is totally different. They are cheaper because they are online and demand no physical maintenance at the site of the fair, they are not constrained by time and they don’t require any travelling in order to reach them. It is convenient to attend online trade fair and show from nay corner of the earth at any time of day or night. And again, it’s economical, which is important for the current situation.

Accumulating debt is a powerful drug such as alcohol and nicotine, and. In times of economic prosperity in Western consumer countries resorted to loans continuously to further improve their lifestyles. Companies, in turn, used the loans to expand their business. Investors invented with the help of new debt instruments with which to increase their returns. And while the boom continued, massive excess revenue over expenditure led to a happy and carefree life, rather than to difficulties in writing their analysis The Economist. Thus, in many years, rich countries debt increased by much faster than incomes. Thus, not only swell the public deficits and debt but private sector. In the U.S. private sector debt increased from 50 percent of GDP in 1950 to nearly 300%. Unusually high increase in debt due to major changes in public attitudes during the last century. In 19th century defaulting borrowers were sent to prison. Generation that survived the Great Depression, learned frugality. But with the penetration of credit cards in the 60’s of 20th century society requires the “buy now, pay later”. So failure simply becomes a choice of lifestyle, as the blame for it lies with the “irresponsible” creditor and not the irrationality of the debtor.
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The Commission will send 35 individual requests to 20 Member States of the European Union with a request to fully implement other aspects of Community legislation to create a single market for gas and electricity, said Europe’s energy portal. Legislation in this area tends to increase the capacity and transparency of gas markets and electricity. Effective and fully functioning single European energy market will give consumers a choice between different companies supply gas and electricity, and will provide access to all suppliers, especially smaller ones and those who invest in renewable sources. It will also help the EU to recover from the economic crisis, said Monday. Countries to which the EC has decided to send applications are Austria, Belgium, Bulgaria, Czech Republic, Germany, Spain, France, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Poland Portugal, Romania, Slovenia, Slovakia, Sweden and UK. States have two months to respond. According to the Commission this can avoid cartelization and monopolism, which is the basic afraid of the new governments in the years of crisis.
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The large budget deficit of Greece drew the attention of investors worldwide to high debt levels in many developed countries and cause a strong earthquake in global financial markets in May, which affected most stock exchanges in Eastern Europe. Unprecedented levels of debt in countries such as Spain, Ireland, Portugal, Britain and the U.S. and the eurozone’s inability to respond adequately to its fiscal difficulties led to an outflow of investors from the euro and the securities markets worldwide. Most, however, suffered exchanges in Eastern Europe, led by Ukraine and Greece, and that in Romania. Expected main Greek ASE stock index was one of the losers in the world, has lost 17 percent in May and increased its loss this year to just over 29%. In early May, Greece have access to a rescue fund of 110 billion euros, but worries that this will only increase the indebtedness of the country without resolve its economic problems prevailed. Sharp decreases in the Athens Stock Exchange led the country’s financial regulator to ban for two months short sales of shares in late April. Shortly thereafter Germany surprise ban on short sales of shares of the largest banks and insurance companies in the country until March 31 next year. The unexpected move of the country, which was not consistent with its EU partners, has provoked a wave of sales of stock exchanges worldwide. Greece’s budget deficit amounted to 13.6 percent of its gross domestic product (GDP) in 2009 and the government develop a program for reducing it to 4.9% in 2013. In Estonia, which also carried harsh fiscal reforms to reduce its budget deficit, the main stock index OMX Tallinn decreased by 10.4 percent in May, but is still 35% above its level of last December.
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The Prime Minister of China Wen Jiabao warned that the global economy remains unstable and at risk because of the indebtedness of the countries which increases the possibility for a second economic downturn. With regard to the risk of second cycle downturn of the global economy Jiabao states that must be carefully and act decisively to prevent a risk of such. Therefore, as it is too early to be thinking about stopping programs to promote growth. “All countries must coordinate their actions and to strengthen their support to the economy, is confident Jiabao. “The world economy is stable and is beginning to brighten, but recovery is slow and there are many uncertainties and destabilizing factors,” he said. Against the backdrop of problems that can be seen in many developed countries, China remains stable, and growth of the country is threatened, he graduated Jiabao. The country of China was diced as the second largest economies of the world, because of large number of US and European investments in the last 10 years.
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The Global Indexes recorded some increase in recent days, but whether it is sustainable? CNBC offers views of Christopher CEO of Hobart Financial Group and Vernon Taylor, investment director of Biltmore Capital. “I would like to tell you that the storm is over, but I think that this is currently just a dream,” says Hobart. “We see significant volatility in recent weeks and months, and investors should be very cautious.” Hobart sees risk of decline in the Dow Jones between 500 and 1000 points next month if global problems such as debt crisis in Europe and rumors about China’s credit policy have been resolved. At the same time, investors should take advantage of volatility, “says Vernon. “Strategies of options, especially in volatile environments – will be extremely successful.” The analyzers are claiming that the US indexes may have strong decrease in the coming month and this will hurt seriously the US Dollar. According to the analyzers on US market the indexes reached high growth and maybe this was the maximum for this financial situation.
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The shares will probably continue to fall and lose another 20% of its value since the global economy weakens. It said American economist Nouri Rubini to television channel CNBC. According to the analyst, who recently predicted decay and within days the euro area, stock quotes and raw materials will decrease and investors may feel safe if you invest your money in cash or seek other shelter. Market adjustment, the weakness of the euro area and the economic slowdown in the U.S. and other developed countries will make things more difficult for investors in the coming months. There are parts of the world economy faced the risk of re-recession. From now on, things will get worse, “said Rubini. Stock prices and raw materials will decrease and investors may feel safe for use in cash or seek other shelter. He said there is also a regulatory risk because no one knows exactly what will be the financial reforms. Then investors should focus on buying the debt of countries which are economically viable. Rubies specify for example Germany and Canada and several other developed economies, whose financial health is good.
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What makes markets nervous, according to managing director of Pimco Paul McKali is uncertainty about next steps on the euro and the European Union – or the end of the single currency, or movement towards fiscal federalism on the continent. McKali, who heads the trade in short-term bonds in the largest bond fund in the world hastened to clarify that it is not necessarily a breakdown of the euro area, forward CNBC. He said the crisis in Europe is a matter of confrontation between the Nordic countries, led by Germany and south, which they help. This may not be long-term solution. “It’s like a loan unemployed relative,” he explains. “I do not particularly want you to help him, but if you do, it will cause in you.” McKali believe that eventually North will be tired of pouring money into the southern countries, which could lead to structuring of the South. He added that Pimco is not currently buying U.S. government bonds since there is enough. According to Tony Kresenzi, senior vice president at Pimco, government bonds may be good for investors in insurance stocks. Chuck Lahr, manager of the new department equity investment company expects to trade variable summer. According to European stock markets currently trade at a discount of 30%, offer opportunities for investors.
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According to conventional wisdom, when the economy is in recession, people buy impulsively and are attributed to weaknesses as whiskey, chocolate or gambling. Depression is a mass phenomenon and make it the alcohol industry, casinos and manufacturers of confectionery. The current recession, however, seems contradicted, writes Fortune. The theory of soaring sales of lipstick of Leonard Lauder, president of cosmetics giant Estee Lauder, says that during the economic crisis, women buy lipstick as a symbol of affordable luxury. According to market observers, however, NPD Group last year sales of lipstick on the U.S. market fell by 9.8 percent. According to data from Beverage Information Group sales of alcohol also decreased, and large chains such as Casino Penn National Gaming and Pinnacle Entertainment have been at a loss as in 2008 and 2009. Sector of chocolate and confectionery are also not cope better. According to market analyst from JP Morgan Terry Bivans consumption of sugar and chocolate products in the last recession has suffered greater decline than in the past 20 years. “Despite conventional wisdom chocolate has not been sustainable economic recession,” he says. When looking at consumer behavior, we find that they do not buy the cheapest, which in fact many analysts expected. We see that people are trying to be more careful with their money and want to be sure they receive the best quality, “said Bill Peterson, an analyst at market research company Mintel.
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