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Wide Opened: Lessons From the Evolving Financial Crisis
Dr. Bienvenu-Magloire Quenum
The major financial crisis forecast by economists and financiers (samples
of books about the crisis are exposed here) is now ragging across
the world. All financial places are struggling to contain the debacle and governments
in developed world are meeting with each other, feverishly discussing to find
a solution to shore up collapsing banks and insurance companies.
All developed world governments are now ready to totally or partially nationalize
faltering banks to avoid the looming bankruptcy and a devastating credit crunch.
The British government on October 8, 2008 announced Europe's most far-reaching bank rescue plan, promising to inject tens of billions of dollars in capital into UK banks after two consecutive days of dramatic losses in share prices.
Warning that global financial markets had "ceased to function," Prime Minister Gordon Brown said the "comprehensive restructuring" of the banking sector was designed "to put the British banking system on a sounder footing and to build strength for the future."
Gordon Brown continues, declaring "This
is not a time for outdated thinking or conventional dogma. Extraordinary times
call for bold and far-reaching solutions," he said, promising that the plan would "show
that we have led the world in changing the terms and conditions on which we can
help to renew the flow of money in the system."
The same thing is occurring in France, Belgium, Germany and other west European
countries. Only finance powerhouse Switzerland is holding back the tsunami. In
the United States, the authorities, after putting in place USD700 billion rescue
package to shoe up the banks, are mulling now considering the possibility to
use part of the bail out plan to take stakes/equities in the banks in distress.
- Gordon Brown Spilled The Beans
So, we can see that triumphant deregulation and promotion of the mantra "the market decides" that is unregulated liberalism is no more the gospels.
Well, now the truth is out from one of the singer of the free market cathedral.
From now on, we, in developing countries can make counter proposals to advises
given by developing countries's experts, who, for three decades running had advocated
and imposed free market rules on our frail economy, forcing for the sales of
state owned companies that had been setup by our nations since the independence
From now on,
African nations and other developing nations from Asia, and latin America
have plenty of arguments to challenging the "dictatorship" rules established
by the World Trade Organization, that it forcing young nations still in third
economic development league to play with nations that are in the first league
since at least two centuries.
Dr. Mohamed Bin Mahathir is Vindicated
In a previous delivery dating
back to three years ago, titled: "Should African Countries Surrender For Ever
To T.I.N.A.", the problem of the state involvement in the developing process
of emerging countries had been briefly discussed.
In said article it was stated that African countries do have alternatives, contrary
to the statement of international financing institutions that "There Is No Alternative" -
T.I.N.A., meaning that these countries have no choice but to follow the free
market law and nothing else.
Remember the Asian crisis of the 1990s. The IMF-World Bank's experts advised
the Asian countries, experiencing a severe financial crisis, that was not their
own making [1, 2],
to let go and leave the market decides. That is to leave speculators move
freely money from these countries, which were already submitted to credit crunch.
Dr. Mahathir, the then Prime Minister of Malaysia took a contrarian path, to
pull out his country out of the crisis far in advance of the other Asian countries
that followed the advise from the IMF-World Bank. Few years later, Argentina,
experiencing a similar financial crisis, chose to innovate and succeeded in turning
around its economy in a short span of times. Click
here to read briefs about the experiences of both countries: Malaysia and
At the time, Dr. Mahathir has been vilified by the "international community" of
orthodox economic thinkers. And now UK Prime Minister, Gordon Brown is stating
the same as Dr. Mahathir did two decades ago, declaring on October
"This is not a time for outdated thinking or conventional
dogma. Extraordinary times call for bold and far-reaching solutions," he
said, promising that the plan would "show that we have led the world
in changing the terms and conditions on which we can help to renew the flow of
money in the system."
You may re-read issue
compare above outlined Gordon Brown's declaration to the one made by Dr. Mahathir
to a gathering of Asian businesspeople at Bangkok on July 6, 2002. The similarity,
in spite of different words, is striking.
- Now, Forever, African Countries Should Not
Surrender To T.I.N.A.
The conclusion to the article
published three years ago is still valid: African countries' policy makers
should always propose alternatives to the solutions advocated by international
experts and avoid surrendering to the "There Is No Alternative" mantra.
Gordon Brown words "...we
have led the world in changing the terms and conditions on which we can help
to renew the flow of money in the system," should
be put into practice by African decision makers and negotiators to international
gathering such as The World Trade organization negotiations.
About the author: Dr.
Bienvenu-Magloire Quenum is the principal/
managing director of Dr. Quenum & Associates, IBC. He is an experienced Investment & Business
Planner with 25 years consulting practice in African countries. He is
the editor in chief of Africabiz Online
|MORE ON FINANCIAL CRISIS
|1- Financial Shock: A 360º Look at the Subprime Mortgage Implosion,
and How to Avoid the Next Financial Crisis
by Mark Zandi (Hardcover - Jul 19, 2008)
2- The New Paradigm for Financial Markets:
The Credit Crisis of 2008 and What It Means
by George Soros (Hardcover - May 5, 2008)
3- Manias, Panics, and Crashes:
A History of Financial Crises (Wiley Investment Classics)
by Charles P. Kindleberger, Robert Aliber, and Robert Solow (Paperback - Oct 4, 2005)
4- Chain of Blame:
How Wall Street Caused the Mortgage and Credit Crisis
by Paul Muolo and Mathew Padilla (Hardcover - Jul 8, 2008)
5- Understanding Financial Crises
(Clarendon Lectures in Finance)
by Franklin Allen and Douglas Gale (Hardcover - May 17, 2007)
6- The Subprime Solution:
How Today's Global Financial Crisis Happened, and What to Do about It
by Robert J. Shiller (Hardcover - Aug 24, 2008)
| 7- The Trillion Dollar Meltdown:
Easy Money, High Rollers, and the Great Credit Crash
by Charles R. Morris (Hardcover - Mar 3, 2008)
8- Empire of Debt:
The Rise of an Epic Financial Crisis
by William Bonner and Addison Wiggin (Paperback - Oct 6, 2006)
9- Financial Crisis, Contagion, and Containment:
From Asia to Argentina
by Padma Desai (Hardcover - April 21, 2003)
10- America's Financial Apocalypse:
How to Profit from the Next Great Depression
by Stathis (Paperback - Nov 14, 2006)
11- Crash Proof:
How to Profit From the Coming Economic Collapse (Lynn Sonberg Books)
by Peter D. Schiff and John Downes (Hardcover - Feb 26, 2007)
12- Bad Money:
Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism
by Kevin Phillips (Hardcover - April 15, 2008)
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& GAME DEVELOPMENT - PART IX: - A SMALL SCALE OPERATION TO SMOKING FRESH CATTLE MEAT
Based on preliminaries, available at
this link, the following table summarizes
the operation's economics:
Expenses: to purchasing
350 Metric tons of fresh cattle meat (Click
here for fresh meat purchasing cost) ) including management
10 workers salaries and wages.
metric tons of smoked cattle meat (in portion
weighting each 180 gram in average (taking in account a weight loss
of about 10% resulting from the preparation and smoking operation)
That is 1,750,000 smoked portions of cattle meat per year for 850,000
US$ production costs. That gives a production cost per portion equals
to .486 US$ or 2,698 $ per kg of smoked cattle meat =
Meat: 315,000 x 3,238* US$ (with 20% profit margin applied to
the cost of production per kg above outlined) =
This delivery explores solutions to minimizing infection risks.
here to read more about the matter
Control Your Desktop
RESET SEND/RECEIVE IN MICROSOFT OUTLOOK WHEN IT STOPS PERFORMING
Sometimes, punching the Send/ Receive label in Outlook's menu does not send or
receive mails. This happens often when one had sent mails clicking an email
link on a webpage, which loads Microsoft Outlook newmail interface to be filled
in. And when one clicks the SEND button, the mail is sent to the OUTBOX, kept
in waiting till one loads Microsoft Outlook through the normal sequence of
START/ALL PROGRAMS/Microsoft OUTLOOK or any other appropriate sequences.
more on the matter visit this link