[465]

How exactly would Asian countries, like India, China, Japan, Singapore, Indonesia, Malaysia, etc, or African countries, or Middle Eastern countries be affected from the US economic problem?

I read that stocks outside the US is falling down too, but how? Is that because the US investors are taking their money out of the overseas' stock market (or maybe the overseas' investors that are taking their money out of their own stock markets, or all of the above)? Don't US investors have more control/ power since they have more capital?

And mainly, how is this US economic problem will affect everyday people overseas, who isn't in the stock market.

This is a very interesting time in the financial industry.

BTW, any1 know of good economic/business forums?

 

[funniecow]

I'm not sure but I thought that most countries bought into the US dollar and invested heavily into the US banking system before the downfall. So in turn it turned them into turmoil. Also gas prices seem to be on the rise worldwide. Maybe the US just isn't consuming that many items as they would in a prosperous economic situation.

 

[itsborken]

Quote:

Originally Posted by 465 /img/forum/go_quote.gif How exactly would Asian countries, like India, China, Japan, Singapore, Indonesia, Malaysia, etc, or African countries, or Middle Eastern countries be affected from the US economic problem?

You are kidding, right? Read the papers, watch the news, take a basic Economics course...

The US is the biggest consumer of product and the raw materials, components, assembly are done in other countries. If the US consumer curtails spending then sales go down, inventories go up and future orders disappear. That affects the foreign businesses.

 

[krmathis]

Because they deal with US! Obviously isn't it?
They either sell or buy goods, services, .. to/from the US.

 

[kydsid]

Everyone bought into the US housing market. The European banks were buying CDO's and CDS's just like the US banks. Heck European banks were even buying whole mortgages and many became mortgage servicers for the first time during the boom.

The Asian banks and markets did so less so but because of the downturn are affected by the lack of US consumer spending.

If you want to get a handle on what happened read these articles.

Leverage and how it killed the US and Europe market kings.
Europe's banks up to their eyeballs in leverage - Oct. 6, 2008

The 55 TRILLION Dollar Question-aka all about Credit Default Swaps
http://money.cnn.com/2008/09/30/maga...tune/index.htm

The former AIG boss and how he would rescue AIG. Good read for historical perspective.
Hank Greenberg fights for his reputation as AIG is lost - Sep. 28, 2008


Good places for info.

Fortune Magizine
Fortune 500 Daily & Breaking Business News - FORTUNE on CNNMoney.com

Jim Cramer's the street
Stock Market News, Investing Advice, Stock Picks and Quotes - TheStreet.com

The horses mouth, so to speak
United States - Department of The Treasury - Financial Markets

 

[apatN]

Sucks here just as hard. A dollar is only 1,36€ while it was 1,55€ some time ago. I still don't know how that is possible.

 

[krmathis]

Quote:

Originally Posted by apatN /img/forum/go_quote.gif Sucks here just as hard. A dollar is only 1,36€ while it was 1,55€ some time ago. I still don't know how that is possible.

True! It really sucks for dealing with the US...
Just a couple of months ago I had to pay NOK 4.99 for USD 1, while today I have to pay NOK 6.20 for USD 1.

Meaning that I have to pay 25% more...

Edit: And still the OP wonder how the US economic problems affect other countries.. **shakes head**

 

[apatN]

Yeah, well I guess all our money goes to, well.. Don't get me wrong.. I'd like to call it charity: all those banks failing. I really thought this was THE time to exploit the dollar, but turned out the other way.

 

[TheMarchingMule]

In other news:

The party's over for Iceland, the island that tried to buy the world | World news | The Observer

 

[frozenice]

Quote:

Originally Posted by TheMarchingMule /img/forum/go_quote.gif In other news: The party's over for Iceland, the island that tried to buy the world | World news | The Observer

Well, if Norway doesn't buy Iceland, Canada should. Then all Canada needs is Ireland and Greenland to be the King of the North Atlantic. lol.

 

[F107plus5]

Quote:

Originally Posted by frozenice /img/forum/go_quote.gif Well, if Norway doesn't buy Iceland, Canada should. Then all Canada needs is Ireland and Greenland to be the King of the North Atlantic. lol.

Wait a minute! Canada should just annex Greenland. It is, after all; on OUR side of the Drift line.

Ok;....and the Western half of Iceland too.

Anyway; I laughed until I cried when I read the above article on CDS.

I cried when I realized even earlier than 2007 that the Housing market bubble was gonna burst, and I didn't take a piece of the action on lots of other folks Mortgages too!

Or if I'd have known; I'd have made myself an Insurance Company and gotten paid the big bux to insure those swaps, and just declared myself insolvent when the bubble burst, and nobody would have cared! I coulda gotten billions of free banks and investment houses money too! Yeah; millions and millions and I coulda done it on line at home in my spare time!

....in my pajamas!

 

[Sherwood]

I, for one, am delighted with the state of currency exchange. At one point, the Euro traded 1:1 with the dollar, and I rather enjoy that.

Too bad I lived out of the country all LAST year, and now I'm back home.

 

[Al4x]

yesterday, the pound : usd dropped 2.5c

thats alot!

 

[Konig]

Quote:

Originally Posted by 465 /img/forum/go_quote.gif How exactly would Asian countries, like India, China, Japan, Singapore, Indonesia, Malaysia, etc, or African countries, or Middle Eastern countries be affected from the US economic problem? I read that stocks outside the US is falling down too, but how? Is that because the US investors are taking their money out of the overseas' stock market (or maybe the overseas' investors that are taking their money out of their own stock markets, or all of the above)? Don't US investors have more control/ power since they have more capital? And mainly, how is this US economic problem will affect everyday people overseas, who isn't in the stock market. This is a very interesting time in the financial industry. BTW, any1 know of good economic/business forums?

I think the financial instituitions are getting out of whatever they can do rebuild their capital base, and the must be some kind of stabalization fund that helps to cushion the fall in US.

 

[fatcat28037]

The worlds economy is so bad I'm receiving way fewer emails from Nigerian Bankers.