By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data-driven white label SEO
    Does Data Mining Really Help with White Label SEO?
    7 Min Read
    marketing analytics for hardware vendors
    IT Hardware Startups Turn to Data Analytics for Market Research
    9 Min Read
    big data and digital signage
    The Power of Big Data and Analytics in Digital Signage
    5 Min Read
    data analytics investing
    Data Analytics Boosts ROI of Investment Trusts
    9 Min Read
    football data collection and analytics
    Unleashing Victory: How Data Collection Is Revolutionizing Football Performance Analysis!
    4 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: Depression Economics: America’s Economic Crisis
Share
Notification Show More
Aa
SmartData CollectiveSmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Analytics > Predictive Analytics > Depression Economics: America’s Economic Crisis
Business IntelligencePredictive Analytics

Depression Economics: America’s Economic Crisis

AlbertoRoldan
Last updated: 2008/12/03 at 10:42 PM
AlbertoRoldan
3 Min Read
SHARE

I have written many times in the last 12 months about this issue in the Business Analytics website at http://atomai.blogspot.com/. This interview from Paul Krugman in Newsweek gives us an insight into how deep is the ocean in the financial and credit crisis. If you look in page 2 of the interview Krugman talks about a $10 trillion (yes trillion with a “t”) shadow banking system that just went up on smoke. Hence, he argues that a $700 billion …


I have written many times in the last 12 months about this issue in the Business Analytics website at http://atomai.blogspot.com/. This interview from Paul Krugman in Newsweek gives us an insight into how deep is the ocean in the financial and credit crisis. If you look in page 2 of the interview Krugman talks about a $10 trillion (yes trillion with a “t”) shadow banking system that just went up on smoke. Hence, he argues that a $700 billion capital injection by the Federal Reserve and Treasury Department will be insufficient to make up for those $10 trillion. I agree with Krugman, but we need to consider that if we take into consideration the capital injection that have an effect in America’s economic crisis by other countries in Western Europe, Russia, China, and Japan. We are talking more than $3 trillion injected into the world economy when we take those capital injections into consideration. This still leaves us with an $7 trillion issue. The next issue is the valuation of those depleted assets, because it is the difference between the $7 trillion and the value of the depleted assets that are going to determine when we are going to touch bottom. I estimate that the minimum value of those assets will be about $3.6 trillion, and that is going to leave us with about $3.4 trillion that the international capital markets are going to deal with a combination of global stock market devaluations and injection of additional capital by central banks. The jobs program and other programs by president-elect Obama will have an effect on the economic crisis but it is too early to determine what that effect will be.

AlbertoRoldan December 3, 2008
Share This Article
Facebook Twitter Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

sobm for ai-driven cybersecurity
Software Bill of Materials is Crucial for AI-Driven Cybersecurity
Security
IT budgeting for data-driven companies
IT Budgeting Practices for Data-Driven Companies
IT
machine,translation
Translating Artificial Intelligence: Learning to Speak Global Languages
Artificial Intelligence
data science upskilling
Upskilling for Emerging Industries Affected by Data Science
Big Data

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

machine,translation
Artificial Intelligence

Translating Artificial Intelligence: Learning to Speak Global Languages

10 Min Read
ai in marketing
Artificial Intelligence

4 Ways AI Can Improve Your Marketing Strategy

8 Min Read
ai in e-commerce marketing
Artificial Intelligence

Using AI to Create Customized eCommerce Experiences for Consumers

8 Min Read
AI and cybersecurity
Artificial Intelligence

AI Leads to Powerful New Fraud Detection Software for E-commerce

5 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai in ecommerce
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence
ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?