U.S. Will Recover In A Year

Andrew Solocha, Professor of Finance at the University of Toledo, speaking at a function organised by the Indian Chamber of Commerce and Industry and the Coimbatore Management Association on Saturday. The U.S. is likely to recover from its current financial crisis in a year and the financial sector in India is expected to recover along with it, Andrew Solocha, Professor of Finance at the University of Toledo, said here on Saturday.

Talking on the “US Financial Crisis and Indian Markets” at a meeting organised by the Indian Chamber of Commerce and Industry, Coimbatore, and the Coimbatore Management Association, he said that the financial crisis and the problem for automobile companies in the U.S. started about three years ago. Explaining the impact of the crisis in the U.S. on other countries, he said that Canada and Mexico would be badly affected, and this would be sector-specific.

Much of Canada’s exports to the U.S. were automobile components and in Mexico, components from the U.S. were assembled and sent back. With the automobile companies in the U.S. in trouble, the related sectors in Mexico and Canada would be hit. While the automobile companies were likely to take a longer time, recovery from the financial crisis was expected in a year or two.

Very large banks that were into speculative activities were in trouble in the U.S. However, there were a number of small and medium-scale ones that were flush with funds. These were not lending now due to the uncertainty. It might take a while for these banks to lend, and when they do so it would stimulate the companies in other sectors, he said. Almost once a decade the U.S. faced a financial crisis and recovered after a short period. Countries such as Russia were relying on commodities such as natural gas and oil and were not diversifying their economies. These countries might be affected due to this. China and Japan had problems such as aging population and large exports, he said.

Related Posts by Categories

Money

• Coimbatore's Responce For Buget
• Pricol Has Reported Net Loss Of Rs 16.62 Cr
• More Bonus From RPLI
• Actions To Stop Forgery In Insurance Claims
• 18,000 Lorries In Strike At Coimbatore
• 3% Wages Hike For Textiles Workers
• ICICI Prudential Life Insurance Launched New Product
• Max New York Tied Up With Alegion
• 2008 Investments A Review
• Mutual Funds Trimming Their Exposure
• Unaccounted Money Seized From KK Chavadi Checkpost
• Coimbatore Stock Exchange Derecognized.
• Confed-ITA Insures All Its Members
• SEBI Finalises Exit Policy
• ’Resham Krishi Mela’ In Coimbatore
• DIC Urged The MSME
• India Has The Resilience To Resist Global Slowdown
• Slackness Of The Authorities Resulted Embezzlement
• 80% Of The Co-operative Societies Running Profitably
• Bhavishya Nidhi Adalat On Dec 10th
• Collector Released PLP
• Coimbatore Contributes Indian Markets
• Weather Insurance Product Launched
• Personality Of The Week