| The previous year posed difficult challenges to the | | | | -The Persian Gulf. |
| banking and investment industries. As the | | | | Oil and gas prices continue to decline and as a |
| government struggles to salvage what's left of | | | | result, the Persian Gulf and Russia will concentrate |
| the economy, a lot of people are hopeful that this | | | | on local efforts. Investments in the US will be put |
| year will see better times for the country. Moves | | | | on hold. China, already plagued with slow progress |
| by the government to allot funds for addressing | | | | over the years, continues to experience even |
| the problems leads people to believe the crisis will | | | | lower growth rates. |
| ease off. Some experts believe though, that | | | | While these predictions warn us of dire |
| there is still the matter of sustainability in terms | | | | circumstances, there are experts who are |
| of paying off debts and job creation. | | | | optimistic about this year's prospects. While many |
| A Rise in Unemployment | | | | people believe that a depression is looming in the |
| Unemployment rates will continue to rise as | | | | distance, some experts say that the situation |
| businesses continue to take out loans to offset | | | | won't go that far. They even claim that the |
| hits in revenue. Also, even as the government has | | | | economy will start to recover by the middle of |
| taken steps towards infrastructure programs, it | | | | the year. |
| will take some time before these plans take | | | | Still, it is best to be conservative before making |
| effect. In the meantime, no new jobs are | | | | any moves that involve money such as |
| created. Experts project that unemployment | | | | purchasing a house or putting up a small business. |
| rates will reach more than 10 percent by the year | | | | To get a feel of how the economy is doing - if it |
| 2010. | | | | is indeed, recovering -- people are advised to |
| Investors Continue to be Conservative | | | | watch out for three indicators: |
| Businesses that are known for innovation, sound | | | | -Unemployment |
| consumer focus campaigns as well as having | | | | Right now, many are still filing for unemployment |
| steady financial reserves will be stable this year | | | | but once the numbers reach below 400,000, this |
| although investors will continue to be conservative | | | | is a sign that there might be better times ahead. |
| in their investments. The main concern for now is | | | | -Real Estate |
| pulling through the hard times, as opposed to | | | | Real estate inventory should be 10 months worth |
| exploring new markets. While some companies will | | | | for the industry to be categorized as being in a |
| come up with better products to increase | | | | healthy state. |
| revenues, others will go into mergers to avoid | | | | -Banks' Lending Behaviour |
| closing down due to bankruptcy. | | | | TED rates are a good indication to watch out for. |
| The Crisis Extends to Countries Overseas | | | | TED is the rate you get when you subtract the |
| The economic crisis isn't confined to the United | | | | interest rates banks impose on each other (on |
| States alone, rather it will continue to affect other | | | | bank to bank lending) from the three month T-bill |
| countries, most notable of which are: | | | | rates. Once it goes below one percent, then credit |
| -Russia | | | | prospects are starting to recover. |
| -China | | | | |