Milton Wolf's Global Forecast

The world crisis is a problem for politicians and economists alike. Politics has used the crisis to their advantage in some cases. In the US careers have been made and destroyed as a result of this serious global financial discord. According to Milton Wolf the U.S. is in recovery. Wolf went on to say that the financial System has been saved, lead by the feds and very aggressive policies. "The CentralBank has done a good job managing the global crisis. In aggregate, we saved the financial system, and the Central Bank has been aggressive to keep the banks liquid. The Central Banks have ignored the criticism, and they have brought us to recovery"

That said, there needs to be some adjustment in the EU Zone. Members of the European Union had indulged in a lot of bad lending and borrowing practices. This is illutrated by the spreading financial troubles in Portugal, Belgium and Spain, after bailouts offered to Ireland and Greece. The EU Zone (with the help of IMF) has provided just enough money to avoid defaults. Given the financial crisis, the Euro, may cease to exist anytime soon. The world crisis is a problem for politicians and economists alike. Politicians has used the crisis to their advantage in some cases. In the US careers have been made and destroyed as a result of this serious global financial discord.

Listen to Milton Wolf's view of the Global Economy, and what can we expects. Click Here

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K. Reilly
Cohn-Reilly Report

California: A Cry for Help

California Governor Schwarzenegger declares a state of emergency. Why now, why did the governor decide that this was the time to make this declaration. We have been reading about the depths of California's fiscal troubles for 18 months. It was clear where the state was headed, but the governor waited until now. Imagine is Bush or Obama has waited as the country slid further into a fiscal and economic whole, where would we be.

I am sure there are issues that made the decision more complicated that those of us on the outside could see, but I am appalled to say the least. I can only imagine what Californians are thinking. See video below

If there is any force left, may the force be with you too Schwarzenegger.

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K. Reilly
Cohn-Reilly Report

Dubai: Too Big To Fail

Stocks in Asia rebounded from earlier losses after the announcement of Dubai’s $10 billion bailout. The capital infusion marks one of several attempts for the emirate, which controls the UAE’s presidency, to salvage Dubai World, as well as the overall reputation and credit worthiness of the government. Standard and Poor’s. stated that "the move is a step toward rebuilding confidence”.

It's important to note that Abu Dhabi has directly and indirectly provided Dubai with as much as $25 billion over the past year, illustrating a commitment to keeping Dubai world afloat. Much of the support has come in the form of investment, such as purchasing large blocks of Dubai bonds. The message to the global financial community is a familiar one: "Dubai is too big to fail”.

So for now, the dreamy World of Dubai will be able to make interest payments, while any remaining funds will be used to cover its business needs though April.

Trivia of Interest:
At present, Abu Dhabi boasts the worlds highest absolute and per-capita level of sovereign wealth funds, calculated at USD 1,000,000.00 per inhabitant.

Somehow I wish I didn't know that.

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K. Reilly
Cohn-Reilly Report / News Flash