Look West for Success ?

The economies of the western world are crumbling and for some of them their economies are spiralling downwards and which have to seek help from the richer countries for new credits. Failure to seeks new credits and to adopt unpopular economic austerity measures will lead to some of these western countries becoming insolvent.
For many many years, these western countries were prospering in the shadow of the ” invincible” American economy which by virtue of its US currency as the world reserve currency and the top comsumer in the world now faces increasingly bleak economic outlook. The US economy collapses on the heel of financial
meltdown caused by the the worthless stock derivaties sold by the unscrupulous financial institutions to pensions and mutual funds.This coupled with the US practice that current expenditure are based on the future earnings resulted in the default of bank loans and credits when more and more American companies cut losses through lay-off of employees due to withdrawal of loans/ credit facilities by the banks which are seriously affected by the stock derivaties sell off.
The recent downgrade of US currency by S & P rating company had greatly shaken the confidence it US currency but also in its economic recovery. The US labour statistics indicate that the unemployed rate may galloped past 15% with more news that big and small corporations are planning to shed more jobs.
The recent business media reported that there have been significant increase of non- western business buying into the property sector in the west particularly United States of Nort America and United Kingdom. It is not surprising that big companies from the East are now flocking to United Kingdom and United States of North America to purchase properties when their market values have plunged up to 40% in certain transactions due to collapse in the property market and weakening of their currencies.All these investment activities will also carry uncertainty risks as in most business transactions but it can be interpretated that these companies have confidence in the western economy in the medium to long term aspects.
In every circumstance of an economy it is the numbers of profitable organisations versus the loss making organisations that will determine the country’s Gross National Productivity or GNP.Therefore even in recession the organisations that are profitable are in a minority.
In my opinion this is an oportunity that does not comes often for the eastern organisations to invest in the west at prices some of which are below the current construction cost.However the investors must exercise cautions that due to uncertain economic situations in the short to medium terms, they must ensure solvency and are prepare for new challenges in the financial sectors that will serious percussion in their businesses.

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