Monday, October 10, 2011

Morning Call Topic - Oct. 10, 2011

Economy Adds Jobs, but Not Enough
Employers Hired 103,000 Workers in September, Tamping Recession Fears; Unemployment Still 9.1%

Q1  "This downturn's unique in terms of its severity, but when you look at the pattern of adding jobs back it looks a lot like the 2001 cycle," said Paul Ballew, chief economist at insurer Nationwide.
Why does Paul Ballew think the pattern look a lot like 2001 cycle? Do you agree with this statement?

Q2 In retrospect, what were industries behind the pattern of job creation in the past decades (1970s-2000s)? What kinds of Jobs do you think will fuel the next expansion?

IMF Plans New Line of Credit to Stem Crisis
The International Monetary Fund is crafting a proposal to offer new short-term credit lines to governments to prevent the spread of global financial crises, senior IMF and finance officials say.
Q1 The IMF has been bouncing around the idea for a number of months. What are the primary things designed in the IMF plans to prevent the spread of global financial crises? How is it supposed to help stem crisis? Do you think if it is helpful?

Q2 In a report Friday, Moody's said European banks needed to reduce their reliance on wholesale funding. Banks in the euro area depend on average for almost half of their funding from often-skittish wholesale markets, whereas U.S. banks on average have close to 70% funding provided by more stable retail depositors.

What is wholesale funding? Compare wholesale funding with funding from retail depositors.

Lorena Li

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