Your SlideShare is downloading. ×
0
Time to rebalance
Time to rebalance
Time to rebalance
Time to rebalance
Time to rebalance
Time to rebalance
Time to rebalance
Time to rebalance
Time to rebalance
Time to rebalance
Time to rebalance
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Time to rebalance

320

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
320
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • America’s economy will undergo one of its biggest transformations in decades.
  • - GDP shrank 3,8% - worst drop after second world war Gross Domestic Product
  • Transcript

    • 1. Greg Ip “TIME TO REBALANCE” The Economist, March 31st Sigrid Sibul
    • 2. The presentation <ul><li>8 minutes </li></ul><ul><li>Recession in USA </li></ul><ul><li>Cheap oil, easy loans and credit, high salary are not about to return </li></ul><ul><li>Transformation of economics </li></ul><ul><ul><li>Away from consumption and dept </li></ul></ul><ul><ul><li>Towards exports and saving </li></ul></ul>
    • 3. Old model <ul><li>Recession -> end of the old economic model </li></ul><ul><li>Customers less willing to spend </li></ul><ul><li>Banks less willing to lend </li></ul><ul><li>Customers in dept </li></ul><ul><ul><li>Average from 80% to 129% </li></ul></ul><ul><ul><li>GDP: 70%, 76%, 73% </li></ul></ul>
    • 4. The Economist, March 31st 2010
    • 5. Examples <ul><li>Deflated assets </li></ul><ul><li>Tighter credit </li></ul><ul><li>Fewer new homes </li></ul><ul><li>Shranked average home size </li></ul>
    • 6. Recessions <ul><li>Comparison </li></ul><ul><ul><li>1973-1975 </li></ul></ul><ul><ul><li>1981-1982 </li></ul></ul><ul><li>GDP shrank 3,8% </li></ul><ul><li>Economy might grow 6-8% </li></ul><ul><li>Unemployment falling steadily </li></ul>
    • 7. Unemployment <ul><li>Surplus buildings, equipment and dept </li></ul><ul><li>Recovery is slow and weak </li></ul><ul><li>High unemployment throughout the country </li></ul>The Economist, March 31st 2010
    • 8. Economic recovery <ul><li>Higher energy prizes </li></ul><ul><li>Renewable energy </li></ul><ul><li>Imports of the stuff decreasing </li></ul><ul><li>Changed economic geography </li></ul><ul><li>Spending on equipment </li></ul>
    • 9. Economic recovery <ul><li>Exports – classic route to recovery </li></ul><ul><li>Intel & Brian Krzanich </li></ul><ul><ul><li>Sales down, 3% of employees laid off </li></ul></ul><ul><ul><li>3 billion $ for retooling </li></ul></ul><ul><ul><li>Readiness to produce new cheaper, smaller and efficient chips </li></ul></ul>
    • 10. Easy days gone for ever <ul><li>“ Worst crisis since the 30s with no end in sight.” – September 18th 2008 </li></ul><ul><li>Mr Hamilton </li></ul><ul><li>Antidote for all happiness and slappy </li></ul>
    • 11. THANK YOU! Questions!?

    ×