the financial crisis from a different point of view

The financial crisis from a different point of view

Table of content

Relevance Asia: pre crisis Lehman’s failure

Consequences Recovery Solutions Opinions

Why?

Why?

Asia39%

Africa4%

Northern America23%

Latin America8%

Europe26%

Oceania1%

GDP by region

21,504,497,000,000 $

Asia

Bastion of economic stability High growth rates Large trade surpluses Banks: no doubtful investments

Lehman’s failiure

Global credit shock Reduced export Stock markets plummeted Currencies weakened

Asia not as decoupled from the west as rumored

Past recovery

More rapid recovery Western investers

98 crisis: USA boosted asia Today: /

Crisis made Asia the economic giant as we know it

Recovery growing economies

Growing domestic markets Boosting Home demand Emerging middle class▪ Next decade: +800million people

Sweeping government spending plans China: Ambitious plans India: credit issues

Recovery mature regions

Japan +Domestic companies▪ telecom, health care,…

- Export driven sector ▪ Electronics, consumer goods,...

Solutions

Boost home demand Improve business’ & bank’s

resilencies Strengthen & organize local financial

markets

Solution

Boost demand from home Population: end consumer Intraregional trade & investments▪ Association of Southeast Asian Nations

(Asean) tries to liberalize regional trade More credit options for the emerging

consumer class

solutions

Improve business’ & bank’s resiliences Dynamic provisioning▪ Financial reserves for rainy days▪ Reserves to invest in booming times

Solutions

Strengthen & organize local financial markets

Asian IMF? Atm: too ambitious Future: worthy option

Dominic Barton:”Asia isn’t the source of the crisis but could point the way to its long-term resolution.”

Thanks for listening

sources

The World Factbook 2005, CIA, USA. Dominic Barton;

Asia’s future and the financial crisis;The McKinsey Quarterly

The all-knowing internet Several other articles

Music The last waltz

Programs Powerpoint Audacity

None of the used images or music compositions are mine. Nor do I claim to own any of the rights.