Saturday, January 28, 2012

Who wins with the crisis?

In life there is always someone who is benefited from the misfortunes of others. The global financial crisis is not a exception.

During the past year there have been companies that have seen their incomes increase as the crisis also did.

Who is on the big side? who in the small side?

The big side: Some financial institutions apart from survive the crisis took benefits of it as is the case of the U.S. bank JP Morgan Chase and Barclays among others. The "parasites" of the bag are other beneficiaries of the crisis. These investors benefit from the stock market crash. Gold Investors are others because according to experts, gold is a safe bet in times of crisis. Whose offer the right product at the right time and Bankruptcy specialists they couldn't miss in this section all those specialists, financial advisers and lawyers specializing in bankruptcy.

The small side: The takeout companies because many families have already chosen to spend more time at home, watching a movie on TV instead of going to the cinema, cooking, or take some pizzas instead of going to a restaurant. Those who have spent years waiting, because they have been saving for years because before it was so expensive that they could not afford to buy anything but they can now afford to buy "cheap".

And finally ... journalists. If not, as one guy named "Martin" who says at a forum in cyberspace, "we would still talking about Britney Spears."

And you, what do you think?

Who has benefited from the crisis?


Thursday, January 26, 2012


Ana Pastor minister told us that government has postpone the entry of private capital in Aena (Spanish airports and aerial navigation), waiting to know the value of it assets.

The new Public Works minister told us this decision on monday. This decision will affect to the two principal Spanish airports, 'Madrid-Barajas' and 'Barcelona-El Prat'.

She gave a press conference in Ministry's seat, giving the explanations of this postponement. She said that they have taken the decision to not disintegrate Spanish airports chain. The decision to privatize the two Spanish principal airports was taken by former president, José Luis Rodríguez Zapatero.

The 31th of January was the last day for the consortiums to present the offers. This process is what has stopped Mariano Rajoy's president new executive.

Erik Rios Salazar

Wednesday, January 25, 2012

Davos 2012: Soul searching at the World Economic Forum

Four years into a brutal recession that has left 200 million unemployed around the world, and with protest movements occupying public spaces in western cities, there is clearly some soul-searching going on.

Wednesday's programme in Davos began with a debate on whether 20th-century capitalism is failing 21st-century society. It notes that many of the indicators of economic and societal health are going in the wrong direction.

So, the good news in Davos is that the right questions are starting to be asked. Politicians, even right-wing politicians like Bismarck, eventually came to the same conclusion than Karl Polanyi: that capitalism in its pure, unadulterated form was unsustainable, and that it could only be made to work through deep-seated reforms.

The extent of the unease about today's toxic mix of unemployment and inequality was demonstrated in a straw poll of those attending the debate on capitalism showed that 40% thought it was failing 21st century society and 20% thought it wasn't.

The debate was somewhat one-sided: Sharan Burrow, general secretary of the International Trade Union Confederation was pitted against Brian Moynihan, chief executive of Bank of America, David Rubinstein, managing director of the private equity firm Carlyle, Ben Verwaayen, chief executive of Alcatel-Lucent and Raghuram Rajan, economics professor at Chicago University.

Burrow's view was that corporations have too much power, that capitalism was eating itself through high unemployment, the highest levels of inequality since 1930 and tax avoidance. The other panellists begged to differ. Verwaayen said corporations had too little power and that the key to the future was innovation and job creation rather than job security.

Rajan said globalisation and technological change was increasing the returns to talent. Moynihan said the banks reflected society, warts and all. Rubinstein, with a nod to Churchill, said capitalism was the worst system going, apart from all the others.

Conclusion: those running the global economy know there is a problem but, since they are doing well out of the system personally, lack the incentive to do anything about it.


Tuesday, January 24, 2012


According to the IMF has said, the world economy is “deeply into danger zone” because of Eurozone.
So IMF’s predicts that the global economy will grow by 3,25 % in 2012, a 4% less than the earlier forecast.
In fact the Eurozone countries know that their economic will growth less than their first prediction, from 1.1% to 0,5%. The “fever” will also affects to the strongest economies such as France or Germany.
This stimate reduce the predictions of the german economy from the initial 1.3% to 0.3% for 2012.
With France we are going to see that it’s economy will down from the initial 1.4% to the final 0.2%.
However, the IMF thinks that the United States Economy will grow about 1.8%, thanks to it’s strong domestic data on jobs and manufacturing.
The crisis in the Eurozone is going to affect to emerging markets such central and eastern Europe or Asia too.
IMF goes on saying that Europa’s most pressing challenge will be to restore the confidence and put end to the crisis in the Eurozone.


Sunday, January 22, 2012

In the world "there are more poor" than previously thought

India is poorer than Africa. This is known as Multidimensional Poverty Index.

In India there are 421 million people living below the poverty line while 410 million live in Africa. That means that the world has 400 million more poor people than estimated to date. The index was applied in 104 countries and it measured 78% of the population.

To calculate poverty are based on income. For example, the World Bank considers poor person who has an income below $ 1.25 per day. But also take into account things like health, if their children went to school (education), if they had a dirt floor in their home, if they had access to electricity, if they had water well or if they cook with firewood.

Among Latin American countries, Uruguay is the one with the lowest poverty rate (1.7%), followed by Ecuador (2.2%), Argentina (3%) and Mexico (4%).

Niger is the poorest country in the world by the new index (92.7%), followed by Ethiopia (90%), Mali (87.1%) and Central African Republic (86.4%).


Saturday, January 21, 2012


German Gross Domestic Product (GDP) grown 3% during 2011, and its public deficit was only 1% of GDP, despite of debt crisis and world’s economic weakness.

Statistical office (Destatis) remembered today that german economy grown 3.7% in 2010, and that the GDP was reduced 5.1% in 2009.

Descent of that 1% will allow Germany to observe for first time in three years the limit of 3% that establishes euro’s stability agreement. Germany break that agreement in 2010 (4.3%) and 2009 (3.2%).

The office said that thanks to the good national situation, Germany got the last year to reduce its debt.

Last year, German state, federate state and town’s red numbers were 26,700 million euros, but two years ago they were 105,860 million euros.

German economic institutes say that probably the weakness of the crisis, and debt crisis in euro area will affect Germany. That effect will do that Germany only grows 0.5% in 2012.

Erik Rios Salazar

Friday, January 20, 2012

Back to the monthly electricity meter reading

The Spanish Ministry of Industry, Energy and Tourism has sent to National Comission of Energy a royal decree project on the electricity meter reading.

With this decree, the government will end with the reading system applicated since september 2008. This reading was made every 2 months, even if the users used to pay the electricity bill every month. So, one of the two readings was based on an estimate.

The Ministry has communicated that, with this new lar, the government wants consumers to pay just the electricity they use. The system still in force has generated an important number of claims by part of the consumers.

If the consumer wants to continue with the monthly billing, the electricity company will continue with the bimestral meter reading and months when there is not a real reading, it will be esmatimated.

Also, to make the billing easier, the royal decree project says that the consumers will be able to provide the meter reading, in the case that the distributor could not carry it out. The possibility of reading your own meter to help with the billing already exists for other supplies like the gas or the water.


Thursday, January 19, 2012

Bank charges for transfers rose 20 times the CPI in 2011

According to a study of the Spanish Confederation of Housewives, Consumers and Users (Ceaccu), the fees charged by financial institutions for transfers in 2011 rose 20 times the annual inflation, it increased 44% over the previous year.

These commissions are the most expensive in the last year, next to the one which is applied to the provision of debit card cash (29%) or the one on the maintenance of savings account (23% ) and the study for credit and mortgage loans (23%).

Also they had recorded important increases in maintenance fees for current account (22%), the annual fee debit card (17%), the study of non-mortgage loans (15%), direct debit receipts (14%), or the annual fee credit card (10%).

Ceaccu notes that since the crisis began in 2008, bank overdrafts cost 62% more, keep out money with a debit card of the own networt cost 52% more, while the annual fee debit card maintenance and account management have become more expensive in 48% in this period.


Sunday, January 15, 2012

France downplays rating downgrade

French Prime Minister, François Fillon, has defended french government's economic policies after knowing the decision by Standard & Poor's to downgrade the credit rating of France.

Standard and Poor's said that Europe's austerity and budget discipline were not enough to fight the debt crisis.

Mr Fillon told a news conference that if France was in the firing line, it was primarily because of its exposure to the crisis in the eurozone. He has said that this decision constitutes an alert which should not be dramatised any more than it should be underestimated.

It was not government policies that were under attack from the rating agency and so those economic policies would be kept, with the goal of cutting spending and bringing the annual budget back into surplus by 2016.

German Chancellor Angela Merkel also spoke on Saturday, saying Europe still had a long road until restore investor confidence, after the multiple credit rating downgrades of nine eurozone countries in total.

On Friday, Standard & Poor's said France was being downgraded one notch, to AA+. The country still has a top AAA rating from the other two main ratings agencies, Moody's and Fitch.

Standard & Poor's also said that Italy, Spain, Cyprus and Portugal were cut two notches and Germany kept its AAA rating.

Austria, Slovakia, Slovenia and Malta were the other of the downgraded countries.

The cut in the so-called sovereign ratings of governments is likely to lead to most other borrowers domiciled in the same countries - including banks and companies - being downgraded.

Although the move has been widely expected, it is still likely to make it somewhat more difficult and expensive for borrowers from those countries to raise money, including for the governments themselves.


Wednesday, January 11, 2012


BBK in Biscay, Kutxa in Gipuzkoa and Vital in Alava board of directors signed two months ago basque savings banks merger. It’s a good new for basque economy, because all the deal of the three savings banks will mix in the new bank, called KutxaBank. This bank will start to operate this month.

The incorporation of the three savings banks will create the fifth savings bank in the ranking. It had 75,091 million euros in assets the last day of 2010. It will have more than 9,000 workers and more than 1,300 offices. The offices will be apart from in the Basque Country, in Madrid, Barcelona and Andalusia. We have to remember that six months ago BBK take over Andalusia’s CajaSur. His principal capital will be around 12.8%, perfect competence to take over more savings banks if it’s necessary.

In the new savings bank, BBK will have the control with a participation around 57%, and 12 chief executives, Kutxa’s participation will be around 32% and 6 chief executives, and to finish, Vital the 11% of the participation with 2 chief executives. BBK’s director will be the director of the new savings bank, and Kutxa and Vital’s directors will get the first and second vice presidency respectively.

The new savings bank will have his registered office in Bilbao, where the economic-finnancial head office will be located. Computing and Human Resources activity will be located in Donostia-San Sebastián, and the institutional trades in Vitoria-Gasteiz. They decided this kind of distribution, to divide the payment of taxes between the three foral funds.

BBK, Kutxa and Vital will keep their legal status, the administration of their charitable work and the trade name on each historical territories. They hope that with the merger the savings bank Kutxabank will multiplicate for three the outcome, from 380 million euros in 2010 to 846 million euros in 2015. Charitable work will increase 133%.

Erik Rios Salazar

Tuesday, January 10, 2012

Present situation in China

In last years Chinese economy has grown clearly. Everything has been for its great industrys and big exports all over the world.

Among the products that China has developed strongly are high technology products, such as cars, personal computers, phones, DVD players, televisions... and also other products like clothes, footwears, furnitures and toys.

China is fundamental in the global economy and the development of other economies as well as producer and consumer in big quantities because it represents 30% of global consumition of coal, cotton, rice and steel.

Its industrial production, exports and investment grew the Chinese economy by 9.1% in 2003, the highest rate since 1997.

In 2004 China imported about 40% of the oil on the world market, becoming the second largest oil consumer after the United States.

At present, China overtook the United States in consumition of food, raw materials, energy... therefore per capita income in China has increased rapidly.

But not everything is of pink colour for China's economy. The main current weaknesses of it economy are:

- The financial sector, for the amount of unrecovered loans that banks have.
- The rise in unemployment and underemployment.
- Environmental pollution.
- Territorial inequality.
- The aging population.


Monday, January 9, 2012


The Deputy Prime Minister, Soraya Sáenz de Santamaría, has demanded on Monday a"more effort" to citizens and guaranteed them "not be in vain" because the aim is to "create jobs, rebuild wealth and put our country wellness at the place and position in the world who had a few years ago "

However, Saenz de Santamaria has guaranteed that the Government's intention is "to preserve the status of the unemployed, pensioners and all those who a few years ago an effort that required them not their role" in reference to measures adopted by the previous government.

On the other hand, we have a partner who is studying in Cordoba, and we wish you a happy new year, BEATRIZ, we hope see you soon, have fun, and for the love of god, study!! xD We are waiting for you next year with open arms :DJon Mikel

Saturday, January 7, 2012

What caused the eurozone crisis?

The eurozone leaders have agreed new fiscal rules, insisted on by Germany, that will limit their governments' borrowing each year to just 3% of their economies. These rules should stop the massive accumulation of debt and make sure there won't be another financial crisis.

But, they agreed to exactly the same 3% borrowing limit back in 1997, when the euro was getting ready. The "stability and growth pact" was insisted on by German finance minister Theo Waigel. So, what happened?

Italy was the worst offender. It usually broke the 3% annual limit. But actually Germany was the first big country to break the 3% rule. After that, France followed them. Of the big economies, only Spain carried out with its duty until the 2008 financial crisis; the spanish government stayed within the 3% limit every year from the euro's creation in 1999 until 2007. Not only that; of the big four, Spain's government also has the smallest debt in relation with the size of its economy. Greece, by the way, never fulfilled to the 3% target, but manipulated its borrowing statistics to look good, which allowed it to get into the euro. This irregularities were discovered two years ago.

But the markets have other ideas. So Germany, France and Italy should be in trouble with all that reckless borrowing. Well, no. Actually, markets have been willing to lend money to Germany at low interest rates since the crisis began. Spain on the other hand is seen by markets as almost as risky as Italy.

So what caused the crisis? There was a big accumulation of debt in Spain and Italy before 2008, but it had nothing to do with governments. Instead it was the private sector who were taking out loans. Interest rates had fallen to unprecedented lows in southern European countries when they joined the euro. It motivated the increase of the debt.

All that debt helped finance more and more imports by Spain, Italy and France. Meanwhile, Germany became an export industry since 1999, selling more to the rest of the world than it was buying as imports. That meant Germany was earning a lot of surplus cash on its exports and most of that cash ended being lent to southern Europe. But debts are only part of the problem in Italy and Spain. During the boom years, wages rose in the south and German unions agreed to hold their wages steady. So Italian and Spanish workers now face a huge competitive price disadvantage.

So to recap, government public debt, which has grown exaggeratedly since the 2008 financial crisis, had very little to do with creating the current eurozone crisis in the first place, especially in Spain. Spain and Italy are now facing nasty recessions, because no-one wants to spend. Exports are uncompetitive and, now, governments have agreed to drastically cut their expenses.


Sunday, January 1, 2012


Christine Lagarde, president of ‘International Monetary Fund’ (IMF) has sent a message to all european leaders asking them for ‘talk in Europe with an united voice’ and to ‘prepare an specific calendar’ that will help us to confront the debt crisis that threats to break the international economic system.

‘International economy is in a danger situation’. Lagarde said this two weeks ago, and she advise that probably the 4% of growth in world’s economy for 2012 can be less than this percentage.

Lagarde remind that this crisis in Europe ‘is a crisis based on the confidence of the public debt and on finnancial system soundness’.

President of IMF has told that investors are waiting for a simple but specific calendar. She said again that all European leaders have to talk in Europe with an united voice; she said this after she had seen the protectionism of a couple of countries.

Erik Rios Salazar