World Financial Crisis

The whole economic crisis, is not only going on in the United States, but also in many other countries around the world. The problem in the US and in Europe is mainly the credit crisis, but this has also trickled into various Emerging markets and Developing economies, such as China and some African countries, who had a lot of their money coming in from demand of their various goods and services from the US and Europe. These developing markets have also been affected by foreign investors pulling out their investments in those markets after signifcant losses in the US. These investors are pulling out be as a result of fear of a world recession or to gain extra cash to shore up their losses in the US.

However, since this demand has decreased as a result of the decreased cash flow, these emerging markets now to look internally, to see where else they could make money. These emerging markets have not been hit as hard as the US and Europe, but they are still very much affected. It is just interesting to see the difference in strategy between the fully developed markets and the emerging markets. The fully developed ones are more interested in increasing cash flow while the emerging dont really have a credit problem, but are more interested in the diversification of their economies.

The following links shold provide some interesting info:

http://news.yahoo.com/s/ap/20081012/ap_on_bi_ge/eu_europe_crisis_summit;_ylt=AiUFCsJr8jSzyPSAMhmhRJhv24cA
http://news.yahoo.com/s/ap/20081012/ap_on_bi_ge/as_china_economy;_ylt=AjlZtoeVMGym3qvx9X8x9GGyBhIF
http://news.yahoo.com/s/afp/20081012/wl_mideast_afp/stocksgulf;_ylt=AtmYGVRouc1YelgJeF7TlJwT5LIF
http://news.yahoo.com/s/afp/20081008/wl_africa_afp/financebankingnigeria_081008193901