Corporation News

The new U.S. president who will take over one of the hottest positions in the world, must fight a number of problems. The credit crisis, collapse of Mortgage Market stabilization of the financial crisis, huge budget deficit and weakening labor market are only part of the emerging themes that are already out of control of U.S. authorities and showed interest worldwide.

This is the reason immediately before the upcoming elections tomorrow CNN readers to submit their simultaneous analysis of the plans of two men who will fall on huge capacity - Republican John Makeyn and Democrats Barak Obama. Summary of the platforms of candidates for president on some key issues affecting the capital market and currency trading.

Budget deficits - the government measures, which took the U.S. government in recent months exceed 1 trln. dollars. What happens and what the candidates plan to stabilize the state budget and the financial system?

Barak Obama

• introduction of budget rules that require any new spending be offset by reducing payments for another program or new revenue;
• reducing the cost of minor public programs to levels no higher than 2001 and increasing transparency in these costs;
• support payments under the new programs by drawing troops from Iraq, increasing taxes on the richest and eliminate some loopholes in corporate accountability.

John McCann

• originally announced that the budget will become balanced by 2013, but his advisers now acknowledge that it may take more time;
• slowing the growth of spending on programs of social security and Medicare medical care and Medicaid;
• eliminate the cost of projects related to pets and animals to be used by the name of the minor programs;
• offset losses for the budget decreased from taxes by creating new jobs in the energy sector and develop new technologies to support economic growth

Measures against economic crisis - the problems of the financial sector now move on the real economy, which puts all companies on trial in the United States. The main problem however is that the threat is not only overhang on America and on the world

Barak Obama

• temporary permission to withdraw up to 15 percent of individual pension plans, but not more than 10 thousand dollars;
• suspension of a rule that Americans over 70 years receive regular annual payment of pension accounts;
• providing a tax credit of 3 thousand dollars in 2009 and 2010 companies for each new employee full-time;
• Suspension of taxes on benefits received unemployment;
• introducing the requirement that financial institutions receiving funds from the Rescue plan to introduce 90-day moratorium on outstanding mortgages a fair borrowers;
• authorizing the government to borrow funds in the U.S. state and municipal authorities to help balance their budgets, which are expected to suffer a serious blow because of the credit crisis.

John Makeyn

• introduction of tax from 10 percent to withdraw funds up to 50 thousand dollars in 2008 and 2009;
• suspension of a rule that Americans over 70 years receive regular annual payment of pension accounts;
• lower profit tax from 15 to 7.5 percent for two years;
• increasing the amount of capital losses that can be deducted from the profits of 3 thousand, 15 thousand dollars in 2008 and 2009;
• suspension of taxes on benefits received unemployment;
• buying bad mortgages and renegotiating terms of the loans in accordance with the current price of housing;
• convert bad mortgages in low-loans insured by the Federal Housing Association.

Wall Street - all know what happened on stock exchanges last year. That makes two candidates to unite around the requirements for greater transparency and introduce new rules for capital adequacy of financial institutions

Barak Obama

• introduction of requirements for capital and liquidity of investment banks;
• reorganization of the regulatory framework for the financial institutions;
• establishment of a supervisory committee to make advice to the president, Congress and regulatory frameworks on health risks of financial markets;
• provision of the Federal Reserve Supervision rules to any bank, which took funds from him.

John McCann

• increased capital requirements for financial institutions.
• Elimination of certain regulatory, accounting and tax requirements to raise capital.
• Study methods and practices of banks and other companies for evaluation of assets for which it was to the credit crisis.
• increasing transparency of complex financial instruments.

The labor market - unemployment in the U.S. is growing continuously since the beginning of the year and has already reached alarming proportions. Companies restrict the hiring of new employees, leading to increased social tension. The new president will be serious testing

Barak Obama

• finance training programs and focus on those training to the introduction of “green technologies”;
• increasing the minimum payment of 9.50 dollars per hour by 2001 and linking with the growth indicators of inflation;
• a doubling of funds to research programs and make the cost of scientific research tax credit permanent;
• Creation of Investment Bank to support public infrastructure spending, which has a capital of 60 billion dollars. Other 25 billion dollars must be brought in to fund job creation and contributing to economic growth;
• providing tax credits to companies that maintain or increase the number of employed full-time appointments to the U.S. export markets;
• providing a tax credit of 3 thousand dollars in 2009 and 2010 companies for each new employee full-time
• Suspension of taxes on benefits received unemployment

John McCann

• promote economy and increasing jobs through lower corporate tax temporarily and reduction of rates for capital gains and dividend;
• Drop the minimum payment at a level of 7.25 dollars an hour, as is to happen by 2009. Furthermore, McCann is opposed linking salaries to inflation rates;
• introducing a tax credit amounting to 10 percent of earnings, invested in research;
• Merger of federal employment programs and modify training programs for unemployed;
• Suspension of taxes on benefits received unemployment.

Rescue plan for the economy of Australia Merrill Lynch strongly disappointed investors off assets for $ 9.4 billion dollars U.S. shares of the green, S&P 500 by 10 percent weekly rise The costs of the crisis in the world could reach 2.8 trillion dollars Obama with a plan to create 2.5 million jobs by 2011 The 2009 economy and your wallet World Bank gives USD 100 billion to developing markets Oil ended the week with a drop of over 11 percent The data on employment pressed U.S. state indices, the serial drama data on the labor market in the U.S. Over 80 percent of Russian companies feel threatened by financial crisis Online web searches in October Shares of the week - storms Wells Fargo & Co. International Monetary Fund: The financial crisis has not yet been completed, real estate prices continue to fall Again bank failure in U.S. Fifth consecutive decline for exchanges in Asia The quality of loans in Eastern Europe deteriorate Obama says US economy ‘very sick’ Obama urges action on economy Merrill Lynch sold her share in Bloomberg Strong data on the labour market in Germany Central bankers: Asia deal with crisis Lehman Brothers bankruptcy Another 62 thousand Americans without job in June, unemployment was 5.5 percent British economy with more serious problem than expected pace slowed Housing in Moscow more expensive by over 25% in first half of year Against Monopoly Law in China of corporations with foreign capital Another bank failure in U.S. The Bank Silver State closed its banking business The U.S. government is considering acquiring shares of insurers Obama warning on stimulus delays Bernanke: Inflation will be reduced U.S. shares erased their initial gains. The outlook for long-term credit rating of Russia is “negative” and Gold-currency reserves of Russia decreased by 50 billion dollars Mass panic scope and exchanges in Eastern Europe UK jobless ‘to reach 3.4 million’ UN: High prices of properties violate human rights to housing Good buys in bond funds Exchanges in Asia red again. New bankruptcy among Japanese companies in construction sector and lower ratings representatives of regional economy Democrats attack Obama on economy Obama plan ‘would lift economy’ Deforestation cost the world economy over the credit crisis Obama unveils executive pay cap Obama calls recession a disaster Obama issues US recovery pledge Obama predicts more bank failures Obama wants to avoid ‘trade war’ Consecutive decline in U.S. stock, S&P 500 also enters in Bear Market Obama says stimulus on track Daimler refuses to buy Chrysler Obama plan ‘could create 4m jobs’ Obama denounces stimulus hold-up Obama hails bail-out ‘milestone’

Tags: economic crisis, economy, finances, financial system, Markets

This entry was posted on Tuesday, November 4th, 2008 at 3:14 am and is filed under Featured News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.