In a recent interview with Issa Michuzi on the global financial crisis, our beloved John Mashaka cited two reasons for the current credit crunch: 1) high energy prices 2) war in Iraq and Afghanistan 3) subprime lending.
The third reason cited by John Mashaka is categorically accurate, since subprime lending and lack of tight oversight over mortgage-backed securities are truly the main reasons for the current global financial crisis. So what about John Mashaka’s other theory that the high energy prices and war in Iraq and Afghanistan also contributed to the current global financial crisis?
That is a sloppy rationale for a financial analyst.
The war in Iraq possibly caused a slight rise in oil prices, but that is because of the anticipated decrease in supply. The main reason for the rise in global energy prices was the rising demand in China and India, as these two economies expanded rapidly. In other words, energy prices skyrocketed because of the interplay between supply and demand. We all know oil prices are currently low since the anticipated demand has also dropped.
So did the rising energy prices and current “global war on terror” affect the availability of credit or money for lending? Not so. The rising energy prices caused an increase in production costs, which caused an increase in consumer prices, which eventually caused price inflation. Even Tanzania felt the wrath of the overall increased global price levels. Inflation has no bearing on the ability of banks to lend.
This is what I know; most central banks typically control inflation by a shift in interest rates or controlling money supply – depending on what is causing the inflationary pressures.
Most American banks, particularly those that either received government bailout money or found merging partners did so because of the massive write-downs of the subprime mortgage-related securities held on those banks’ balance sheets. Those banks, in truth, needed capital infusion to maintain a statutorily required surplus (capital) levels, following an astronomical decline in the values of mortgage-backed securities.
I would be more than appreciative if John Mashaka could tell us how the war in Iraq and inflation affected the ability of banks to lend – particularly in European countries that don’t have troops in Iraq.
Mdau, USA
ur talking about moving of demand and supply curve, he talked about shifting of demand and supply yes war can shift a demand and supply , also those bad mortgages,the banks are not receiving any dime, do u want to know why people are loosing their source of income, foreign investors invested in those loan also, thats why everyone is affected by this
ReplyDeletemdau usa
Mdau, USA. I agree with you 110% that high energy prices, and war in Iraq and Afgh has got nothing to do with the current global financial crisis.
ReplyDeleteMy understanding is that European economy is largely dependent on debt monetary system. Becouse of this they have not been able to service this debt which is so big.
These big banks should have been allowed to go to wall,just like what they did to Lehman Brothers.
Maybe "lying" is too strong a word. However, since the very beginning, I have always been skeptical of this Mashaka kid "economic expertise." Mashaka is one of those few Tanzanians who were lucky enough to have "red carpet" careers that has somehow given them "exceptional wisdom" over others. They peruse financial news sources for a couple of hours and try to present us with ground-breaking economic insight. There are thousands of highly educated Tanzanians (myself included: former I-banker, Harvard MBA, now working for McKinsey) who would read his commentary and just laugh.
ReplyDeleteMdau ameuliza swali la msingi maana nami nilichanganywa na nafasi ya vita na kupanda kwa bei ya mafuta katika kranchi. Mi nilidhani tatizo lilitokana na mabenki kukopesha nyumba watu wasiokopesheka. Watu waliposhindwa kulipia majumba mabenki yakajikuta yana majumba yasiyouzika na hayana hela za kukopesha wajasiriamali na makampuni. Supply ya nyumba ikazidi demand bei za nyumba zikashuka benki zikazidi kuwa hoi. Benki kidali po!
ReplyDeleteGood question Mdau from USA. Please Bwana Mashaka explain to me how did Iraq, and Afganistan war contributed to economic crisis world wide? Michuzi take note here and don't waste your time putting him on Daily News again, save our country some embarassment, we have better people who can be good and better interviewers than Mashaka who has no clue on what he's talking about.
ReplyDeleteTafadhalini jamani, nimekuwa nikiwaambia siku nyingi Mashaka ni kwa ajili ya mbumbumbu wa blogu hii. Nilianza kusikiliza mahoajino yake kwenye Daily News nikasikia kichefuchefu nikaacha.
ReplyDeleteHuyu kiana, narudia tena na tena, hana elimu ya juu ya uchumi. Amesoma uchumi kama somo darasani. Ili uwe mchumi unahitaji kusoma shahada ya kwanza, kisha kusoma Ph.D kwa kuunganisha na Masters ambapo kama utaishia Masters utakuwa na M.Phil. Huyu kijana hana hii kitu. Vinginevyo labda uwe na MA kwenye Applied Economics. Mashaka hana hata sifa za kusoma shahada hizi, kama mnabisha muulizeni.
Halafu, anajiita financial analyst. Ili uwe financial analyst unahitaji kufanya mitihani ya CFA ambayo Mashaka hana sifa ya kuifanya kwa sababu yeye ni salesman wa Wachovia Securities kule North Carolina. Hiyo New York na Wall Street hajawahi hata kuitia machoni.
Kwenye mahojiano alishindwa hata kujieleza. Ukifuatilia maazimio ya kikao cha G20 kilichofanyika Washington Novemba mwaka jana, kuna maelezo ya kitaalam ya nini kilisababisha hii balaa. Mashaka inaelekea hajawahi hata kuyasoma. Anayebisha seme nitampa kila kitu.
Namalizia. Mashaka ni kijana safi tu, anaipenda Tanzania, na anawafaa mbumbumbu wa kwenye blogu, basi.
Nashukuru mzee wa Harvard uliyofafanua hapo.
Asanteni.
I am not an economist, but i have come to appreciate the roles of economists and theory behind economies.
ReplyDeleteJust as much as you would call John a "liar", you in the first would have to prove why such wars are not related to the current crisis.
John Mashaka is probably right, because even though not so much theory and data have come to light for the cause of the current credit crunch, few renowned economists have come out (so far) linking the crunch to subprime mortgage crisis that led to banking crisis that led to economic crisis. By now you should be in a position to distinguish the 3 crises.
After "dot com" bubble in 2001, the US economy had slowed down. Now in economic terms, in order to stimulate the economy, you need stimulate expenditures. So the US chose to go to war - creating expenditure. Where does the funding come from ? Printing money....
On the other hand, mortgage firms went for people who were not credit worthy and made house loans to them, with credit agency colluding in "misassessment" of credit ratings to such individuals. The mortgage firms of course facilitated their scheme by loan from the banks, with collateral being mortgages extended to the prime and "subprime" lenders, and the collateral being backed by strong credit ratings(even though the ratings were not "strong").
Since subprimers had no jobs then it was obvious the mortgages couldn't be serviced, and the firms couldn't pay their banks, and the government facilitated the wars by printing money and not "actual" productivity in the economy.
What followed was mortgage/house closures, followed by mortgage firms declaring huge unpaid debts that affected the banks. The mortgage crisis turned into banking crisis.
Since the world economy is intertwined, the banking crisis was in effect infectionary to major industries like insurance(AIG -biggest insurance company) and motor industry (General Motors et la). These two industry cannot and couldnt be allowed to fail because failure on these would have a domino effect.
For example by letting AIG fall alone, it would have affected a lot of people pension funds, major insurance worldwide in shipping, health to name a few. This is a company with annual revenue of over $ 100 billion, with presence in over 130 countries worldwide.
To cut the story short, you need to have full details and data before you can accuse someone let alone call them liars.
My two cents.
Mura kakamatwa na uongo.
ReplyDeleteKwavile sina kiasi hicho cha elimu lakini nakubali kuwa Mashaka, mura,hapo umechemsha katika mahojiano yako na mithupu.
wadau note that inflation affect real interest rate which may have the following repercussions 4 ability of banks to lend smoothly:
ReplyDelete1) it raises cost of deposit since investor will demand high return on their saving in order to be compensated for high rate of inflation.
2) Furher bank will cahrge high lending rate which will scare borrowers coz most project's NPV will turn out to be negative or not worth the risk of investing.
People dont criticise john mashaka so long in todays world everything is dabatable and note that various economic and financial variables,behaviors etc are interconnected.
thanks,muki kilima(M.com,delhi varsity)
I am of the same opinions as you guys of the fact that these self proclaimed so called economical and financial analysts, Mashaka and Shayo included have to be stopped somehow and sooner than later because of misleading the wider general public. As I can gather in here, these guys are trusted and adoured by many as they in the shadow of highly learned individuals get all the publicity they aspire. They may have passed through institutions but surely one would be forgiven for doubting the educational substance they allege to have achieved. This Mashaka in particular, as my fellow blogger now working for McKinsey stated, he is evidently shallow in that area of expertise that he claims to be a guru of. Not being an economist in any way whatsoever, my little understanding of the financial predicament the world over suffers of late aint because of the war in Iraq and if anything the war was wedged against these defenceless innocent souls in anticipation that it would facilitate in avoiding the then predicted current financial crisis. These guys leaves me with little hope that we the "Tanzanian educated elites" are in no rush to salvage our sinking beloved mother land should we keep elevating and praising nonsense. Thank you Mr Michuzi but no thank you for giving the platform, I mean a bigger platform to these rather irritating un-educated individuals with high education certificates. I sincerely understand that you might not favour my comments and therefore there is a meagre chance you will post them.....But you are not that stingy so my chances are ...you will email them my comments in private or be brave enough to shake off their blames for enhancing the number of hits and post it for not me but us....thank you Michuzi
ReplyDeleteTheories and observations in Economics do NOT provide, accurate and precise cause-effect explanations of real-world economics phenomena as is the case in the Natural Sciences. There are never discrete false-correct answers or air-tight cause-effect relationships in Economics as there are in the hard sciences eg. Physics and Chemistry, and in fact that is exactly why President Lula of Brazil was recently quoted in the media chastizing "blond, blue-eyed " arrogant, know-all White people (despite being supposedly steeped in the most advanced Financial and Economic knowledge as they claim) for having gotten it all wrong and consequently wrought turmoil to World Economy place. So, Mr "Mdau from USA" aka US Blogger, don't try to fool us like you know all the real reasons or right answers as to the causes of Global Financial Crisis. YOU DON'T MISTER! There are NO clear cut, straight forward explanations as to causes of the global financial crisis other than unproven (and unprovable) theories and hypotheses, informed (or uninformed) opinions, speculations, and whatnot.
ReplyDeleteGiven the kind of background that economic analyses (and in fact the the whole enterprise of Economics as an academic field of knowledge) is dependent on, John Mashaka (as would surely many learned Economists including the professor in the the following video clip
http://vodpod.com/watch/1294729-the-global-financial-crisis-—-michel-chossudovsky ) is in his full right to mention the reasons that he mentioned without risking some arrogant, self-appointed "economics expert" having to question and challenge the validity of every statement he makes. Its not so much what John Mashaka knows about Economics as to who he is as a person. In other words you have some personal issues against Mr Mashaka for if you truly consider yourself some sort of smart-ass in Economics knowledge, then you would be too busy trying to debate, criticize and otherwise prove wrong all the millions if not billions of people out there on the internet, academic halls, conference rooms, thesis presentations, and whatnot whose opinions about Economic you don't happen to share - instead of lurking and waiting to challenge only those viewpoints Mashaka makes at each and every opportunity! It's clear to me that your true motive is not so much engage in any constructive intellectual debate with Mashaka but rather to humiliate him because he has the guts to come out and speak up in public using his true identity while you choose to hide in the shadows. Shame on you!!
Mdau USA, once again straight on point.
ReplyDeleteI would not say Mashaka is lying, but it is obvious to see he doesn't know what is talking about when it comes to global economy.
Good news is Mdau USA is here to put things right. I hope Mashaka is taking notes.
i listened 2 mashaka's interview, i remain to my doubt he is trying to be an analiser but i thing even his sources are inadequate.The current global economic meltdown is mainly due to irresponsible lending,simply like i know couple of guys from Africa who came like in UK and given huge lending in terms of credit cards and they used same money to foot their varsity fees and afterwards return home without repaying back,this is just individual then think about other dubious lending!Also globalisation
ReplyDeletehas done massive hole in international financial systems due to no-regulation and no control in international institution's capacity building which made some companies to grow and cause civilization burst.this is typically like China: too many professionals,engineers,industrial managers,designers in a short period of time, this caused resourses to shift and mind you without regulation!
i'm not an expert i stand to corrected.
why?
ReplyDeleteWhy you think working for McKinsey or having harvard MBA would you an asset? Those are just Brands to sell yourself. What do you do at McKinsey or what have you done as I-Banker? Helping push bad deals with AIG?
ReplyDeleteIf you think you so smart why can't you work for yourself? Why use brands like Harvard, Mckinesy, AIG to advertise and win girls? People are not fools, you are a black swan. See, Listen to Taleb and waht he says about MBA's and I-Bankers. They are just kids full of aspirations who can't even analyze derivatives and credit risk models.WHo cares about Mckinsey? If they are smart they could have saved America from the economic crisis. Everybody got it wrong including a bunch of Harvard/MIT PHDs.
First I would like to request Michuzi kutominyia comments zangu. I posted one this evening contributing on Dr Shao article he hasn't upload!.
ReplyDeleteWe should learn or try to be positive for once!. Mashaka does always try to bring constructive articles to sharpen our thinking. I for one do applause him for that. I would like to bring into attentin the difference between being qualified and being compitent. Most of us we dwell into ''qualification''rather than aiming to be compitent. You can have masters but yet you are not compitent!. Does Alex Furgeson have degree?,NO. But he is compitent!. Most people do study for getting job or go for further education as ladder for career promotion. Focus should be getting education that will make you compitent(compitence is made up of five components: skills, experience, culture, knowledge and atitude ). Thats why you could come accross MBA holder who is empty upstairs ( George Bush has MBA yet is among US presidents who perfomed worse!. While, Ronald Regan was not educated and was an actor and did very well!). anonymous with 7:12 pm post should wake up and focus to be compitent.
people should be objective instead of man hunting and pointing fingers on people. We should aim to assist our country to come up with solutions that could assist TZ to do away with financial crisis.
I agree with Mdau wa USA. I listened the interview that Mdau wa USA is referring us to. The inteview has revealed Mashaka's ignorance on the discussion of the on going financial crisis. The major factor behind the current crisis is housing market that started in the US. The lenders of mortgages in the US in the early 2000's started to be creative in a foolish way driven by greed. They decided to do away with traditional process that used to be followed when one applies for a mortgage loan. Where in the world back in 2005 and around that time you go to a broker/bank and they tell you that you don't have to show me your pay slip, "stated income" is just enough? That is when you have people who were making $25K a year and state that they were making over $100K in order to get a mortgage loan for a house that costs over $300K. To cummulate the problem and create a vicious cicle you have bankers now selling the loans to other financial institutions around the world. These other financial institutions that there were buying loans from the banks, they didn't even know the person who has mortgages. They don't have a full understanding of the credit worthness of the people who have mortgage loans that they bought from commercial banks. These "other" financial institutions were every where: within US, China, Europe, etc. In Tanzania we are not very connected with the global financial system and that is why you have the CRDBs and the likes posting huge profits amidst the on-going crisis. This is not to say that Tanzania and other developing countries will or are not affected. They will be affected in one way or another such as decline in number of tourists, decrease in foreign investment, just to mention a few that Mashaka also mentioned. What is troubling with Mashaka's interview is that he puts real evil (housing crisis) as the last factor. The war in Iraq and Afghanistan is more of a US problem, yes it could have an impact but not a real problem. Energy prices, Mdau wa USA you have a point, the prices were fueled by increases in demand by emerginig economies (mainly China and India). Mashaka hizi kazi ni za wachumi. I appreciate your commentary on our blog ya jamii lakini when you want to have authority in issues hasa hizi za facts, jiandae zaidi.
ReplyDeleteThis is my take on US financial crisis
ReplyDelete1.Subprime loans
2.Unemployment due to jobs being
shipped overseas
3.Federal goverment deficit as a
a result of Iraq and Afganistan
wall which costed $ 600 trillion
4.Regulating the financial
intitutions to curb greed by few
CEO's and falsification of the
accounting books
5.Energy policy as far as drilling
for oil and gas in US. US produce
only 20% of its oil demand
6.Double standard played by
merging economies such as
China and India as far as goods
and services is concerned
7.Immigration problems
8.George Bush goverment massive
spending which led US to deficit
because Clinton left Bush
goverment with suplus
9.Every bill in US house or
congress has polk in it. These
programs aint nothing but
wasteful acts by legislators for
personal gain
Thats it for today.
Mi binafsi nishaanza kuchoshwa na hizi 'post'...
ReplyDeleteNi maoni tu binafsi..
Thanks wadau, Mashaka has nothing in his head. I couldn't imagine that the so called financial analyst can talk rubbish like that.
ReplyDeleteNaomba weye unayemuita mura ufute hiyo jina. Mashaka ni Mjaluo, siyo Mkurya. Tafadhali sana, futa mara moja. Wakurya wana suna, Wajaluo hawana suna, usituchanganye.
...Mashaka lazima ajue pesa zilizotumika kwenye vita ya Iraq na Afghanistan zimefanya uchumi wa America ukue sio kushuka,kumbukeni mabomu mpaka vyakula vya wanajeshi vyote vilitengenezwa kwenye american factories kwa hiyo makampuni mengi na watu wengi sana walipata kazi na pesa nyingi sana,kwa hiyo war spending sio sababu ya uchumi kushuka,na kwa wanaojua vita ya america ni kama economy booming ya nchi,angalieni World war 2,ni time ambayo America ilikuwa ni uchumi mkubwa sana maana ndio alikuwa anauza silaha,nguo,vyakula europe kwa sababu viwanda vyote vya europe vilikua vimepigwa mabomu...vita kwa America ni namna moja ya kukuza uchumi kwa America sio kuua,kina Obama na democrats walipinga tuu na kusema ni hasara kwa sababu waliona hizo pesa zingeweza kuleta faida sawa tuu na hiyo vita kama viwanda vya madawa na elimu na kwao ile vita was flat out UNJUST lakini economically vita inaleta faida,mashaka uko wrong hapo...na ujue recession ni kwa sababu ya wall street greed na housing,mengine hayo ni story tuu!
ReplyDeleteMashaka amekuwa na bahati mbaya ya kushambuliwa binafsi anapotoa mawazo yake, huku wadau wengi wakisahau kwamba ni suala la hoja zake tu tunapaswa kuangalia, sio kumwangalia aliyezitoa.
ReplyDeleteMimi sio mchumi. Kuna kitu ambacho Bill Clinton alipata kukizungumzia katika interview moja ambacho niliona kama kinaleta maana. Alisema kwamba wakati wake mambo ya uchumi hayakuenda mrama kama hali ilivyo sasa kwa sababu kulikuwa na maeneo ya uwekezaji. Wakati huo ndio kulikuwa na bubble ya dot com. Makampuni mbalimbali ya TEKNOHAMA yalianzishwa. Mengine yalikua kama hotmail na sawa, mengine yalikufa. Lakini kulikuwa na harakati, watu walikuwa wanafanya kazi za kuvumbua teknolojia mpya/bora zaidi za computer na kutengeneza masoftware nk. Google wanasema walianzisha kampuni kwa kutumia mikopo ya credit card. Bubble ya dot com hatimaye ilisambaratika. Tatizo analosema yeye lilitokea baada ya hapo ni kukosekana kwa maeneo mapya ya uwekezaji. Watu wakikosa pa kuwekeza wana tabia ya kukimbilia kwenye kuwekeza kwenye nyumba. Watu (binafsi na mabenki) wakakimbilia nyumba. Wanaokopesheka walipoisha ikabidi benki zifanye ubunifu wa kukopesha zaidi kwa mtindo wa interest only loan kuongeza wigo wa wanaokopesheka. Waliposhindwa kulipa ikawa mtafaruku, benki zina nyumba hazina hela za kukopesha watu. Clinton akahitimisha kwa kusema kwamba mpango wa Obama wa Green Jobs na Green Energy ni mzuri kwa sababu utaleta eneo jipya la uwekezaji na kuinua uchumi. Si maneno yangu lakini yanaaminika.
Nasita kukubali nafasi ya vita katika kuleta mtafaruku huu maana Wamarekani wanasema walipokumbana na matatizo ya kiuchumi yaliyozidi haya kilichokuja kuleta unafuu ni vita sikumbuki ya wapi. Serikali inatumia hela zake kununua silaha kwa hiyo raia wake wanapata kazi kwenye viwanda vinavyofanya biashara zenye kuhusiana na kutengeneza silaha. Nasita kukubali kwamba serikali ya Marekani ilichapisha noti kwa ajili hiyo kwa sababu inadaiwa kwamba imekopa hela kutoka China kwa mtindo wa dhamana.
Wachumi tuhabarisheni, maneno ya Clinton yana uelekeo?
Na mwisho, tunazungumzia kranchi ya magharibi lakini tukumbuke na kwetu. Hadithi hii inatufundisha nini?
WACHUMI WETU MBONA MNATUVURUGA AKILI, TARATIBUNI JAMANI. WEWE UNADIRIKI KUMWITA MASHAKA MUONGO, AND AS AN ECONOMIST UNASHINDWA KU-RELATE WAR AND ECONOMIC COLLAPSE? TANZANIA BAADA YA VITA NA UGANDA, MWALIMU NYERERE ALITUOMBA TUFUNGE MKANDA KWA MIEZI 18, AMBAYO ILEGEUKA IKAWA MIAKA KUMI NA NANE. NO QUESTION THAT THE IRAQ AND AFAGHANISTAN WAR HAS SERIOUSLY. WEAKENED THE U.S ECONOMY. TO DATE, MORE THAN 3 TRILLION DOLLARS HAVE BEEN SPENT IN IRAQ ALONE. KWA KAWAIDA NCHI INAPOKWENDA VITANI, WANANCHI HUWA WANATADHARISHWA KWAMBA DIFFICULT TIMES LIES AHEAD; CONTROL YOUR SPENDING, AND SAVE AS MUCH AS YOU CAN. IN THE US PEOPLE WERE LIVING IN THE ECONOMIC BUBBLE. ONE OF ITS MAIN ASPECT WAS; PEOPLE SPENT MORE BECAUSE THEY FELT RICHER, MFANO MZURI NI KIVUMBI CHA HOUSING MARKET. INGAWA VITA HAIKUHUSIKA DIRECT, LAKINI IT CAN NOT BE REMOVED FROM THE EQUATION, NDIO MAANA CHINA INAIDAI MAREKANI PESA NYINGI SANA MAREKANI, AND WE ARE WITNESSING THE RISE OF CHINA WHICH MIGHT BRING THE UNITED STATES UNIPOLAR TO AN END.THE SECOND WORLD WAR WAS FOLLOWED BY THE GREAT DEPRESSION OF 1929-39. HISTORY SHOWS THAT MOST OF THE WARS HAVE FOLLOWED THE EECONOMIC CRISIS. I HOPE YOU GET YOUR FACTS STRAIGHT.
ReplyDeleteKARUMANZIRA.
MASHAKA NA MSHIKAJI WAKO DADA SUSAN TOKA CANADA PLEASE! WENGINE TUNAOSOMA BLOG HII HATUNA DEGREE LAKINI TUNAELEWA DUNIA INAENDAJE, KAMA HAUJUI VITU YANINI KUJIHAIBISHA LAKINI? TUTAJIFUNZA LINI WAJAMENI?
ReplyDeleteKuna wachangiaji wengine ambao wanatuchosha, hawana jipya! Wamekalia zaidi kum-attack Mashaka as a person badala ya kuchangia hoja. Sio ajabu wangeitwa wao kwenye hizo interview wangebaki kung'ang'ania ...Mashaka said this, Mashaka said that...na kusahau yeye kama yeye ana hoja gani.
ReplyDeleteGrow up people, changia hoja from kile ulichoulizwa na si blah blah za Mashaka is like this or that.....After all, kwa uchangiaji wako tu tuta-judge wenyewe kuwa, kweli hiki kichwa cha Havard...siyo kuleta u-Havard maneno hapa...Mimi Havard, mimi Havard, Havard ya Maneromango? You are really pissing us off, kwa sababu hamna elimu yoyote mnayotupatia on the economic crunch, kelele tu.....
Mdau Badilisha Wimbo,
ReplyDeleteSio siri hizi post zinaboa. Sio kwamba siwafagilii washkaji wanaoandika ila tatizo ni kwamba hawana jipya.
Mambo ya causes of US financial crisis yameshajadiliwa kwa marefu na mapana katika media za USA na Ulaya.
Na ukicheki Google utakuta analysis zingine kibao tu huko.
Mfano ni huu http://tinyurl.com/causes-of-US-financial-crisis
Sasa wao wanakuja kudiscuss leo, wakati wenzao wako bize London kutafuta solutions.
Na mwisho wa siku hizi discussions ni kwa faida ya nani? Maana ziko kwenye English hivyo sioni sababu ya kusoma hapa wakati nishasikia CNN, na nishapitia Google mara kadhaa.
Labda ingekuwa kwa Kiswahili tungesema itafaidisha wabongo wasiojua Kiinglishi. Ambao hata hivyo sidhani kama wana interest ya kujua "sub-prime mortgage" ni kitu gani..
Habari ndio hiyo.
I wish you people would read Animal farm. It shows exactly people's mentality in Tanzania and the majority of Africans.
ReplyDeletePersonally I don’t want argument but, Perception seem to be people try concentrate about America
ReplyDeleteEspecially U.S.A. That is west of time, development of Tanzania doesn’t need people from America, Tanzanians we have to drill young brain, and concentrate contingency, constructive and strategic ideas which can be able to tackle the problems of our countries in term of wider area of
Economically, socially, politically, culturally, technologically and solution must be flexible accordingly to the great enemy of time, must match changes in terms of resources such as labour market,
Environment, nature of our economy, fluctuation of our products in world market, competition
Of opportunities with other countries especially in term of good policy of investment,
Method of Prevent and controlling disease, nutrition.In order to improve life expectancy,
Improvement of education sector, good Urbanization planning, Tourism, Mining, Agriculture
Game reserve, Fishing, Reforestation, Sports, encourage research and creative ideas.
Our objective must focus of how we would use potentially resources sufficiently and effectively,
For the benefit of majority that is Strategic plan management which we want for now and future.
Mungu I bariki Tanzania.
Mdau Masomoni.Ireland
Watu wanaompinga Mashaka ni conzevativ republikanz, maana hata maraisi walikuwa wakikampeni 1)kupunguza vita ili fedha inayoendesha vita itumike kwa ajili ya uchumi, 2)nishati mbadala.
ReplyDeleteHey folks, please read the following article and make up your finds whether there's any significant causal relationship btw the present global financial meltdown and the US-led wars in Iraq and Afghanistan:
ReplyDeletehttp://harpers.org/media/pages/2009/01/pdf/HarpersMagazine-2009-01-0082337.pdf
jamani war in iraq has got nothing to do with the current banking crisis.
ReplyDeletethe current banking crisis is the result of regulations failure.
it is the result of so called principal based regulations rather than rule based regulation.
it is also known as "light touch regulations".
there were lots of regulations failure in lending, hedging, accounting and more......
Some banks were not doing the basics such as meeting Tier 1 Capital.
As am writting this France are threating to walk out of G20 meeting if uk and us are not going tough their regulation.
jamani mtadanganywa na huyu mashaka mpaka lini, ANAWAOKOTA KWA AJILI ANAJUA WATU NI WAPUMBAVU NA HAWAWEZI KUMUULIZA.....
hata kama hamjui mambo uchumi google current bank crisis msome aah.
eti kuna mtu ameandika vita vya iraq na afganistan vi me cost $600 TRILION. JAMANI BUDGET YA MAREKANI YOTE HAIVUKI $5 TRILLION. BUDGET YA DUNIA NZIMA HAIFIKI $600 TRILLION. HAYO MAHESABU YAKO SIJUI UMEYATOA WAPI
MDAU ABERDEEN
Huyu Mashaka anasema 'dumping' by the Chinese is a worse problem than corruption.
ReplyDeleteSerikali, wafadhili, wananchi na dunia nzima inatambua kwamba corruption (ufisadi) ndio kikwazo nambari moja ya maendeleo, yeye anasema Wa-China ndio kikwazo chetu.
Hii no comedy!!!
US Blogger # 2
Huyu bwana aliwahukumu China kwa kuuza bidhaa feki, kwenye interview anasema hana uhakika kama zile bidhaa zilitoka China.
ReplyDeleteWizi mtupu!!!
NITUMIE KISWAHILI ILI TUELEWANE KIDOGO, VITA PIA INACHANGIA HII CREDIT CRUNCH AND THE RECESSION. HATA RECESSION YA MWAKA 1939 KAMA SIJAKOSEA ILITOKANA BAADA YA VITA YA DUNI YA KWANZA NA HATA BAADA YA VITA DUNIA YA PILI KULITOKEA MATATIZO YA KIUCHUMI PIA. HII YA SASA IKO WAZI NA DHAHIRI ILA POLITICIANS HAWATAKI KULISEMA HILO ADHARANI NA KUWA WALISHAANZISHA VITA BSI NI LAZIMA WAMALIZIE. NI HIVI UCHUMI WA NCHI Z ULAYA UNATEGEME SANA PESA ZA MAFUTA ZA WAARABU, KAMA HMJUWI WAARABU NA WACHINA WANAWEKEZ PESA ZAO ZOTE KATIKA NCHI ZA AMERICA NA ULAYA HSA U.S.A NA U.K. WANNUNUWA BOND ZA SERKALI N ZA MAKAMPUNI MAKUBWA PAMOJA NA SHARE. WAARABU KWA PAMOJA WAMEKAA CHINI NA KUSEMA TUSIWEKEZE PESA WEST KWANI TUKIWEKEZA HUKO NIPESA HIZI HIZI ZINATUMIKA KUPIGA WENZETU HIVYO NI SSI NDO TUNAFADHILI HIZI VITA SO LET US STOP TO SEND OUR MONEY TO THE WEST. NDO PESA ZIMEKAUKA KATIK MABENKI YA WEST HIVYO HAMNA PESA Z KUTOWA LOANS EITHER KWA WATU ILI WATUMIE/STIMULATE ECONOMY AU KWA MAKAMPUNI KUENDLEZA BIASHARA HILO HALINA UBISHI VITA IMECHANGIA HII HALI
ReplyDeleteI have no much to say but we all have to know this economic crisis is very complex, no one can tell us exactly with outlining what really happened. However majority of us agree that mortgage backed security is the major cause of this monster.
ReplyDeleteOther causes which many economists agree are, lowered of federal funds rate at only 1% for more than a year which allowed huge amounts of "easy" credit-based money to be injected into the financial system and thus create an unsustainable economic boom.
There is also the argument that Greenspan actions in the years 2002–2004 were actually motivated by the need to take the U.S. economy out of the early 2000s recession caused by the bursting of the dot-com bubble — although by doing so he did not help avert the crisis, but only postpone it.
I am still wondering how could Iraq and Afganstan wars be the contributing factors of this crisis, even thought it may be possible due to a vicious circles but the chance is very slim. I agrre that Iraq increased the prices of gas but not the crisis.
Wenu
Mzee wa Ununio
Hapa jamani tusidanganywe, vita ya Afghanistan imefaidisha sana US na Britain. Unafikiri kwa nini wanang'ang'ania hadi leo? Nchi hizi zilikuwa zina tabu sana kupata morphines ajili ya matibabu na matumizi mahospitalini. Sasa Afghanistan ndio sehemu ambayo wameweza kupata kwa unafauu na ndio maana British Force wanalinda hiyo province inayoongoza kwa ulimaji wa popy. Haya mataifa makubwa hapo ni biashara ingawa wengine mtasema vita imeleta global economic crisis. Kumbukeni bila vita hakuna sehemu ambako America itauza silaha zake hasa za kisasa, huoni ndege zile zisikowa na rubani ndio mara ya kwanza zimetumika kwenye hii vita nazo zote zimetengenezwa na mmarekani. Vitu vyote vinayokuwa supplied kwenye forces zinata Britain na US. Tender ya kutengeza madaraja kule Iraq wamepewa makandarazi wakubwa wa Britain & US, pesa yote inarudi Britain & US. Vita hii imefaidhisha sana nchi hizi mbili kwa njia moja au nyingine kwenye revenue.
ReplyDeleteKwa wale mlosoma au mnaendilia kusoma uchumi mtafahamu kuwa financial crisis iliitokea Asia in 1990s iliisumbua sana dunia ya kwanza na hata kote, tena ilichukua siku moja tu kuporomosha markets zote za Asia, former USSR, Europe, Scandinavia and America. Pound sterling ilianguka sana sana, even french franc, Yen, US dollar, etc. zote zilianguka kwa siku ile moja.
ReplyDeleteMr. Mashaka, you can't blame the war for this economic crisis otherwise you don't know how the business cycle works. I'm economist and this economic crisis is part of business cycle.
Mr. Mashaka, you have to remember that the business cycle has two periods; the periods of boom and recession and these two periods succeed each other in market economies. A boom or recession tends to last for three to eight years, (and that BOOM period has already happened in the US). All economies fluctuate in business cycle, for a few years, growth is quite rapid, output and income rise, and unemployment falls. Then the cycle turns, growth slows (and decrease productivity). You have to remember that the increase in productivity in the USA in the late 1990s was cyclical, this means that the US economy as a whole was undergoing a BOOM in the latter half of the 1990s, and the increases started to disappear on 2003 because the boom was over. Decrease in productivity lead to lower income for US citizens, and that was the main reasons of mortgage crisis in America.
Mrs Hansen,
Oxford,
United Kingdom.
Mrs. Hansen, thank you for your contribution.
ReplyDeleteI do not know if you Swahili and if you watched the interview on daily news where Mashaka was titled 'mtaalamu wa maswala ya fedha' ie a guru in finance.
There he said dumping by the Chinese is worse a problem than corruption that exists in the country.
That is his ability to analyse weigh problems, do not be surprised with his mind set. He is most unlikely to respond to your very strong argument, this is not a man who can debate and defend anything.
A few weeks ago he condemmed the Chinese and convicted them for dumping but on the interview he said he is not sure if the sub standard products come from China.
You need to be reading his articles when you are looking for comedy and not when you are looking for serious economic discussion.
Tutaliwa kama Mardoff alivyowala Wall Street.
ReplyDeleteWizi mtupu.