Skip to main content

Posts

Showing posts from October, 2008

Improvement Project of Science Construction CS

Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi...
Post a Comment
Read more

The avalanche in Wall Street

The avalanche in Wall Street and burses all over the world is the sole point of discussions everywhere. In fact poor are bearing the burnt when they go to the market and fail to understand what relation the price of rice or cooking oil has with the stock market. So the middle class are, though most of them have burnt their fingers while participating directly investing in equities or through the mutual funds route. The worst sufferers are Americans, though the sub-prime crisis was initially caused by those who took loans but failed to pay. It is obvious that they have spent the money for procuring more goodies or using it for speculative purpose. But now their speculation having turned out to be abysmally wrong, many of them are filing for insolvency or bankruptcy taking with them till date no less than dozens of reputed bankers. The current symptoms suggest another great depression like 1929-30s is surfacing fast. Though the socialistic measure of pumping exchequers money into the b...
Post a Comment
Read more

Oil and Hormuz Strait Pt………III

Earlier I discussed about the strategic importance of Hormuz Strait in relation to global oil supplies. It is equally sensitive to political developments in any of those counties surrounding it, specially Iran. There is an alternative transportation route for oil bypassing this strait out of gulf region. The route is 1190 Km (745 miles) long East-West Pipelines through Saudi Arabia stretching to Red Sea. But this pipe line at best can handle five million barrels per day, that makes one third of the oil what oil tankers can handle. So, additional capacity is required to be created but that would increase the transportation cost. At the same time the pipe line would relieve the strait of its heavy tanker’s traffic and hazards involved. But this move will be unwelcome by many Gulf States , since this will benefit the Saudi Arabia, as it will receive the transit fees for the oil transported, paid by them. There are reports, that Iran threatened closure of the Strait of Hormuz is a glob...
Post a Comment
Read more

The US Rescue Package!

The Bush Government's rescue operation through legislation of bill to address the current avalanche in US economy, may be a welcome relief but not a solution. This is observed by the George Soros, the investment Guru. Here is what Geroge Sores wrote about the rescue package in Financial Times.com : The emergency legislation currently before Congress was ill-conceived – or more accurately, not conceived at all. As Congress tried to improve what Treasury originally requested, an amalgam plan has emerged that consists of Treasury’s original Troubled Asset Relief Programme (Tarp) and a quite different capital infusion programme in which the government invests and stabilises weakened banks and profits from the economy’s eventual improvement. The capital infusion approach will cost tax payers less in future years, and may even make money for them. Two weeks ago the Treasury did not have a plan ready – that is why it had to ask for total discretion in spending the money. But the general i...
Post a Comment
Read more