Wednesday, November 26, 2008

I am not a links spammer!

I am not a links spammer. I am collecting information relevant to international trade and cross cultural management behaviour. Perhaps some bankers are unhappy about that? Boo hoo.

For example, it is my opinion that market fundamentals in BRIC countries are quite good at the moment regardless of how broke banks appear to be in western countries.

Their cash reserves are quite high even in the west especially the excess of 7 trillion USD the US government has promised so far to bail so many US banks out right now.

Whether or not they choose to extend credit to their foreign trading partners has not often been written into the contract of the bail out and at this time cyclical demand is determining a slowdown. However trade credit requests are not being publicized.

While BRIC banks hold lots of cash reserves it is not for bailing out western banks either in my opinion it is needed to confirm credit issuances on import and export orders.

For what other purpose would banks hold cash reserves in excess of requirements?

No comments: