The Position of Economics

Can a Brand, Can an Organization¸ Can a Government, Can a Country be blamed, I believe not as the result of the situation was the of various vortexes that affected the globalized economy as thereof, the vortexes collided with epic force it too each another, the result was a “Hybrid Vortex” (all the vortexes added up) – that played out across world economies, anyway if we do play the “blame game” what would actually be solved? As the situation and experience would still exist,

In this globalized economy a proverbial “sneeze” – results in a chain over events that are played out in various unique countries, industries, and to clients and to customers as individuals as households across the world over,

The practice of Securitization – this means a Financial Institution would have a book of loans that are sold more commonly to an SPV (Special Purpose Vehicle) and the SPV acquires the loan – this practice is extremely dangerous and short term focused (when a Market/Economy is based on an excess level (Supply) of credit) as played out in global terms which manifested into a situation in which the level and quality of the Securitization was diluted, an AAA+ loan was only a AA level type (and it was possibly less than that) that is  which was a dangerous situation indeed. South Africa has the Regulations and the Relevant Acts and Legalities in the Supply and Level of Credit there is the National Credit Act (NCA) and, and also those whom provide advice in a Financial Capacity on behalf on the Financial Brand must be FIAS compliant, there is also the FICA aspect as well, which serve as a means of Custodianship

The Heart and Soul of an Economy

 We live in a globalized economy.

An economy is made up of many different subsets (some are variables and some are constants) but each and every economy is made up and influence accordingly. Sometimes is it direct or indirect – They Heart and the Soul of an Economy is Petrol and Electricity – the two have a direct impact and an indirect impact on the economy and influence individuals, brands and organizations to act accordingly.

If the combined cost is higher in average to the Global Cost (i.e. The Petrol and Electricity Prices in one country is too high in comparison to a globalized world) the production and as a result exports would be impacted upon because it will cost much too produced the goods/services in that country, and then to be exported, and will wouldn’t be cost effective for the another country to import the goods/services, when the same quality or better grade of quality can be sourced from elsewhere.

Everyone is impacted on by Petrol and Electricity – A financial institution (i.e. Bank) has to take money and deliver it to an ATM, Even an I.T start-up is depended on Electricity. The Internal stakeholders (i.e. Staff) of a Brand/Organization use transport to travel to work. The Phone, PC and Notebook which are used which require Electricity.  Increasing the cost of one has a direct impact on you, as well as other individuals, as well as Brands and as well as Organizations as the prices of most goods and services do appreciate.