Saturday, October 17, 2009

China and USA GDP

It is clearly seen in the figure that Macroeconomic trends - Economic growth - Evolution of GDP of China was more influential than USA. This means that China is more profitable institution than USA. It also notable that China’s GDP in every succeeding year was increasing. This means that most investors believed that China is more profitable than United States of American. On the other hand it is also notable that USA has decreasing GDP from 2004 to 2008 which is not very favorable to their institutional result the USA government have to work hard to improved the said data or else it will lead to a more worse scenario for their country.

1. The USA government has to develop reputations and impose a good image to the market and to their neighboring country to gain positive feedback.
2. The USA CEO has to review basic knowledge on accountancy and make new strategy to gain investors trust. This is because reputation was not fully satisfied.
3. For China government your patients and new trends of marketing really rock the world keep it up and continue to develop new trends and invention. (Science and technology really help)

Note: The figure was formulated from the OECD data.

Saturday, October 3, 2009

The enough misery stamps before a star bankrupt.

Investing from a certain company or firm is one of the risks done by the investors but before engaging with the institution precise measurement for the profitability, earnings per share, equity valuation, market value, Okun laws, and etc were done.
Though this measure was done by the investors, the risk is still enveloped in investment. Bankruptcy of institution is still not measurable because forecasting of profits and earnings for future is still imaginary. Though there is a formula for forecasting or trends for the future earnings, 100% efficiency are still unmet. Meaning if bankruptcy was declared investors are the losers of the battle field and they are stamps and misery is not enough to overcome their failure.
Generally success and failure of the firm or company depends on the tactics or strategy of the CEO however the CEO can also manipulate everything. They can make a good balance sheet for presentation but the realities are behind the actual settings. Investors have to be more observant and be keen on the balancing the financial statements. Good accountant and econometrician will guide investors in the nice track of the battle of business.