It has a lot to do with Nigeria, directly or indirectly. If Asia is feeling the heat of the crumbling American economy , then it would be foolhardy to think that Nigeria would not feel the crunch. However, the question is how are we going to emerge from this? Are we going to be weaker or stronger in the long term.

The crumbling american economy should not be a surprise. The writing has been on the wall for a long time. With the Asians (mostly China) emerging as the major producer/manufacturers of the world while America turned more and more into a consumer/service oriented nation, its only a matter of time before there is a change of baton. Me thinks that that time is now.

Granted this American brouhaha would have (and is having) ripples in Asia but I foresee a situation whereby at the end of the day , after all said and done, a greater Chinese a la Asian economy would arise. The question is what would be the position of Africa in all of this.

One thing history has taught mankind is that there would be rise and fall of civilizations. We might just be witnessing one right now. America owes so much that the clock that keeps track of the debt ran out of digit space yesterday. they still trying to add more spaces to accomodate the growing debt. If U think that this is not a calamity, think again.

Finally:

One thing history has taught mankind is that there would be rise and fall of civilizations. We might just be witnessing one right now. America owes so much that the clock that keeps track of the debt ran out of digit space yesterday. they still trying to add more spaces to accomodate the growing debt. If U think that this is not a calamity, think again.

Granted, they owe, but they will pay it all back, at expense of their dollar value.

No one is insulated against a global crisis. Given America will feel the bigger part of the bite , and it may come out stronger or weaker for it . The question is if the value of the dollars fall and the price of oil continues to fall at this rate , will Nigeria be able to recover? American as shown that it is resilient in the past redirecting its focus and finding another strength.

The question we should ask - Is Nigeria ready for a world where Oil is possibly worth less that $80 dollars a barrel , is the banking sector insulated from the global crisis ?? Do we still have enough factors to continue to stimulate growth and job creation. ?? Please note that mammoth organizations like Zain ,and MTN received global finance to establish in Nigeria. The answer is hopefully Yes , Yes and Yes

Trust me even Nigerians abroad pray for Nigeria's progress every day and will rather come home to good positions for the greater part . Besides for those who look at Nigerians abroad and point and say now you will return to the poverty you ran from. Let me ask who will lose if Nigeria suddenly becomes flooded with this individuals and they start competing for the few jobs for highly skilled people . Hopefully it will be an economic boom and not just another higher percentage point on the unemployment index. trust me that pays the common man in no way at all.

Pray , World Pray, don't gloat

Pittbaby:


The question we should ask - Is Nigeria ready for a world where Oil is possibly worth less that $80 dollars a barrel , is the banking sector insulated from the global crisis ?? Do we still have enough factors to continue to stimulate growth and job creation. ?? Please note that mammoth organizations like Zain ,and MTN received global finance to establish in Nigeria. The answer is hopefully Yes , Yes and Yes

Oil closed at $78 today

OPEC is thinking about cutting output to bump up the prices. this financial crisis could have an effect on the nigerian budget for next year. don't expect that much of an oil windfall.

It will affect the budget for next year, thats for sure.

Will cutting output really change the fall?? I mean the reason for the fall has been mainly due to slow down in consumption.

I wouldn't be too alarmed by the recent fall. . .well maybe just a little.

All it would take for it to spike up again is the righting of the economic wheel.

Let me reiterate what I have said on another thread, the world economy contrary to
what the doomsday press might be reporting will go largely unscathed, and I mean
the 'real economy' and not the equity markets. The emerging economies, especially the
BRIC countries will cover any slack in the Western economies, which is not necessarily a
bad thing, as the hitherto lopsidedness of the world economy where America was responsible
for majority of the world demand might have landed us in a bigger mess at some future date.

Kobojunkie:

Will cutting output really change the fall?? I mean the reason for the fall has been mainly due to slow down in consumption.

it would spike the prices up a bit, kind of like creating an artificial scarcity.

I am not sure that would happen at this point. I believe part of the reason for the reduction in oil consumption is that companies and people have had to cut down on there oil budget. If the oil companies cut supplies to push up the price, I doubt that will work to force people to increase consumption but basically push them more into finding alternatives. I mean it is already cold in some states, and people remember how it cost them an arm and a leg to heat up their houses last winter. Usually consumption goes up around this time of year due to heating cost but it seems this year, people are more willing to wait to turn on their heaters, to cut down heating costs,and even companies are working on finding alternatives. It makes more sense to me that Opec, considering the state of the global economy today, would hold off on such plans as long as needed. Even the company I work for, a fortune 500 company, I not turning the heat high this fall.

I think cutting oil supplies in order to bump up prices is a bad and insensitive idea. If the world cannot afford expensive oil, why should we make it artificially expensive?
Im not an economist, but I think that if OPEC reduces output, and the price goes up, the countries will import less oil, and start looking for alternative power supplies, It makes sense to look for higher prices when the fundamentals of the global economy is strong, but when there are talks about a global recession, does it make sense,
It seems kinda greedy to me. Countries like Iceland are almost bankrupt because of the financial crises, and OPEC wants to increase their burden by reducing oil supply to them

OPEC is a cartel though, they don't really care

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=247316&version=1&template_id=48&parent_id=28

If Nigerian reserve is in US dollar is depleting drastically, they should know what to do just like what i did as a forex trader;
convert it to euro (d currency of the future) or pounds & move it to a "safe" haven

But have you not seen that the pound and the euro have equally fallen in this?? Or do you think this problem is an "AMERICA ONLY" problem? If you are a forex trader, please get up to date on the figures out there.

I agree with Bawomolo.

Cutting supply will create artificial scarcity for the commodity, therefore pushing the price up. “It also depend on how much cut OPEC is going to embark on”.

The question should be “what is the right price of crude oil” Some people might say because we’re depleting more than we’re exploring globally, and for that the price should be ~$200 to $300. Even with the current situation, OPEC might come up with the argument that there needs to be conservation of crude oil (To affect run out). And even with the current economic crisis…oil is too cheap, that the price needs to be raised above $100. Depend on what side you’re on; most people only care about the prosperity of their economy alone even at the detriment of others.

We all know people are scouting for alternative source of energy…but how feasible is it right now to create that source of alternative energy? People are used to one thing and that is crude oil. For people to change from crude oil mentality to other source of energy, the transportation lines have to be there, adaptability and sustainability have to clearly justify itself. I believe once supply is cut, demand will align with supply. Price will crop up a little bit to create market equilibrium.

The question should be “what is the right price of crude oil” Some people might say because we’re depleting more than we’re exploring globally, and for that the price should be ~$200 to $300. Even with the current situation, OPEC might come up with the argument that there needs to be conservation of crude oil (To affect run out). And even with the current economic crisis…oil is too cheap, that the price needs to be raised above $100. Depend on what side you’re on; most people only care about the prosperity of their economy alone even at the detriment of others.

HUH??

We all know people are scouting for alternative source of energy…but how feasible is it right now to create that source of alternative energy? People are used to one thing and that is crude oil. For people to change from crude oil mentality to other source of energy, the transportation lines have to be there, adaptability and sustainability have to clearly justify itself. I believe once supply is cut, demand will align with supply. Price will crop up a little bit to create market equilibrium.

DOUBLE HUH??

@ Kobo

What is it you don’t understand nor agree with?

The question should be “what is the right price of crude oil” Some people might say because we’re depleting more than we’re exploring globally, and for that the price should be ~$200 to $300. Even with the current situation, OPEC might come up with the argument that there needs to be conservation of crude oil (To affect run out). And even with the current economic crisis…oil is too cheap, that the price needs to be raised above $100. Depend on what side you’re on; most people only care about the prosperity of their economy alone even at the detriment of others.

The main reason for the inflation in price of oil over the past couple of years has been the falling dollar and the increased demand for the product, not necessarily depletion. OPEC decreasing supplies due to some sudden need to conserve is not going to work.

We all know people are scouting for alternative source of energy…but how feasible is it right now to create that source of alternative energy? People are used to one thing and that is crude oil. For people to change from crude oil mentality to other source of energy, the transportation lines have to be there, adaptability and sustainability have to clearly justify itself. I believe once supply is cut, demand will align with supply. Price will crop up a little bit to create market equilibrium.

Sure, one can say alternatives are not feasible right now but we already see a reduction in demand, meaning people are looking elsewhere and for better ways to manage their oil budget eg. An average car owner who used to spend an average of $200 on gas can not spend one quarter of that amount by choosing a car that allows him up to 70mpg without much sweat and this is an affordable car, considering the average cost of cars in America. Sure, cutting supply is good but cutting supply to cause a rise in price is ridiculous considering the global economic crisis we see today.

9ja economy is better than that of US.

Our companies are growing while theirs are crumbling.

wishful thinking

sly-k:

Nigeria economy is better than that of US.

Our companies are growing while theirs are crumbling.

sly-k:

Nigeria economy is better than that of US.

Our companies are growing while theirs are crumbling.

E be like sey U dey smoke Igbo

Nigeria should provide all its citizens with an Economic Stimulus Check. Just like was done in the US. Just as a precautionary step to avert the pending inevitable economic crises that is about to hit Nigeria, My my appologies I forgot I was talking about Nigeria.

Kobojunkie:


The main reason for the inflation in price of oil over the past couple of years has been the falling dollar and the increased demand for the product, not necessarily depletion. OPEC decreasing supplies due to some sudden need to conserve is not going to work.

Reasons for inflation have to do with;
1. Spike in demand of for crude oil and its derivatives
2. speculation / sentiments for depletion on global crude oil
3. Instability all around the world


But have you ever ask yourself why it is getting riskier everyday to get crude oil? It is because most of the oil within our surrounding are already tapped out or getting to that extent. To get oil, most people have to result in offshore drilling where it is getting more and more expensive to drill everyday.

My believe is that crude oil is not regenerating itself; meaning that all those crude oil we’ve used in the past are not coming back. We all know that it is even more challenging gathering and recouping oil resources that lies underneath water compare to drilling on land. It requires innovative technology which translates into a lot of capital. Let us not forget about the risk involve in drilling offshores (environmental risks that companies/violators have to face due to chemical or oil spillage, risk of no hydrocarbons in the particular drilling area).

My point is, if there is no crude oil within anymore, people / companies have to go offshore to drill. To do that, the costs have to justify it means.

My guys the thing affect Nigeria bad

It's a global issue,
it started phrum USofA!!

Moyola:

It's a global issue,
it started phrum USofA!!

are you sure?? I mean I am for people taken full responsibility for their own part in the whole, are you sure you are doing exactly that when you claim it started in US?

of course other countries contributed in whatever way, aint sayin itz only Amerika,

As with America, it all started with the people who want to buy things they couldnt afford. Rather than save up 'til they could, they applied for loan eg. a new car, new furniture, tech. gadgets, home etc. Normally, such people would be turned down if their income suggest they would be unlikely to pay back the loan. But in recent years, lenders had so much money to lend and had methods often deceptive methods of making profits, 2 cut da lung stori short, lenders offered to lend money to unqualified borrowers.

So now, a record number of U.S. homes are in foreclosure. The number of repossessed cars has increased 10% last year and expected to rise an additional 7-10% this year.

Moyola:

of course other countries contributed in whatever way, aint sayin itz only Amerika,

As with America, it all started with the people who want to buy things they couldnt afford. Rather than save up 'til they could, they applied for loan eg. a new car, new furniture, tech. gadgets, home etc. Normally, such people would be turned down if their income suggest they would be unlikely to pay back the loan. But in recent years, lenders had so much money to lend and had methods often deceptive methods of making profits, 2 cut da lung stori short, lenders offered to lend money to unqualified borrowers.

So now, a record number of US. homes are in foreclosure. The number of repossessed cars has increased 10% last year and expected to rise an additional 7-10% this year.

Well said, and all the foreclosed homes and repo cars, who will buy them, when they dont have the money, they will ebd up selling for next to nothing and people like me cld buy and come and resell on Nairaland.

oil closed today below $70.00 . Hope Naija kept some of that windfall to prepare for the shortfall ahead

Moyola:

of course other countries contributed in whatever way, aint sayin itz only Amerika,

As with America, it all started with the people who want to buy things they couldnt afford. Rather than save up 'til they could, they applied for loan eg. a new car, new furniture, tech. gadgets, home etc. Normally, such people would be turned down if their income suggest they would be unlikely to pay back the loan. But in recent years, lenders had so much money to lend and had methods often deceptive methods of making profits, 2 cut da lung stori short, lenders offered to lend money to unqualified borrowers.

So now, a record number of US. homes are in foreclosure. The number of repossessed cars has increased 10% last year and expected to rise an additional 7-10% this year.

Thats right.

Sometimes i wonder if it was foolishness on the part of the western world or if thats just their genetic makeup.

Imagine banks writing to individuals to get a loan and practically enticing people with "regular jobs" to get a car,house and many other properties worth hundred of thousands to pay back over years and i have always wondered what will hapen if this person defaults in any way by virtue of unforseen circumstances.

Believe this or not. the global failing economy will only affect Nigerian in terms of crude exports and i don't see this affecting the Nigerian economy as a whole since we have neverf felt the impact of this crude oil sales anyway.

Remember that Nigeria is mostly a cash economy where the slogan of cash and carry rules. Until recently ehere some firms encourage you to get properties and pay instalmentally but you still need to make some downpayments.

And our banks will never give loans except you have strong collaterals to back it up and trust them to waste no time in recovering their money.

Our banks have merged and therefore the issue of bailout has been tackled so in one way or the other, Nigeri has executed a proactive measure in curbing this global economy saga.

In view of this, i have a strong believe that it is time for Nigeria to take advantage of the present situation to metarmophous into a global economy giant.

I rest my case.

Toks

Toks2008:

Thats right.

Sometimes i wonder if it was foolishness on the part of the western world or if thats just their genetic makeup.

Imagine banks writing to individuals to get a loan and practically enticing people with "regular jobs" to get a car,house and many other properties worth hundred of thousands to pay back over years and i have always wondered what will hapen if this person defaults in any way by virtue of unforseen circumstances.

Believe this or not. the global failing economy will only affect Nigerian in terms of crude exports and i don't see this affecting the Nigerian economy as a whole since we have neverf felt the impact of this crude oil sales anyway.

Remember that Nigeria is mostly a cash economy where the slogan of cash and carry rules. Until recently ehere some firms encourage you to get properties and pay instalmentally but you still need to make some downpayments.

And our banks will never give loans except you have strong collaterals to back it up and trust them to waste no time in recovering their money.

Our banks have merged and therefore the issue of bailout has been tackled so in one way or the other, Nigeri has executed a proactive measure in curbing this global economy saga.

In view of this, i have a strong believe that it is time for Nigeria to take advantage of the present situation to metarmophous into a global economy giant.

I rest my case.

Toks

Inasmuch as i agreed that those banking officials shd be nailed for fraud, cos they know what they were doing, i think the consumers as well shd be liable, common, it is only a common sense, when you are making $$30,000USD a year and someone said they will make u qualify for a $600,000 home with cars, and some other goodies, even a fool will know there has to be some catch, but i guess, they were all see opportunity to live "dreamt bream" or to show the other person, i cld live large too, remember what they said, if it looks too good to be true, it probably is.

Toks2008:


Believe this or not. the global failing economy will only affect Nigerian in terms of crude exports and i don't see this affecting the Nigerian economy as a whole since we have neverf felt the impact of this crude oil sales anyway.

Remember that Nigeria is mostly a cash economy where the slogan of cash and carry rules. Until recently ehere some firms encourage you to get properties and pay instalmentally but you still need to make some downpayments.

And our banks will never give loans except you have strong collaterals to back it up and trust them to waste no time in recovering their money.

Our banks have merged and therefore the issue of bailout has been tackled so in one way or the other, Nigeri has executed a proactive measure in curbing this global economy saga.

In view of this, i have a strong believe that it is time for Nigeria to take advantage of the present situation to metarmophous into a global economy giant.

I rest my case.

Toks

Yes, the Nigerian economy is so strong that the Nigerian Stock Exchange is right now planning for a 300 BILLION NAIRA bailout for a strong economy. I can see how Nigeria is insulated and all is well. So do tell us why you gullibly sit by while your government bilks you and your children of 300 billion naira in the name of economic recovery? Where is that money coming from? Let me guess, the oil windfall of yesterday?? Let us do the math here. If Nigeria made this much and now it is planning to use this much to "RESCUE it's economy" How much is left in this STRONG ECONOMY that is not affected much