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[Its_me]

[FONT=Garamond]I hope someone out there can help me ...
please couple of quick questions...

1) What is meant by the equity for debt swap of the 1990s

2) Why is equity financing the lesser of the two evils

3) What is debt sustainability problem

4) explain the debt servicing burden

5) How do economomists use the analysis of CAD as % GDP figures


THANKS TO ALL WHO LOOK

EXTRA THANKS TO THOSE WHO THINK ABOUT HELPING ME

I LOVE EVERYONE THAT REPLIES[/FONT]

 

[azza_3761]

1) I think the equity(or asset) for debt swap of the 1990's was a way in which the Asian countries lowered the amounts of debt in their countries due to the Asia Crisis. I this is the one your talking about i suggest you look up The Asian Crisis on google
2)?
3) Debt sustainablility problem occurs when net foreign debt becomes >40% of GDP which is seen to be unsustainable( which aust proved wrong during 1990's)
4) As debt increases more interest payments need to be paid, leading to higher levels of CAD leading to higher levels of repayments etc.
5)
Hope this helps.

 

[jonnathann]

equity financing is preferable compared to debt financing because:
it stimulates the economy with the utilisation of resources and labour, so yeh it would reduce unemployment and hopefulli use domestic resources
returns depend on profitability, so returns aren't assured to b a certain level
not all returns are paid as sum would stay in here
hmm..not sure wat else..that's about it

 

[Rorix]

can we get a policy against people who as their first post with no prior contribution to the forum post a list of questions which could be reasonably easily found in a textbook or by a simple web search?

 

[KungPow]

If you haven't done your homework, you really shoudn't depend on us to do it for you.