Thursday, May 21, 2009

Background Info! Goings On With Your Stock 2

Without being too academic, perhaps the reasons for the above mismatch can de adduced to the following official reasons:

- the per capita income computation is inaccurate as it did not take into account the informal sector of the economy which is quite substantial

-the income strata is skewed i.e. very small percentage of the population control the economy whereas the rest of the people live in abject poverty

- forced savings especially in the formal sector of the economy which mandated
employers of labour to register its staff under the Pensions’ Act of 2004 thus releasing addition funds in institutional investors hands

-increase in country’s revenue leading to high government spending with oil prices rising to the dizzy heights during the period as in the case of the Gulf War period of the early 90’s.

-gains of democracy (have you noticed that the politicians have abandoned that phrase of recent)

- increase in economic development though some other economic watchers have stated that the economy only experienced growth and not development (whatever that means)

Actually the official reasons are inexhaustible, but then these are the ones I can readily recollect right now

Can you come up with additional official reasons? Feel free to come up with these – all of us can do with some additional knowledge...

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