Is the debt ceiling increase for US sending shock waves to the World Capital Markets?

Ateneo Professor on Entrepreneurship

Many newsrooms are flashing with declining share prices in major capital markets, supposedly on concern over the debt limit issue at the US.  This has been increased to  $16+ trillion last August 2011, and this limit will be breached soon (this October)  The US Secy of Treasury (and the Pres) has been pushing Congress to pass the law.

Many foresee the repeat of partisan politics which prevented the early passage of this law in 2011.  As a result US debt was downgraded

The current debate for the debt limit however is sending many share prices world wide on downward slide.  The US is still seen as the center for innovation, leadership, and financial strength. The US dollar is still as the currency of choice for trade and Central Bank Reserves  The US debt level, and the political uncertainty casts doubt on that perception.

I hope this issue is resolved soon.

Will this problem pose further threat on the US dollar and world capital markets?

Very Low FDI for the PHL, High Savings Though

An Ateneo Graduate School of Business Advantage

FDI to the Philippines was an all time low.  It is less than a billion and some of them came from reinvested profits.  However, local savings went up.  Rich savers were better than poor people, savings rate of private was better than the government;  the non banks companies were better off than banks in saving money.,

It raises an important issue in entrepreneurship:  which comes first, frugality or the prosperous business.

It is my theory, that savings, frugality comes ahead of everything else.  There could be no financial or capital markets without savings.  Savings comes ahead of others.

What do you think?

 What does the low FDI mean to local entrepreneurs?   Where would growth of PHL come from?  Who will invest in the PHL?

Here are the links to the article on savings
and declining

-data-show-rich-people-better-saving-money-134211324.html

jan-sept-fdis-drop-33-671m-says-bangko-072604283.html

I just came across a Germany website.  They are campaigning hard too for FDI!!

Please read:

Germany Trade and Investment Initiatives

What does this mean for PHL trade and investment missions;  our policy for attracting foreign investments?

How do we relate it to growing number of forum on startups in Asia?

Capital Markets Nose Dive -Headlines Everywhere, A Bloodbath

Every generation needs a revolution - an ENTREPRENEURIAL REVOLUTION.

The goal of entrepreneurship is value or wealth creation. However, we see discouraging news of wealth destruction everywhere. The top news sydicate reported a whopping $8.l trillion loss in market value of stock markets worlwide, all unnerved by twin events: downgrade of US credit rating, and jitters in Europe from Italy, Greece, Portugal and Spain all on brink of financial disasters.

In 2008, China was able to stave off the crisis by its pump priming efforts. The world looks up to China and Japan. But Japan is weakened by its tsunami disaster and Fukushima disasters.

Will the bloodbath in world capital markets stop? Will this affect the small entrepreneurs? Is small beautiful?