Business and Finance Information

Archive for March, 2007

Energy Crisis by Firlie Ganinduto

Some of this time since even before the end of 2006, many times I hear the problems of the world’s energy crisis is a significant impact on economic conditions both at the global or in local. One example of the impact of this crisis in the U.S. Subprime Mortgage which resulted in several large banks experienced large losses and the economic situation of most Americans toward a recession, which of course is affecting the global economy in other countries, including Indonesia.

All started from world oil prices soaring. In economic theory, prices are determined by demand and supply. Because oil is a natural resource that is not renewable, logically, the supply will not be able to grow, even likely to be reduced. However, demand will surely continue to rise as economic growth continued to increase in order to follow the growth of the developing world’s population continues. Read the rest of this entry »