Summary on the world economy, please proofread, thanks in advance

Question

Hi I am from Germany. I have to hand in the summary on Monday and I need somebody to proofread. Thanks in advance. I welcome criticis!!!!

The world economy has not developed in the direction of a long awaited recovery. Right now nobody knows where the global economy is heading and every fact influencing its course is analysed closely. Its development is a very important issue linked up with important decisions such as the upcoming election in the United States.
Recently the U.S. economy, being of vital importance for the global economy, has started to perform poorly judging by the news from the America.

Unfortunately there are no countries able to step up to carry the global economy. Europe’s growth rates are struggling not to stagnate and Japan’s and Korea’s growth is build on weak components meaning it is not going to be very sustainable in the long run. From Germany to Japan consumption is low due to cautious consumers.
Besides companies not hiring, all causes for the consumer’s unwillingness to spend are not obvious and clear.
This situation is very critical especially for the U.S., who are greatly dependent on positive impulses from the world economy to bring their downswing to a halt.

Originally U.S. consumers were animated to spend throughout the recession of their economy by means of low interest rates, dictated by Alan Greenspan and tax cuts by the Bush administration.
The plan that increased consumer spending would be followed by job growth once the tax cuts would come to an end did not work out.
Whereas Alan Greenspan is pointing at the high oil prices for excuse, critics like Marc Faber say that he took the U.S. economy’s chance to cleanse itself from “excesses” created during the upturn, with low interest rates.

Indications for continued global stagnation cause Merrill Lynch to forecast the global economy not to rally anytime soon, recommending stocks which are likely to profit during low growth periods.
The positive side to the weak world economy is that in the long run its inevitably going to balance itself. Marc Faber expects the rebalancing to be initiated by a crisis which U.S. consumers can keep off by spendig once again.

MountainHiker · Accepted Answer

Hi I am from Germany. I have to hand in the summary on Monday and I need somebody to proofread. Thanks in advance. I welcome criticis!!!!

Hi,

Welcome. I will see what I can do quickly. You certainly left it to the last minute. Rather than going through with all the bolding etc., you will have to compare line by line, word by word.

The world economy is still having difficulty and has not begun its robust expansion. While people continue to analyze the global economies, the experts remain uncertain as to where the global economy is heading. Its development is a very important issue linked up with important decisions such as the upcoming election in the United States. Recently the U.S. economy, being of vital importance for the global economy, has started to perform poorly judging by the news from the America.

Unfortunately there are no countries able to step up to carry the global economy. Europe’s growth rates are struggling and Japan and Korea’s growth is built on weak components [you need to explain what you mean by weak components] meaning it is not going to be very sustainable in the long run. From Germany to Japan consumption is low because of cautious consumers.

Besides companies not hiring, the reasons for consumers remaining cautious is unclear. This situation [cautious consumers?] is very critical especially for the U.S., who are greatly dependent on positive impulses [?] from the world economy to bring their downswing to a halt. [My comment to you: Actually, the US consumer has maintained the US economy during the last 3-4 years while the business sector has been recovering. But the challenge for the US consumer is that their lower taxes and lower interest rates have already provided their stimuli. Now there is no additional "gas" for the consumer. In other words, the consumer is spent up, not pent up. You cover this in your following paragraphs.]

Originally U.S. consumers were encouraged to spend throughout the recent recession because of benefits stemming from low interest rates, dictated by Alan Greenspan, and tax cuts by the Bush administration. The plan that tax cuts would cause increased consumer spending that would cause job growth did not materialize. The first part of the equation worked, but now that the tax cuts have ended, the US finds itself with a questionable employment outlook.

Whereas Alan Greenspan is pointing at the high oil prices for excuse, critics such as Marc Faber say that Greenspan took wasted the U.S. economy’s chance to cleanse itself from “excesses” created during the bubble. Rather than letting the economy follow its natural course, Greenspan dampened the immediate effects of the recession through low interest rates and now the economy continues to languish.

Indications for continued global stagnation caused Merrill Lynch to forecast the global economy will not rally anytime soon and to recommend stocks that are likely to profit during low growth periods.

The positive side to the weak world economy is that in the long run its inevitably going to balance itself. [And how does this positive side to a weak economy differ from a strong world economy? Wasn't it Keynes who said in the long run we're all dead?] Marc Faber expects the rebalancing to be initiated by a crisis which U.S. consumers can keep off by spendig once again.

Your essay still needs some work. You need to better explain Faber's comments in more detail.

MountainHiker

DaCat · Answer

Thank you very much. your comments helped a lot, since it's difficult for me to put myself in the reader's position. I will add a second summary shortly.
both summaries are based on newsweek-articles. The issue that came out August 30th.

DaCat · Answer

my second summary, I wrote today, which i have to turn in tomorrow at noon, german time.

Daiei used to be Japan’s dominating retailer. (It is )A company, so many people dependent on that it would be a disaster if it closed, that is why although indebted by more than $10 billion it got sponsored by Tokyo.

Yet, perhaps Daiei’s dynasty comes to an end.

Japan’s prime minister Koizumi pushing for a more free-market-economy has been the main influence on Daiei’s fate by making it harder for banks to give loans to inefficient companies.

Now Daiei’s major banks want the company to cooperate with the government-run Industrial Restructuring Corporation, which was initially launched in 2003 eying Daiei’s problems.
The IRC would probably carry out a transformation of Daiei similar to the successful reconstruction of a company named Kanebo. Kanebo was mainly split into major and minor components with the minor components being sold or closed. In Daiei’s case such a transformation would be very costly.

Past week a Wal-Mart representative said that they are looking at the possibility to buy Daiei. In case of a takeover by Wal-Mart, Daiei is probably rationalized in similar fashion to Seiyu’s, a company Wal-Mart bought a share of in 2002 and whose economic efficiency was raised successfully.

Right now Daiei is not seeking support by the IRC. Instead it is introducing its third revival plan in 3 years, most likely in vain.

The socio-economic circumstances in Japan make it practically impossible for big concerns to break down, consequently making it impossible for the economy to cleanse and to restructure itself.
Therefore the IRC was established to fight this kind of “market failure” by reorganizing companies which under normal circumstances would not be able to participate in the economy.

So far Daiei was able to escape involvement from the IRC, because people were sceptical about it.
Now, there is the chance that their view might be turned around by a turnaround of Daiei.

Still, the question is whether Japan would accept a global giant like Wal-Mart as its leading retailer.

MountainHiker · Answer

Daiei used to be Japan’s dominating retailer. (It is )A company, so many people dependent on that it would be a disaster if it closed, that is why although indebted by more than $10 billion it got sponsored by Tokyo. [don't understand your sentence. I think you meant something like: Although Daiei has over $10 billion in debt, Daiei is a large employer in Japan and thus the government has provided a bail-out package.???]

Yet, perhaps Daiei’s dynasty comes to an end.

Japan’s prime minister Koizumi pushing for a more free-market-economy has been the main influence on Daiei’s fate by making it harder for banks to give loans to inefficient companies.

Now Daiei’s major banks want the company to cooperate with the government-run Industrial Restructuring Corporation, which was initially launched in 2003 eying Daiei’s problems. The IRC would probably carry out a transformation of Daiei similar to the successful reconstruction of a company named Kanebo. Kanebo was mainly split into major and minor components with the minor components being sold or closed. In Daiei’s case such a transformation would be very costly.

A Wal-Mart representative said this past week that they are looking at the possibility to buy Daiei. In case of a takeover by Wal-Mart, Daiei is probably rationalized in similar fashion to Seiyu’s, a company Wal-Mart bought a share of in 2002 and whose economic efficiency was raised successfully.

Right now Daiei is not seeking support by the IRC. Instead it is introducing its third revival plan in three years, most likely in vain.

The socio-economic circumstances in Japan make it practically impossible for big concerns to break down, consequently making it impossible for the economy to cleanse and to restructure itself. Therefore the IRC was established to fight this kind of “market failure” by reorganizing companies which under normal circumstances would not be able to participate in the economy.

So far Daiei was able to escape involvement from the IRC, because people were sceptical about it. Now, there is the chance that their view might be turned around by a turnaround of Daiei.

Still, the question is whether Japan would accept a global giant like Wal-Mart as its leading retailer. [This is an odd way to end a story.]

DaCat · Answer

@[This is an odd way to end a story.]

this is how the original text ends:

But one wonders if Japan is ready to take the next step, and accept a juggernaut like Wal-Mart as its new retail market leader.

MountainHiker · Answer

DaCat,

But their sentence shows some continuity. The Japenese retailer could do this or that. And the IRC might do this or that. But one wonders if Japan is ready to take the next step, and accept a juggernaut like Wal-Mart as its new retail market leader.

I found your last sentence to be a bit more abrupt. But maybe it is just me.

Don't worry about it.

MountainHiker

DaCat · Answer

So far Daiei was able to escape involvement from the IRC, because people were sceptical about it. Now, there is the chance that their view might be turned around by means of a successful intervention of the IRC.

DaCat · Answer

thanks for your help again mountainhiker. I am probably going to make an A or something.

what I don not get is that you don't get my first paragraph of the 2nd summary. could you comment on it once more?

thanx

MountainHiker · Answer

DaCat,

Daiei used to be Japan’s dominating retailer. (It is )A company, so many people dependent on that it would be a disaster if it closed, that is why although indebted by more than $10 billion it got sponsored by Tokyo.

It doesn't flow well at all.

Here what I learn in the order that I learn it. I will put in my comments, which admittedly are in poor form. But I hope these smart-aleck help to reveal the problems.

1) Daiei used be to Japan dominant retailer (okay, big deal)
2) It is a company (no kidding)
3) Many people depend on it. (ok)
4) Be a disaster if it closed (any company closing is a disaster to those affected)
5) that is why something? (got to wait to find out)
6) It has $10 billion in debt (that's not good)
7) It got sponsored by Tokyo (what do you mean it got sponsored? What does Tokyo have to do with this? Why is a city sponsoring a company? And what is the benefit of the sponsor?)

I think you meant to say....

Daiei was Japan's largest retailer. After many years of mismanagement, Daiei racked up $10 billion dollars in debt. Normally, such a situation would prove fatal for a company. However, Daiei is a large employer in Japan and as such the federal government has decided to protect the company from bankruptcy in order to save the jobs.

Granted that is wordy. Perhaps you can shorten it. But at least I can understand it.

I hope that helps.

MountainHiker

Summary on the world economy, please proofread, thanks in advance

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