EU Summit Message for World Market on 9th December 2011

Finally Europe is again prepared for Austerity plans also keep eye on fiscal deficit exceeds 3%. Also Europe Summit is planning to give additional 200 billion euros to the International Monetary Find (IMF) to lend to distressed European sovereigns.

Euro zone is also planning to have a kitty of 500 billion euro to save their distress banks.

As per IMF chief , Euro leaders also planning to have 3 point agenda.

No. 1 Consolidate the fiscal union

No. 2 Accelerate the European Stability Mechanism (ESM)

No. 3 Add to the resources of the IMF by an amount of USD 270 billion

All above steps definitely a good step in saving Euro zone for a while. But is it really enough to save completely. Then Answer is No. because Euro debt is so big that it will take several years to sort out and a big time for austerity plan.

Definitely equity market may take a swing for few percentage but let see how long it will hold.

Even UN economists predict 2nd recession of global economy

The 2012 World Economic Situation and Prospects (WESP) report, which complied by UN economists, said 2012 would be crucial in shaping the economic future.

They predict that developing nation may expand by 5.4 in 2012 and 5.8 in 2013.

High unemployment in development country adversely affecting growth and fiscal austerity plans to check high public debt.

Again 2012 is just a big danger to world economy for second recession in a row. How deep it would be or what would be parameter to handle that is still a big worry for work economy .Will it bring a end of capitalism thinking?

US Debt + Europe debt is so big that developing nation even can't help much .They having much bigger space in overall world economy.

One thing is sure if this second recession comes it will surely have huge impact on world equity market and real state market in developing countries.

So better ready for it , even if it is having 50-50% chance , better be invested in safe fund like FDs, Government bonds, gold , less exposure to equity and real state market.