This article states that the price of crude oil has been decreasing since unemployment claims in Europe are unstable, thus showing little improvement in the economy. On the other hand, oil companies have had increased inventories than what they need, therefore, this is another reason for lowered prices. While the US dollar has been getting stronger and the oil is backed by our green, therefore, oil is getting expensive for foreigners. All this leads to a lower price for oil.
Overall message from this article, the economy is still not recovering to go back to "normal" prices.
Friday, April 9, 2010
More than 200,000 jobless counting on an extension
In my last post we have seen how the law makers were not able to extend the date for unemployment insurance. The deadline has passed by and now more than 200000 Americans are awaiting for the extension of the deadline by the lawmakers. More than a million people could lose the benefit if the senate doesn't act swiftly. On such circumstance, senators are looking forward to monday to get the first vote to get the date extended until may. The final vote may come later next weeks. Just to keep updated, though the economy is recovering the unemployment is still stuck at 9.7% and the average unemployment duration is 31.2 weeks. Hope this article helps to follow up the preceding article.
10 Tax Tips for the Unemployed
There are still about 15 million people out of work. "Worries and misconceptions about taxes among the unemployed may be one reason the IRS statistics show returns are coming in slower this year." Some people without jobs may think that they don't have to file, but on the contrary if these people are receiving any type of income they must report it. That being said... "The silver lining is that a drop in income can make it possible to claim credits and deductions that were unavailable before, and could lead to a bigger refund than you expect."
72 and still working. How to retire?
This article is about Doris Partridge, a 72 year old woman who is still working. I chose this article because it is interesting to hear different peoples stories in this time of crisis. Partridge thought she would have been retired by now, but with the troubled economy, she doesn't think it would be wise to leave.
New college grads to make less $$$
This article talks about the fact that current college graduates are going to get paid less money compared to last year. The difference is that college grads this year are having more job opportunities but getting paid a lot less. The average salary for students who have Bachelors degrees are down 1.7% which equates to $47,673 compared to $48,515 in 2009. For students who have liberal arts degrees, there average salary declined the most with 8.9% which is around $33,540. When it comes to specific areas business management went down 8% to $42,094 and jobs in the marketing field are down 2.1% which is $42,710. On the more positive side technical degrees are in high demand with computer related degrees increasing to 5.8% to $58,745, as well as electrical engineering increasing 3% to $59,326. One surprise is both salary's for finance majors and accounting students are slowing increasing at 1.6% and 0.4%.
Big Banks Move to Mask Risk Levels
About 18 banks have found a way to better their image to customers by publicly releasing their debt data each quarter, which looks significantly lower compared to their boosted levels of debt in the successive quarters. Since banks excessive borrowing was one of the main causes of the financial crisis, banks have become very sensitive to their levels of debt because they are worried about their stock and credit ratings. Consumers are unaware of all the actions going on in the bank, and does this actually build up their ratings? Are banks risk levels still to high, not adapting to the financial crisis?
Unemployment and Inflation Rise in Europe
This article discusses the rise in some of the vital components of Europe's economy in the month of February. Countries included in this article are the 14 that currently use the Euro as their form of currency. These countries saw unemployment rise to 10 percent in February, which is high even for U.S. standards. Also these countries saw an increase in inflation which economists believed had to due with an increase in food and oil prices. This makes sense in the cold months of February because demand for oil increases, and the cost of transporting fresh fruits and other foods increases.
As far as the unemployment rate goes the highest rate of a European country was in Spain where unemployment was 19 percent. The lowest country was the Netherlands which was at four percent.
As far as the unemployment rate goes the highest rate of a European country was in Spain where unemployment was 19 percent. The lowest country was the Netherlands which was at four percent.
Thursday, April 8, 2010
Bernanke says Nation Must Take Action Soon to Shape Fiscal Future
Chairman Bernanke expressed his concerns this week about the aging populace and what it will mean for the economy. He comments on the fiscal side of economics and warns that something will have to be done in order to sustain the older generation. Bernanke spoke about the dangers of Social Security and Medicare to the national deficit over the years.I think that our generation will not be able to rely on Social Security or Medicare for our life after retirement.
Another major concern of Bernanke's was the amount of time the unemployed have been without jobs. He worries that the longer people are out of work, the more their skills deteriorate, and the less likely they will get hired at a later date.
The last major part of this article was about not allowing companies become too big to fail, and using the Federal Reserve to prevent asset bubbles such as the housing market. The problem with this is that asset bubbles are hard to predict and so I believe that the Federal Reserve is limited in how much they can help protect the economy from a collapsing asset bubble.
Another major concern of Bernanke's was the amount of time the unemployed have been without jobs. He worries that the longer people are out of work, the more their skills deteriorate, and the less likely they will get hired at a later date.
The last major part of this article was about not allowing companies become too big to fail, and using the Federal Reserve to prevent asset bubbles such as the housing market. The problem with this is that asset bubbles are hard to predict and so I believe that the Federal Reserve is limited in how much they can help protect the economy from a collapsing asset bubble.
Geithner Leaves Beijing After Talks With Vice Premier
This article provides views of U.S. Treasury Secretary Timothy Geithner on the valuation of the Chinese yuan. The exchange of options between Geithner and vice premier Wang Qishan were related to the May meeting which will discuss the valuation of the Chinese yuan. If the Chinese currency is allowed to be valued by market demands, it most likely will have global repercussion.
China's currency--Bending, not bowing
This article is about the Chinese currency policy issue.
On April 3rd Tim Geithner, America’s treasury secretary, tactfully postponed a report due this month that might have condemned China for manipulating its currency, keeping it weak to favour its exporters. Mr Geithner, who made an unscheduled trip to Beijing this week, said he would rather press America’s case at its regular “Strategic and Economic Dialogue” with China in May and at the G20 summit in Canada in June. The delay puts America’s diplomatic account with China briefly in surplus.America’s Treasury is willing to bide its time. But its patience is not shared by members of Congress. Last month 130 of them wrote to Mr Geithner urging tougher action against China. After the currency report was postponed, Chuck Schumer, a New York senator, said he would push his bill to slap anti-dumping duties on some Chinese goods and countervailing tariffs on all of them if China does not allow its currency to strengthen.
For me, I think it is unwise for the congress to push China too hard on its currency issue. Because of the expectation of a stronger Chinese Yuan, the incentives for capital inflows to Chinese market have been very strong. Chinese government insists to keep the exchange rate stable for the sake of its own interest. Therefore, a radical request to appreciate the Yuan will not receive much positive response from Chiese government. Maybe a gradual appreciation of Chinese currency will be the best solution to this problem.
On April 3rd Tim Geithner, America’s treasury secretary, tactfully postponed a report due this month that might have condemned China for manipulating its currency, keeping it weak to favour its exporters. Mr Geithner, who made an unscheduled trip to Beijing this week, said he would rather press America’s case at its regular “Strategic and Economic Dialogue” with China in May and at the G20 summit in Canada in June. The delay puts America’s diplomatic account with China briefly in surplus.America’s Treasury is willing to bide its time. But its patience is not shared by members of Congress. Last month 130 of them wrote to Mr Geithner urging tougher action against China. After the currency report was postponed, Chuck Schumer, a New York senator, said he would push his bill to slap anti-dumping duties on some Chinese goods and countervailing tariffs on all of them if China does not allow its currency to strengthen.
For me, I think it is unwise for the congress to push China too hard on its currency issue. Because of the expectation of a stronger Chinese Yuan, the incentives for capital inflows to Chinese market have been very strong. Chinese government insists to keep the exchange rate stable for the sake of its own interest. Therefore, a radical request to appreciate the Yuan will not receive much positive response from Chiese government. Maybe a gradual appreciation of Chinese currency will be the best solution to this problem.
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