http://www.washingtonpost.com/business/economy/regulators-to-rein-in-on-bank-payday-lending/2013/04/23/4cf9da7e-ac43-11e2-a198-99893f10d6dd_story.html?hpid=z1
Those who regulate banks are setting stricter rules on the bank's ability to lend short-term high-interest loans. These types of loans are causing some Americans to get caught living loan to loan and forever increasing their debt. Some states have already banned this type of lending, while others have just limited the amount of loans that banks are allowed to make as well as the interest rates. This new regulation would merely limit borrowers from taking more than one deposit advance in a pay period. It insists that a buyer's ability to repay a loan be taken into consideration. These new regulations might greatly help those who are constantly borrowing and help them to learn how to end the constant cycle of borrowing.
Wednesday, April 24, 2013
Tuesday, April 23, 2013
Spain's population shrinks as immigrants flee economic crisis
This article talks about a decrease in Spain's population for the first time in over a decade. The reason for this fall in population was related to the recent economic crisis.The number fell by almost 216,000 all of them being registered foreign residents.This figure doesn't take into account the number of local residents who have left searching for work. The increasing unemployment levels and the bursting of the property bubble have been seen as the major contributes for this flee of foreigners from the country.
Eventhough there was an increase in the native spanish populationn by 10,000 but this doesnt ofset the fall of registered foreign residents. All of these reasons show how Spain no longer remains attractive because of loss of jobs and no jobs being available.
http://www.bbc.co.uk/news/world-europe-22251840
Eventhough there was an increase in the native spanish populationn by 10,000 but this doesnt ofset the fall of registered foreign residents. All of these reasons show how Spain no longer remains attractive because of loss of jobs and no jobs being available.
http://www.bbc.co.uk/news/world-europe-22251840
Netflix Surge
http://money.cnn.com/2013/04/22/technology/netflix-earnings/
As college students, we live off of Netflix. When the stock declined in 2011 many users unsubscribed however this article tells us is that the stock has risen significantly (25%) due to specific changes the company has put in place. Because the product changed the expectations of its costumers changed, increasing the interest. Comparing the stock to the world wide phenomenon of Harry Potter, it was not a phenomenon at first but in the long run it blossomed.
As college students, we live off of Netflix. When the stock declined in 2011 many users unsubscribed however this article tells us is that the stock has risen significantly (25%) due to specific changes the company has put in place. Because the product changed the expectations of its costumers changed, increasing the interest. Comparing the stock to the world wide phenomenon of Harry Potter, it was not a phenomenon at first but in the long run it blossomed.
Monday, April 22, 2013
Measuring College Prestige vs. Cost of Enrollment
http://www.nytimes.com/2013/04/20/your-money/measuring-college-prestige-vs-price.html?pagewanted=1&ref=economy&_r=0
This is something we have all gone through. Receiving financial aid or loans and using that information to decide what college we want or have to go to for the next four years. This article talks about whether it is worth it for some families to take out a large amount of loans just for their child to go to the student of their dreams, like NYU or Harvard. These schools typically have a much higher tuition rates in comparison to state schools. Advisers suggest that some families should not take out loans they can't afford to pay back just for their child to go to a prestigious school to work on culinary art, for example. In some situations, it may be smarter to go to the school with a more affordable tuition, and get a very much similar education and could end up with a job just as prestigious as if they attend a different school. This is a interesting article to read and hear analysts' opinions on financial aid, loans, and tuition rates.
This is something we have all gone through. Receiving financial aid or loans and using that information to decide what college we want or have to go to for the next four years. This article talks about whether it is worth it for some families to take out a large amount of loans just for their child to go to the student of their dreams, like NYU or Harvard. These schools typically have a much higher tuition rates in comparison to state schools. Advisers suggest that some families should not take out loans they can't afford to pay back just for their child to go to a prestigious school to work on culinary art, for example. In some situations, it may be smarter to go to the school with a more affordable tuition, and get a very much similar education and could end up with a job just as prestigious as if they attend a different school. This is a interesting article to read and hear analysts' opinions on financial aid, loans, and tuition rates.
Boston Bombing, Proves the real reason behind terrorism.
Bombing cost millions?
We know the facts about the bombing in Boston. 3 people lost their lives, over 170 people were injured, and an entire building was destroyed. What effect does this act really have though? After reading this article it brought to light some of the things I did not think of in my terror of the bombing. Yes, this act instilled fear for a short amount of time, but the real effect was the time spent chasing the suspect. People were stuck in their house so they were unable to work, they also were not able to consume products. Also the food, gasoline, and other products were unable to get into Boston as a result making it take a little extra time for them to get back up and running. Lastly, something not mentioned in the article was the sporting events that were cancelled because of it, that is another economic element effected. So when we think of terror attacks don't think a small number of deaths means they weren't successful, as we learned in class GDP not realized can never be gotten back, so during this time we lost GDP we will never be able to get back.
We know the facts about the bombing in Boston. 3 people lost their lives, over 170 people were injured, and an entire building was destroyed. What effect does this act really have though? After reading this article it brought to light some of the things I did not think of in my terror of the bombing. Yes, this act instilled fear for a short amount of time, but the real effect was the time spent chasing the suspect. People were stuck in their house so they were unable to work, they also were not able to consume products. Also the food, gasoline, and other products were unable to get into Boston as a result making it take a little extra time for them to get back up and running. Lastly, something not mentioned in the article was the sporting events that were cancelled because of it, that is another economic element effected. So when we think of terror attacks don't think a small number of deaths means they weren't successful, as we learned in class GDP not realized can never be gotten back, so during this time we lost GDP we will never be able to get back.
Robots aren't the Problem
http://chronicle.com/article/Robots-Arent-the-Problem-/138007/
This article discusses a common economic talking point - the merit or demerit of mechanization and the coming of 'robots'. It mentions the two polar opposite views on the topic. One side believing that the march of technology will bring utopia and improve standards of living while the other side believes that the result will be a dystopic future with many people losing their jobs and class divides becoming exemplified and strengthened.
It then discusses how these two polar views do not present a complete picture of the issue at hand. While mechanization destroys some jobs, it creates others and opens options that could potentially raise overall living standards and reduce wealth divides. The question all comes down to how we handle the unavoidable advances in technology that will continue to expand mechanization.
This article discusses a common economic talking point - the merit or demerit of mechanization and the coming of 'robots'. It mentions the two polar opposite views on the topic. One side believing that the march of technology will bring utopia and improve standards of living while the other side believes that the result will be a dystopic future with many people losing their jobs and class divides becoming exemplified and strengthened.
It then discusses how these two polar views do not present a complete picture of the issue at hand. While mechanization destroys some jobs, it creates others and opens options that could potentially raise overall living standards and reduce wealth divides. The question all comes down to how we handle the unavoidable advances in technology that will continue to expand mechanization.
3 reasons the housing recovery may not last
http://money.cnn.com/2013/04/18/real_estate/housing-recovery/index.html?iid=SF_E_River
The articles lists down the 3 reasons why the housing recovery may not last:
1. The housing recovery is being led by investors:
Basically investors are taking advantage of low interest rates and depressed home prices and as a prediction, when those rates and prices rise, they will likely pull back.
2. The economic recovery is just not strong enough yet: that's truth. Hiring slowed significantly in March, with just 88,000 jobs added - the weakest showing since last June. Meanwhile, half a million Americans withdrew from the workforce during the month; either because they stopped looking for work or retired and stopped drawing unemployment. Many were discouraged workers, a sign that the economy remains weakened.
3. Government cuts will hurt homeowners: The cuts, including unpaid days off for federal workers, cuts in unemployment compensation and decreased military spending, combined with the expiration of payroll tax breaks earlier this year, will lead to job and income losses that could strip about a percentage point off the GDP this year.
And while current mortgage rates remain extremely low, about 3.5% for a 30-year, fixed-rate loan, they're bound to go up, the industry experts said, making it a lot more costly for people to afford homes.
The articles lists down the 3 reasons why the housing recovery may not last:
1. The housing recovery is being led by investors:
Basically investors are taking advantage of low interest rates and depressed home prices and as a prediction, when those rates and prices rise, they will likely pull back.
2. The economic recovery is just not strong enough yet: that's truth. Hiring slowed significantly in March, with just 88,000 jobs added - the weakest showing since last June. Meanwhile, half a million Americans withdrew from the workforce during the month; either because they stopped looking for work or retired and stopped drawing unemployment. Many were discouraged workers, a sign that the economy remains weakened.
3. Government cuts will hurt homeowners: The cuts, including unpaid days off for federal workers, cuts in unemployment compensation and decreased military spending, combined with the expiration of payroll tax breaks earlier this year, will lead to job and income losses that could strip about a percentage point off the GDP this year.
And while current mortgage rates remain extremely low, about 3.5% for a 30-year, fixed-rate loan, they're bound to go up, the industry experts said, making it a lot more costly for people to afford homes.
Inflation is very, very low. Time to worry?
http://money.cnn.com/2013/04/19/news/economy/low-inflation-risks/index.html?iid=SF_E_Lead
The article discusses the bad effects of low inflation as prices have been steady recently. First, when inflation is low, firms are more likely to apply many measures to cut costs, for example cutback in hiring. Second, low inflation discourages consumers to spend and when people expect prices to fall, they are more motivated to wait for prices to fall as far as they can before any spending starts. And fourth, low inflation often comes along with lower wage and revenue growth.
The article discusses the bad effects of low inflation as prices have been steady recently. First, when inflation is low, firms are more likely to apply many measures to cut costs, for example cutback in hiring. Second, low inflation discourages consumers to spend and when people expect prices to fall, they are more motivated to wait for prices to fall as far as they can before any spending starts. And fourth, low inflation often comes along with lower wage and revenue growth.
Sunday, April 21, 2013
Factors affecting monetary policy in Canada.
http://www.bloomberg.com/news/2013-04-21/carney-says-next-canada-rate-move-needs-above-2-growth.html
The article above looks at the last report of the central bank of Canada while under management by its current Governor (Mark Carney). He is moving from this position to take up a position of governor of the bank of England. In this article, he outlines varying monetary policy responses that the Central Bank plans that will help Canada manage certain current conditions or deal with future fluctuations.
The Central Bank of Canada has maintained low interest rates and would only be increasing this based on a sustained growth in the economy (a sign of recovery). This is similar to monetary policy in America where the federal reserve is also looking for a sign of recovery (sustained job creation) before increasing interest rates. He also mentions how monetary policy decisions are not made by only one man (the governor of the central bank or president of the federal reserve) but are made by groups of economists and analysts.
Overall the article highlights the different policy models used across governments (active, passive, rule and discretion).
The article above looks at the last report of the central bank of Canada while under management by its current Governor (Mark Carney). He is moving from this position to take up a position of governor of the bank of England. In this article, he outlines varying monetary policy responses that the Central Bank plans that will help Canada manage certain current conditions or deal with future fluctuations.
The Central Bank of Canada has maintained low interest rates and would only be increasing this based on a sustained growth in the economy (a sign of recovery). This is similar to monetary policy in America where the federal reserve is also looking for a sign of recovery (sustained job creation) before increasing interest rates. He also mentions how monetary policy decisions are not made by only one man (the governor of the central bank or president of the federal reserve) but are made by groups of economists and analysts.
Overall the article highlights the different policy models used across governments (active, passive, rule and discretion).
Curt Shilling ripping off road island
The famous pitcher Curt Shilling was trying to get into the fantasy business game by developing a new gaming company called 38 games. The only problem in his plan is that he did not have the investment capital to start his company. He went to a desperate company that was the state of road island, they were in economic ruin and were trying to get themselves out of a hole. They initially gave him a 75 million dollar investment fund to make sure that they would get the jobs from this company and also have a little star power to their investors. Only a year later we see that their business has gone under and also the investors had lost out on their capital. It is sad to see an economy so desperate that they would resort to this to try and stimulate an economy.
http://www.nytimes.com/2013/04/21/business/curt-schilling-rhode-island-and-the-fall-of-38-studios.html?ref=business&_r=0
http://www.nytimes.com/2013/04/21/business/curt-schilling-rhode-island-and-the-fall-of-38-studios.html?ref=business&_r=0
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