So you made it to the blog! What you have to do here is easy. Go to http://news.google.com and search for “economy”. Click on something that seems interesting to you and write about it. Don't use a story that has been used by someone else.
- 100 words minimum, 200 words maximum.
- Be clear, concise, concrete, and complete.
- Put the URL (web link) of the news story on the post.
Put your write-up as a "comment" to this post (so that it's well organized and everyone can see it) any time before Sunday, September 2, 11:59pm. Then you're done!
http://mediamatters.org/research/2012/08/29/fox-misleads-on-consumer-savings-from-fuel-econ/189644
ReplyDeleteThe article discusses the problem Fox News caused when they announced that there would be a soar in the price of automobiles. They mentioned that the average price of an automobile will increase by $3000. Fox News failed to mention the savings in gas and also the time frame of the increase. The increase will not take place until 2025. When the story first broke out people became furious with the news of a $3000 increase but with the truth coming out about the time frame and the savings that will be made at the gas pump consumers have no need to be angry due to the fact they will save $8000 in the lifetime of a new car in 2025.
http://online.wsj.com/article/SB10000872396390444914904577619723813781342.html
ReplyDeleteThis article deals with one U.S. state, Connecticut. It claims that revised federal data has shown that the state is actually worse off than what the reports previously suggested. The earlier estimate of Connecticut’s economic output was $220 billion, the newest report puts the state at $200 billion. Connecticut’s economy still seems to be shrinking while the rest of the U.S. begins to recover. The unemployment rate also jumped from 7.7% in April to 8.5% in July. Connecticut seems to be one of the few states still on the downturn even after the recession ended about three years ago. They experienced a brief fall in unemployment rate last April, but it has climbed since then.
http://economywatch.nbcnews.com/_news/2012/08/30/13567396-economy-runs-neither-hot-nor-cold-but-not-just-right-either?threadId=3553618&commentId=69486350#c69486350
ReplyDeleteThe lukewarm stagnation of our economy has improved very little as of late. Though consumer spending rose .4% in July, the biggest jump in five months, unemployment applications remain nearly the same, as businesses are still reticent to take on more employees despite the rise in spending. This lack of growth despite economists bright predictions bodes ill for President Obama, as this news comes right before the Republican Convention, adding ammunition to their claims that Obama is not providing the economy what it needs to recover from the recession of 2008. This news also heightens suspense for Fed Chairman Bernanke’s talk in Wyoming tomorrow, which will hopefully shed light on what the Fed will be doing to aid our stagnant economy.
http://www.bloomberg.com/news/2012-08-30/consumer-spending-in-u-s-climbs-for-first-time-in-three-months.html
ReplyDeleteThe article talks about the climb in sales in retail stores and how this will positively affect the economy and the job market. Americans stepped up their spending and for the first time in three months.This increase in consumer spending is also going to help with stimulating the job market. Stores such as Gap and Macy's had huge gains in sales and went above their initial sales projections. This consumer spending will help the economic expansion in the U.S. which has been extremely low. Consumer spending will increase 2 percent which was surveyed by the 78 economist at Bloomberg.
http://www.bloomberg.com/news/2012-08-30/consumer-spending-in-u-s-climbs-for-first-time-in-three-months.html
ReplyDeletethis news article is trying to make a bright spot in these dark times by saying that economy is going up because Americans have spent more in July then in the last three months . This is true but not because of the economy, but because it was summer. June and July have always been the spending months. I’ve worked in a hardware store for three years and every year June and July are by far the best months. Besides the media is only comparing July with the last three months. That isn’t a very long time span. But they know that Just the idea or the fact that they mentioned that the economy is going up and tied a somewhat plausible idea would get people think that the economy isn’t that bad. When indeed it just is steady or is going down. The common person needs to look at the big picture and look at not only the y axis but the x axis as well, when the media is talking about time. But sadly they don’t. This is part of the reason we are where we are at in this day and age. Citizens be more observant……please
http://www.reuters.com/article/2012/08/30/us-markets-global-idUSBRE86F00620120830
ReplyDeleteEven with America's economic decline, the Fed's policy decisions still have large effects abroad. Confidence had been high among investment groups at home and abroad, especially after Fed meeting minutes indicated possible near-future action. Investors have been hoping for a hint about a third round of Quantitative Easing, but as Bernanke's speech at Jackson Hole, Wyoming draws closer they are growing more and more skeptical. Both US and European stocks declined as different investors solidified their positions in preparation for the speech. Fortunately for the EU, the Euro's decline was slowed by news of Premier Wen Jiabao's comments regarding his intent to continue purchasing EU government debt. The dollar, meanwhile, matched the euro's .15 percent fall with a .15 percent rise to 81.676. Since QE3 would impact the dollar negatively, it is not at all clear whether the Fed will decide to implement it. Even so, the market will still remain fairly stable while waiting for a reaction from the European Central Bank.
http://www.npr.org/2012/08/30/160263522/who-really-changes-the-economy
ReplyDeleteThe author of this article is trying to highlight a misconception which many Americans are making in regards to the upcoming presidential election. She explains 3 in 4 Americans are relying heavily on Economic views to decide who they will vote for in the election. She expands upon this trying to open some eyes to the fact that it is more than only the president who controls the economy. There are many global factors which control this such as technological inovations, new business practices, and social factors. The author additionally states some of the people in society who have made much more important of an impact on society than the presidents. This article does an excellent job of reminding the American reader that it is not only the president who can control the economy by himself.
http://economywatch.nbcnews.com/_news/2012/08/30/13572464-isaac-pushes-gas-prices-still-higher-for-holiday-weekend
ReplyDeleteThis article focuses on the continuos rise of gas prices going into this Labor Day weekend. Consumers have experienced many highs and lows when dealing with gas prices over the past decade due to a variety of circumstances. NBC claims that, these prices are off the charts and has hit record levels for this holiday weekend. We can all thank hurricane Isaac for these record breaking gas prices. Usually gas prices are known to rise by a small margin anyway during this time of year since refineries make changes due to the season. With the addition of this hurricane oil rigs, refineries, and pipe lines have been damaged which caused a more dramatic increase in gas prices. Although this may be the case for now consumers should not worry because the prices will drop as soon as the refineries and oil rigs are fixed.
The article “Euro Area Confidence Drops, German Jobless Increases”, written by Simone Meier, published on Bloomberg.com on the 30th of August deals with the economical struggle of the euro are.
ReplyDeleteAs the index of executive and consumer sentiment is the lowest since August 2009 the European economic confidence is suffering.
Even though officials try to control the debt which is slightly declining European consumers are becoming very pessimistic about the outcome.
A German economist expert at the Commerzbank AG, Christoph Weil, only expects the economy to stabilize towards year end if the indicators will improve over the coming moth.
Furthermore the value of the euro is dropping more and more, especially after Spain and Cyprus had to ask for external aid, joining Greece, Ireland and Portugal.
Moreover the euro-region unemployment seems to have increased to a record of 10.3 percent and even Germany, which has Europe’s strongest economy, is suffering under the increasing number of unemployment in their own country.
http://www.bloomberg.com/news/2012-08-30/euro-area-confidence-drops-more-than-forecast-to-3-year-low-1-.html
This article deals with the growth of the economy from the months of July to August. The Beige Book shows that the U.S. economy grew only slightly and mostly in service sectors. Demand also increased for skilled manufacturing and engineering jobs. Energy and mining activity are on the rise as well. However an overseas slowdown in manufacturing for the U.S. has hurt the economy, as well as the ongoing Euro debt crisis. Drought conditions are affecting the U.S. economy slowing down agricultural growth and raising food prices. The Beige Book is now pressing the Federal Reserve to take more aggressive action and boost the economy and stop the off and on stagnation that has occured over the past couple of years.
ReplyDeletehttp://articles.marketwatch.com/2012-08-29/economy/33468824_1_philadelphia-and-richmond-districts-latest-beige-book-report-eric-rosengren
http://www.csmonitor.com/USA/Society/2012/0902/The-silver-collar-economy
ReplyDeleteThis article "The silver-collar economy" pertains to the growing issue of weather or not companies should hire the older and more reliable senior citizens who still want to work or if they should hire the younger generations. It also touches on the amount of jobs that are leaving US soil and being shipped overseas. This forces companies to be pickier in the hiring process because they now have a larger group of people to pick from and therefore will pick the best people they can find rather than just filling positions with anybody willing to work for them.
This all contributes to the high unemployment rate with a majority of those unemployed being young people.
http://www.freep.com/article/20120901/BUSINESS07/309010022/Bernanke-Fed-will-do-more-to-assist-economy
ReplyDeleteIn a speech he gave on Friday, Bernanke claimed that the Fed will soon be making further moves in order to help the struggling economy. Although he did not specify any particular actions, Wiseman mentions some of the speculations economists have made of what measures might be taken. One possible action could be another round of quantitative easing involving the purchasing of bonds. However, others suspect something less drastic, such as plan to keep short-term rates low for the time being. The unique characteristics of the current state of the economy make it especially hard to plan a course for improvement since, as Bernanke pointed out, “the Fed is operating in essentially uncharted territory”. The upcoming September 12-13 Fed meeting will likely reveal more information.
http://buzz.money.cnn.com/2012/08/31/facebook-stock-2/
ReplyDeleteThe article I have chosen to post talks about the stock of Facebook and that it has reached an all-time low. On Friday afternoon, Bank of America-Merrill Lynch analysts lowered the price target of the stock of facebook and warned of headwinds. Since the company's much hyped IPO collapsed in May, the price of stock has come nowhere close to its $38-a-share IPO price. The price of stock fell 5.4% Friday to $18.06. The biggest problem right now is the multiple expiration of lock-up periods, which is when company employees and insiders can sell their shares. By November, more than 40% of shares will be eligble to be sold. The market will have to contend with a flood of Facebook stock three more times this year and once more early next year. Analysts, however, are not completly crushed. They believe that Facebook"s revenue will gain traction in the future.
http://thehill.com/blogs/on-the-money/economy/247081-experts-say-economy-should-grow-despite-who-wins-white-house-in-november
ReplyDeleteThis news article says that experts predict the economy should grow no matter who wins the presidential election this November. Furthermore, economy experts predict that the economy could create twelve million jobs over the next four years, if either Republican or Democrats win the upcoming election. This past week the Republican Presidential nominee Mitt Romney and his running mate, Paul Ryan both promised to create twelve million jobs by their policies which includes changing international trade policies themselves. Experts also predict this week at the Democratic Convention President Obama will argue that electing a Republican will return the country to policies that put us in the economic hole we are in currently.
http://www.gosanangelo.com/news/2012/sep/02/dan-thomasson-right-the-first-time-economy-most/
ReplyDeleteIn this article, Dan Thomasson, former editor of the Scripps Howard News Service, gives his thoughts on the election and the importance of our economy. With the presidential election quickly approaching there have been many questions in regards to our economy. Barack Obama promised the country a change, but has yet to deliver anything but disappointment and his overall approval rating is fairly low. Now that Mitt Romney is in the running he has the opportunity to gain election votes if he can keep a focus on the economy and convince voters that he has the best chance of improving it. It is hard to determine if Obama will bounce back from the Great Recession that took rise in 2008 leaving us with high unemployment rates, which have failed to get much better in the last four years. Although, most can agree that our troubles began with Bush, critics say that Obama failed to take the correct steps in getting the economy back on track early because he spent all his time and effort trying to change the nation’s health care system. As of right now, Mitt Romney leads Obama by one percent.
http://www.bloomberg.com/news/2012-09-02/hiring-probably-limited-by-cooling-demand-u-s-economy-preview.html
ReplyDeleteThis article is about the current job market taking place in the third quarter of this year. Jobs are becoming scarcer because of a slowing in the demand for work. The unemployment rate is above 8% and it has been that high since February of 2009, which ranks it the longest stretch since 1948. Big corporations are in need of cutting more workers within and even outside of the United States, like Lexmark International Inc. which will be cutting 1700 jobs around the world and be shutting down a plant in the Philippines. Bernanke even comments on the economy saying that, this slowing of the labor market in particular is alarming, and that an enormous waste to human talent.
http://articles.marketwatch.com/2012-08-29/economy/33468824_1_philadelphia-and-richmond-districts-latest-beige-book-report-eric-rosengren
ReplyDeleteThis article deals with the Beige Book reports of more districts growing at a modest rate, meaning the US economy is growing gradually. Last month the economy grew progressively in improving retail and in other service-sectors according to the Fed. The article is based on the facts collects from before the 20th of August stating that there were six districts with “modest” growth and three with “moderate” growth, where previously it was the other way around. According to Yelena Shulyatyeva of BNP Paribas, the economic growth remains weak. Agreeing with the Beige Book, states that 12 Fed districts were reported of softening in manufacturing. Though there was little downfall in the previous month, there was more growth such as an increase in retail activity, particularly auto sales, and increases in either home sales, home prices or housing construction.
http://thehill.com/blogs/on-the-money/economy/247081-experts-say-economy-should-grow-despite-who-wins-white-house-in-november
ReplyDeleteThis article states that despite who wins the White House in November the economy could produce 12 million jobs in the next four years. During the GOP convention Mitt Romney and his running mat Paul Ryan gave speeches promising they could create 12 million jobs by using the familiar policies as reducing regulatory and tax burdens on small businesses and ramping up international trade. Experts say this is an achievable goal for Romney since the economy is growing and slow healing of the job market. Meanwhile President Obama has shied away from making more job promises and lower unemployment after he ensured his stimulus package would work. President Obama never lowered the unemployment rate to 6 percent with his $800 billion economic stimulus package. The Republicans argue that the Obama administration had the unemployment rate above 8 percent for most of his presidency and failed to create enough jobs to make up for the loss during the recession. Statistics wise the economy needs to create at least 200,000 to 400,000 jobs a month to cover the population growth. The Labor Department projected that 20.5 million jobs will be created from 2010 to 2020 with the healthcare sector to grow most rapidly.
http://www.mb.com.ph/articles/371612/economy-grows-by-59
ReplyDeleteMacroecon News Comment #1
The way I see it, the most interesting aspect of the GDP growth is the alleged causes: “increased business confidence, strong employment creation, and accelerated government spending.” It seems contradictory that there would be such confidence in the private sector in light of the financial activity of the public sector. To be fair, I would say that it is entirely possible for both to happen at the same time. However, by their nature, I believe that they are inclined to occur one at a time. In a way, the relationship between two such occurences is part and parcel to the relationship between supply and demand. There is an inverted relationship between supply and demand. If one compared government financing to supply and the ambition of those in the private sector to demand, one can see the similarities.
This comment has been removed by a blog administrator.
Deletehttp://blogs.wsj.com/economics/2012/08/31/hurricane-isaac-likely-caused-some-ripples-in-economy/
ReplyDeleteEric Morath, the author of the attached article, draws a comparison between the damage to the economy by Hurricane Isaac to that of Hurricane Katrina several years ago. Though not nearly as devastating, the damage includes, but is not limited to, citizens becoming jobless (which will increase jobless claims), oil rigs losing money ($770 billion to be precise), and as stated by other economists, yet another rise in gas prices (albeit a smaller percentage). Despite the immediate damage caused by Isaac, long-term consequences will not be nearly as severe as those caused by Katrina. If the victims of Katrina can survive their hardships, so can the victims of Isaac.
http://thehill.com/blogs/on-the-money/economy/247081-experts-say-economy-should-grow-despite-who-wins-white-house-in-november
ReplyDeleteThis article tries to make the point that the economy will grow regardless of whether Romney or Obama wins in November. Mitt Romney and his running mate Paul Ryan made the point last week during the GOP convention in Tampa that their plan would create 12 million jobs in 4 years with policies reducing regulatory and tax burdens on small businesses and emerging international trade. Mark Zandi, a chief economist said that this claim “is very doable.” Obama on the other hand is not making any specific claims as his promise that the $800 billion economic stimulus package in 2009 would “save or create” 2.5 million jobs and drop unemployment to 6 percent by now did not happen. Instead he will try to argue next week at the DNC convention in Charlotte that electing Romney and the Republican agenda that started the recession would dig us in a deeper hole than it already is. The sectors of the economy that are expected to make a comeback in the next couple years are home building and commercial construction, manufacturing, transportation, distribution and financial services, and most of all the healthcare sector.
http://www.freep.com/article/20120902/NEWS07/309020136/Obama-Romney-trade-jabs-on-plans-for-economic-policy-as-campaign-heats-up-before-Democratic-convention
ReplyDeleteAfter the strong response from Republicans across the country following the Republican National Convention, there have been strong retorts from the Democratic Party, including President Barack Obama. The current President claimed that, despite all of the very spirited speeches given at the Convention, 'no new ideas were brought to the table'. Mitt Romney pledged to cut the Federal budget, however, as Democrats continue to point out, Romney has yet to produce a viable budget for public inspection. Obama criticized that there was a great deal of talk about 'hard truths and bold choices', but they were still left unclear and unarticulated to the general public. It will be interesting to see what concrete plans Romney and Ryan will reveal in the following months leading up to the election in November.
http://m.jacksonville.com/news/florida/2012-09-01/story/mitt-romney-promises-roaring-us-economy-landing-rally
ReplyDeleteThis article talks about the past Republican convention in Tampa Florida where Mitt Romney accepted the Republican’s acceptance for president. Here in this article Mitt Romney and his running-mate Paul Ryan had a speech about the future of America’s economy if they were to be elected. In the speech Romney showed evidence that he knows how to create jobs by presenting job data where he created tens of thousands jobs as governor of Massachusetts. In Romney’s speech he presented five points on how he will repair America’s economy. The five points consisted of running on American energy with American reserves, fix failing schools, developing trade agreements with South America, cut the federal deficit, and to relax tax rates for small business owners so they may strive. Romney ended his speech by saying if the five points are achieved then America will be begin to have a working economy again.
http://money.cnn.com/2012/08/31/news/economy/low-wage-jobs/index.html?iid=SF_E_LN
ReplyDeleteThis article talks about how the economy is adding jobs, but most of them are considered low-wage jobs. More than half of the jobs created during the recovery time period after the recession are low-wage jobs. Most of the jobs lost during the recession were considered mid-wage jobs, and now many people are having to deal with less income or none at all. In todays economy it is hard to make a good living seeing as how the low-wage job opportunities are rising, and have been since the begining of the twenty first century. With this kind of trend more and more people are gonna have to give up the lifestyle they're used to having with a mid-wage income to survive on a low-wage income.
In the midst of Britain's economic difficulty, British chancellor Osborne is sure that her economy is healing. However, Britain’s economic problems are "deep rooted and built up over many years,” according to Osborne.. The Britain’s economy is already at the pit. It received triple A rating on debt from two different rating company, and the economy has shrunk 0.5% just the second quarter of this year. In order to fix this problem, Britain must take different measures. Osborne wants to take measures which will keep small businesses and "to do more and to do it faster" in order to help faster recovery of Britain’s economy. Chancellor is currently planning on borrowing more money in order to issue government bonds and to establish public banks to give loans to small business. However these measures seem dangerous, because the yield from bonds dropped significantly since last year and the public banking loan, using government money does not guarantee small business's success and returning of the money.
ReplyDeletehttp://www.telegraph.co.uk/finance/economics/9515425/UK-economy-is-healing-says-Chancellor-George-Osborne.html
http://www.businessweek.com/news/2012-09-01/iranian-economy-minister-says-india-to-continue-energy-ties
ReplyDeleteThis article is about trade meetings with Iran and India. The Iranian economy minister said that India would continue trading with Iran. Earlier in the week these two countries had a NAM (non-aligned movement) meeting. These meetings are for countries that are not formally aligned with any other country. The NAM meetings are designed to help countries that struggle with imperialism, colonialism, neo-colonialism, racism. The topics discussed among the two countries consisted mainly about building power plants, dams and exporting electricity. The Indian government stated that Iran is a reliable energy producing country and India will continue their energy trades.
http://www.nola.com/hurricane/index.ssf/2012/09/hurricane_isaac_lays_bare_the.html
ReplyDeleteAlthough here in southwest Florida, Isaac did not lead to disaster, some small communities in southeast Louisiana have been devastated. This article talks about the high cost associated with keeping high-risk areas like southeast Louisiana protected against disaster. Terms like "benefit-cost analysis" are used in describing the trouble with insuring places like these. "Benefit cost analysis" is simply determining whether or not it would be financially and economically prudent to protect a certain area. In New Orleans, for example, hundreds of millions of dollars have gone into protecting it because the cost of protecting that city from the devastation of a hurricane is less than the cost of disaster would be to the taxpayers and the city. This article highlights the struggles of living in a low benefit cost area prone to natural disasters.
http://blogs.wsj.com/drivers-seat/2012/08/28/final-u-s-fuel-economy-standards-set/
ReplyDeleteAfter pushing for more stringent gas laws, Obama’s administration has released their latest in fuel standards. It required that the average mileage of cars and light trucks be 54.5 miles per gallon by the year 2025. In effect, this will reduce U.S. oil consumption and dependence on foreign oil by more than two million barrels a day, and greenhouse-gas emissions by a full year’s worth of emissions. Republicans argue against the practicality of this, believing this is choking an already-strained economy from recovering. They estimate it will shut roughly 7 million people out of the new car market as the new car price will increase upwards of $3,000. Environmentalists are in full support of the ruling, believing this will put more money in consumer’s pockets while also cleaning the environment.
This comment has been removed by the author.
ReplyDeletehttp://www.bloomberg.com/news/2012-09-02/china-economy-s-deterioration-raises-risk-of-wen-missing-target.html
ReplyDeleteAs China's economy continues to show signs of deterioration from manufacturers to banks alike, the risk that Premier Wen Jiabao will miss his growth target for the first time since taking office in 2003 becomes more and more likely. If the economy falls short of the projected 7.5 percent growth this year, the current administration will likely hand over a hard-landing economy to the next administration. The risk increases when you consider that failure to reach the 7.5 percent expansion could potentially trigger an economic crisis if the local Chinese governments run out of money. While a 7 or 8 percent growth would compare quite well with the world's biggest economies, talks of a stimulus along with new policies have emerged as possible responses to the situation.
http://www.bloomberg.com/news/2012-09-02/china-economy-s-deterioration-raises-risk-of-wen-missing-target.html
ReplyDeleteChinas economy displayed signs of deterioration and for the first time since 1988, they may not exceed the Communists party annual growth target. Missing the goal of 7.5% growth could affect the Chinese government enormously. If the local governments run out of money, building will cease resulting in a financial crisis. The Shanghai Composite Index (SHCOMP) which is Chinas stock gauge dropped by 6.9% this year which is only adding to the distress of the Chinese economy. According to Lu Ting, chief economist at the Bank of America in Hong Kong, the deceleration of the Chinese economy is expected to continue into this quarter by 7.4%. Continuing at this rate, China could mimic the fall of the South Korean economy in the 1990’s.
In Wendy Koch's article published in USA Today, she writes about President Obama and his plans to seek out new fossil fuel resources. Earlier this week Presdient Obama announced his future plans to increase fossil fuel energy by researching a new source of natural gas. The fossil energy that is said to be researched is methane hydrate. GOP rival Mitt Romney described it as "the world's largest untapped fossil energy resource. It is said that this natural gas is found both inshore and offshore, in sediments worldwide. If successful this new supply of natural gas could potentially yield significant new supplies of natural gas and further expand U.S. energy supplies.
ReplyDeleteHttp://content.usatoday.com/communities/greenhouse/post/2012/08/Obama-looks-for-new-fossil-fuel-source-methane-hydrates/1#.UEP47Ld5mc0
http://articles.latimes.com/2012/aug/30/business/la-fi-gdp-economic-growth-20120830
ReplyDeleteThe second quarter gross domestic product growth rate in the United States increased at a rate of 1.7%, slightly higher than its predicted 1.5% by the federal government. Although better than expected this is still the worse growth rate since summer of 2011, and not enough to bring our countries unemployment rate down. As a result of growth domestic product dropping from 2% in the first quarter to 1.7% in the second, corporate profits went downward from 12.3% to 12.2%- reported James Marple senior economist at TD bank. Although a .1% drop does not seem like much to us, companies are holding back from hiring and investing due to the significant drop from the 12.7% that was in last year’s fourth quarter which was a 50 year all time high. Despite all these negative reports the ongoing third quarter and complete second half are looking self-effacingly stronger. This is due to growth in retail sales in the month of July and a slowly rising housing market. In my opinion it is safe to say that the U.S. economy remains at a slow-moving pace.
http://nhregister.com/articles/2012/09/02/opinion/doc5043ebf5744c9635050916.txt?viewmode=fullstory
ReplyDeleteAs the election approaches many people are deciding on whom to vote for. This years election has a lot of factors to consider, one big one being the way the economy will be ran. Over the past few years our economy has taken a huge beating and our current president has done his ways of "helping" the economy. This article explains a lot of the ways the economy is being ran with the different classes based on how much income a household has. Currently the more wealthier you are the more of a tax break you get. Where as the ones who are living comfortably are being hit with these extra taxes to make up for the wealthy people who are receiving the tax breaks. It makes sense as to why the politicians favor the wealthy because they are the ones supporting them with their money but its not fair to the others receiving the crazy taxes. In the end of the day everyone works just as hard for their money and no one job should be favored over another.
http://www.bloomberg.com/news/2012-09-02/china-economy-s-deterioration-raises-risk-of-wen-missing-target.html
ReplyDeleteThis article is about China’s mounting signs of deterioration from manufacturers to banks, raising the risk that outgoing Premier Wen Jiabao will miss his growth target for the first time since taking office in 2003. China’s manufacturing shrank for the first time since in months. The Yuan which has already declined this year is on pace for its second annual decline since the country changed its exchange rate in 2005. This is all falling on the shoulders of Wen Jiabo. Wen Jiabo only has seven months in office left to fix these issues and pick up China’s economic problems.
The Economist
ReplyDeleteDemocracies and Debt: Voters are now facing a harsh truth
In this article a correlation is presented between states being a democracy and being in debt or financial crisis. It has been a fear associated with democracies as far back as Plato and was also shared by United States founding fathers James Madison and John Adams. The article goes on to discuss the fact that other systems of government often have the same problems as democracies. The question of whether or not there are better systems of government to prevent financial crisis is asked because much of the world which is run by democracy now finds itself in a debt crisis.
The author asks the question whether or not democratic governments have too much authority, too much of a role, in the economic process. He states that Greeks or founding fathers never could have imagined the great role that government plays in the economy. This doesn’t just refer to power or control over it but mostly to participation in it. The article suggests removing some of this spending power from elected leaders, but admits it may not solve the problem. These states however are beginning to find out that there is a limit to what they can borrow.
http://www.economist.com/node/21561932
http://www.investopedia.com/financial-edge/0812/The-Stock-Market-Loves-The-Olympics.aspx#axzz25N4KsuDw
ReplyDeleteThe Stock Market Loves the Olympics (article from Investopedia)
No matter what country you go to investing stays the same across the board, a good investor will always find a way to make a profit off any event that comes up. This summer the 2012 Olympics were held in London and investors across the world were looking to make profit off the "worlds most celebrated sporting event." Other than the obvious ways of investing in large companies who sponsor the games, a certain group of investors started to get creative and look in other directs to make their profit. Bespoke Investment Group did research on the Down Jones Industrial Average performance during the games dating back to the 1900s. Their research revealed wars canceling the games, ups, downs all of the DJIA and which areas to invest in.
Dear Students -- the time for posting is over. Good work!
ReplyDeletehttp://online.wsj.com/article/SB10000872396390443618604577622851672677534.html?mod=googlenews_wsj
ReplyDeleteThe European Central Bank (ECB) finds itself in the midst of an ever worsening financial crisis for the euro zone. The number of unemployed in those nations that share the euro has risen to a staggering 18 million, the highest ever since 1995. Yet unemployment numbers are predicted to increase which means consumer spending will continue to fall. Inflation also has been above target for the month of August at a rate of 2.6% when the ECB’s target rate is just below 2%. Though the European Central Bank’s Governing Council does not meet until September 6th, pressure is already being put on the Bank to lower its interest rates and buy weaker countries government bonds to address these economic issues.
The article talks about how the unemployment rate is stuck at a record high in the Eurozone. In July the Eurozone hit an all time high unemployment rate of 11.3%. The European Union’s statistical agency showed that 88,000 people were unemployed, which adds up to a total of 18 million. This is because of governments and companies cut payrolls to try and deal with the debt and consumer spending. The unemployment rate increased a total of 1.2% since last year. Spain and Greece are at the center of the debt crisis, so this causes these two countries to have the highest unemployment rate in the Eurozone. These two countries are even higher in youth unemployment compared to other countries in the Eurozone.
ReplyDeletehttp://www.dailyfinance.com/2012/08/31/eurozone-jobless-rate-stuck-at-record-high-11-in-july/
http://www.economist.com/node/21558281
ReplyDeleteThe revelation that certain banks have lied for years regarding their perceived unsecured borrowing costs not come as welcome news. Regardless, in light of recently discovered documents it is now undeniable that Barclays and other banks have been doing precisely this, in order to affect their LIBOR Index, over the course of years. The LIBOR index is meant to indicate what it a bank would pay if it decided borrow money from other banks over a three month period from the date the index is set. Because this index is not based upon what banks *actually* lend to each other however, but rather upon their own estimates, it is possible to falsify the LIBOR index by small increments. As a response to these falsifications, several major investigations are underway, including one by carried out by officials of the European Commission. With some claiming there is evidence that the Bank of England itself instructed Barkclays to lower its submissions, this scandal is one to watch.
http://www.washingtonpost.com/business/ism-survey-falls-to-496-as-us-manufacturing-activity-shrinks-for-third-straight-month/2012/09/04/f1f0cfa6-f69a-11e1-a93b-7185e3f88849_story.html
ReplyDeleteThis article is about is the steady weakening of manufacturing that is going on around the globe today. Interestingly enough this slowing economy is happening around the same time as the presidential campaign. Thus making the economy the main issue for voters to focus on when deciding who to select as the most fit president to handle this U.S. economy. Polls show that Mitt Romney lead Obama in this category, implying that the citizens trust Romney to do a much better job with the economy than Obama. Washington Post states that manufacturing activity has fell to 49.6 the last month from 49.8 in July according to an ISM survey. This is the lowest level in three years, also it is the first time it has stayed below 50 for three straight months since 2009.
http://blogs.wsj.com/economics/2012/09/11/u-s-students-struggle-more-than-global-peers-to-top-parents/
ReplyDeleteThis article comments on a recent study which revealed that among developed nations, Americans are some of the least likely to obtain a higher level of education than their parents. In fact, only 21.6% of those 25-34 received a higher level of education than their parents. The article points out that even for those whose parents dropped out of high school or failed to get their high school diploma, only 29% of those students will even attend college. This is attributed the the cycle of those who are in poverty will tend to stay in poverty. The article failed to mention particular reasons why this is although one can probably infer that there are a number of factors that this may be the case. The one specific reason given for our 21.6% of children attaining a higher level of education was because of our 40% rate of US adults who hold a bachelors degree. Although high school graduation rates are also improving, The US has a long way to go before it can be again regarded as an efficient educational power.
This article discusses the recent decision by the Obama administration to infuse $40 billion a month into the economy in hopes to jump start the economy. Federal Reserve chairman Ben Bernanke says this will only hurt the economy and cause a possible stagnation. This will have a negative impact on jobs, and real wages will decline. Doing so will only make the dollar weaker not stronger and cause an increase in inflation. Obama wants to avoid the threat of deflation however Bernanke says inflation and stagnation leading to a possible depression are the true threats. If inflation rises small businesses and consumers will be hurt the most.
ReplyDeletehttp://communities.washingtontimes.com/neighborhood/stimulus/2012/sep/14/helicopter-ben-bernanke-rescue-obamas-not-yours/
This article explains why stocks are still soaring despite our bad economy. The reason is that Ben Bernanke and the Federal Reserve announced this week more measures to attempt to stop the sagging economy, aimed at boosting prices of stocks and houses. The market has been climbing all summer in anticipation of this announcement. The Fed said they would purchase $40 billion a month in mortgage bonds keep interest rates low through 2015, even if the economy shows signs of improvement. This announcement drove the Dow up 260 points, which is just 600 points shy of its record set in October 2007, a couple months before the recession began. The Standard & Poor’s 500 index, which shows a greater view of the market’s strength, only needs to grow nearly 700 points to reach the record set on the same day as the Dow was. The Fed is hoping to drive people out of investments based on interest rates like CD’s and bond mutual funds and into stocks. Stocks rising is also due to them being cheap. However not all people think stocks rising is good, because the economy is not on the same path as stocks.
ReplyDeletehttp://www.boston.com/business/personal-finance/2012/09/14/crummy-economy-why-are-stocks-soaring/6kVsyTxgBU0DgqsBLWaCJP/story.html
http://www.cnbc.com/id/49044275
ReplyDeleteThis article is about how due to new reforms in India their economy should be on an upward swing. The government of India has now opened the market in the grocery industry to foreign investors and companies to take root in India. They also allowed more foreign investment in broadcasters and airlines. The prime minister believes that this will help in the growth process while strengthening the economy of India. There however is controversy to the rising food and diesel fuel prices. Other political parties are saying this will take money out of the economy and make it harder for people to buy and transport food.
This comment has been removed by the author.
ReplyDeletehttp://www.washingtonpost.com/business/if-the-economy-is-as-bad-as-everyone-says-why-are-stocks-soaring-thank-the-federal-reserve/2012/09/16/3884f804-001c-11e2-bbf0-e33b4ee2f0e8_story.html
ReplyDeleteThis article talks about how even though the economy is so bad , the stocks are soaring. Economic growth and unemployment are not making any strides for improvement , yet the Dow Jones is so close to the all-time record. This is all because of Ben Bernanke. Bernanke is the Federal Reserve chairman who announced unprecedented measures aimed at lifting the economy and boosting prices of assets like stocks and houses. The market boosted in anticipation of this move. Bernanke’s promise of purchasing $40 billion a month in mortgage bonds with low interest rates is a big push to help the economy.
http://www.ibtimes.com/articles/384720/20120915/iphone-5-sales-release-apple-ecconemy-recession.htm
ReplyDeleteThis article discusses how the new release of the IPhone 5 could boost up the U.S. economy. The release date has been set for September 21st and has been predicted to have huge sale by financial experts. Forbes has cited that the sales of the iPhone 5 could boost up the U.S. GDP by .3 percent this year. These predictions come from the past data of older iPhone models. For example the IPhone 4S sold four million phones on its release week, and the IPhone 4 sold 1.7 million on the first three days. Therefore the results on whether the new IPhone 5 will boost the economy will be known next week on the 21st.
According to the CBER UK households will see a rise in real income levels next year for the first time since the financial crisis first hit the country. Studies show that incomes are set to rise by 0.5% in 2013 while taking inflation into account, but will drop 0.2% this year. With inflation rising many people have witnessed wages freezing and unemployment rising from 1.61 million in May 2008 to 2.59 million in July 2012. The CEBR says that as inflation drops income will increase, therefore benefiting low and middle income families. An improvement in real income levels should boast retail sales up 2.5% in the next 12 months.
ReplyDeletehttp://www.bbc.co.uk/news/business-19616946
The article “current oil prices no threat to world economy-Iran”, published in Dubai on Sept 16 by Daniel Fineren deals with the increasing oil prices.
ReplyDeleteAccording to Iranian oil officials, oil prices are still fairly low. The Iranian representative of the OPEC, Khatibi told the oil ministry new hat even sensitive consumers see $100 as fair. He believes that a small increase of that price level will not upset Western economies.
Furthermore Khatibi criticizes US and European governments on blaming rising oil prices for their problems instead of focusing on solving their debt structural issues.
However, Brent crude oil prices rose more than 20% since the OPEC met last time in June, being between $112 and $118 a Barrel since mid-august
Khatibi sees the current oil prices as the result of natural developments in world oil markets and is of the opinion that the United States try to artificially bring down prices by pressing oil producing countries to raise output .
Nevertheless the International Agency , which represents developed energy consuming countries, implies that there was no need to release emergency stocks to curb prices. They say that global oil demand was likely to be muted over the next year supply and inventory levels looked comfortable.
http://www.reuters.com/article/2012/09/16/iran-oil-prices-idUSL5E8KG2KF20120916