DiscussEconomics would like to wish all our American blog readers and contributors a happy Fourth of July. Hope you actually got the day off! Many more exciting new bloggers and topics to come this year, stay tuned!
-B
To all our Canadian readers and students we want to wish you a Happy Canada. Keep it real Canada! (Which is where we're from FYI.)
- B
Here is a list of resources online that are in the midst of the discussion regarding the role of speculators in driving the price of oil sky high. Let us know if we've forgotten some important / useful articles. We'll be continually updating this post with new articles so check back frequently.
Hyperbolic discounting refers to the preference people have to accept smaller payoffs sooner rather than larger payoffs in the future. This means that in terms of an individual saving for retirement, the individual is much more inclined typically to spend the money now rather than have a larger amount later to spend, say on retirement. This might create a problem later for the public in that people may spend excess amount in the current time rather than save enough for later.
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Some articles collected from around Canada discussing the 're-alignment' of the housing market or the 'bubble bursting'. What are your thoughts? Interest rates have been kept the same this quarter so things can't be THAT bad. It appears in most major markets there is a cool and will continue to in this trend (less housing starts less purchases). This can be attributed mostly to the declining national economy (blame America). The trend should continue for at least 12 months in our opinion, unless you live in Alberta, downward trends won't occur unless there's downwards oil prices....
Back to some behavioral economics. Thaler cites three stylized facts about horsetrack betting, they are as follows:
1. Most betters bring an amount of money that represents a small amount of their overall wealth. In terms of mental accounting, this money may represent the theory that money is non-fungible. Because they are not brining their whole wealth may be indicative of the portion of money associated with a specific label. For example, perhaps the money is thought of to carry utility in the form of entertainment. So instead of using this money to pay off debt, this money is strictly dedicated to entertainment, in this case betting.
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As the price of gasoline tops four dollars a gallon in the US and 1.4 a liter in Canada, consumers who are driving less could save an average of 5 to 15 percent on their automobile insurance rates if they just phone their insurers.
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Well here we are in the midst of another Canadian Summer. What has transpired in the financial realm that is of relevance? Let's do a recap of what's important to your bottom line.
First off I hope that all of you have done your 2007 tax return, especially if you owe money. Remember that the penalties for overdue taxes are an immediate 5% on the unpaid balance and daily interest thereafter. Putting that task in the procrastination pile will not make the problem go away! Most of you know you can ask for my help, moral support or otherwise.
