May the New Year bring a global financial picture that looks less like a roller-coaster ride at Disneyland and more like a consistent incline on a hike
Old but good: America actually earns more from its assets abroad than it pays to foreign investors. Precursor to this other article by Krugman on debt v deficit and why those in the know know nothing, Dean Baker adds to the argument that government debt is not as big a burden on future generations. Nick Rowe and Don Boudreaux respond.
Why Mitt Romney is an idiot and those who vote for him are the same. The stupid 'fear mongering' on job data.
User artp posted this question in the forum and now it's being republished here.
As I read (mostly in The Economist) about the current economic crisis the more I become convinced it is partly a breakdown in the way our economy creates money. This leads to the question: Are there other ways to create money?
The number of unemployed in the US has gone down in the past month of November which is good news for the economy. Modest gains have been recorded every month for a full quarter now. However, part of those gains, however small, have to be attributed to the Christmas spending spree. What happens in the later Winter months will be a better indicator of the seasonal trends.
Unemployment for the US went down to its lowest levels since March 2009. Canada on the other hand saw a tiny increase. The decrease from 9 to 8.6 also stems from better than expected numbers in the revised Sept-Oct figures. The private sector, namely retail, were the leaders in the pack.
So you've lost 50% of your portfolio and wondering what to do and how you could have avoided the pain. Most are hearing sit tight, which is true, or heck, even buy, which is even more true. But is there anything you could or can do in a market that is in turmoil. Here are some suggestions to manage your portfolio in light of market volatility.
Firstly, there is a component of reducing debt loads and adjusting lifestyles. Those two go hand in hand. You lose your job? Tightening the purse strings? Chances are that requires a change in lifestyle that sees disposable income diminish. Maintaining this lifestyle will help you increase your savings/income for investments. Continue reading this article »
The credit crunch in 2008 hit consumers and businesses alike hard. We can't really say we weren't expecting some form of downturn in the economy, but the magnitude and scale we've seen thus far, many would admit it's worse than expected. Despite all the negativity and doom and gloom surrounding us, are there things we can adopt to help us pull through the economy downturn? Read on for easy and pragmatic steps to save you bundles of cash, upwards of thousands per month!
You don't think about insurance until you need it. When you decide it's time to protect loved ones you face another problem: what to choose from among the gluttony of options? So you get a call amidst your decision from someone hawking universal life insurance. Should you buy in? All prudent financial advisers unanimously say no. Here's why.
If you want cheap, big corporate retailers like Walmart is the place to shop, not your local corner store. The demand for cheap goods and services means a few things.
For starters, the likes of WalMart can deliver lower cost goods because it has an exceptional delivery system. Greater efficiency = lower costs.
Big corporate retailers also buy in massive bulk which permits greater discounts.
And of course, they import most of their goods from countries that can produce at a lower cost.
Importing from China, South Asia, and India, permits WalMart to take advantage of the lower standard of living and thus lower labor costs. Lower labor costs means cheaper goods and the savings get passed down to the American consumer. Those savings, however, are a double edge sword. The consumers want to save, the greater the pressure to find cheaper goods, and the greater the pressure for manufacturers of said goods to lower costs.
The greatest cost to any outfit is of course wages. So lower wages = lower products for you at the till. But the cost of lower wages in a global economy usually means no wages. Put another way, it means a loss of domestic jobs to cheaper foreign competitors.
What is OWS going to accomplish? Probably nothing, at least in its current form. There are no clear demands, no single voice to the movement, no clarity in its function, and most importantly, no mass support. Yes, apparently 99% of the populous are represented, but only a tiny fraction actually mobilize. Think about this, comparatively to the rest of the world (and movements we've seen) we're RICH in comparison--we ARE the 1%, even our hobos are in the top 5%. I'm not saying that it's therefore OK to live in poverty, our numbers are growing and poverty is poverty no matter where you're going, but the climate for movement is different.
To drag a slightly annoyed middle class out of their homes in a cool Fall air is hard to do especially when we're apathetic to begin and frankly, don't necessarily resonate with hippies and beatniks.
OWS in it's current form will fail. The decentralized nature of the movement, its success up to this point, is its downfall because one coherent message can't emerge. However, mark my words, OWS is the catalyst for something bigger.
Imagine a time when your family must take care of aging relatives. Consider a sudden need to move to a smaller dwelling. To complicate matters one of the elderly relatives is suffering from very poor health.
Here are some important tips about power of attorney and personal directive (mostly pertinent to Canada).
