2 Comments
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Oct 01.10
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Debt Management
/ by Ro Econ
Whether it is Equifax in Canada, or perhaps the FICO score in the US, having flawless credit ratings is not only fanciful thinking, but not exactly possible. Fact of the matter is, getting a perfect score won’t give you a better rate than if you had one or two belmishes on record.
The FICO score, can range from 300 (very bad) to 850 (solid gold). But don’t expect to see many 850s walking around. Maybe more of a 775 walking around, with the same rate as the mysterious 850. Here are some tips to help your loan and credit ambitions.
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Sep 06.10
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Personal Finances
/ by financewriter
Just this month one of my clients, a couple with 2 teens, achieved a milestone in their finances. They paid off their mortgage. Their original amortization was 25 years but 11 years after purchasing their house they are now proud OWNERS and can tell their bank to take a hike.
With good reason too. When their own branch was closed on Monday she went to another branch and was told : if you want to pay off your mortgage you will have to go to your own branch. When she did get to put down her final payment she wasn’t told she would be charged a $33 penalty unless she divided the payment over 2 months. They neglected to mention that in person but she was told that on the phone after the fact. So when you see those bank ads claiming to look out for you: not true. She is not the only client that has stories of fees and poor customer service. Continue reading this article »
4 Comments
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Aug 27.10
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Global Economics
/ by Ro Econ
Great article on how America has single handedly caused the spike of world oil prices in the past and indirectly Yankees line the pockets of Middle East dictators, and how Wars DO NOT stimulate the economy.
You mean to tell me a billion dollars a day is better spent in IRAQ then in America on consumption or job creation or, etc.?
My favorite quote:
Moreover, money spent on the Iraq war does not stimulate the economy today as much as money spent at home on roads, hospitals, or schools, and it doesn’t contribute as much to long-term growth. Economists talk about “bang for the buck†– how much economic stimulus is provided by each dollar of spending. It’s hard to imagine less bang than from bucks spent on a Nepalese contractor working in Iraq.
2 Comments
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Aug 17.10
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Global Economics
/ by Ro Econ
There is a growing trend of personal bankruptcy declarations that has continued since before the 2008 credit crunch. For most major US cities the trend is still increasing, albeit at a slower rate. Although personal Chapter 13 and 7 filings are up, what about businesses? Even though the number of business declaring bankruptcy is lower, the impact is perhaps greater because each business may have tens, to hundreds, to even thousands of employees. The trickle down effect of even a slight increase in Chapter 11 could be severely damaging to a local economy.
But this brief article isn’t about Chapter 13, 7, or even 11, we’re looking at Chapter 9–filings for municipalities. Continue reading this article »
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Jul 27.10
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Investments
/ by Ro Econ
Here is a list of key money market (financial market) instruments. These items are described within the context of a Canadian market.
The money market is a 1 trillion market (annual turnover) and a crucial component to help implement monetary policy by the Bank of Canada.
Types of financial instruments traded include:
- Government of Canada Treasury Bills (T-Bills)
*Note – Bank rate is upper end of operating band.
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Jul 24.10
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Personal Finances
/ by Ro Econ
Financial Intermediation generally consists of the following players:
- Savers- Surplus sectors of economy (typically households)
- Borrowers – Deficit sectors of the economy (non-savers)
- Economy as whole; borrowers borrow what savers save: SAVINGS = INVESTMENT
- Financial assets held by savers must always equal borrowers liabilities.
- Financial Intermediaries (Banks, investment firms, or other financial institutions) pool the savings of many people and lend to worthwhile borrowers.
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1 Comment
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Jul 20.10
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Macroeconomics
/ by Ro Econ
The Bank of Canada has increased the overnight lending rate 25 basis point to .75%. Simultaneously they have cut the economic growth forecast from 3.7 per cent annualized pace to 3.5 per cent rate that policy makers projected in April.
The move emphasized the relative strength of the Canadian economy. Note, we did say relative strength, as given hardship in our primary trading partners (less China) the economy is growing at a fickle pace.
The increased interest rate is one sign of strength, however, the comments on the slowing growth provided mixed signals for the market. Continue reading this article »
3 Comments
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Jul 20.10
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Personal Finances
/ by Ro Econ
Top 15 Recession Resources at Your Fingertips
Welcome to the comprehensive and continually growing recession resource courtesy of DiscussEconomics. You are going to find practical tips on how to reduce your spending, save money, and ways to come out of our recession in a better position than you went in. At the bottom we’ve highlighted total average savings to give you an ideas of how much money you can save by applying the following simple steps.
Visit our resources and discover how you can take control of your finances!
1. Save hundreds on your INSURANCE PREMIUMS. Did you know that if you’ve started to drive your car less because of the higher gas prices (which aren’t so high at the time of this writing) you could be in-line for a rebate in your premiums. Moving from a regular to casual driver can save you cash.
There’s more, what about home insurance premiums? Chances are your deductible sits around $500 bucks. When something breaks and it’s less than that number you won’t bother calling the insurance company to claim. However, when items are marginally higher, say 600-1000 you tend to avoid the insurance company. Usually you only approach the insurance for the loss of something huge, valuables, hot-water tank, or other big ticket items.
While you’re at it, try shopping around for another insurance policy. Competition may have lowered your premiums with another firm for the same coverage.
Why not increase your deductible to $1000 or even $1500. The savings could be more than $50/month and on average $20. Average expected savings: $200-400/year
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6 Comments
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Jul 16.10
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Microeconomics
/ by Ro Econ
DiscussEconomics is about to being a series on introductory principles of microeconomics. This is perfect for beginner economists, those looking to brush up on some basic terms, and first year University students. I’m assuming that you can differentiate between the studies of micro and macro economics so don’t expect an explanation here!
Introduction to Microeconomics
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1 Comment
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Jul 14.10
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Behavioral Economics
/ by Ro Econ
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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