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Dec 22.10
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Foreign Exchange
/ by Ro Econ
The fall and dramatic rise of the Canadian dollar over the last 12 months is a prime example of the volatility that currency adds to Canadians' global investments. What does this mean for financial investments? Put simply, the dollar increase meaning foreign investors a) would like to invest into Canadian funds because of the hot economy, however, b) the dollar is expensive which may scare some investors away. Higher demand for Canadian currency means shorter supply and higher prices.
Continue reading this article »
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Nov 25.10
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Debt Management
/ by Ro Econ
The American economy is still struggling to return to pre-2008 levels. The housing market is still cold, and consumers are still hesitant to make big purchases. Many of those in financial trouble are find themselves faced with the decision to protect their assets through the process of bankruptcy.
The problems aren't reserved for regular households anymore, entire cities are being put at risk. Let's take a closer look at what's happening in the consumer market in one of the major metropolitan areas in California--San Diego. Continue reading this article »
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Nov 22.10
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Macroeconomics
/ by Ro Econ
This post started off as a comment for our 'Where do Banks Get Their Money?" article. It has now graduated to our top page for more exposure.
OK, quite a good few people have a good grip on the nature of the problem and there are slight variations expressed above but let's now hear some more ideas about what can be done to save mankind before the banking system and the world money system goes totally belly-up. Money as a system is revealed to be a ponzi scheme. We all know that all Ponzi's eventually run out of suckers as there is not enough of them to keep the system afloat. Soon, maybe very soon, we will all face this terrible collapse of the money system itself and social chaos would surely ensue. Continue reading this article »
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Nov 22.10
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Global Economics
/ by Ro Econ
How did we miss this, and where does all the freaking money come from? Government bailouts and the regular debt load of consumer nations like the US are padding the massive number of global public debt.
The US is suffering with no end in sight, but Canadians are also up ther ein the list. Interestingly, a similar economy in Australia pits the per-capita debt load at about 25% less....
Quite simply some countries are more forward looking than others.
Continue reading this article »
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Nov 19.10
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Macroeconomics
/ by Ro Econ
So many conflicting reports. We're in a bubble, we're not in a bubble, there's going to be a collapse, there won't be collapse. Housing starts are up, housing starts are down. Who's telling the truth?
It's probably the case where all of the above are correct at some point in time. But there's on irrefutable fact--Canadian are holding far more personal debt then ever before and our homes are the major component. With interest rates the lowest they can practically go, many Canadians have increased their debt load to purchase a home at bargain basement prices.
Two problems with that. Those looking to renew their mortgages can't qualify because the drop in the home price exceeds the mortgage. The other issue is mortgage payments are only going up and that means those who can barely afford their payments now, or have to use credit to afford their lifestyles, will quickly drown. Continue reading this article »
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Oct 11.10
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Personal Finances
/ by financewriter
Of Government Shenanigans and Other Soggy Summer Happenings
Here's a story about a dude named Dennis who had had a busy summer. To start, a few random financial tidbits he discovered.
In one survey of Canadians aged 35-44 90% agreed that it was important to have a financial plan in place at age 35. How many of those respondents actually walk the talk? Less than half did.(1)
Only one third of Canadians who were allowed to make RRSP contributions in 2008 actually did so.(2) Less than 28% of private sector employees have an employer sponsored pension plan.(3)
Most pension plans are now defined contribution plans where the responsibility for managing the portfolio has been passed from expert, educated professionals to the inexperienced, time deprived individual investor. Continue reading this article »
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Oct 05.10
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Macroeconomics
/ by Ro Econ
Not a new story for many, but is shows how economics is really a science on human behavior.
http://www.npr.org/blogs/money/2010/10/04/130329523/how-fake-money-saved-brazil
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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.
Continue reading this article »
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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.
