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.
Continue reading this article »
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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.
Continue reading this article »
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
Continue reading this article »
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
Continue reading this article »
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.
Continue reading this article »
5 Comments
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Jul 04.10
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Uncategorized
/ by Ro Econ
A chemist, an engineer and an economist are stranded on a deserted island. They carry with them some canned food but have no ordinary means of opening the cans. The chemist suggests gathering some wood and starting a fire and then holding the cans over the heat, counting on the expanding contents to burst open the cans. The engineer thinks it would be better to try smashing the cans open with some of the rocks lying around. The economist begins, "Assume we had a can opener..."
2 Comments
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Jun 29.10
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Macroeconomics
/ by Ro Econ
Here is a question that originally hit our economics forums. The questions are based on some introductory supply and demand curves. The picture and the answers after the jump. Continue reading this article »
3 Comments
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Jun 10.10
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Global Economics
/ by Ro Econ
**This was an article that was originally posted Feb. 27, 2007 and resurrected today in light of the news the US is increasing pressure on China to revaluate their currency. To learn more about revalution check out our devaluation and revaluation article.***
US politicians and lawmakers are pushing hard for China to revaluate their currency. Why is this important? By revaluating China essentially will force their currency to appreciate. Once that happens their goods become comparatively more expensive to purchase. The economy in China will slow as less countries demand their products. For China this is undesirable if they have the demand to continue their breakneck expansion. On the flip side, it will help America address their trade deficit woes.
But then again, the US has threatened before and nothing has happened, maybe because their economy clout is gone and China is now the powerhouse? I don't think it's quite at that level, so maybe this time we'll see some fireworks....
Here's what we posted about this situation three years ago, so there's not indication that these latest threats will do any good..... Continue reading this article »
