Please focus on items that have to do with the whole economy (not just one product) and on items that seem substantial (not cute or weird human interest stories). https://news.google.com/ and http://www.google.com/finance might be a good place to go for news about the economy.
You should focus on news stories that have something to do with the fluctuations in the economy.
http://www.bloomberg.com/news/2012-11-19/gdp-accelerating-to-2-9-helping-u-s-overcome-sandy-budg.html
ReplyDeleteThis article discusses the various reasons why US GDP has accelerated to 2.9% in the third quarter this year. Recoveries in the housing market, a strengthening job market, and an increase in consumer confidence have all played a part in adding to this statistic. This article also mentions how Hurricane Sandy could cause a fluctuation in GDP; reconstruction work is projected to add as much as .75 of a percentage point to GDP in the first quarter of 2013. Another likely source of fluctuation will be the result of the upcoming fiscal cliff. Dean Maki, chief US economist, forecasts a 2.5 percent growth in the fourth quarter of 2012, followed by a 1.5 percent in the first quarter of 2013, and a pickup to 3 percent for April-June 2013. This article notes how “solid momentum” in our current quarter will help to give the US somewhat of a cushion to sustain growth in 2013.
http://www.theglobeandmail.com/news/politics/boosting-economy-more-important-for-canada-than-approving-keystone-xl-us-ambassador/article5418274/
ReplyDeleteThe article I chose to reflect on focuses on how one of Canada’s prime interests is the wellbeing of the United States economy. America is Canada’s number one trading partner, so naturally our economy doing well would only benefit Canada’s economy. However, due to America’s resent economic turmoil, the Prime Minister of Canada – a man named Stephen Harper – suggested that America might soon lose her status as Canada’s primary business partner. If America does not find a way to set her to financially set herself back on course, the Prime Minister has made it insinuated that Canada will be forced to “needed to try harder to shift trade from the United States and toward more rapidly-growing markets in the developing world.”. In fact Mr. Harper made his trade intentions abundantly clear during a recent diplomatic trip to India. Harper stated that he “predicted the U.S. faced a future of slow growth” and that because of this that Canada would need to start “looking elsewhere for exports.” Following these statements, the U.S. ambassador to Canada came out and said the United States does not hold any grudges towards Canada for looking to expand their trading horizons. Canada needs to do what she feels is best for her as a nation. However, regardless of the ambassador’s comments, if we were to lose one of our premiere sources of trade, that could not possibly have a positive effect on our already struggling economy.
There has been a rise of home purchases in the last month due to the record-low mortgage rates. The purchase of existing homes has increased by 2.1 percent going from 4.69 million in September to 4.79 million in October. This has also increased the confidence of home builders, and helped the housing market to recover. As the economy slowly recovers, more people have started looking to buy homes or rent apartments. Although the housing market is going up people are still struggling to buy due to their bad credit. On the other hand, Super storm sandy has caused the housing market to fall in the north-east. By 1.7%
ReplyDeletehttp://www.bloomberg.com/news/2012-11-19/u-s-existing-home-sales-rose-in-october-to-4-79-million-rate.html
http://economix.blogs.nytimes.com/2012/06/05/texas-is-the-future/?ref=grossdomesticproduct
ReplyDeleteTexas has recently petitioned for succession Some economists say this is a foolish idea, especially during economic recession. However, Texas' economy has been on the rise. It has grown 3.3 percent since the year 2011. Texas also have been improving in their oil and manufacturing businesses. Oil and manufacturing are to essential components for succesion that Texas is leading in. Currently, Texas accounts for a stomping 8.7 percent of the nations total economy. It increased from 7.4 percent a decade ago. In an economists' mind, Texas seems to have a decent chance of stabilizing an economy, if they succeed.
http://www.marketwatch.com/story/rajoy-spain-economy-to-shrink-less-than-forecast-2012-11-19
ReplyDeleteThings in Spain have been pretty rough lately. The Spanish economy has received many blows in the past year. The economy is likely to “contract less that 1.7%” which was not what they originally forecast. The country’s economy is showing signs of weak growth, but growth is growth. There were laws that caused people to be evicted from their homes but they still had to pay the mortgage. People began to go nuts and as a result two people killed themselves. Then the Spanish Banks put out a new law that would prevent people without enough economic resources from being kicked out of their homes. Now that the house prices dropped because of the new law was implemented people are beginning to buy houses. With that comes the hope that they will need new furniture and appliances thus creating a chain of events that might save the country’s economy.
The time has come. The end of days is near. Hostess Brands Inc. is declaring bankruptcy. Earlier this year, the company proposed significant wage and pension cuts for its workers. The baker’s union, however, did not respond, so bankruptcy judge Robert Drain granted Hostess permission to impose the cuts, including an 8% cut and a reduced pension. On November 9, the bakers went on strike. The lack of communication between the union and the company eventually led to Hostess reporting “$1.3 billion in debt and $981.6 million in assets.” Many companies are attempting to buy “ iconic brands or other assets on the cheap.” Judge Drain, however, has decided to delay the company’s bid to file bankruptcy , in the hope of mediating a new broker contract and, in effect, save more than 18,000 jobs. Of course, he probably just loves Twinkies.
ReplyDeletehttp://online.wsj.com/article/SB10001424127887324307204578129282170898870.html
http://www.nbcnews.com/business/chinas-economy-recovering-boom-days-are-over-1C7155142
ReplyDeleteThe article I read discuses how China's economy is on the rise through a recovery, however, the "boom days" are over. Meaning, that while China is recovering from it's deepest recession (starting in 2008) the days of two digit GDP growth are completely gone and will remain so. The new leaders that took over a week ago are under a lot of pressure to boost the economy, however, realistically speaking, China's economy will remain at a steady 7 or 8 percent. A full recovery was expected at the beginning of this year, but Beijing certainly hasn't taken any steps towards improving the economy by a vast amount. Predicting the new economic growth all comes down to perspective, as each sector of manufacturers is having different highs and lows at the time.
http://www.boston.com/realestate/news/2012/11/19/steady-housing-recovery-boosting-economy/wSVIx23yQXPN7aGCyA6h3J/story.html
ReplyDeleteThe US housing market has finally taken a turn upwards. For the first time in six and a half years people are confident about the housing situation. New home-sales and home-price indexes have reached highest in recent years. An economist at Deutcshe bank Joseph LaVorgna says that the housing recovery could boost the US economy a full percent next year. One report claims that housing sales is 11 percent higher than they were a year ago. Confidence of the house builders is one key part in the revival of the housing market. The National Association of Home Builders/Wells Fargo rose to the highest reading since May, 2006. The market is far from acceptable but there are now signs of hope.
http://www.latimes.com/news/nationworld/world/middleeast/la-fg-egypt-protests-20121126,0,825549.story
ReplyDeleteAlthough this article shifts towards a more political discussion, it also discusses the fluctuation and current desperate situation of Egypt's economy.
The government seems to be ignoring the economic failure; Egypt is close to bankruptcy. The stock market recently hit a low due to unrest about political reasons--President Mohammad Morsi has caused great discomfort about the state of the government and how widespread his power will be.
So, in the end, this article exhibits the dependent relationship between politics and economics. If one is shaky, it drags its partner along with it.
http://www.tutor2u.net/business/strategy/seasonality-introduction.html
ReplyDeleteThis site is a tutorial introducing the concept of seasonal fluctuations. The is two major cuases for seasonal flucuations. Seasonal supply and demand. Examples of this apples, watermellon, grapes, and other fruits have seasonal sales, because they can only be sold when ripe which is for one season. This is seasonal supply, the sales of argricultural products experience a fluctuation, because there are only certain times of the year they are sold. The second type of seasonal fluctuation is cuased by demand. For example more gas and electricity are sold during the winter, because people are trying to heat their homes. Sales of cards spike up during holidays, candy sales during halloween, flowers during valentines, fireworks during the fourth of July, etc. The examples are numerous. The important thing about seasonal fluctuations is that you need to keep them in mind when estimating how much of a product you will sell. If I sell 100 jackets in July this does not mean I can multiply by 12 and assume I will sell 1200 jackets over the year, because I can assume I will sell more over the colder months. And vice versa, I can’t assume that because I sold 200 pounds of grapes one month, that I will be able to hold that rate though out the year.