Then write about it. Don't use a story that has been used by someone else.
- 100 words minimum, 200 words maximum.
- Be clear, concise, concrete, and complete.
- Put the URL (web link) of the news story on the post.
Thursday, January 31, 2013
Week 3 Spring
Go to http://news.google.com and click on "Business" on the left side of the screen. Click on something that seems related to the Financial Market: something that has to do with banks, stocks, bonds, lending, depositing, interest rates, etc.
Then write about it. Don't use a story that has been used by someone else.
Then write about it. Don't use a story that has been used by someone else.
Subscribe to:
Post Comments (Atom)
http://www.examiner.com/article/interest-rates-jump-to-6-month-high
ReplyDeleteIn South Florida the interest rates there has been a lot of unpredictability. There has been volatility from sales to investments. Borrowers are accustomed to take data of only low rates and the Fed keeps saying how they are going to keep printing money, nut with the debts still growing and investors having such a big say in interest rates, they are now 150 points of Dow hitting an all time new high. On Sunday the Bankrate.com reported how the average overnight rate for a fixed 30-year mortgage was at 3.6%. This is 14 points from where it was a week ago. The benchmark 15 year fixed rate was at 2.91% down 7 points from the previous weeks’ level while the benchmark 5/1 modifiable rate mortgage remained fairly stable rising only 1 point to 2.82%. So we see the economy is still in a lot of volatility and trying to slowly get back. But there is still hope and it is still a good time for locking in long term financing.
The article I read was about how the market for chicken wings always rises around the super bowl. Super bowl Sunday is actually the second largest day for food consumption in America. Five percent of the twenty six point five billion chicken wings are sold just on super bowl Sunday. This is encouraging because any positive growth in any market it a positive thing for the US economy. However, the chicken companies realize that there is a high demand for chicken wings around super bowl Sunday, so of course, they raise the prices. The prices for chicken wings have been about ten percent higher than normal for the past month. Unusually, the supply for chicken wings is down this year. Because of the drought last year, the price for animal feed has risen, causing chicken farmers to produce less chicken. Another unfortunate fact is that the wings of chickens are the most expensive part of the chicken. Even though prices usually drop after the super bowl, it does not look like the price of chicken wings will be dropping anytime soon.
ReplyDeletehttp://spendmatters.com/2013/02/04/us-chicken-wing-prices-flying-high/
U.S. stocks fell around 1% today – the worst drop of the year, so far. The Dow Jones Industrial average dropped 129.71 points (9%). Only Boeing Company ended higher. Analysts have suggested that a pullback of 3% to 5% “would be welcome.” Market strategist Elliot Spar said that “The book of excuses has been opened wide this morning in trying to explain this selloff. It goes from European political issues, higher rates on European peripheral debt to the Ravens winning the Super Bowl. How about this: The market was long overdue for a pullback, and buying every dip was just making it too easy for everyone to make a fast buck.” The European issues he is referencing have to do with the prime minister of Spain being “mired in a corruption scandal” to “the increasing popularity of Silvio Berlusconi,” who is running for office in Italy.
ReplyDeletehttp://stream.marketwatch.com/story/markets/SS-4-4/SS-4-20222/
http://smallbiztrends.com/2013/02/are-banks-losing-interest-in-small-business.html
ReplyDeleteThe article that I have chosen is in response to the question: are banks losing interest in small business? According to this article, the answer is yes. Data from the FDIC shows that loans to small businesses have been decreasing for a decade and a half. In 1997, the small loan share of all non-farm non-residential loans were at 52%, whereas in 2012 this percentage was a meager 29%. As the author suggests, since loans to small businesses have been decreasing since before the '07-'08 financial crisis began, the recession cannot be the sole cause. However, this article does list a few hypothetical explanations. First, the effects of banks increasing the packaging of loans into bonds that can be sold to third parties is not ideal for small businesses. Second, the consolidation of the banking industry has likely played a part in making it more difficult to obtain loans, as smaller banks being typically more likely to deal out loans. Finally, this article also mentions how the banking industry has become more competitive, forcing banks to focus on their most profitable loans, and since big loans tend to have quickly increasing revenues, the focus has shied away from the small business owner.
http://dealbook.nytimes.com/2013/02/04/u-s-and-states-prepare-to-sue-s-p-over-mortgage-ratings/
ReplyDeleteStandard & Poor's, "the nation's largest credit-ratings agency" is being sued by the federal government for causing the Great Recession. The lawsuit puts forth the idea that S&P's fraudulently inflated the ratings of mortgage investments, making them appear safe. Since the housing crisis is the root of the Great Recession, it follows that S&P's is responsible.
S&P's faces a fine as much as $1 billion, as well as an apology. Needless to say, S&P's was not all to happy about this gross amount and proposed a settlement of a meager $100 million.
Whether there was foul play involved or not, S&P's led Americans to believe that the housing industry was a secure business, and the American people's trust brought about the Great Recession.
http://www.cnbc.com/id/100433408
ReplyDeleteAustralia made a bold move by leaving its intrest rates unchanged. Australia's central bank kept its main cash rate steady at a record-matching low of 3.0 percent. The Reserve Bank of Australia (RBA) said "the downside risks for the world economy have abated and China's growth has stabilized at a robust pace." The Australian dollar fell to $1.0429 from $1.0444 after the decision. The Reserve Bank of Australia (RBA) lowered interest rates by 125 basis points last year, taking its benchmark interest rate to 3 percent, amid a weakening labor market and prices of some key commodities Australia exports.
http://www.latimes.com/news/politics/la-pn-federal-deficit-5-year-low-20130205,0,4779545.story
ReplyDeleteThis article I read by the Los Angeles Times talks about the federal deficit. With the recent spending cuts passed to avoid the “fiscal cliff” the projected deficit for the year 2013 is below one trillion. This will be the lowest the deficit has been for the past five years. However this may not be enough, the deficit will still be over 800 billion. The US government is still losing money rather than making it. This is particularly dangerous because costs are expected to sky rocket in the next decade, as the generation of baby-boomers begins to cash in on healthcare and retirement plans. Debates are still continuing and while it is good that the deficit is lower it may be too little too late.