The author of this article, Jeannine Aversa, is stating that key economic indicators point to the likelihood of a recession. Aversa supports her thoughts by noting the real GDP; “crawled at a 1.3 percent pace in the opening quarter of 2007…even weaker than the sluggish 2.5 percent rate in the closing quarter of last year.” The author suggests the main cause of the economic slowdown is due to “the housing slump.” Consumer expenditures are driving the economy, but Aversa worries about a “fallout from risky mortgages and rising energy prices.” Uncertainty of the Feds actions concerning the interest rates is leading to lower investment spending. The author also states that the Feds decision on raising or lowering the interest is due to the
Title: New Housing Era: 30-Year Mortgage May Fade. By: Appelbaum, Binyamin, New York Times, 03624331, 3/4/2011 Database: Academic Search Premier Section: National Desk WASHINGTON -- How might home buying change if the federal government shuts down the housing finance giants Fannie Mae and Freddie Mac? The 30-year fixed-rate mortgage loan, the steady favorite of American borrowers since the 1950s, could become a luxury product, housing experts on both sides of the political aisle say. Interest rates would rise for most borrowers, but urban and rural residents could see sharper increases than the coveted customers in the suburbs. Lenders could charge fees for popular features now taken for granted, like the ability to ''lock in''
Quick ratio Current ratio measures the current assets to be turned into cash to meet its debts in one year. Quick ratio is a more immediate measure of liquidity to obtain the cash. Again, Premier Investments Ltd dropped sharply on quick ratio from 3.48 to 1.40. However, David Jones Ltd only got 1.29and 1.18 for quick ratio. It is a bad signal for David Jones Ltd that is lower than 1.
Each year's deficit is added to the national debt. During a time of recession if there is a surplus, this will decline creating a deficit. A deficit will happen during a recession because workers may lose their jobs and corporation will see a decline in their profits, this decline does affect the Government’s ability to pay their debt without borrowing the monies to do so. References http://www.washingtonpost.com/opinions/charles-lane-the-feds-role-in-the-debt-debate/2012/12/03/ed5951cc-3d6a-11e2-a2d9-822f58ac9fd5_story.html http://economics.about.com/od/recessions/a/budget_deficits.htm Week 4 – Learning Team Weekly Reflection Aadil Ansari, Alexandra Lyddane, Joshua Bollman, and Judy Miller ECO/372 July 1, 2013 Jack Karczewski Week four has proved to be as interesting and informing as the first three weeks. This week, our learning objective that
In 2000 revenues exceeded expenditures, however the government chose to lower taxes and increase spending; opposite of economic theory. This paid off following the 911 attacks making the anticipated recession the shortest to date. The United States deficits are funded by the selling of bonds. If buyers are unwilling to buy these bonds, the central banks buy them. Because these loans are IOUs, they can be offset by printing more money.
This leads to less tax paid by the industry and more unemployment insurance payouts, both of which affect fiscal policy. This impact was severe during the financial crisis of 2018, as both Ford and Nissan had to be rescued by government bailouts. These bailouts became necessary to protect the millions of jobs directly and indirectly dependent on the industry. With Chryslers’ return to the capital markets in 2020, taxpayers may get most of their bailout money
Credit scores are basically a track record on how well you manage your financial responsibilities. If I was a financial institution, and I saw that a customer wants to borrow money but was always late on payments, I would be a little hesitant at lending that customer money. It is very important to take your credit score seriously. Your credit score is one way to come up with an unbiased decision. Financial institutions and companies can provide credit for majority of the population by using the unbiased formula called the Credit Score.
Rodriguez argues that more needs to be done about regulating cash lender services, similar to the way banks have been regulated for decades. What I find interesting is that if banks have been experiencing a period of de-regulation in the last 40 years, and it’s still cheaper to get a bank loan or create a checking account, then how many regulations are these cash lender services exempt from? In other words, how bad is it,
Tax Exempt Status A Review of Credit Unions Tax Exempt Status Professional Writing Instructor: Alice B Smith Cohort Number LNBA06 August 12, 2013 Credit Unions 1 Thesis Having the tax exempt status can give credit unions a competitive edge by offering lower loan rates, lower fees, higher savings rates, and options for the consumer. Banks do not agree with the tax exempt status that credit unions have been given. Credit Unions 2 Why Credit Unions Should Remain Tax Exempt 2008 and 2009 will be remembered as the years the invisible became visible. The world financial markets and the banking industry became the center of attention due to
Leading indicators signal future events. The index of leading indicators is one of the tools used to measure the business cycle. In 2009, the real GDP growth was -2.5%, unemployment rate was 8.3%, and the CPI was 0.30%. Combine these information; we know that Canadian economy experienced the recession in 2009, which was trough phase. The real GDP is important indicator that helps to measure the economic fluctuation.