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interest rates: the price a borrower pays for the use of money they borrow from another lender
commodity prices: the price of commerce
rate hikes: a large increase in prices, wages, taxes, etc.
Group of Seven: an international organization officially established in 1985 to facilitate economic cooperation among the world's largest industrial nations
Canada became the first out of the Group of Seven to raise its interest rates, a sign towards an economic recovery, but stated that any other hikes are dependent upon the economies of other nations' economies. Canada increased its key interest rate from .25% to .50%, but its central bank officials stated economic recovery is still in a premature stage. With economic conditions differing for each nation, credit changes vary as well. So although Canada is recovering, the bank must weigh all the options and consequences of their fiscal choices.
I predict that Canada's economy will continue to slowly climb upward, despite the crisis in Europe. Foreign exports and economic ties with other nations hold an impact only to a certain extent, so Canada will not be deeply affected.
Jun 2, 2010
Fed Officials Upbeat On U.S. Recovery (Missing Blog #8)
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inflation: the general rise of price levels
Charles Plosser: the president of the Federal Reserve Bank of Philadelphia
Charles Evans: president of the Chicago Fed
Ben Bernanke: Fed Chairman
Despite the economic crisis in Europe, the United States economy seems to be taking a positive upward trend. This observation comes from the apparent improvement in the United States labor market, which is a sign of steadier recovery. Although the economic recovery is notable, the inflation rate is still low and will remain so in order to maintain a level of stability. Many economic analysts predicted that the Fed would begin raising interest rates by the end of 2010, but because of the Europe economic crisis, the interest rates probably won't raise until 2011.
I agree with these predictions by the Federal Reserve System. All the major world nations have economic ties with each other, so when a country such as Europe is struggling economically, it has some sort of influence on other countries as well, such as the United States. However, the foreign ties will only have a minimal impact on America's economy and we will continue to see upward trends with occasional troughs.
inflation: the general rise of price levels
Charles Plosser: the president of the Federal Reserve Bank of Philadelphia
Charles Evans: president of the Chicago Fed
Ben Bernanke: Fed Chairman
Despite the economic crisis in Europe, the United States economy seems to be taking a positive upward trend. This observation comes from the apparent improvement in the United States labor market, which is a sign of steadier recovery. Although the economic recovery is notable, the inflation rate is still low and will remain so in order to maintain a level of stability. Many economic analysts predicted that the Fed would begin raising interest rates by the end of 2010, but because of the Europe economic crisis, the interest rates probably won't raise until 2011.
I agree with these predictions by the Federal Reserve System. All the major world nations have economic ties with each other, so when a country such as Europe is struggling economically, it has some sort of influence on other countries as well, such as the United States. However, the foreign ties will only have a minimal impact on America's economy and we will continue to see upward trends with occasional troughs.
Apr 26, 2010
Layoff Anxiety Persists (Blog Of The Week)
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Job market: The field where the employment seekers and the companies are related
Recession:a widespread decline in the GDP and employment and trade lasting from six months to a year
Job Security: the probability that an individual will keep his or her job
Throughout the course of America's current recession, many people have lost their jobs or have been laid off. This rate has been a continuous downward spiral until recently, when the job market appears to be experiencing a turnaround in concern to employment. However, regardless of this apparent turnaround, those with jobs still fear that they may lose their job or be laid off. According to a recent Gallup poll, 21% of American workers believe that there is a strong likelihood of losing their jobs in the next 12 months. The percentage of workers who believe they have strong job security is at it's lowest level since Gallup first introduced this poll in 1975.
I do not agree with this article. I think that people have fair reason to be anxious of losing their jobs; the rate of unemployment continues to soar with new claims occurring often. I predict that the recession will continue to have a negative impact on our economy until we hit rock bottom and have no choice but to tread on a rise. Since the American economy has not reached that point, it will continue to struggle.
Job market: The field where the employment seekers and the companies are related
Recession:a widespread decline in the GDP and employment and trade lasting from six months to a year
Job Security: the probability that an individual will keep his or her job
Throughout the course of America's current recession, many people have lost their jobs or have been laid off. This rate has been a continuous downward spiral until recently, when the job market appears to be experiencing a turnaround in concern to employment. However, regardless of this apparent turnaround, those with jobs still fear that they may lose their job or be laid off. According to a recent Gallup poll, 21% of American workers believe that there is a strong likelihood of losing their jobs in the next 12 months. The percentage of workers who believe they have strong job security is at it's lowest level since Gallup first introduced this poll in 1975.
I do not agree with this article. I think that people have fair reason to be anxious of losing their jobs; the rate of unemployment continues to soar with new claims occurring often. I predict that the recession will continue to have a negative impact on our economy until we hit rock bottom and have no choice but to tread on a rise. Since the American economy has not reached that point, it will continue to struggle.
Mar 22, 2010
How Health Overhaul Would Affect The Uninsured
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Medicaid: health care for the needy; a federally and state-funded program
Subsidies: a form of financial assistance paid to a business or economic sector
Census Bureau: US government organization responsible for producing national population estimates
The uninsured have, for a long time, suffered more than those actually covered with health insurance. There are several statistics reinforcing this theory, some of which are
As the article states, "The Democratic proposals would require most people to buy coverage," this led to my predicting that the uninsured percentage rate would decrease. Although people would have to buy coverage, I predict that costs would be more flexible in agreement with their incomes and families.
Medicaid: health care for the needy; a federally and state-funded program
Subsidies: a form of financial assistance paid to a business or economic sector
Census Bureau: US government organization responsible for producing national population estimates
The uninsured have, for a long time, suffered more than those actually covered with health insurance. There are several statistics reinforcing this theory, some of which are
- the 2008 census informed the census bureau that more than 46 million Americans (about 15% of the U.S. population) were uninsured - with the recession going on today, that rate may have increased.
- approximately two-thirds of uninsured Americans earn less than four times the poverty level (such as $22,050 for a family of four)
- nearly 25% of the uninsured are eligible for Medicaid, but have not applied.
- 80% of the uninsured are American citizens, and 15% are undocumented immigrants.
- more minorities contribute to the uninsured statistics than whites.
- the age group that is most commonly uninsured are those between 19 and 29, due to the fact that their wages are too low to afford [decent] coverage, or their employers do not provide coverage.
As the article states, "The Democratic proposals would require most people to buy coverage," this led to my predicting that the uninsured percentage rate would decrease. Although people would have to buy coverage, I predict that costs would be more flexible in agreement with their incomes and families.
Mar 8, 2010
Jobless Rate Holds Steady, Raising Hopes of Recovery
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Recession: the state of the economy declines; a widespread decline in the GDP and employment and trade lasting from six months to a year
Underemployment Rate: counts people whose hours have been cut along with those working part time for lack of full-time positions
Great Depression: the economic crisis beginning with the stock market crash in 1929 and continuing through the 1930s
Feb 21, 2010
Early in the Year, and Already Surprised
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bull market: a market characterized by rising prices for securities
consensus: agreement in the judgment or opinion reached by a group as a whole
fiscal stimulus: A tax cut and/or an increase in government spending. So called because it tends to increase aggregate demand and therefore the level of economic activity in the short run.
public sector: the part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal
After 2009's positive uprise in global stock markets, many investors felt that they had a definite idea of how the stock market would behave in 2010. Many believed that the credit crisis was over, if not coming to an end, that the overall global economy would improve, and that nations other than the United States were coming on the rise. But two months into 2010, it has become apparent that many of these assumptions have backfired, one of the main problems being because of economic struggles suddenly on the rise in many European nations. One particular country with a crippling economy, Greece, has many investors concerned about the recovery of Europe's economy - even if the country doesn't fall into a major recession, the general nation won't see a full economic recovery until 2012, at the very least. 2012's beginning economic statistics are reinstating what market strategists often believe: if people form a strong consensus towards something, it is likely that they are wrong.
My prediction for the global economy is that things will continue to worsen before they get any better. While the overall global economy sees some improvement in the stock market and world trade, the high unemployment and low consumer statistics are big factors in what holds the worldwide economy from a consistent recovery.
bull market: a market characterized by rising prices for securities
consensus: agreement in the judgment or opinion reached by a group as a whole
fiscal stimulus: A tax cut and/or an increase in government spending. So called because it tends to increase aggregate demand and therefore the level of economic activity in the short run.
public sector: the part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal
After 2009's positive uprise in global stock markets, many investors felt that they had a definite idea of how the stock market would behave in 2010. Many believed that the credit crisis was over, if not coming to an end, that the overall global economy would improve, and that nations other than the United States were coming on the rise. But two months into 2010, it has become apparent that many of these assumptions have backfired, one of the main problems being because of economic struggles suddenly on the rise in many European nations. One particular country with a crippling economy, Greece, has many investors concerned about the recovery of Europe's economy - even if the country doesn't fall into a major recession, the general nation won't see a full economic recovery until 2012, at the very least. 2012's beginning economic statistics are reinstating what market strategists often believe: if people form a strong consensus towards something, it is likely that they are wrong.
My prediction for the global economy is that things will continue to worsen before they get any better. While the overall global economy sees some improvement in the stock market and world trade, the high unemployment and low consumer statistics are big factors in what holds the worldwide economy from a consistent recovery.
Feb 12, 2010
Spanish Economy Remains in Recession
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gross domestic product: a measure of economic activity in a country
austerity package: a package, designed by a country's government to minimize its budget deficit
monetary union: the European nations who merged their national currencies together to create a single currency (euro)
The economic recession is not limited to the American nation; it has globally affected other continents such as Europe and Asia. While America and China have seen a resurgence in economic and consumer growth in the last year, certain countries from Europe still struggle to bounce back to a healthy economy. One country in particular, Spain, finds itself at a stagnant point in terms of restoring its economy. Spain, Europe's fifth largest economy, holds the highest rate of unemployment among other nations in the eurozone. In the whole year of 2009, Spain's economy declined by 3.6%, with unemployment rates reaching its highest point in December at 19.5%. Spain's government predicts thata an economy recovery will occur in the second half of 2010, but Spain's public debt is expected to jump 19.1% between 2009 and 2010.
Spain's recession is not uncommon if compared to today's worldwide economy. Many nations who integrate their produce into worldwide trade find their economies staggered because as one country falls into debt, it affects other countries in a domino effect. Spain's recession may have occurred due to reliance on other countries' trade, but with that trade being faulty, Spain fell into debt. I agree with Spanish bank analyst, Ralph Solveen, about Spain struggling to catch up with the other nations of the monetary union. My own prediction is that if Spain is able to approach its economic problems at the root, with unemployment, and work to reverse those high statistics, then the country will begin to have positive economic growth and work off its debt little by little.
gross domestic product: a measure of economic activity in a country
austerity package: a package, designed by a country's government to minimize its budget deficit
monetary union: the European nations who merged their national currencies together to create a single currency (euro)
The economic recession is not limited to the American nation; it has globally affected other continents such as Europe and Asia. While America and China have seen a resurgence in economic and consumer growth in the last year, certain countries from Europe still struggle to bounce back to a healthy economy. One country in particular, Spain, finds itself at a stagnant point in terms of restoring its economy. Spain, Europe's fifth largest economy, holds the highest rate of unemployment among other nations in the eurozone. In the whole year of 2009, Spain's economy declined by 3.6%, with unemployment rates reaching its highest point in December at 19.5%. Spain's government predicts thata an economy recovery will occur in the second half of 2010, but Spain's public debt is expected to jump 19.1% between 2009 and 2010.
Spain's recession is not uncommon if compared to today's worldwide economy. Many nations who integrate their produce into worldwide trade find their economies staggered because as one country falls into debt, it affects other countries in a domino effect. Spain's recession may have occurred due to reliance on other countries' trade, but with that trade being faulty, Spain fell into debt. I agree with Spanish bank analyst, Ralph Solveen, about Spain struggling to catch up with the other nations of the monetary union. My own prediction is that if Spain is able to approach its economic problems at the root, with unemployment, and work to reverse those high statistics, then the country will begin to have positive economic growth and work off its debt little by little.
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