Currently, the United States of America is over nine trillion dollars in debt. In 2006, the U.S. treasury spent approximately four hundred and six billion dollars solely on interest payments for this debt.
Financial apocalypse has been averted. The massive drop in the stock market toward the start of the month was driven by the credit market, and the credit market is starting to firm up, with the TED spread dropping to 2.57. It could be better, but it could be a lot worse. Here's the outlook for going forward.
The uncertainty of the economy has dissuaded many investors from their usual practices, but penny stocks are no good alternative.
Business and Economics
By Brian Hendel
UNC's Economics Club invited Michael Munger, the former Libertarian candidate for governor who happens to have a PhD in economics, to speak last week on the current economic crisis. For those of you who missed it, here's a short recap of his talking points. Read More
Business and Economics
By Brian Stockton
Henry Ford gave life to the United States auto industry when he ingeniously constructed the Model T automobile. The innovation of assembly lines took this novel idea and turned it into a revenue churning behemoth that would stay firmly established in the fabric of the United States economy for some time. The big three's focus on quantity over quality has been apparent for quite some time, and unfortunately their concentration on maximizing short term profits blinded them from perceiving the ... Read More
Markets and Investing
By Alex Cook
A story that was just posted on Bloomberg said that the Russian central bank is having trouble keeping the value of the Ruble afloard. This could have major consequences not just for Russia but the world financial markets. Read More
Business and Economics
By Alex Cook
At time of writing, NYMEX oil is at $54.95 and the average national consumer unleaded gas price according to AAA is $2.087. Enjoy it while it lasts. As soon as China and India get out of the slump, energy prices are going right back up. Read More
Business and Economics
By Alex Cook
American Express is not a bank. Their attempt to try to get status as a "bank" in order to get federal bailout money is absurd. Regardless of their status on paper, American Express never was and never will be a bank. Bailing them out like a bank is a terrible idea. I have a better one. Read More
Markets and Investing
By Brendan Durkin
Bill Gates and Warren Buffet seem to be the only two people unaffected by the US's economic recession. Most people may be tempted to take drastic measures in a time like this due to the uncertainty surrounding the health of the economy. These tips should help you to keep a short-term recession from hurting you in the long-run. Read More
Markets and Investing
By Alex Cook
The stock market mayhem starting in August was driven by the lesser understood but arguably far more important credit market. It looks like things are starting to recover. Here are my predictions with a two-month horizon. Read More
Business and Economics
By Chris Hartle
Former Chairman of the Fed, Alan Greenspan, uttered these words on December 5th 1996, "But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions?" This famous offhanded comment about the irrationality of markets lies at the root of most problems facing our country currently. Read More
Markets and Investing
By Alex Cook
Well before last Tuesday, market analysts have been talking about what a McCain presidency or an Obama presidency would mean for certain sectors. Even now that the results are in, it is still premature, but there are some insights. Read More
Business and Economics
By Alex Cook
Memo to Washington, DC: Don’t make a bad situation worse. There has been a great deal of political rhetoric for a move toward greater regulation. Unfortunately, what I have seen so far in the debate and discussion about regulations has been disappointing. It is as if it is being presented as a binary decision: regulation good, or regulation bad. But really, specifically what kinds of regulations are being put on the table? Read More
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