Blog posts tagged with 'economy'

Poll shows Americans' pessimism on economy growing
http://news.yahoo.com/poll-shows-americans-pessimism-economy-growing-211021976.html
Most of the increasing pessimism on the economy is coming from democrats who are beginning to realize that the present people running the government are doing a poor job.

Jobless Americans to lose unemployment benefits
http://finance.yahoo.com/news/jobless-americans-lose-unemployment-benefits-094500875.html?l=1
50% of the people who loose there benefits will get a job immediately.

Oil pares loss on upbeat U.S. consumer data
http://finance.yahoo.com/news/oil-falls-below-96-dollar-014622808.html?l=1
U.S. private sector (70% of the U.S. GDP) is recovering.

Banks prepare for the return of the drachma
http://finance.yahoo.com/news/banks-prepare-return-drachma-083804551.html
Greece negotiated the right off of half their debt in exchange for promising austerity cuts. They will now weasel out of the austerity cuts, move back to the drachma and devalue their way out of the other half of their debt.

Spanish bank reform disappoints investors
http://news.yahoo.com/spain-approve-banks-cleanup-tough-talks-065021869--finance.html
6 countries are broke in Europe. France owns the majority of the debt from these 6 countries. The other 10 countries in the Euro Zone are doing ok.

1940 Census graphics show dramatic change in education, economy
http://news.yahoo.com/blogs/lookout/1940-census-graphics-show-dramatic-change-education-economy-135944654.html
Slightly skewed article. The work force has tripled. We have not lost anything, just most of the new growth has been with the middle man and services. This has been a drain on the economy, but this is changing.

America Is #1…In Corporate Taxes
http://finance.yahoo.com/blogs/daily-ticker/america-1-corporate-taxes-143053782.html?l=1
If you were going to invest, the US is the least advantages, but this is changing.

Foreign investors warn India over retroactive tax
http://news.yahoo.com/foreign-investors-warn-india-over-retroactive-tax-123559990.html
The world is changing, making the US the advantageous place to invest.

Bail-Out Politics: Even Michigan's Economy Is Improving
http://news.yahoo.com/bail-politics-even-michigans-economy-improving-100047912--abc-news.html
Too much money was spent for too little return.
 
Iran oil ministry denies state media reports on EU oil stop
http://news.yahoo.com/iran-stops-oil-exports-six-eu-countries-state-120553109.html
This is why oil prices are up.
 
Negotiators reach tentative payroll tax cut pact
http://news.yahoo.com/negotiators-reach-tentative-payroll-tax-cut-pact-000507483.html
More spending.
 
3 Upsides to Lousy Government
http://finance.yahoo.com/news/3-upsides-lousy-government-212724824.html
True Article!
 
Volcker Rule Debate: Even Occupy Wall Street Is Involved
http://finance.yahoo.com/blogs/breakout/volcker-rule-one-step-closer-becoming-law-130649480.html?l=1
Job and business killer.
 
Italy slides back into recession
http://news.yahoo.com/italy-slides-back-recession-092843686.html
Europe heading for a hard crash.

Are Student Loans the Next Debt Bomb?
http://finance.yahoo.com/news/student-loans-next-debt-bomb-143222311.html
This is an extremely important article.
 
Japan to slash use of a heavy rare earth as China tightens grip
http://news.yahoo.com/japan-slash-heavy-rare-earth-china-tightens-grip-093552135.html
China had 97% as of 6 months ago. It has dropped to 95% since California and Oregon allowed Molly corp to start strip mining for rare earth metals again.

Norwegian carrier buys 222 Boeing, Airbus planes
http://finance.yahoo.com/news/norwegian-carrier-buys-222-boeing-071511753.html
U.S. Private Sector (70% of U.S. GDP) Growing.
 
Ford marks turnaround juncture with new slogan
http://smallbusiness.yahoo.com/advisor/ford-marks-turnaround-juncture-slogan-005941403.html
U.S. Private Sector (70% of U.S. GDP) Growing.
 
Texas congressman introduces bill to force Keystone XL approval
http://news.yahoo.com/texas-congressman-introduces-bill-force-keystone-xl-approval-202946262.html
Send money to Middle East (enemy) or to Canada (ally).

Strong start for stocks, but what's changed?
http://smallbusiness.yahoo.com/advisor/strong-start-stocks-whats-changed-191459729.html
A lot of good facts with the wrong conclusions. Read the facts, not the conclusions and make your own decision. U.S. Private Sector (70% U.S. GDP) is surging. The rest of the world slowing.
 
More Lockouts as Companies Battle Unions
http://finance.yahoo.com/news/more-lockouts-companies-battle-unions-114401654.html?l=1
Public unions and cooperative bargaining will cease to exist in  the next 5 years. Americans cannot afford them any longer.
 
Top 100 U.S. zip codes hit hardest by foreclosures
http://finance.yahoo.com/news/top-100-u-zip-codes-102300188.html
 
Lost decade of growth for the West
http://smallbusiness.yahoo.com/advisor/lost-decade-growth-west-201405864.html
U.S. private sector (70% of U.S GDP) has had steady growth for over a year. The U.S. is separating itself from Europe. The Federal Reserve has reversed its long term policy of devaluing the dollar.
 
Boehner: Republicans may link pipeline to tax bill
http://news.yahoo.com/boehner-republicans-may-pipeline-tax-bill-174404911.html
The U.S. needs to trade with allies not enemies.

Don’t Look Now, but the Deficit Is Shrinking!
http://finance.yahoo.com/blogs/daniel-gross/don-t-look-now-deficit-shrinking-142058448.html?l=1
The deficit is not shrinking. The increase is shrinking and only by a little.

Gold Prices Pop Past $1,600 as Dollar Flails
http://www.thestreet.com/story/11362857/1/gold-prices-pop-past-1600-as-dollar-flails.html
Everyone fled to safety (dollar at the end of the year), money came back into the market today, gold will start dropping off by end of week.

Greece: No second bailout, no euro
http://finance.yahoo.com/news/greece-no-second-bailout-no-141331172.html?l=1
Euro down, Dollar up, Gold down.

Five Myths About Emerging Markets
http://finance.yahoo.com/news/five-myths-about-emerging-markets.html?l=1
Half truth, raises some concerns, it should go further and state the huge risk in emerging (commodity based economies) based on a strengthening dollar.

Secrets of the Bailout, Now Told
http://finance.yahoo.com/news/secrets-bailout-now-told-122008831.html?l=1
Recession caused by the financial institutions, Federal Reserve bailing them all out at the Private Sectors (70% U.S. GDP) expense.

Europe’s Big Week: Early Returns Good, Big Challenges Remain
http://finance.yahoo.com/blogs/daily-ticker/europe-big-week-early-returns-good-big-challenges-161059361.html
Europe’s promises always sound good, they just never deliver.

As Gloom Rises, U.S. Economic Data Turn Positive
http://finance.yahoo.com/blogs/daily-ticker/gloom-rises-u-economic-data-flow-strengthens-152104442.html
U.S. Private sector improving (70% of U.S. GDP).

Retail groups file suit over debit card fee rules
http://finance.yahoo.com/news/retail-groups-file-suit-over-213932088.html
Fighting back on liberal progressive over regulation.

Unemployment drops in three-quarters of US states
http://finance.yahoo.com/news/unemployment-drops-three-quarters-us-153634818.html
U.S. Private sector improving (70% of U.S. GDP).

Rate on 30-year fixed mortgage falls to 3.98 pct.
http://news.yahoo.com/rate-30-fixed-mortgage-falls-3-98-pct-150345956.html
Federal Reserve’s Operation twist is locking long term loans into very low rates.

Roubini: Europe’s Contagion “Has Now Gone Viral…and Global”
http://finance.yahoo.com/blogs/daily-ticker/roubini-europe-contagion-now-gone-viral-global-141320419.html
Dollar up, U.S. Private sector (70% of U.S. GDP) up, U.S. economic allies up, foreign currencies down, commodities down, emerging economies down.

A.M. Kitco Metals Roundup: Comex Gold Lower As Commodity Sector Sinks, U.S. Dollar Rallies Amid "Risk-Off" Day
http://www.kitco.com/reports/KitcoNews20111123JW_am.html
Dollar up, U.S. Private sector (70% of U.S. GDP) up, U.S. economic allies up, foreign currencies down, commodities down, emerging economies down.

The U.S. economy faces another threat to economic recovery if scheduled spending cuts take place.  The economy saw modest growth during the third quarter despite the Eurozone debt crisis and fear of a second recession. Deep spending cuts may jeopardize economic recovery if a congressional panel can’t decide on how to decrease the deficit by Thanksgiving. 

Analysts are also concerned that Congress may let emergency unemployment aid and a Social Security tax cut expire at the end of the year. Either scenario could stall growth and negatively affect the global markets. 

Despite concern by many analysts, some say that the economy and markets won’t be crippled by either outcome. “There’s no doomsday scenario in reducing government spending,” said David Kelly of JP Morgan Funds. 

The panel which appears to be at a stalemate must make a decision before the Thanksgiving holiday to delay the automatic spending cuts.

See Link: http://finance.yahoo.com/news/automatic-spending-cuts-threat-us-080312061.html?l=1

A.M. Kitco Metals Roundup: Comex Gold Sees Corrective Bounce As U.S. Dollar Index Backs Off, Crude Oil Gains
http://www.kitco.com/reports/KitcoNews20111118JW_AM.html
Third paragraph, 5 weeks of strengthening dollar. Started when Federal Reserve reversed its seven year policy of weakening the dollar with operation twist.

Automatic spending cuts a new threat to US economy
http://finance.yahoo.com/news/automatic-spending-cuts-threat-us-080312061.html?l=1
Federal Government is grid lock until Nov 3 2012. Hurt some industries but will strengthen the U.S. dollar.

Analysis: IMF can no longer avoid bigger role in eurozone
http://news.yahoo.com/analysis-imf-no-longer-avoid-bigger-role-eurozone-143527839.html
Spin. When they say IMF, they mean U.S. (25% of the funding for IMF). They are begging for the U.S. to bail them out.

The Postal Service reported Tuesday that it lost $5.1 billion during the 2011 fiscal year. The Postal Service receives no taxpayer funds for its operations, and warned Congress they could run out of cash by September of 2012 if no relief is offered.

High labor costs and shrinking revenue due to the rise of e-mail and online bill payments have crippled mail volume. During the fiscal 2011 year, mail volume decreased by 3 billion pieces. 

“We will likely nearly run out or run out of money at the end of this year, and…if the economy turns south or we are unable to achieve our plan, we could run out of cash earlier,” reported Joseph Corbett, the Postal Service’s chief financial officer.

The Postal Service has drafted a plan for trimming costs that includes closing processing facilities, halting retirement fund payments, and increasing the cost of stamps by one-cent. Officials have also proposed ending Saturday mail delivery. The agency is pressuring Congress to pass immediate relief, supplementing the proposed cuts which may not be enough. 

“There are 8 million private sector jobs that rely on the Postal Service, and these jobs will be put at risk unless Congress quickly enacts bold reforms,” Art Sackler, of mailing group the Coalition for a 21st Century Postal Service, said in a statement.

Congress will have until mid-December to make a decision on relief for the agency, when funding from the most recent stopgap bill ends.

See Link: http://news.yahoo.com/postal-loses-5-1-billion-fiscal-2011-232706243.html

Stock prices rose Friday after Italy’s Senate passed an economic reform bill. The reforms pave the way for the current Prime Minister of Italy to step down, who has vowed that upon passage of the bill he will resign. 

The economy sank Wednesday following the increase in Italy’s borrowing costs and breakdown of talks for a new Prime Minister in Greece. The passage of the reform by the Italian upper house strengthened the euro and increased the price of oil to $98 a barrel.

The Dow Jones industrial average rose 266 points, and the S&P went up 2.2%. 

The legislation will go on to Italy’s lower house for approval. 

See Link: http://beta.finance.yahoo.com/news/stocks-jump-italy-passes-economic-144319837.html

PepsiCo 3Q Profit Climbs on Snack and Beverage Sales

PepsiCo Inc. has gained revenue due to raising its prices and growing overseas.

Higher costs of fuel, packaging and ingredients have caused many companies in the United States to raise prices. Along with raising prices, many companies in the U.S. have had to cut back on spending, forcing them to expand overseas. This has turned out to be a recipe for success for PepsiCo Inc. who has shown higher revenue in the 3rd quarter. The company has shown a 4 percent profit for the 3rd quarter, which beat Wall Street’s predictions. Despite a shaky economy the private sector (70% of the U.S. GDP) is increasing.

PepsiCo showed its largest gains in Europe, which showed a 37 percent increase. Asia, Africa and the Middle East all showed gains of 25 percent while Mexico and Brazil showed gains of 19 percent. In North America, snack foods like Frito lay, Doritos, Cheetos and Ruffles all showed gains of 2-4 percent despite higher prices and cost controls. 

The company is brainstorming, trying to think of new ways to attract the customers in the U.S. who have cut back on their spending, but still want to buy Pepsi products. The Company has also stated that they will be raising prices further on select products during the fourth quarter. 

View Original Post: http://finance.yahoo.com/news/PepsiCo-3Q-profit-climbs-on-apf-1516145140.html?x=0

Last week, in Frankfurt, Germany, the European Central Bank bought 2.3 billion euros ($3.1 billion) in government bonds in an effort to keep pressure off the shaky governments suffering from the eurozone debt crisis. 

In response to the debt crisis, the ECB had been lending substantial amounts of cash against collateral to the banks so that they can operate day to day. Despite the effort to keep the banks afloat, the bond purchases have caused controversy between bank officials, resulting in the resignation of Juergen Stark, the bank’s chief economist. The bond purchases are a high risk for banks. If they cannot be paid off, it will put the ECB in a uncomfortable position of supporting faltering governments. 

Dexia has had to be rescued by governments of Belgium, Luxembourg and France because of it owning large amounts of Greek and Italian bonds and is having difficulty borrowing on the interbank credit market. Greece's Proton Bank has all ready been taken over and is under reconstruction from the country's bank rescue fund.

Banks are fearful that the debt crisis could spiral out of control if Greece and other governments default on their payments. Consequently, banks are depositing more and more money into the ECB. European banks have already deposited 255.6 billion euro ($347.1 billion), this is the highest it has been all year, and has surpassed the previous year’s amount. This shows that banks feel safer depositing their money into the ECB rather than lend it to each other. 

If Greece can’t pull itself out of debt, how could this affect the price of gold?  Call in for our Collapse of Gold Prices report to find out. 

See Link: http://finance.yahoo.com/news/ECB-slows-down-government-apf-4128206917.html?x=0

The leaders in France and Germany have promised to strengthen the European banks, trying to stop a global debt crisis caused by Greece not having enough money to pay its debt. U.S. and Europe stocks rose sharply in response to this action. 

Micheal Sansoterra, a portfolio manager for Silvant Capital management in Atlanta, stated "The more we can put our arms around the problem with a little more detail, the better; and time frames usually help."

With the new help from France and Germany, the Euro strengthened against the U.S. dollar, showing that what is being done is helping. One of the banks needing to be rescued the most is the Franco-Belgian bank Dexia. Dexia owns large amounts of government bonds, which rely on the financial status of Greece. If Greece defaults on its debt, then Greek bonds lose their value, resulting in banks taking detrimental losses. U.S. banks would also be affected if Greece defaults on its debt because of their close ties to European banks and owning large amounts of Greek bonds. 

European banks are so fearful that a another credit crunch could happen that they are lot lending to each other, putting more pressure on overextended banks like Dexia.  This is what led to the E.C.B., European Central Bank, offering an unlimited amount of one-year loans to the regions banks until 2013 so they can still have credit. 

See Link: http://finance.yahoo.com/news/Stocks-jump-on-European-apf-1432038199.html?x=0

The European Central Bank is lending an unlimited amount of short term loans to banks to keep the region from entering a credit crunch, like the one that started the recession two years ago. The 12 to 13 month loans provided to the banks by the ECB will help European banks to keep lending between banks possible. The ECB is also buying euro40 billion ($53 Billion) in covered bonds in an effort to help banks raise funding. 

The government debt crisis from Greece has exposed European banks to threatening losses and shaky finances. It is essential for daily business for banks being able to borrow between each other. However, the fear  is that the money being borrowed will not be repaid. These fears have become reality for Franco-Belgian Bank Dexia, who was bailed out once before and is now struggling again to raise funds to pay its debts. 

The Eurozone economy has only grown 0.2 percent resulting in the worst crisis since WWII. Consumer and business spending is suffering due to lower incomes, higher taxes, and governments having too much debt that will not be able to be paid. 

See Link: http://finance.yahoo.com/news/ECB-opens-cash-taps-to-avoid-apf-2139268920.html?x=0

Stocks rose for the second day in a row today after the U.S service sector showed a continual increase, inspiring private companies to increase hiring. The U.S. service sector employs 90 percent of the workforce, which includes jobs in health care providers, banks, real estate and other business other then manufacturing.

ADP, a payroll possessing company stated that private companies added 91,000 jobs in September. ADP's numbers do not necessarily predict what the government's employment report will be, however, they do influence trader's expectations. Economists are still predicting that unemployment will remain current at 9.1 percent, despite the increase in stocks.

Some financial analysts are stating that the increase in the Stocks is because of a late day rally that was influenced by European officials implementing new efforts to support the region's struggling banks. If Greece defaults on their debt payments, then the European banks will take a huge loss causing Greek bonds to plummet in value. Many European banks have substantial holdings in Greek bonds. 

Rob Stein, head of Astor Asset Management, stated "The market is trading on sentiment right now, not fundamentals. People are hoping that the bounce yesterday means that we've hit a bottom, but the problems that were in the economy Monday haven't changed since then. 

See Link: http://finance.yahoo.com/news/Stocks-rise-as-service-sector-apf-3845343497.html?x=0

Americans are shopping, but only when they are getting a deal. Consumers are taking advantage of big sales and discounts buying affordable luxuries last month. According to the International Council of Shopping Centers, revenue rose 5.5 percent in the month of September showing strong gains for big retailers like Target, Macy's and Limited brands.

Ken Perkins, President of Retail Metrics, stated, "Bargains drove the month. There were lot of deals to be had, and we expect to see that follow through the rest of the year."

Despite these strong increases in September, many retailers are showing concerns that shoppers are worried about unemployment, a weak housing market, and a tumultuous stock market. Thus, causing shoppers to look for the type of bargains that result in a significant drop in retailers' profits. 

See Link: http://finance.yahoo.com/news/Retailers-report-solid-gains-apf-814454991.html?x=0