Business and Finance

Since the Carter administration I have heard over and over again that the economy was on shaky ground. It may have been reported prior to that but I wasn’t paying attention until the mid 70s. So I am used to the reports that the sky is falling. What I have experienced, however is that prices will always eventually go up. Wall Street will bounce up and down. Some companies will go out of business and others will boom. And as always, the only thing that is certain is death and taxes.

Death, taxes and American competition. I think that it is in the water we drink. At a social gathering last month, a father of an American Olympian told the story of a bronze metal water polo match that the Americans won. An opposing player shook her head and explained that in her country she would have been a hero for being a bronze medalist. But, she exclaimed, in America these athletes will be considered the losers.

Continue reading ‘Despite Regulations American Small Businesses Always Go for the Goal, Surviving the Financial Crisis’ »

Great Depression happened in 1929. It took over 10 years to cure.

Effects of depression:
13 million people became unemployed.
Industrial production fell by nearly 45% between the years 1929 and 1932.
Home-building dropped by 80% between the years 1929 and 1932.
From the years 1929 to 1932, about 5000 banks went out of business.

That’s where when the buyer ran out of the market…. and this is what happening now in 2008. Investors now are panic and cash out from stock market.

As mass production has to be accompanied by mass consumption, mass consumption, in turn, implies a distribution of wealth – not of existing wealth, but of wealth as it is currently produced – to provide men with buying power equal to the amount of goods and services offered by the nation’s economic machinery.
Instead of achieving that kind of distribution, a giant suction pump had by 1929-30 drawn into a few hands an increasing portion of currently produced wealth. This served them as capital accumulations. But by taking purchasing power out of the hands of mass consumers, the savers denied to themselves the kind of effective demand for their products that would justify a reinvestment of their capital accumulations in new plants. In consequence, as in a poker game where the chips were concentrated in fewer and fewer hands, the other fellows could stay in the game only by borrowing. When their credit ran out, the game stopped.

Continue reading ‘U.S 1929 Great Depression Vs 2008 Financial, Housing, Credit Crisis’ »

The stock market is in a tumult. Actually, it has been for about a year, ever since the subprime fiasco (anyone take a look at Moody’s performance over the past year?) Now that that particular issue has been beaten to death, other mortgage related issues are cropping up. Most of the stuff covered in the media is financial in nature, but some of those mortgage related issues do concern information security.

It’s no secret that there are plenty of companies in the US that discard sensitive documents by dumping them unceremoniously: leave it by the curb, drive it to a dumpster, heave it over the walls of abandoned property, and other assorted mind boggling insecure practices. In fact, MSNBC has an article on this issue, and names numerous bankrupt mortgage companies whose borrowers’ records were found in dumpsters and recycling centers. The information on those documents include credit card numbers and SSNs, as well as addresses, names, and other information needed to secure a mortgage.

Continue reading ‘Can Data Breaches Be Expected From Bankrupt Mortgage Lenders?’ »

People are losing their homes and many more will lose their jobs before the mortgage meltdown works its way through the system.

To paraphrase Alan Greenspan’s remarks on March 17th, 2008, “The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the Second World War. The crisis will leave many casualties.”

How many casualties? Experts are predicting that in the next few years, between 15 and 20 million homeowners could have homes worth less than what they owe. Walking away from a bad situation may actually make sense for people who mortgages that are ‘upside down’ considering the fact that refinancing is out of the question and home equity is nonexistent.

It seems quite easy to point fingers at greedy Wall Street titans for causing the sub-prime mortgage crises. They after all, put together the deals that allowed banks to underwrite mortgages and then offload these liabilities to investors. What many fail to realize is that there is no shortage of blame to go around from homeowners buying more home than they could afford to real estate agents looking for more commission dollars. Mortgage brokers and bankers, the banks themselves, ratings agencies such as Moody’s and Standard & Poor’s, Wall Street, the Fed and last but certainly not least, the Federal Government.

Continue reading ‘Understanding the Mortgage Meltdown; What happened and Who's to Blame’ »

As you know, we have been experiencing one of the most challenging times in our country’s history.

During the past few months, we’ve encountered a housing bubble, credit crisis, a bear market in stocks, significant increase in unemployment rate, continuous increase in commodities such as food and energy prices and more.

As a result of these problems, the government has taken serious action to stabilize the country’s economic condition to avoid another “Great Depression.” According to National Bureau of Economic Research, the country is not yet officially experiencing a recession. Despite what the experts say, we should still prepare in advance for any possibility and take the appropriate steps to protect ourselves.

Remember, recessions come and go. Based on previous records, a recession may last anywhere between 8-16 months. At the same time, no other economic crisis within the last 50 years has been compared to the “Great Depression.” What does this mean for you and what should you do? First and foremost, do not worry and do panic. Not only will the economy eventually cycle back to a better condition, but you can still effectively prepare for what’s to come ahead.

Continue reading ‘5 Smart Ways to Survive a Recession’ »

Hot topic under discussion for the past few months is US recession. Debt market along with sub prime crisis collapsed US market in which its heat spread globally. Billions of dollars of the investors wealth has lost, banking system crippled and plugged millions of people jobs. To face the turmoil US government bailedout $700 billion.

SLIP IN A WAY MAKE I-BANKS TURN DOWN:

The same type of financial crisis occurred in US in 1929. Till 1929 commercial banks injected money in share market by means of SLR. Then after government made some regulations and informed the commercial banks not to involve in trading of shares or investing in equity market and the activity was stopped. After 1930 Investment banks (I-Bank) become familiar among public. They traded the investors wealth in the market based on some commission. I-Banks earned more profit by getting commission itself.

Continue reading ‘Dawn To Dusk – Us Market – An Overview’ »