Jun 14, 2013
Detroit is in the midst of a financial crisis. An emergency manager has been appointed and after an initial review of the city’s finances, Emergency Manager Kevyn Orr said there is a 50/50 chance Detroit will need to file for bankruptcy. Orr has promised a final decision by the end of July.
Jun 12, 2013
The New York Times recently attributed the rise in home prices to the buying of Wall Street firms. Blackstone and other investment managers are buying large numbers of home and, in the opinion of the paper of record, artificially driving prices up.
Jun 7, 2013
When hedge funds blow up, losses can extend far beyond their investors. Markets can sink along with the fund and individual investors see losses as a result of the turmoil.
Jun 5, 2013
Economists often stress that it is dangerous to believe "this time different." General economic trends usually follow historic patterns and ignoring those patterns leads to problems.
May 31, 2013
In the United States, the yield on the 10-year Treasury note has topped 2.1 percent. While that is low by historic standards, it is up more than 25 percent in the last month. The interest rate on the equivalent 10-year note in Japan is up 54 percent in the past month.
May 29, 2013
Low interest rates might boost economic growth in the long run, but in the short run they decrease the income of retirees. Small interest payments can add to small government Social Security payments to help retirees meet their living expense. When rates are low, these payments fall.
May 24, 2013
Supply chains offer valuable insights into the state of the market. For example, many analysts believe Apple has a new product coming later this year because their contractors in China are hiring. This idea allows investors to identify industry trends that could help generate profits.
May 22, 2013
Hope and change was the basis of President Obama's successful campaign for the presidency in 2008. Rather than offering specific policy proposals, Obama offered promises.