Finance Weekly Updates

British Real-Estate Crisis Looms

By Staff Editor | October 24, 2017

If you’ve been to the UK in the last couple years, you know how expensive land is there. The country is small, populous and developed, all factors that contribute to legitimate rise in land cost. But lately prices seem to have climbed beyond reasonable levels. Analysts have observed that there is not currently enough wealth in all of England to cover the mortgage costs held by the citizenry. This includes bank assets! Were homeowners to experience a “call”, there would be a huge shortfall and many would lose their homes, to banks who would then be unable to sell them for anywhere near their supposed value. The banks, in turn, would default on their obligations to foreign investors.

This alarming situation could lead England the way of Iceland – a sudden and harsh awakening to national insolvency.

Topics: Uncategorized | Comments Off on British Real-Estate Crisis Looms

Will Social Security be There For Us?

By Staff Editor | October 21, 2017

One of the biggest challenges facing the Obama administration is restoring the viability of the US Social Security system. We don’t know exactly when it will hit, but for years there have been whispers of an impending Social Security crash. As the baby boomer generation hits retirement, they may strain the system beyond its breaking point. Obviously a weak economy in which the younger generation has trouble earning cannot help this situation.

Americans are looking to Obama and his incoming cabinet to find a solution to this potentially disastrous issue. Should Americans be unable to receive Social Security, their faith in their govenrment will be seriously weakened, and consequences will run far deeper than the immediate problem of supporting the elderly.

Topics: Uncategorized | Comments Off on Will Social Security be There For Us?

Some Retailers Benefit from Crisis

By Staff Editor | October 18, 2017

While most retailers find their profits shrinking, there have been some big winners this holiday season. Most notably, those retailers known to offer low prices and affordable value have found their market share growing, at the expense of luxury and elite vendors. Walmart, for instance, reported that it has seen an increas in its sale of flat screen TV’s, one of the most desired and expensive holiday gifts.

More shoppers are also turning to non-traditional venues such as Ebay and Craig’s List to find merchandise at recession prices. We may see a realignment in the retail space in which luxury brands, which had experienced growth for many years, may be dethroned by value brands in the coming period. We will need to wait and see whether manufacturers and retailers can stay solvent selling goods at the razor-thin profit margins such venues provide.

Topics: Small Business | Comments Off on Some Retailers Benefit from Crisis

What Will Santa Bring Shareholders?

By Staff Editor | October 16, 2017

Traditionally, we expect an end-of-the-year spike in stock prices. Investors are people too, and they are impacted by the optimistic holiday spirit. We also know that many people allocate their investment capital on a yearly basis and make investments around the new year.

This year, though, it’s hard to know what will happen. Prices seem quite depressed, making a spike even more likely, but at the same time the atmosphere of uncertainty may override the usual holiday cheer, encouraging those who still have spare cash to hold it.

Topics: Uncategorized, United States | Comments Off on What Will Santa Bring Shareholders?

Interest Rates Fall, and the Dollar Follows

By Staff Editor | October 13, 2017

Everyone wants the Fed to take action to get the economy back on track, but now it’s starting to look like measures taken to help one area can do damage in another, complicating matters further.

This week the Fed slashed interest rates, a move intended to stimulate growth in the local economy. But the move also makes dollar denominated investments less attractive to foreigners, driving their money out of the country and forcing the dollar down against most other currencies.

Times are stormy now, and we may not see interest and exchange rates stable again for some while.

Topics: Finance | Comments Off on Interest Rates Fall, and the Dollar Follows