Toyota is recalling 6.4 million vehicles globally over five
separate issues. Some 3.5 million vehicles are being recalled to replace a
spiral cable attached to the driver's side airbag that may be damaged when the
steering wheel is turned and result in the airbag not being deployed in a crash.
However, Toyota said it was not aware of any vehicle crashes, injuries or
fatalities caused by the numerous conditions. This is not the first time a
recall of similar magnitude is being done by Toyota. The latest recall, which
affects 27 different models, is the fifth major one that the company has issued
in recent months. Not surprisingly, these recalls have had negative effects on Toyota’s
sales (revenue). However, recalls are not uncommon in the industry. For
example, General Motors is in the middle of recalling millions of vehicles as
well. Will Toyota once again weather the storm?
Monday, April 14, 2014
Heartbleed's Implications for the Banking Industry
First off, an irrelevant pet peeve: I hate stock graphics with flowing ones and zeros in the context of any computing-related news story. That the notion of code bugs is so prevalently dumbed down into the words "VIRUS" and "TROJAN" rendered floating amongst said binary bits is equally depressing. Of late, the so-called Heartbleed bug has come to the fore, and given its huge implications in numerous industries, reporters are already treating it as some arcane, science-fiction force. Although the gravity of the situation is not understated, the nature of it is certainly overstated.
Suppose you have a boss, who gives you a very specific set of instructions that must be followed to the letter. One of these instructions has enormous potential to be exploited by evildoers, but neither you nor your boss are aware of this. If a customer or client were to approach you and exploit this oversight right before your eyes, you might think, being an intelligent human being, that something really ought to be done about this flaw, as you serve the customer. Further suppose that your job is to find a customer's paperwork in their file, and hand it to them. Most customers will give you some files at the desk, whereupon you read the Boss's instructions:
As you can plainly see, it's not that the entire bank is flawed to its core. The solution isn't to burn down the bank, nor to execute all current employees, but--as you probably gathered--to change Steps 1 and 4 so that you save the amount of paperwork they gave you, not the amount they said they gave you. If C programs could talk, they'd have alerted someone to this problem ages ago, as you would have in the bank scenario. See? This was far more straightforward to comprehend than looking at a graphic of the word "HACK" centered in a field of floaty green bits.
All of the code that enumerates these instructions is publicly available for anyone and everyone to view. While trusted institutions, like those to whom you give passwords, use OpenSSL and peruse its framework, criminal hacker rings and rogue government organizations scrutinize the code vigorously to try and find such vulnerabilities for their own use. Financial institutions may try to uphold a reasonable standard of trust, but so long as the standards they use are better understood by ill-intentioned persons, the entire financial system is compromised due to lack of trust.
In the short run, organizations will incur costs by having to flush databases and reencrypt the data therein, swap their private keys, and urge their customers to change their almost surely compromised credentials. I, like nearly everyone else, find myself overwhelmed by the prospect of changing so many passwords across the internet, so this is nothing short of an incredible nuisance. But financial institutions may see fit to prepare for such incidents in the future by forming coalitions to scrutinize certification algorithms as well as, or better than, criminals. It seems like a basic step to take, but organizing private groups and motivating them toward collective action for the greater good is never anything short of a challenge.
Suppose you have a boss, who gives you a very specific set of instructions that must be followed to the letter. One of these instructions has enormous potential to be exploited by evildoers, but neither you nor your boss are aware of this. If a customer or client were to approach you and exploit this oversight right before your eyes, you might think, being an intelligent human being, that something really ought to be done about this flaw, as you serve the customer. Further suppose that your job is to find a customer's paperwork in their file, and hand it to them. Most customers will give you some files at the desk, whereupon you read the Boss's instructions:
- Process the files the customer just gave you and remember the amount of paperwork they said they submitted
- Go to the file cabinet
- Find the customer's file
- Get as much paperwork as the customer just said they gave you
- Give the new paperwork back to the customer
As you can plainly see, it's not that the entire bank is flawed to its core. The solution isn't to burn down the bank, nor to execute all current employees, but--as you probably gathered--to change Steps 1 and 4 so that you save the amount of paperwork they gave you, not the amount they said they gave you. If C programs could talk, they'd have alerted someone to this problem ages ago, as you would have in the bank scenario. See? This was far more straightforward to comprehend than looking at a graphic of the word "HACK" centered in a field of floaty green bits.
All of the code that enumerates these instructions is publicly available for anyone and everyone to view. While trusted institutions, like those to whom you give passwords, use OpenSSL and peruse its framework, criminal hacker rings and rogue government organizations scrutinize the code vigorously to try and find such vulnerabilities for their own use. Financial institutions may try to uphold a reasonable standard of trust, but so long as the standards they use are better understood by ill-intentioned persons, the entire financial system is compromised due to lack of trust.
In the short run, organizations will incur costs by having to flush databases and reencrypt the data therein, swap their private keys, and urge their customers to change their almost surely compromised credentials. I, like nearly everyone else, find myself overwhelmed by the prospect of changing so many passwords across the internet, so this is nothing short of an incredible nuisance. But financial institutions may see fit to prepare for such incidents in the future by forming coalitions to scrutinize certification algorithms as well as, or better than, criminals. It seems like a basic step to take, but organizing private groups and motivating them toward collective action for the greater good is never anything short of a challenge.
Eastern Ukraine Violence Brings ‘Crunch Time’ for U.S. and EU
http://www.bloomberg.com/news/2014-04-13/-crunch-time-for-u-s-eu-as-pro-russians-battle-ukraine-forces.html
This article analyses the impact of further European and US involvement in Ukraine's crisis. The main discussion revolves around further economic sanctions from the West on Russian businesses. The problem here has to parts. One is the backlash the governments of the West are receiving from companies that do business in Russia. The second part is great uncertainty that further economic sanctions will have impact on Kremlin's decision to continue their detribalizing mission in Ukraine.
Russia has gone too far and Putin realizes it. The entire world understands the situation and the propaganda that Putin sells to his people. Russia lost great deal of legitimacy on the global stage but it maintains support of countries that have historically opposed the West. What is happening today has clear signs of the Cold War standoff but with Ukraine being a battleground. Russia's benchmark has fallen 8.5% since February and the ruble (Russian currency) has fallen in value, but that had little affect on Putin's actions.
Those the West has to make a critical decision about what sanctions actually work and will eliminate a chance of military intervention. Further economic sanction on energy and banking sectors will put strain on Russian economy but might not force Putin to withdraw from Ukraine.
This article analyses the impact of further European and US involvement in Ukraine's crisis. The main discussion revolves around further economic sanctions from the West on Russian businesses. The problem here has to parts. One is the backlash the governments of the West are receiving from companies that do business in Russia. The second part is great uncertainty that further economic sanctions will have impact on Kremlin's decision to continue their detribalizing mission in Ukraine.
Russia has gone too far and Putin realizes it. The entire world understands the situation and the propaganda that Putin sells to his people. Russia lost great deal of legitimacy on the global stage but it maintains support of countries that have historically opposed the West. What is happening today has clear signs of the Cold War standoff but with Ukraine being a battleground. Russia's benchmark has fallen 8.5% since February and the ruble (Russian currency) has fallen in value, but that had little affect on Putin's actions.
Those the West has to make a critical decision about what sanctions actually work and will eliminate a chance of military intervention. Further economic sanction on energy and banking sectors will put strain on Russian economy but might not force Putin to withdraw from Ukraine.
World Bank and IMF Updates
At recent World Bank and International Monetary Fund meetings, relief over the seeming emergence from the global financial crisis was undermined by worries about post-recession economies' ability to sustain economic recovery and growth efforts. Pointing to rates of deflation, lagging rates of investment, and concerns over the global economic implications of the situation between Ukraine and Russia, officials are concerned that countries will recover in the short term but be unable to sustain recovery in the medium and long terms. In addition, officials are worried about the tenuous nature of international investment rates in developing countries - without assured investment, the World Bank and IMF argue that development may stagnate.
I think this article reiterates the idea that investment in an economy creates a model for sustainable economic development. In addition, the idea that investing in the development of other economies can benefit the investor country because it creates potential trade and mutual development relations.
http://www.nytimes.com/2014/04/13/business/international/finance-officials-push-for-bold-action-to-sustain-economic-growth.html?ref=international
I think this article reiterates the idea that investment in an economy creates a model for sustainable economic development. In addition, the idea that investing in the development of other economies can benefit the investor country because it creates potential trade and mutual development relations.
http://www.nytimes.com/2014/04/13/business/international/finance-officials-push-for-bold-action-to-sustain-economic-growth.html?ref=international
Three Expensive Milliseconds
Interestingly, the article announced that we are about to complete a tunnel, which costs hundreds of millions of dollars not to transport passenger or freight but to carry fiber-optic cable, which would save "three milliseconds" of the communication time between future markets of Chicago and the stock markets of New York. Wow! (and meanwhile, four years ago, we did cancel another "desperately needed new rail tunnel" nearby )
This expensive 3 million second is to serve the "high frequency traders". Obviously these traders must have benefited a lot to be able to influence someone to pass / or to pay for this tunnel. However, aren't these arbitrageurs? Yes, their value is that they get the market back to the equilibrium, which is important. However, they are not producing anything, they are not adding any value to the economy, and also not investing into the future, they are basically take advantage of the inefficient market ... by "millisecond".
Well if it is their money, they have the right to do it. If it is not they may have the power to do it. No matter what, personally it seems kind of wrong how much we value present (to the extent of millisecond) rather than the our future (education and environment) !
http://www.nytimes.com/2014/04/14/opinion/krugman-three-expensive-milliseconds.html?ref=opinion
This expensive 3 million second is to serve the "high frequency traders". Obviously these traders must have benefited a lot to be able to influence someone to pass / or to pay for this tunnel. However, aren't these arbitrageurs? Yes, their value is that they get the market back to the equilibrium, which is important. However, they are not producing anything, they are not adding any value to the economy, and also not investing into the future, they are basically take advantage of the inefficient market ... by "millisecond".
Well if it is their money, they have the right to do it. If it is not they may have the power to do it. No matter what, personally it seems kind of wrong how much we value present (to the extent of millisecond) rather than the our future (education and environment) !
http://www.nytimes.com/2014/04/14/opinion/krugman-three-expensive-milliseconds.html?ref=opinion
Sunday, April 13, 2014
Singapore Maintains Currency Stance as Economic Growth Slows
Singapore Maintains Currency Stance as Economic Growth Slows
This Bloomberg article discusses the Central Bank of Singapore's decision to continue a gradual appreciation of the Singapore dollar. This decision was made in an attempt to "curb inflation while supporting growth as the economy expanded less than analysts estimated last quarter." Singapore’s manufacturing sector grew 4.5 percent in the first quarter from 3 months prior, compared with 10.4 percent in the final 3 months of 2013. Services fell 1.8 percent in the same time frame, while construction expanded 10.7 percent. The article discusses the likely transfer of capital back to wealthier nations in the coming months if growth is not spurred in the city-state island.
This Bloomberg article discusses the Central Bank of Singapore's decision to continue a gradual appreciation of the Singapore dollar. This decision was made in an attempt to "curb inflation while supporting growth as the economy expanded less than analysts estimated last quarter." Singapore’s manufacturing sector grew 4.5 percent in the first quarter from 3 months prior, compared with 10.4 percent in the final 3 months of 2013. Services fell 1.8 percent in the same time frame, while construction expanded 10.7 percent. The article discusses the likely transfer of capital back to wealthier nations in the coming months if growth is not spurred in the city-state island.
U.N. Climate Panel Warns Speedier Action Is Needed
It is no surprise
that global warming is a problem, but we are now starting to find that it is a
more pressing problem than we thought.
According to this article, there was a study done saying that if we do
not start taking aggressive action against climate change, it will become
extremely expensive, and almost impossible, to take action against it in the
future. Fortunately, we are finding that
the world leaders are more supportive of environmental preservation than they
have been in the past, so the likelihood of action being taken is higher,
although, at this point, it is still not high enough. Developing countries are using coal plants at
an alarming rate, while wealthier, more developed nations are making
adjustments to fight climate change more slowly.
http://www.nytimes.com/2014/04/14/science/earth/un-climate-panel-warns-speedier-action-is-needed-to-avert-disaster.html?hp&_r=0
Unemployment in America: Closing the Gap
http://www.economist.com/news/finance-and-economics/21596529-americas-labour-market-has-suffered-permanent-harm-closing-gap
This article talks about the gap between potential labor and actual labor. The numbers look at the unemployment in America. It calls for concern in the idea that the amount of labor called for may be permanently stunted. This would be a major concern for America as unemployment would always remain high if that were the case. It is an interesting article if you are interested in unemployment and how it affects our economy.
This article talks about the gap between potential labor and actual labor. The numbers look at the unemployment in America. It calls for concern in the idea that the amount of labor called for may be permanently stunted. This would be a major concern for America as unemployment would always remain high if that were the case. It is an interesting article if you are interested in unemployment and how it affects our economy.
More US Sanctions on Russia
http://online.wsj.com/news/articles/SB10001424052702303873604579495991860073278?mod=WSJ_hp_LEFTWhatsNewsCollection&mg=reno64-wsj
The US has stated that they are prepared to "step up sanctions" against Russia if Russian military actions do not end in Ukraine. The article states that it is unclear how these sanctions can be effective in slowing the revolt. These sanctions will target Russian business sectors including mining, banking, and energy. This increase in sanctions is the most visible sign of US anger towards Russia and resulted from the Russian activists seizure of government buildings on Saturday.
Will these sanctions help end the violence? Or will Russian activists continue to ignore them?
The US has stated that they are prepared to "step up sanctions" against Russia if Russian military actions do not end in Ukraine. The article states that it is unclear how these sanctions can be effective in slowing the revolt. These sanctions will target Russian business sectors including mining, banking, and energy. This increase in sanctions is the most visible sign of US anger towards Russia and resulted from the Russian activists seizure of government buildings on Saturday.
Will these sanctions help end the violence? Or will Russian activists continue to ignore them?
The Future of Finance
We always pride ourselves in are free markets and say little government involvement is the best. However, the last financial crisis in the mortgage market was helped along by the subsidies and government insurance in banks. These policies increase risk-taking because if a bank is government back they don't feel the need to actual look in depth at their performance. The article says "governments should as far as they could treat financiers like any other industry, forcing bankers and investors to take as much of the risk as possible themselves. The more the state protected the system, the more likely it was that people in it would take risks with impunity."
If we continue on this path of state involvement and cradling of the financial markets we will mute the beneficial effects of finance. "Healthy financial markets speed up an economy, channeling credit to firms that need it. They can also make an economy fairer and more competitive, providing the funds for those without them to challenge incumbents. Modern finance is a more slanted system in which savings are drawn towards subsidies and tax distortions. Debt-fuelled housing goes wild while investment in machines and patents runs dry. All this dulls growth."
How do you think we should go about changing the state and federal involvement in the financial market?
http://www.economist.com/news/leaders/21600699-state-subsidies-and-guarantees-are-once-again-corroding-financial-sector-and-creating-new
If we continue on this path of state involvement and cradling of the financial markets we will mute the beneficial effects of finance. "Healthy financial markets speed up an economy, channeling credit to firms that need it. They can also make an economy fairer and more competitive, providing the funds for those without them to challenge incumbents. Modern finance is a more slanted system in which savings are drawn towards subsidies and tax distortions. Debt-fuelled housing goes wild while investment in machines and patents runs dry. All this dulls growth."
How do you think we should go about changing the state and federal involvement in the financial market?
http://www.economist.com/news/leaders/21600699-state-subsidies-and-guarantees-are-once-again-corroding-financial-sector-and-creating-new
Abdullah leads in first results of Afghan vote
For those of you that do not know; last Saturday, Afghanistan had its third presidential election. This will be the first time in Afghanistan that presidential powers will be handed over peacefully. Despite international concerns for the election and Taliban promises, there have been little to no terrorist attacks to intimidate the voters. This compared with Iraq's recent elections, has led me to believe that Afghanistan is turning out to be quite a success story. According to a friend in Kabul, people were excited to cast their vote, and you don't have to look any further than the number that went out and voted to see this: 58% (an equivalent percentage to the number that voted in the US 2012 election). The two front runners, Abdullah Abdullah and Ashraf Ghani are both businessmen and seem like good choices for Afghanistan's future. Ghani is more favored in the international community, because he has spent many years abroad, while Abdullah appears to be the hometeam favorite. Abdullah, looking at his record, seems better suited because of his dedication to liberate Afghanistan from Taliban oppression during the late 90s.
http://www.reuters.com/article/2014/04/13/us-afghanistan-election-idUSBREA3C07T20140413
http://www.reuters.com/article/2014/04/13/us-afghanistan-election-idUSBREA3C07T20140413
Saturday, April 12, 2014
Rhode Island's Deal on Pension Overhaul Falls Apart
A fight over Rhode Island's 2011 pension overhaul is heading to trial after state officials and public-sector unions to soften the law collapsed Friday. The law decreases one of the nations most unfunded pension systems in the country from about seven billion to four billion and will affect 66,000 active and retired workers. After more mediation recently, members from both sides agreed to decrease the retirement age from 67 to 65 and revising a plan that will include increasing the frequency of cost-of-living adjustments and restoring a traditionally defined retirement plan. Rank and file members from six unions and the state legislature still needed to approve the act and this is why mediation talks have broken down. The dispute is now heading to court with a trial date set for September. A court victory for Rhode Island could settle the dispute on whether or not pensions are contracts that can't be changed under the state constitution. Other states will be keeping a close eye on what decision the courts make to see what their future pension plans will consist of.
http://online.wsj.com/news/articles/SB10001424052702303873604579495991860073278?mod=WSJ_hp_LEFTWhatsNewsCollection&mg=reno64-wsj
http://online.wsj.com/news/articles/SB10001424052702303873604579495991860073278?mod=WSJ_hp_LEFTWhatsNewsCollection&mg=reno64-wsj
Beijing to Put Limits on Mobile Spending
http://online.wsj.com/news/articles/SB10001424052702303949704579458533987293234
China's banks and regulators are pushing back on the success of internet firms who are "elbowing their way onto the turf of the state-run banks". The central bank said that it would set limits on the amount Chinese can spend using smartphone payment services. This move could cut off a multibillion-dollar business for companies such as Alibaba Group Holding and Tencent Holdings Ltd.
The big state banks have already moved to cap the amounts depositors can transfer into online products and Chinese media reports that the central bank had proposed a cap on mobile payments of 10,000 yuan a month. Alibaba Chairman, Jack Ma, had an interesting response:
"What determines success in the market shouldn't be the monopolies and those with power, but the consumers" - Jack Ma
China's regulation of internet firms does seem like an indicator of Beijing's commitment to overhauling state-run enterprises.
The central bank has also temporarily suspended online payments and it has also been suggested that online investment products could be forced to hold reserves on funds they attract.
It is interesting to think about the future of the worlds exchange system. With the internet and increasing new technology people have easy access and availability to services to buy products from or control their personal finances. China seems to be frightened of this since it takes power away from the central bank, it is interesting to think how other countries will respond in the coming years.
China's banks and regulators are pushing back on the success of internet firms who are "elbowing their way onto the turf of the state-run banks". The central bank said that it would set limits on the amount Chinese can spend using smartphone payment services. This move could cut off a multibillion-dollar business for companies such as Alibaba Group Holding and Tencent Holdings Ltd.
The big state banks have already moved to cap the amounts depositors can transfer into online products and Chinese media reports that the central bank had proposed a cap on mobile payments of 10,000 yuan a month. Alibaba Chairman, Jack Ma, had an interesting response:
"What determines success in the market shouldn't be the monopolies and those with power, but the consumers" - Jack Ma
China's regulation of internet firms does seem like an indicator of Beijing's commitment to overhauling state-run enterprises.
The central bank has also temporarily suspended online payments and it has also been suggested that online investment products could be forced to hold reserves on funds they attract.
It is interesting to think about the future of the worlds exchange system. With the internet and increasing new technology people have easy access and availability to services to buy products from or control their personal finances. China seems to be frightened of this since it takes power away from the central bank, it is interesting to think how other countries will respond in the coming years.
Fed Recognized Change in Unemployment Goal Could Be Misunderstood
The Fed is slowing down the stimulus campaign because the strength of the economic recovery that we are experiencing. Interest rates are trying to be kept near 0 at least until the unemployment rate is not as high. The Fed believes that the economy is growing very well right now, and the couple of months that we experienced a decline will happen every once in a while no matter how strong the economy is. They do not want to commit to a future policy in order to allow the economy to grow like it is now. There is a lower supply for employment than there is a demand. This will create high inflation if the Fed does not wind down their stimulus campaign.
http://www.nytimes.com/2014/04/10/business/economy/hesitant-fed-decided-time-was-right-to-change-stimulus-campaign-minutes-show.html?ref=economy&_r=0
http://www.nytimes.com/2014/04/10/business/economy/hesitant-fed-decided-time-was-right-to-change-stimulus-campaign-minutes-show.html?ref=economy&_r=0
JPMorgan profit weaker than expected as trading revenue falls
According to
an article on Reuteus, JPMorgan
Chase & Co posted far weaker-than-expected quarterly profit.
The bank was consistently profitable during the financial crisis, but is
struggling to figure out how to navigate the current environment.
Earlier this
week, JPMorgan report possible weaker earnings due to litigation expenses.
However, Friday's results showed how the bank's troubles appear to be more than
just legal settlements and meeting new rules, and into areas more fundamental
to the business, such as loan demand and trading volume. “Most of the bank's
big businesses, including commercial lending and credit cards, delivered lower
profits. JPMorgan's bond trading revenue plunged 21 percent, and mortgage
lending revenue fell 84 percent from the same quarter last year.”
JPMorgan’s CEO
remains optimistic, however, “the business will grow
over the next decade or two.”
Mortgage
banking net income and production revenue drop significantly compared to a year
earlier. U.S. mortgage lending has cooled after rising rates in the second half
of last year have given fewer homeowners reason to refinance their loans. Wells Fargo
& Co, the biggest U.S. home lender, also reported results Friday
and said its income from mortgage banking fell 46 percent from a year earlier.
This weak
earning from JPMorgan shows the financial sector may expect a
difficult time ahead because when investors and consumers are still uncertain
about the state of the economy. Lower mortgage is also a big concern for the
economy, because the housing sector is usually the one that helps the economy
recover. However, not all banks are suffering weak earning. In contrast,
first-quarter earnings at Wells Fargo, less dependent on such Wall Street
profit generators, rose 14 percent, fueled in part by gains on one-time items
such as auto lending and loans to corporations.
http://www.reuters.com/article/2014/04/11/us-jpmorgan-results-idUSBREA3A0RB20140411
Friday, April 11, 2014
Taking a Risk, Investors Snap up Once-Shunned Greek
Debt
After four years, Greece has returned to the bond market,
and investors are looking to get their hands on as many bonds as possible. This comes with some risk, however. Greece’s unemployment is still around 27%,
but investors are not necessarily looking at the long term health of economies,
they are more focused on return rates.
So, just because investors are looking to buy as many Greek bonds at the
moment, does not mean that the long term outcomes of the economy will be
good. There is also a chance that all of
the money will suddenly leave the Greek financial market, which could be
disastrous for Greece.
http://www.nytimes.com/2014/04/11/business/international/greece-trumpets-its-return-to-international-bond-market.html?hp&_r=0
Thursday, April 10, 2014
France Bans Work Emails after 6:00pm
It is widely known that compared to the American worker, the European worker works on average less hours per work week. This is due to the strong unions in Europe that fight for benefits such as: fringes, longer vacations, and the aforementioned shorter work week hours. In 1998, France adopted a thirty-five hour work week considerable much less than the 2012 average American work week of forty-six hours. These worker benefits were taken to a new level when France introduced rules to protect people in the digital and consultancy sectors from work emails outside office hours. The employers federation and unions signed a deal stating employees will have to switch off work phones and not check work emails. Additionally, the firms cannot pressure employees to respond to email after 6:00pm.
France has not been the country to adopt this email ban. In December 2011, German automaker Volkswagen announced their servers would stop sending emails thirty minutes before the of employees' shifts. The servers could not resume sending emails until thirty minutes before the employees' shifts began the next morning.
Could such a deal find its way into the American workforce in the near future, I think not; but who knows, America is adopting more progressive attitudes by the day……..
http://www.bbc.com/news/magazine-26958079
France has not been the country to adopt this email ban. In December 2011, German automaker Volkswagen announced their servers would stop sending emails thirty minutes before the of employees' shifts. The servers could not resume sending emails until thirty minutes before the employees' shifts began the next morning.
Could such a deal find its way into the American workforce in the near future, I think not; but who knows, America is adopting more progressive attitudes by the day……..
http://www.bbc.com/news/magazine-26958079
Wednesday, April 9, 2014
Obama Signs Directive to End the Gender Wage Gap
Tuesday, Obama took action and called GOP members to take action to support equal pay for female workers, earning 88 cents for every dollar of their male counterparts. This action has been a long time coming and is of great concern to me. President Obama spoke about his two daughters and his hopes that they will be viewed, and more importantly paid, no differently than men by the time they enter the work force. I certainly hope it does not take that long. While, in the GOP dominated Senate, the Paycheck Fairness Act is seen as having little chance of passing, the president also took action by signing an executive order banning federal contractors from retaliating against employees who discuss their compensation. Hopefully we will soon see the end of this clear discriminating factor.
Tuesday, April 8, 2014
Rich Nations Lifting Growth from Recession
The International Monetary Fund’s latest forecast predicts
that the countries whose property bubbles and collapsing banks set the world
into recession in 2009, are now lifting growth.
Growth has especially strengthened within the United States, and the
recovery continues to be positive. 2014
predictions suggest the world economy will grow by approximately 3.6 percent
this year. Christine Lagarde, IMF
managing director said, “the recovery is finally becoming a bit more balanced,
and beyond the burden of developing economies.”
While things are looking positive and strong for the US, things are not
as strong in all countries. The US has
been increasingly strong due to the Fed’s efforts in stimulating investment,
and improvements in the housing industry.
The American economy has picked up globally as well, and the monetary
fund expects the country to expand by 3 percent this year. New geopolitical risks and global economic
activity remain as downturn risks in the global economy structure.
http://www.nytimes.com/2014/04/09/business/rich-nations-bolster-global-growth-imf-says.html?ref=business
Comcast Argues Merger with Time Warner Cable Will be Good for Consumers
http://www.forbes.com/sites/dorothypomerantz/2014/04/08/comcast-argues-merger-with-time-warner-cable-will-be-good-for-consumers/
Comcast and Time Warner Cable will be defending their request to merge by saying that it will actually benefit consumers. Comcast claims that as there become more and more cable options available to consumers, its company is not big enough to compete with others such as Apple, Netflix, and Google Fiber. Another argument is that the merger will not really affect consumers because the two companies operate in different areas and do not compete with each other. Therefore, the "competitive landscape" will stay the same. However, many public interest groups are opposing the merger because they say the two companies could raise prices which will actually harm consumers. It will be interesting to see if the senate judiciary committee actually allows the two companies to merge and how it will actually affect consumers and prices.
Comcast and Time Warner Cable will be defending their request to merge by saying that it will actually benefit consumers. Comcast claims that as there become more and more cable options available to consumers, its company is not big enough to compete with others such as Apple, Netflix, and Google Fiber. Another argument is that the merger will not really affect consumers because the two companies operate in different areas and do not compete with each other. Therefore, the "competitive landscape" will stay the same. However, many public interest groups are opposing the merger because they say the two companies could raise prices which will actually harm consumers. It will be interesting to see if the senate judiciary committee actually allows the two companies to merge and how it will actually affect consumers and prices.
Monday, April 7, 2014
Arts Education Lacking in Low-Income Areas of New York City
This coming Monday, a report is set to be released by the
New York City comptroller that discloses not so shocking information regarding
the lacking of arts education programs in low-income areas. Much of arts
education is “disproportionately” absent from low-income neighborhoods.
According to NYC Education Department data, “20 percent of public schools lack
any arts teachers, including roughly one out of seven middle and high schools,
even though state law requires arts instruction for middle and high school
students.” Additionally, more than “42 percent of the schools that do not have
state-certified arts teachers are clustered in those areas.” Shockingly enough,
arranging and hiring a certified art teacher to each school that does not have
one would, “cost about $26 million, which represents about a tenth of a penny for every dollar spent by the Education
Department.” It’s interesting to think about how the allocation of scarce
resources/funds can apply to the struggling arts programs across the country.
This article also shines a light on how much students from low-income areas are
predestined to receive a “less than” education based on their location. Music
and art programs have also been proven to stimulate children’s brains in
different ways that can only help other areas of academia. Ultimately, this
severely minimizes the number of opportunities that could be given to students
who are just as deserving as those from higher-income areas. Considering the
capabilities that the Education Department has to change these sad statistics,
I can only hope they do so soon.
http://www.nytimes.com/2014/04/07/nyregion/arts-education-lacking-in-low-income-areas-of-new-york-city-report-says.html?hpw&rref=education
Nigeria: Economy $510 Billion, Biggest in Africa
http://abcnews.go.com/International/wireStory/nigeria-set-africas-biggest-economy-23211573
Nigeria's recalculated economy is worth $510 billion and it is the biggest in Africa. The new value of Nigeria's GDP adds previously uncounted industries like telecommunications, information technology, music, airlines, burgeoning online retail outlets and Nollywood film production that didn't exist when the last GDP count was made in 1990. Then, there were 300,000 landlines. Today, Nigeria has 100 million cell phone users.
Investors' attention will be drawn by the fact that while oil remains the biggest source of government revenue, about 80 percent, oil production is declining while Nigeria's agriculture, communications and service sectors are enjoying healthy growth. Nigeria has been Africa's biggest drawer of direct foreign investment despite myriad woes, from massive corruption and oil thefts costing the country some $20 million a day to an Islamic uprising in the northeast that has killed more than 1,200 people so far this year, to a paralytic electricity supply that keeps businesses dependent on diesel-run generators.
Should people without kids pay higher taxes?
http://money.cnn.com/2014/04/07/pf/taxes/childless-parents-taxes/index.html
The CNN article I've posted is a reaction to a piece written on Slate. In the article, the writer argues that those without children should pay higher taxes. More specifically, "any non-parent who makes more than the US median income of roughly $51,000.
He justifies the suggestion by arguing that parents take on the burden of keeping the US from becoming an "economically moribund nation." He believes that the value parents add to our economy is worth more than what they recurve in tax breaks.
His suggestion has been refuted by many because of it's implications. For example, if somebody is physically unable to have kids, should they be charged?
The CNN article I've posted is a reaction to a piece written on Slate. In the article, the writer argues that those without children should pay higher taxes. More specifically, "any non-parent who makes more than the US median income of roughly $51,000.
He justifies the suggestion by arguing that parents take on the burden of keeping the US from becoming an "economically moribund nation." He believes that the value parents add to our economy is worth more than what they recurve in tax breaks.
His suggestion has been refuted by many because of it's implications. For example, if somebody is physically unable to have kids, should they be charged?
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