Renewable Energy: The New Oil?
Tommy is quick to update his blog, never leaving readers wondering when he will return. His blogs are full of information that with just a mere surface understanding about fuel, you would never know. His blog is well-organized, attractive, and invites an audience in. With all of the information he provides in his posts, he explains details in an easy-to-read language and gives implications and benefits of each type of new fuel, resource, or other energy-related topic of the day. There are usually pictures or videos that accompany his posting and so far, he has gone into detail about every possible type of energy resource that I know of, and ones I have never heard of.
USA'S Anatomy
Grace Kelly truly shows a passion for the state of U.S. health care in her posts. She relates posts to all ages, concerns, and even brings it to a modern level with relation to TV shows and the internet. Although health care has not recieved quite as much press in the presidential debates due to the economy, she connects the economy's downfalls to the funding of health care. grace Kelly's blog is informative and enlightening on what is really going on with America's health care, to many readers who were previously uninformed.
The Issue on Taxes
I love how IGetNoSleep/Robert always seems excited about what he is talking about, it really makes it interesting for the reader. His blog is bright and colorful, drawing readers in, to then read a well-written and decisively organized post. His issue is centrally focused and he asks readers questions that are really thought-provoking and provide answers that help in understanding issues.
Friday, October 17, 2008
Theory Post
Although the economic crisis has been forming for quite some time now, its most recent downfall shocked the nation and brought fear and panic. Obama and McCain absolutely HAVE to prove to Americans they can provide measures to fix the economy. Having President George W. Bush in office for the past eight years, many Americans have been displeased with his handling of 9-11, The Iraq War, and not too mention the the economy that led us to this point. Right now before either candidate has recieved presidency, we as the people can determine who will help this nation and prevent further disaster.
Obama outlines a very detailed rescue plan to help the economy. He focuses on tax breaks, trade, and using gained money to help build the nation up. He claims he will help the middle class by creating jobs and helping to pay mortgages so families can stay in their homes. The new jobs created will foster the "green" movement, so while not only helping the financial market, research and action can be taken to help the environment. Tax cuts he proposes will be rewarded to business who create new jobs, and tax money that is recieved will go to programs to help the U.S.
McCain's plan is a little more vague with a concentration on keeping the housing market from further declines and cutting taxes. He plans to cut corporate taxes and help seniors with taxes. He also claims he will balance the federal budget. These are large committments that are not based on much detail.
I think both candidates have important ideas to add to the rescue plan and they both want to help jumpstart the economy of the U.S. Obviously with the election, one side will be chosen over another but I think Obama's plan helps a greater number of people, or at least promises to.
Obama outlines a very detailed rescue plan to help the economy. He focuses on tax breaks, trade, and using gained money to help build the nation up. He claims he will help the middle class by creating jobs and helping to pay mortgages so families can stay in their homes. The new jobs created will foster the "green" movement, so while not only helping the financial market, research and action can be taken to help the environment. Tax cuts he proposes will be rewarded to business who create new jobs, and tax money that is recieved will go to programs to help the U.S.
McCain's plan is a little more vague with a concentration on keeping the housing market from further declines and cutting taxes. He plans to cut corporate taxes and help seniors with taxes. He also claims he will balance the federal budget. These are large committments that are not based on much detail.
I think both candidates have important ideas to add to the rescue plan and they both want to help jumpstart the economy of the U.S. Obviously with the election, one side will be chosen over another but I think Obama's plan helps a greater number of people, or at least promises to.
Tuesday, October 14, 2008
WASHINGTON HAS CONTROL
The government is stepping in. Big Banks and small banks will be helped. $250 billion will be invested, half for big and half for small. There will be guarantees for new debt. Small business will find help with increases in Federal deposit insurance. Hopefully they will stay afloat and lose fears of lending. This will be the only way to keep financing alive. At least according to Paulson. Then again, Washington is now controlling most of American banking. Their plans have not always worked before, but hopefully this will.
Good or bad? Conservatives cringe. Liberals like Brad de Long sing. Republicans are crying out ideologies of socialism with this plan. But is there any other way? Democrats have been preaching this since the beginning. Liberals want regulation, Conservatives are afraid of losing their deregulation. It doesn't benefit the nation anymore, but some Conservatives benefit. Either way, the banks have to accept for the good of the nation. The government will benefit from profits. And thats better than only corportate individuals recieving benefits.
Good or bad? Conservatives cringe. Liberals like Brad de Long sing. Republicans are crying out ideologies of socialism with this plan. But is there any other way? Democrats have been preaching this since the beginning. Liberals want regulation, Conservatives are afraid of losing their deregulation. It doesn't benefit the nation anymore, but some Conservatives benefit. Either way, the banks have to accept for the good of the nation. The government will benefit from profits. And thats better than only corportate individuals recieving benefits.
Sunday, October 12, 2008
More than just national debt...
From 1980 to 2005, credit card debt has soared from $69 billion to $1.8 trillion. Such a huge increase calls for a closer look at consumer debt within an entire struggling economic system. Should there be more regulations on credit card company policies to protect consumers?
The competitive credit industry is known for tricking cardholders by targeting vulnerable consumers and changing rates and terms without notice. Various regulations have been put in place over the years, but none take decisive measures and companies always seem to work around them. Economists even say that despite the credit industry's damage to consumers, the damage brings more benefits to the economy than negatives. Only to a certain degree though. This whole issue traces back to greed, as I have mentioned before, a sort of moral failure within the United State's economic structure. Companies and consumers alike are guilty of it. While personal debt is not the cause or major factor of the current crisis, it does play a big role on the state of the economy. People cannot put money back into the economy, invest in the market, and spend freely when debt is skyrocketing. New York has began taking measures to start regulating credit-default swaps between bond-buyers, and likewise, there should be regulation enforced for consumer credit too. Credit card debt, which consumes so many Americans, can drive individuals to bankruptcy and will only further the economic crisis.
Many economists have varying ideas on what could improve this situation, including a Georgetown analysts' thoughts of "standardizing annual fees, interest rates, and per-purchase transaction fees." The Credit Cardholders' Bill of Rights Act of 2008 was passed by the House of Representatives on September 23, and will be put into place to protect consumers. The bill largely focuses on consumer awareness and a universal default policy. Not much action will be taken until January of 2009, but it is encouraging to see the government enforce much-needed regulation on an abused free market.
Wednesday, October 8, 2008
Global Declines
The financial crisis in the U.S. is obviously very threatening to our nation's habits and motivations, but now markets all around the globe are facing huge declines. Markets in Asia, Europe, South America, Mexico...the list goes on...are all dropping. Monday the European Dow Jones dropped 7.6%, German DAX fell 7.1%, and French CAC-40 faced a 9% decline. These scary percentages reap huge consequences on global economies. Dow Jones in the U.S. has dropped a whopping 13% over the past 5 days, even despite the approval of the rescue plan. The main problem is all global markets are affected by eachother and important investors (big and small alike) are quickly backing out.
So what is being done about this? Well even more measures are having to be taken. Economist Carl Weinberg suggests "to cut rates as close to zero as you dare,'' pump money into the banking system ``hand over fist'' and increase government spending." Once people start to lose their fears of spending and investing, markets will rise again...but that won't happen until the government takes decisive action. On Tuesday morning the Fed said it would "purchase unsecured and asset-backed commercial paper from issuers in an effort to ease the log jam." This will help with short-term funding and hopefully have an impact on increasing the "rescue" of our economy, and consequentially global economies.
So what is being done about this? Well even more measures are having to be taken. Economist Carl Weinberg suggests "to cut rates as close to zero as you dare,'' pump money into the banking system ``hand over fist'' and increase government spending." Once people start to lose their fears of spending and investing, markets will rise again...but that won't happen until the government takes decisive action. On Tuesday morning the Fed said it would "purchase unsecured and asset-backed commercial paper from issuers in an effort to ease the log jam." This will help with short-term funding and hopefully have an impact on increasing the "rescue" of our economy, and consequentially global economies.
Tuesday, October 7, 2008
The Analysis
American citizens are very concerned with the current state of the economy. Unemployment rates have reached 6.1%, food stamp participation is on the rise, and global markets are facing major recessions. All of these facts point to disaster, and the American public seems to agree. A poll taken by CNN reported that most people see a depression as likely. While economists claim the U.S. is far from a recession, the evidence does not look good either way. With such clear signs of crisis, the real question is: Does the evidence in the "rescue plan" appear that it will actually rescue us?
I think there will be glitches that appear in the rescue plan through a trial and error process, but overall will help the economy and get the U.S. market back on the right track. According to the proposed bill, Fannie Mae and Freddie Mac will be reconstructed by being placed under a conservatorship, a similar status to bankruptucy. Under government control, the companies lose many privledges, including their rights to lobby and have power in politics. The conservatorship is targeted at getting the companies in a stable place. Their ownership of about $6 trillion in U.S. home loans makes their recovery vital to the nation's market. The plan will auction off the mortgage-backed securities, which have been reduced by about 20% of their original face value. This will put money back in the market and hopefully drive inter-bank rates down, tremendously helping credit in the U.S.
In relation to the election, the financial crisis has placed a large amount of blame on the Republican party. McCain therefore recieves a lot of flack for the Republican ideals of deregulation, and not to mention his relations with the Keating Five, another bailout-type scandal that he and four other senators were caught in covering. Then again, take a look at the video in my last post and you may see a completely different spin, where the Democratic party is partially responsible. Obama was quoted saying that McCain "cannot be trusted to deal with the crisis because his strings are pulled by lobbyists, who shred consumer protections and distort our economy so it works for the special interests”. Yet, the video I mentioned shows Obama recieving around $42,000 for campaigning from Fannie Mae, while McCain only recieved a little over $800...so whose strings are being pulled? In all honesty, regulation may have prevented what the nation is currently held in, but as I have mentioned before-it is the greed (that is present in both parties) that cause scandals such as the lovely subprime mortgages to create disaster.
Both parties within the 2008 election play a part in the circumstances of the United States. The Republicans don't regulate enough and Democrats overregulate. What gives? The Senate and House of Representatives are comprised of individuals from varying parties, and their collective ideas influence the state of our nation. Therefore it is important for all voters to keep this in mind and understand that the financial crisis is now allowing Obama and McCain to show what they can do, and bring a lot of hype. It is our job to see through all the hype and determine what is fact and fiction, and what party's policies will really help the economics of our country.
I think both candidates have their strengths and weaknesses. I have always thought of myself as a Republican but with the state of things in the U.S. I think policy changes are definitely in need. McCain's proposed economic plan includes cutting government spending and lowering taxes. He wants to freeze all spending on government programs for a year to see which ones truly have an impact on the nation. This is a good idea in theory, to save the U.S. money and help our economy by not wasting money on social programs. At the same time though, we cannot only focus on the financial crisis. To be a successful nation it is pertinent that we keep all facets running as smoothly as possible. Freezing a years worth of funding for needed programs could be devastating. Obama, on the other hand would not support this idea and although his plan would raise taxes for wealthy and be a little more expensive over the next four years, it would put the U.S. in less of a deficit than McCain's plan. I find myself agreeing with Obama on his proposal because I think the outcome is more favorable than McCain's. From the way he presents himself and his ideas on "tough-love" for the corporate world, show that he is a candidate who might actually do more for the people. Also, the United State's recent history of Republican ruling and deregulation policies has not served the economy well, so I think it would be wise to try a new approach.
I think there will be glitches that appear in the rescue plan through a trial and error process, but overall will help the economy and get the U.S. market back on the right track. According to the proposed bill, Fannie Mae and Freddie Mac will be reconstructed by being placed under a conservatorship, a similar status to bankruptucy. Under government control, the companies lose many privledges, including their rights to lobby and have power in politics. The conservatorship is targeted at getting the companies in a stable place. Their ownership of about $6 trillion in U.S. home loans makes their recovery vital to the nation's market. The plan will auction off the mortgage-backed securities, which have been reduced by about 20% of their original face value. This will put money back in the market and hopefully drive inter-bank rates down, tremendously helping credit in the U.S.
In relation to the election, the financial crisis has placed a large amount of blame on the Republican party. McCain therefore recieves a lot of flack for the Republican ideals of deregulation, and not to mention his relations with the Keating Five, another bailout-type scandal that he and four other senators were caught in covering. Then again, take a look at the video in my last post and you may see a completely different spin, where the Democratic party is partially responsible. Obama was quoted saying that McCain "cannot be trusted to deal with the crisis because his strings are pulled by lobbyists, who shred consumer protections and distort our economy so it works for the special interests”. Yet, the video I mentioned shows Obama recieving around $42,000 for campaigning from Fannie Mae, while McCain only recieved a little over $800...so whose strings are being pulled? In all honesty, regulation may have prevented what the nation is currently held in, but as I have mentioned before-it is the greed (that is present in both parties) that cause scandals such as the lovely subprime mortgages to create disaster.
Both parties within the 2008 election play a part in the circumstances of the United States. The Republicans don't regulate enough and Democrats overregulate. What gives? The Senate and House of Representatives are comprised of individuals from varying parties, and their collective ideas influence the state of our nation. Therefore it is important for all voters to keep this in mind and understand that the financial crisis is now allowing Obama and McCain to show what they can do, and bring a lot of hype. It is our job to see through all the hype and determine what is fact and fiction, and what party's policies will really help the economics of our country.
I think both candidates have their strengths and weaknesses. I have always thought of myself as a Republican but with the state of things in the U.S. I think policy changes are definitely in need. McCain's proposed economic plan includes cutting government spending and lowering taxes. He wants to freeze all spending on government programs for a year to see which ones truly have an impact on the nation. This is a good idea in theory, to save the U.S. money and help our economy by not wasting money on social programs. At the same time though, we cannot only focus on the financial crisis. To be a successful nation it is pertinent that we keep all facets running as smoothly as possible. Freezing a years worth of funding for needed programs could be devastating. Obama, on the other hand would not support this idea and although his plan would raise taxes for wealthy and be a little more expensive over the next four years, it would put the U.S. in less of a deficit than McCain's plan. I find myself agreeing with Obama on his proposal because I think the outcome is more favorable than McCain's. From the way he presents himself and his ideas on "tough-love" for the corporate world, show that he is a candidate who might actually do more for the people. Also, the United State's recent history of Republican ruling and deregulation policies has not served the economy well, so I think it would be wise to try a new approach.
Sunday, October 5, 2008
Confidence in new plan?
The bailout plan has finally been approved by the Senate and House of Representatives as the "Rescue Plan." Realizing that "bailout" seemed politically incorrect, the government back tracks again to make up for errors. Nonetheless, a plan is in action and hopefully will bring positive changes for the current state of the U.S. Last Monday (Sep. 29), the market dropped 778 points due to the House's rejection of the original plan. If the U.S. financial market continues to suffer, it will force severe consequences, but thankfully in this case it has brought a clear reality check that a better plan is in need, and fast. On Wednesday, lawmakers revamped the bill, which was passed by Senate later that day and by the House on Friday. The plan encompasses a 1-year increase in FDIC for bank and credit union accounts. The cap will be increased from $100,000 to $250,000, allowing depositors to feel protected, keeping banks safe, and allowing the economy to slowly begin flowing. Many new tax deductions are on the rise too, and thankfully more deductions than increases. Tax breaks will go to investments in wind and solar energy and plug-in electric cars, helping the environment while helping the economy. The plan is also enforcing insurance companies to provide the same level of medical assisstance to those with mental illnesses and other heath-related issues. And last of the more-emphasized tax cuts and increases; it will now be easier to tax on stock sales and hedge-fund managers. The proposal of the new bill is showing the government's efforts to revise the economy by promoting positive benefits for our nation as a whole. Such benevolent ideals the U.S. government is taking on...
Obama quoted Franklin D. Roosevelt [speaking on the Great Depression] last Wednesday, encouraging Americans to have "'confidence and courage' through what is likely to be an extended period of economic turmoil." Well if the plan really protects the economy and people, it is likely to elicit confidence and courage. After watching the following YouTube video
found on http://www.donttripoverthisblog.com/, I found myself surprised to see the blame of the economic crisis so demonstratively pointed to another side. The Pro-Republican video blames the crisis on the democratic party for their "unsightly" additions to the Community Reinvestment Act in past years. According to the video, the revisions to this act allowed subprime mortgages to be lended to "help" low-income borrowers. Subprime mortgage securities soon followed this, with no collateral to back them up. Once interest rates and gas prices rose, those borrowers could not even afford to pay just the interest and in turn lost their homes, and the housing bubble was formed. The video shows numerous laws and acts that Republican's proposed to fix arising problems, that Democrats shot down time and time again. They also pointed to closely-tied relations between noted Democrats and the corporations to blame (such as Obama and Fannie Mae). Moral of story, there are always two sides, and greed lie on both. Throughout the crisis so far, Republicans have been adamantly tied to economic problems. Neither party is perfect, nor are the individuals who represent their ideals. Even with a new promising plan there are likely to be glitches. Consumers need to be aware and smart, but most importantly positive that the economy is headed in the right direction...so for now we must continue to look at how the situation unfolds.
Obama quoted Franklin D. Roosevelt [speaking on the Great Depression] last Wednesday, encouraging Americans to have "'confidence and courage' through what is likely to be an extended period of economic turmoil." Well if the plan really protects the economy and people, it is likely to elicit confidence and courage. After watching the following YouTube video
found on http://www.donttripoverthisblog.com/, I found myself surprised to see the blame of the economic crisis so demonstratively pointed to another side. The Pro-Republican video blames the crisis on the democratic party for their "unsightly" additions to the Community Reinvestment Act in past years. According to the video, the revisions to this act allowed subprime mortgages to be lended to "help" low-income borrowers. Subprime mortgage securities soon followed this, with no collateral to back them up. Once interest rates and gas prices rose, those borrowers could not even afford to pay just the interest and in turn lost their homes, and the housing bubble was formed. The video shows numerous laws and acts that Republican's proposed to fix arising problems, that Democrats shot down time and time again. They also pointed to closely-tied relations between noted Democrats and the corporations to blame (such as Obama and Fannie Mae). Moral of story, there are always two sides, and greed lie on both. Throughout the crisis so far, Republicans have been adamantly tied to economic problems. Neither party is perfect, nor are the individuals who represent their ideals. Even with a new promising plan there are likely to be glitches. Consumers need to be aware and smart, but most importantly positive that the economy is headed in the right direction...so for now we must continue to look at how the situation unfolds.
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