Posts tagged ‘economics’

Dow over 11,000 — but what does that mean?

The American public is not too impressed with the newest milestone reached on the stock exchange.    While unemployment remains high, the public (and the voters) remain upset with the current state of affairs as a recent poll has shown.  See this article for more details.

Meanwhile, I was obviously wrong with saying that the Dow would fall to a really low number.  Things are constantly changing in this global economy–so much so that no recession will be completely the same as previous recessions.  Other regions (Asia, Europe) now have an affect on any major economy such as the US.


Dow dips below 10,000

Attention grabbing headline, but not relevant anymore as the Dow has since risen back above the psychologically significant 10,000 mark.  Where the Dow is headed is still a mystery, but I know from my recent trip to the US, the second wave of this recession seems to be coming around.  Quite a while ago a former colleague of mine talked about how the commercial real estate market would follow the home prices down, but it was a matter of when.  Well seeing the large amount of empty store space in one of the most vibrant cities (Austin) in one of the most well-off states (Texas), I could just imagine how the rest of the country is doing.  Is this recent dip in the Dow an indication that the commercial real estate problems are now going to cause problems?  If so, I wouldn’t want to be in Obama’s shoes right now—I think he’s exhausted his nation’s appetite for stimulus funds.

Go east young man (or woman)

I know this is happening in the technology industry, so I am not surprised that recent business school graduates are seeking adventure and fortune in Asia.  I can definitely see the attraction that unattached people might have.  Speaking as someone who did work overseas for two years, there is no guarantee of success, it could be a wild ride, but overall a great learning experience.  Businessweek article here.

Positive signs

I look through some of my posts and realize that I have a slightly negative tone to the blog.  Well, today I will pass on some positive news–at least it’s positive for the industry I work in.  The good ‘ole supply and demand economics is working, with semiconductor companies not going overboard building fabs so that the supply side of the equation will not get out of whack.  Here is the story from Mark LaPedus of EE Times.

Canadian Housing Bubble(?)

One of the biggest economic questions we have in this country right now is whether there is housing bubble or not.  House prices are on the rise again, as we seem to be “out” of this most recent recession.  Is this a good thing? 

One thing that I have noted is that the home prices in Canada never really went down the same way as in the US.  It seems like everyone thought that we have more stable banks, better mortgage rules, and unemployment hasn’t hit as hard.  Well true with the stable banks, but we have let our mortgage rules become pretty loose, and unemployment is hitting everywhere that doesn’t produce oil.

I think we might be in for a bit of a fall in home prices–perhaps winter of 2010/2011.  There will be a bit of a correction, but not as severe as in places like Arizona, Nevada, and California.  The fed’s most recent changes will not really affect things too much.

Wall Street: Can we live without it?

During my very chilly walk with my dog tonight, I was listening to the Invisible Hand podcast from Heron and Crane.  This episode was a review of the book “Liquidated – An Ethnography of Wall Street” by Karen Ho.  Quite an interesting interview.  Many know about how the people running the big investment banks may have some say in the current economic collapse.  This interview actually explores how lessons may not have been learned.  And how, for short-term pain, it might be worth revamping the whole retirement system–especially the reliance on owning shares in the stock market.  Some interesting ideas, but may be almost impossible to implement. 

Overall it gives some insight into the world of investment banking on Wall Street.  The podcast is definitely worth a listen.

HST is passed

I’ve barely been involved in the discussions about the HST, too much work and American news I’ve been digesting, but here it is.  There has been some negative feeling towards this tax, mostly started by those who could lose the most (realtors, mutual funds, and certain retailers).  But looking a little further into this harmonization means that, if nothing else, there will be one less administrative hoop for Ontario businesses to go through.  And that improvement in efficiency must be a good thing.

As for all the rest, it is still part of the complex mess that most tax systems really are.  It will be hard to say if one would be winning or losing in dollar figures unless we all knew what we will be spending our money on in the coming years.

For some information from all sides of the debate, check out this article from the Peterborough Examiner that came out in the summer (ahhh, the summer–I do miss it!)  Hopefully it can give a better idea of what this is really all about.