The Madoff scandal is really an astonishing news. Perhaps the current financial crisis contributed to the immense attention given to the scandal by the media. As the Ponzi scheme has been exposed just now – while it has been allegedly running since 1999 – in the midst of a crippling financial crisis, it is really expected that the media hype brought by the scandal will be huge. With banks teetering on collapse and other industries also on the brink of falling down, such a news will surely grab the media’s, and the people’s, attention. But what if there is no financial crisis, will the Ponzi scheme be exposed? Will the media attention on the issue be as intense as it is right now? And most importantly, will the government act right away? These questions just popped out of my mind as I got curious on the Madoff scandal’s level of exposure in the media right now.
Posted by Jones on January 12th, 2009 :: Filed under
SIMPLY SCANDALOUS
As Japan cut down its interest, markets all across the globe reacted positively. The stock market indices, in particular, went up one by one although just a little bit. This positive reaction is a sign that the economies are looking for other indications aside from the United States. The U.S. economy is being battered badly by the ongoing financial crisis and a turnaround is still far from sight. Hence companies and the markets are moving on its own now to ease the impact of the global financial crisis brought by the credit crunch and the sub-prime mortgage crisis. Let’s just hope that the gains from these stock markets will continue so that the world economy can recover faster from the financial turmoil.
Posted by Jones on January 12th, 2009 :: Filed under
STOCK MARKET
Good news to creadit card holders. Government regulators are expected to issue new rules on credit card rates that aim to crack down on unfair and deceptive practices. Among the new guidelines were the prohibition on increasing the interest rates on debts except when the payment is late by at least 30 days. The new rules will compel the banks to apply monthly payments that exceed the required minimum and will prohibit the card issuers from charging late fees unless the credit card holders were given a reasonable length of time to pay (at least 21 days).
That is certainly a wonderful news to credit card holders. However, the new rule will only take effect in the middle of 2010 and this early, the banks are already protesting the new rules.
Posted by Jones on January 11th, 2009 :: Filed under
Uncategorized
In a new and bold move aimed at saving money, cellphone manufacturer Motorola said it will suspend its share on the 401(k) employee retirement benefit plan monthly contributions. This is to achieve its earlier announcement of saving $800 million. Freezing the pension plan is one of the steps needed by the company to boost its savings program.
Two points on this. First, suspending the pension contributions should not be an option. The employee benefits should not be made as sacrificial lamb in the company’s effort to save money. Second, if the firm really wants some savings, the managers’ and executives’ hefty pays should be reduced and not the benefits due to the ordinary employees. While it is true that Motorola is experiencing a slow down in its sales performance, it is not the employee’s fault but largely by the “strategists” in the company – the executives and managers. Therefore, the employee benefits should not be sacrificed.
Posted by Jones on January 11th, 2009 :: Filed under
$$$ CRISIS,
SIMPLY SCANDALOUS
Environmentalists are opposing the new decision by the Environmental Protection Agency saying carbon dioxide is not a pollutant to be regulated when utility firms are applying for permit to build power plants. The environmentalists fear that with this new decision, more coal-fired power plants will be approved and built. But EPA Administrator Stephen Johnson said the agency cannot regulate carbon emissions in approving a power plant.
What a heck! Since when did it occur that carbon dioxide is not a pollutant? The EPA decision made by Mr. Johnson is clearly ridiculous. Every scientific study points to the fact that carbon dioxide is a pollutant and must be regulated to stop further damage in the environment. That ought to be made known to Mr. Johnson, even if he is soon to leave office to be replaced by a new Obama-picked administrator.
Posted by Jones on January 10th, 2009 :: Filed under
Uncategorized
As the financial crisis is hurting the economy very badly, many economists are still looking for both the causes of the crisis and the solutions to it. One analysis on the cause of the crisis is pointing to former President Bill Clinton’s tax break proposal in 1996, which was approved by Congress on the following year. Some observers said Clinton’s tax cut measure, which removes taxes on capital gains when selling houses, may have been one of the causes o the housing bubble that occurred. However, many economists said the tax cut law has little effect in the housing boom and in the current crisis. There are many other factors that had contributed more on the crisis rather than the tax break. Indeed, the tax break is not the cause of the crisis but rather the easing of the credit standards, a sharp reduction in the interest rates and the unanimous belief that house costs will not drop.
Posted by Jones on January 9th, 2009 :: Filed under
Uncategorized
Statistics show that there are only few workers who sought unemployment benefits last week. The number is less than what is expected considering the growing unemployment rate. Perhaps because the workers may have delayed filing their claims due to the Thanksgiving holiday. However, the dip in unemployment benefits claims is only temporary as more companies are laying off workers and have stopped hiring personnel. It could be expected that in the coming weeks, the number of people seeking unemployemnt benfits will rise. While the benefits claims will help the laid-off workers, that will only be on a temporary basis. The people still need jobs more than the unemployment benefits.
Posted by Jones on January 8th, 2009 :: Filed under
Uncategorized
It seems that the government is losing hope in the situation of the automobile industry, particularly the automakers General Motors and Chrysler. Treasury Secretary Henry Paulson said it might be proper to allow the automakers to fall into bankruptcy if that is the only solution left. This means the government might not bail them out.
The secretary might be correct. If these firms will collapse, so let it be. Enough of using public money to save private enterprises whose businesses are failing. It is not the business of the people, the taxpayer, to save these companies while there are other more important matters to attend to such as social services, health benefits and education. The people’s money should be used for general welfare, not for the welfare of the ailing companies. If GM and Chrysler would fail, for sure there will be others that will take their place in the automobile industry.
Posted by Jones on January 8th, 2009 :: Filed under
Uncategorized
Amid the cutting down of oil production by the Organization of the Petroleum Exporting Countries, the prices of oil contniues to go down in the world market. The drop in oil prices is due to the falling demand for oil. It appears that more and mmore people are now looking for an alternative source of energy, which is goood both for the economy and the environment. Gas prices have been so high and that the OPEC’s arrogance in dictating the prices have been going on for so long. It’s about time their power be stripped.
It also appears that OPEC can no longer cut down its production, that is to say its plan to boost oil prices once more after shooting up to almost $150 per barrel in the middle of the year. The cartel can no longer afford to reduce production because if that would happen, governments and the people would definitely look for more alternative energy sources instead of begging the cartel to produce more.
Posted by Jones on January 7th, 2009 :: Filed under
Uncategorized
Despite the OPEC’s announcement of oil production cut, the prices of crude oil remain low. The OPEC decision of reducing its oil production seems to have affect in the market. The oil prices are going around $40 per barrel in the recent trading. This is an indication that more and more people are seeking alternative sources of fuel. It might also be an indication that the OPEC’s power is now declining, which I think is good. The cartel has long been ripping every economy through its dominant position of producing oil, which has been the world’s primary source of fuel. But now that alternative sources of energy is becoming popular, the cartel’s position in the world market is starting to diminish.
Will this mean that the cartel is going to fall apart? Well, let’s just wait and see.
Posted by Jones on January 6th, 2009 :: Filed under
Uncategorized