Interest Rates are Expected to Rise

27 04 2010

Although the recession on the whole has had a negative effect on consumers, the low interest rates have proved to be a silver lining. As mentioned in previous posts, it does seem that the economic condition is getting better in the United States. It seems that interest rates, and their impending rise, is something to be mindful of next though. Read the rest of this entry »


Student Loans fading into the night at some schools

26 04 2010

Student Loans are a useful provision for those who wish to pursue higher education, but can’t afford it. It is easy for a young adult to sign the dotted line to attain a loan, because they optimistically think that they will graduate with a job. As the last several months have revealed, a degree does not guarantee a job right out of school. Read the rest of this entry »

Subprime Crisis Investigation

21 04 2010

Currently, banks and companies are reporting earnings for the first quarter of 2010. Many are reporting profits, which is a stark difference from the results we have seen during the financial crisis of the last couple of years.

At the same time, the Security Exchange Commission (SEC) is now leading an investigation into the subprime finacial crisis. They have filed a fraud suit against Goldman Sachs claiming that they did not disclose information to customers regarding conflicts in the sale of subprime mortgage securities. (Investors in the particular subprime security, known as Abacus 2007-AC1, ultimately lost $1 billion.)

This move by the SEC is probably the first of many, as they attempt to get to the bottom of what other firms may have engaged in similar deals.

Why does this matter? Now that there is light at the end of the tunnel, and firms are seeing improvements, a dark cloud remains. Of course we want to see firms experiencing success, and the economy improving, but we don’t want them to forget what caused this problem, and we certainly don’t want to see it happen again. Hopefully the SEC will be able to find some applicable answers as they continue their investigations.

18-Month High, Unemployment Rate Low… What does that Mean?

16 04 2010

After having been through the last two years, starting to hearing a bit of good news can feel like it might be too good to be true. The moment that stocks start to go up just a little bit, everyone wants to let out a big sigh and say, “Things are looking better… We are in the clear…” Read the rest of this entry »

Foreclosure Vs. Short-Selling

13 04 2010

On April 5th, the U.S. Government began an incentive progame encouraging lenders to approve more Short Sales of homes. They will receive $1,500 per short sale for participating in what is called the, “Home Affordable Foreclosure Alternatives” program. Borrowers will receive $3,000 as a “relocation incentive”. Read the rest of this entry »

Did You Hear About Greece?

12 04 2010

Greece has been having a tough time, their financial woes have caused Europe, and by extension, the U.S. to be on the alert. So that familiar taboo term from 2008-2009 has made a comeback in the form of the “Greece Bailout”. Read the rest of this entry »