Skip to main content

Home/ AP/Honors Econ Make Up Discussion Articles/ Group items tagged fortune

Rss Feed Group items tagged

Filter: All | Bookmarks | Topics Simple Middle
bparksj28

Federal Reserve details new round of stress tests - Nov. 16, 2012 - 0 views

money.cnn.com/...index.html

shared by bparksj28 on 16 Nov 12 - No Cached
  • The Federal Reserve, preparing to embark on its latest round of so-called stress tests, released the details Friday of three economic scenarios it will use to judge the health of the U.S.'s largest lenders.
  • 5% decline in gross domestic product, an unemployment rate of 12% and a volatile stock market which loses half its value.
  • The stress tests are mandated by Dodd-Frank, the financial reform law written in the wake of the 2008 financial crisis that brought down Bear Stearns and Lehman Brothers.
  • ...2 more annotations...
  • Last year, the Fed's tests showed a majority of the nation's largest banks would be able to weather another deep recession.
  • Ally Financial, Citigroup (C, Fortune 500) and SunTrust (STI, Fortune 500) -- would likely need new capital from either investors or the government in the Fed's adverse economic scenario
  • bparksj28 on 16 Nov 12
     
    Dodd-Frank Act - stress test 2012
bparksj28

Arctic ice: Now you don't | The Economist - 0 views

www.economist.com/21563278

economist fortune arctic ocean vanishing

shared by bparksj28 on 23 Sep 12 - No Cached
  • The summer sea ice is shrinking so much mostly because greenhouse warming is raising Arctic temperatures. This has direct effects: when the air is warmer, more ice melts. It also has indirect effects. Warm, salty water from the North Atlantic sliding below the cold, fresh upper layers of the Barents Sea may be one of them. Another could be that warmer air is often moister. Moist air traps more heat in summer. In winter it tends to create more clouds, which keeps the surface below warm.
  • ice-albedo effect:
  • The melt is happening much faster in reality than it does in computer programs.
  • ...3 more annotations...
  • The effects in the Arctic, on fisheries and trade, may be easier to measure.
  • On the other side of the ocean the Parry Channel, a part of the Northwest Passage which has been ice-free in previous years, this year stayed resolutely impassable.
  • Such quirks will make the Arctic an unpredictable place to work. But if the details are tricky, the big picture is clear. Clear as an open ocean.
bparksj28

The fiscal cliff may be overblown - The Term Sheet: Fortune's deals blog Term Sheet - 0 views

finance.fortune.cnn.com/...fiscal-cliff-2

cliff term

shared by bparksj28 on 09 Nov 12 - No Cached
  • By not going off the cliff, the CBO estimates that deficits over the next decade would rise by a total of $7.7 trillion (that's "trillion" with a "T"). That would bring the total national debt somewhere to around $24 trillion by 2023 which is equal to 90% of GDP (that's pretty high). If we go off the cliff, don't expect a clean slate, though, as the nation would still have a significant budget deficit equal to 58% of GDP in 2023 due to all the mandatory spending associated with the impeding explosion in costs emanating from Social Security and Medicare.
  • The cuts in spending and the increased taxes will cause thousands of people to lose their jobs pretty much overnight (millions of Americans owe their jobs directly or indirectly to federal government spending). This would push unemployment up across the country from 7.9% to 9.1%. As a result, the CBO projects that real GDP would drop by 0.5% in 2013 after growing by 2.1% in 2012. Real GDP would fall at an annual rate of 2.9% in the first half of next year, tipping the nation into a recession that the CBO figures would be similar in magnitude to the one the nation experienced following the first Persian Gulf War in the early 1990s (for those who didn't live through that, it was bad)
  • Indeed, the fiscal cliff is about as real of a problem as the nation's burgeoning national debt – it's theoretically bad, but it isn't bad enough for Washington to risk making the short term any more economically unpleasant than it has to be. After all, there will be elections for the House in just two short years, so neither side wants to go into that election cycle trying to defend why the government instituted growth killing spending cuts while allowing taxes to shoot up to address some arbitrary debt load that investors continue to fund for next to nothing
  • ...5 more annotations...
  • The increase in federal taxes and the reductions in federal spending would cut the budget deficit (the difference between how much revenue the government takes in how much it spends) from $1.1 trillion last year to $641 billion in fiscal 2013, roughly a $500 billion cut. That represents a reduction in the budget deficit (as a percentage share of GDP) not seen since 1969 when the conservative Richard Nixon booted the free-spending Lyndon Johnson out of the White House
  • The increase in federal taxes and the reductions in federal spending would cut the budget deficit (the difference between how much revenue the government takes in how much it spends) from $1.1 trillion last year to $641 billion in fiscal 2013, roughly a $500 billion cut. That represents a reduction in the budget deficit (as a percentage share of GDP) not seen since 1969 when the conservative Richard Nixon booted the free-spending Lyndon Johnson out of the White Hous
  • It is therefore hard for politicians to so brazenly throw the nation into a deep recession to reduce spending when the benefits of acting are so intangible. The fact is that the Budget Control Act of 2011 was political theater in which the Republicans tried to appease "Tea Party" voters – a constituency that has basically been wiped out as the economy has improved. Discussions around raising the marginal tax rate on the top 2% are simply just political fodder. Indeed, multiple studies, including ones by the CBO say that it would raise an insignificant amount of money (a negative for the Democratic view) but would also cause no real harm to the economy (a negative for the Republican view). In the end, if it takes changing the top 2% rate from 35% to 39.6% to end this whole fiscal cliff charade, you can bet it has already been agreed to
  • s it may sound, it is simply irrational for either side to address the deficit in any meaningful way given how cheaply it is for Washington to borrow money. As we have seen in Europe, nations won't swallow the bitter pill of austerity unless the markets force them to
  • As cynical
bparksj28

Globalism goes backward - The Term Sheet: Fortune's deals blog Term Sheet - 0 views

finance.fortune.cnn.com/...global-economy-backward

shared by bparksj28 on 20 Nov 12 - No Cached
  • bparksj28 on 20 Nov 12
     
    GLobalism goes backward - Turning inside. Global Trade. Economy
bparksj28

Newsweek to end publication of its print edition - Oct. 18, 2012 - 0 views

money.cnn.com/...index.html

business fortune newseek newspaper

shared by bparksj28 on 18 Oct 12 - No Cached
  • "Exiting print is an extremely difficult moment for all of us who love the romance of print and the unique weekly camaraderie of those hectic hours before the close on Friday night," she said in the statement. "But as we head for the 80th anniversary of Newsweek next year, we must sustain the journalism that gives the magazine its purpose—and embrace the all-digital future
  • But Brown said reaching readers in the future increasingly depends on the digital version, citing a Pew Research Center survey that said 39% of Americans get their news from an online source. There are forecast to be 70 million computer tablet users by the end of the year, she said, up from 13 million just two years ago.
  • $7.3 million operating loss
bparksj28

The case for outsourcing jobs - Sep. 14, 2012 - 0 views

money.cnn.com/...index.html

economist fortune unemployment

shared by bparksj28 on 14 Sep 12 - No Cached
  • bparksj28 on 14 Sep 12
     
    outsourcing
1 - 20 of 22 Next ›
Showing 20▼ items per page