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Home/ Economics HL - Jacob Solomon's group - Year 1/ Contents contributed and discussions participated by Katie Edwards

Contents contributed and discussions participated by Katie Edwards

Katie Edwards

Should Mortgage Rates Even Be Lower? - WSJ.com - 0 views

  • Bankers push back against any notion of oligopoly. "The mortgage business is extraordinarily competitive," said Franklin Codel, head of mortgage production at Wells Fargo Home Mortgage. There are other factors at work. For one thing, fees charged to lenders by government-controlled mortgage-finance companies Fannie Mae and Freddie Mac are set to rise this year. The increases paid for the payroll-tax break passed by Congress in December. Analysts stress it is difficult to disentangle how much of the spread is due to pricing power from banks with more control of the market, and how much might represent structurally higher costs of doing business in the U.S. mortgage market reshaped by the crisis.
Katie Edwards

Will Verizon and Redbox Challenge Netflix Monopoly? - 0 views

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    Netflix has been the leading DVD/Streaming Movie and TV source for a while now. People are overall pleased with the selection and the price, but largely because there are few alternatives. If there has been any competition to Netflix, it's the small deals often enclosed with OnDemand for specific providers. We will find out if it's possible for "Redbox" to overpass Netflix, because as of right now, it's just another small competitor.
Katie Edwards

The Durango Herald | Despite campaign talk, free markets no longer exist - 1 views

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    I thought this article about the state of the US economy was particularly interesting. The statistics of ratio large firm to small firms (3-1, small) is increasing. The article also states, "The market rewards and punishes with little regard to whom or what or how it impacts. Generally, it is large firms that enjoy these little gems of taxpayer munificence. They have become "too-big-to-fail."
Katie Edwards

Don't Be Fooled By The January Effect: Sirius XM Radio Isn't A Sound Investment - Seeki... - 0 views

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    Sirius XM Radio was once saved the "January Effect" thanks to their merger several years ago. They experienced the benefits of economies of scale as a much larger organization, which brought the two previous companies back up in stock. However, they are still facing many challenges because economies of scale do not solve all problems. Some of the issues: "A low profit margin of 9.2 percent, and an astronomical Total/Debt to Equity of 492. Also, the rapid change in broadcasting technologies, and the Internet radio gaining ground, it is a matter of time before satellite-radio becomes obsolete. Satellite subscriptions are part of consumer spending that is usually negatively affected by a weak economy, consumers will not spend excessive money on this."
Katie Edwards

New Design to Reduce Solar Manufacturing Costs - 0 views

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    This article highlights the redesign of solar manufacturing so that it is cost-efficient for the company, as well as energy-efficient for the consumers. The lower-cost manufacturing is simpler by a decision to minimize some production costs by combining the design into a "single silicon wafer processing line." Clearly, it's a variable cost, and a positive change for the firm.
Katie Edwards

For the public good, or industry's? - Haaretz Daily Newspaper | Israel News - 1 views

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    This article outlines the consistent debate over nutrition, especially in schools. The beneficial externalities are obvious in an increase in health for the student, as well as the encouraged development of healthy eating. However, if junk-foods are so much easier to obtain and the number of un-educated consumers in terms of nutrition are so low, the public will be more inclined to just keep eating in their old habits. How on earth can the government effectively change this situation for the betterment of society?
Katie Edwards

Cyprus - Address by the Minister of Commerce, Industry and Trade . . . - 0 views

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    This article shows the real-life application to the new ideas we've been discussing in terms of the Republic of Cyprus. "Cyprus has so far been an energy island -an isolated energy system- and has till recently been almost totally dependent on imports of oil which burden the current account balance. A bright horizon of peace, cooperation and economic growth will then open up for the area of the Eastern Mediterranean, to the benefit not only of the countries and peoples of the area but also of our wider European family." I have included the conclusion to the article as well, which wraps up this sustainability-conscious article."In shaping the world of today and tomorrow through their decisions on energy issues, visionary leaders will aim at improving the prospects of both the current and future generations in terms of economic and social development and of sustainability, and certainly in terms of establishing and strengthening peaceful and hence productive international relations."
Katie Edwards

Without a price on carbon, oil will find a way - The Washington Post - 1 views

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    This article talks about environmental sustainability, especially in the US, in terms of the carbon and oil situation. Hindering some paths of oil trade, may slow down the trade in the early stages, however there will be other paths since the international demand is so high right now. The price is steadily decreasing with the increased demand. The only ways to control this demand for oil that may be hurting our planet would be to tax the carbon (increasing the price), therefore decreasing demand.
Katie Edwards

White House Sidelines Christmas Tree 'Tax' | Fox News - 0 views

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    A tad early, but Christmas music will be coming on the radio next week! At least here in DC.. The article outlines a government plan to make a little extra revenue, and how that plan was so fiercely opposed. The tax would be imposed on the producers, given that they produce more than 500 trees a year, and in turn the producers would probably have to increase their prices. Since it is a specific tax with a fixed amount of $0.15 (not dependent on the price of the trees) it will shift the supply curve up. Even though the article states that the program "wouldn't have any impact on the final price consumers pay for their Christmas tree" - there would be an inevitable small impact at least in one retail area of the trees. Since there are so many consumers that will want Christmas trees, a tax would bring in a fair amount of money, as there are no substitutes for Christmas trees.
Katie Edwards

Gold price not in a bubble | China business news - 0 views

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    The China Business news reports about the increasing gold prices of China. The elasticity of the product is going to be incredibly low and inelastic because gold is so unique. Of course there are faux-gold substitues, however gold is the real deal. Having a shortage of gold, combined with economic uncertainty, means that the #3 gold producer's prices may continue to change.
Katie Edwards

NBN to drop CPI+ price mechanism (ITWire) - 0 views

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    The National Broadband Network Company (NBN) wanted to slowly reduce their internet connection prices to benefit consumers. However, any price mechanism they try is just increasing the CPI (Consumer Price Index). The CPI measures change in price level of consumer goods and services purchased by households; in this situation specifically internet providers. We all obviously need the internet, but many companies are struggling with correct pricing, a key component of their business. They are beginning new projects that need more money, which in turn causes a price hike. The article uses a lot of technological 'lingo' with statistics to back up plans of price comparison.
Katie Edwards

iPhone 4 on preorder at Sprint 'while supplies last' - CNET News - 3 views

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    This article predicts the demand for the new iPhone 4S, given the available resources. The main service providers are ALWAYS in competition over the latest smart phones, and now Sprint has joined the battle with AT&T and Verizon. The price has been significantly lowered for the older versions of the phone, and the newest version is pretty expensive. Many people will be willing to pay the higher price because of the features and higher level of technology.
Katie Edwards

Social Security alternatives - The Fact Checker - The Washington Post - 0 views

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    This article talks about the ongoing Social Security debate happening in the U.S. federal government. Some state governments, such as Texas, form their own version of Social Security which has been confusing to the original plan. The trade-off illustrated here is "more you contribute, the more your savings will be." By contributing more money now, you will eventually make more money. However, many people don't want to give up lots of money now!
Katie Edwards

How Energy Drains Water Supplies - NYTimes.com - 1 views

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    This article outlines how dependent energy sources are on water. The wants and needs for water resources are increasing worldwide, and this could become a problem to power plants, hydroelectric facilities, and other major sources of global water supply.
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