Blog#8
http://news.bbc.co.uk/2/hi/business/8572863.stm
Description:
Marketing-The total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling.
Industry-Any general business activity; commercial enterprise.
Malcolm Ford-head of UK-based Funtime Gifts, has been involved in the industry since 1970.
China-People's Republic of, a country in E Asia. 1,221,591,778; 3,691,502 sq. mi. (9,560,990 sq. km). Capital: Beijing. Most of the items manufacture today are all from China.
Analysis:
The novelty gift industry is relatively recent and its production comes from China. China makes about 60 percent cheap goods worldwide and it is 35 billion dollar industry. Malcolm Ford says that "in a recession people cut back on the biggies". With this being said people are wanting to spend money on cheaper thing."They don't feel as if they're human if they're not spending money on something." says Malcolm Ford.
Explanation:
This article is explaining peoples need for demands. People spend money regardless of a recession and the Chinese are coming up with new innovations to satisfy the needs of westerners. Is this a good or bad thing for our economy? keeping in mind of the carbon emission.Though the article jumps back in forth the main component of the article is marketing of cheap gift items.
Prediction:
The problem of our current economy is the recession along with the up scale of inflation. The only way i can see these items helping the economy is because there is a circulation of money going around. On the other hand i can see it hurting the economy because if the Chinese keep producing inexpensive items people will just be forced to buy and not to save.
Sunday, March 21, 2010
Saturday, March 13, 2010
Even High-Score Borrowers at Risk of Mortgage Default
Blog#7
http://www.blogger.com/post-create.g?blogID=7081300636797387951
Description:
1) Credit Score-A credit score is the consistency of payments made on purchases on a credit card. How much you payoff reflects on the score.
2) Borrowers-Is individuals who borrow money in this particular article the definition means to borrow from an institution.
3) FICO-(Fair Isaac and Company) Company was made in the 1950's and it's purpose is to determine credit score availability and history.http://www.capital-connection.com/what-is-fico.html
Analysis:
The title of this article defines the whole article. Reports from FICO say that premium borrowers are more likely to default payments on there mortgages than there credit cards. In 2007 mortgage-defaults rates for high score borrowers was 0.08 percent versus 0.10 percent for bank cards.housing counselors suggest that the borrower having trouble with finances that cannot pay there mortgages, do this because they need to buy essential items like groceries. Ms.Bell from the FICO does not agree with the speculations of premium borrowers.Ms. Bell states that the problem with mortgages not being paid is mostly from abandon homes worth less than the mortgages.
Explanation:
What does this have to do with economics? We already have problems with the economy because people can no longer afford there credit bills let alone, mortgage on a house. So if we continue to see the loyal borrowers not paying off there bills we will be in an even bigger economic rut.
Prediction:
The FICO suggest that scores of 760 and higher are more than qualified for a mortgage from the bank. so if we can convince people to say on top of there credit payments and house payments, we will be on the rode to recovery. hence making the economy more strong and healthy.
http://www.blogger.com/post-create.g?blogID=7081300636797387951
Description:
1) Credit Score-A credit score is the consistency of payments made on purchases on a credit card. How much you payoff reflects on the score.
2) Borrowers-Is individuals who borrow money in this particular article the definition means to borrow from an institution.
3) FICO-(Fair Isaac and Company) Company was made in the 1950's and it's purpose is to determine credit score availability and history.http://www.capital-connection.com/what-is-fico.html
Analysis:
The title of this article defines the whole article. Reports from FICO say that premium borrowers are more likely to default payments on there mortgages than there credit cards. In 2007 mortgage-defaults rates for high score borrowers was 0.08 percent versus 0.10 percent for bank cards.housing counselors suggest that the borrower having trouble with finances that cannot pay there mortgages, do this because they need to buy essential items like groceries. Ms.Bell from the FICO does not agree with the speculations of premium borrowers.Ms. Bell states that the problem with mortgages not being paid is mostly from abandon homes worth less than the mortgages.
Explanation:
What does this have to do with economics? We already have problems with the economy because people can no longer afford there credit bills let alone, mortgage on a house. So if we continue to see the loyal borrowers not paying off there bills we will be in an even bigger economic rut.
Prediction:
The FICO suggest that scores of 760 and higher are more than qualified for a mortgage from the bank. so if we can convince people to say on top of there credit payments and house payments, we will be on the rode to recovery. hence making the economy more strong and healthy.
Sunday, March 7, 2010
GDP growth will be slower than forecast, says BCC
http://news.bbc.co.uk/2/hi/business/8552522.stm
Blog#6
Description:
GPD-Gross domestic product, a measure of economic activity in a country.
Recession-Broadly speaking, a period of slow or negative economic GROWTH, usually accompanied by rising UNEMPLOYMENT.
Budget-An annual procedure to decide how much public spending there should be in the year ahead and what mix of taxation, charging for services and borrowing should finance it.
Analysis:
The British Chambers of Commerce has predicted a GDP growth in 2011 at 2.3% but now says it will be nearer 2.1%. With means they are dragging out of there economic recession.Unfortunately the the British Commerce believes that unemployment will peak at 2.65 million in 2010, to 2.7 million. The rates of unemployment will go up as the year ends.
Explanation:
With the circulation of recessions world wide we see a glimmer of hope for the UK to get out of its debt. But there is a shadow of controversy between politicians on the currency of the GDP rate.
Prediction:
I say time will tell what will happen in the future. But i do believe if the UK continues to stay on track they will be not only doing there country a favor but also leading an example for the rest of the nations to strive to and work towards a healthier and stronger economy.
Blog#6
Description:
GPD-Gross domestic product, a measure of economic activity in a country.
Recession-Broadly speaking, a period of slow or negative economic GROWTH, usually accompanied by rising UNEMPLOYMENT.
Budget-An annual procedure to decide how much public spending there should be in the year ahead and what mix of taxation, charging for services and borrowing should finance it.
Analysis:
The British Chambers of Commerce has predicted a GDP growth in 2011 at 2.3% but now says it will be nearer 2.1%. With means they are dragging out of there economic recession.Unfortunately the the British Commerce believes that unemployment will peak at 2.65 million in 2010, to 2.7 million. The rates of unemployment will go up as the year ends.
Explanation:
With the circulation of recessions world wide we see a glimmer of hope for the UK to get out of its debt. But there is a shadow of controversy between politicians on the currency of the GDP rate.
Prediction:
I say time will tell what will happen in the future. But i do believe if the UK continues to stay on track they will be not only doing there country a favor but also leading an example for the rest of the nations to strive to and work towards a healthier and stronger economy.
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