Archive: Economics and Predictions
Some people say money makes the world go ‘round. Were it not for supply and demand, there would be no reason to infuse money into an economy. These two factors form an economic model for determining price within a market. There are several basic laws of supply and demand and the result of each is [...]
The laws of supply and demand apply are just two topics covered in economics textbooks. These carry heavy weight in the world of investing. For aspiring investors who have not seen the inside of a classroom for many years, brushing up on the basics of economics may be necessary. There are several ways of doing [...]
Unless you have been living under a rock, you heard the word “bubble” many times over the past years. Obviously I am talking about economic bubbles, including the stock market bubble, the real estate bubble, the technology bubble, the emerging economies bubble and, least but not last, the gold bubble. But what exactly is a [...]
House prices are still falling. Wal Mart has seen 7 straight quarters of sales declines. Unemployment is getting artificially “lower” because companies like McDonalds are replacing full-time employees with multiple part-time employees to save on insurance and other benefits. Can’t blame them — they’re just trying to survive. Inflation is exploding through the roof. The “real” inflation rate is even [...]
Stocks are taking a massive dive on news that Standard and Poors, one of the leading rating and outlook agencies in the world, has changed its outlook on the United States. They now claim that our outlook is “negative”. They explain that our debt and budget deficits will probably not be remedied by our politicians. [...]