Paul Kedrowsky speaks at MIT about how the facts of life – namely, the effects of aging – are going to totally transform our society.
We think it’s pretty neat, and it makes us wonder what the economy will look like when the nation’s purse strings are controlled mostly by older women.
But seriously. We all know that the U.S. has the world’s biggest economy, but have you ever considered how it really compares to other countries? Even after the recession exploded America’s financial system, you can still fit at least 50 smaller economies within its borders.
How do you think your state stacks up? Click to play with the map and find out.
*In case you forgot, the Gross Domestic Product, or GDP, is the measure of all goods and services produced in a country in a given year. It’s an easy way to get a sense of that country’s economic activity.
“Let me give you some advice. Put your money in the bank, and forget about it.”
-Chuck Norris
As much as we hate to disagree with Chuck Norris (and are definitely expecting a round-house kick to the face after this post), here at TILE we know that saving money in the bank is only part of being responsible for your financial life. It’s just as important to learn how to make smart investments and get involved in causes you care about – doesn’t Chuck Norris know about spendgrowgive.com?!
Silly question – Chuck Norris knows everything.
(reblogged from moneyisnotimportant)
credit: Ivan Walsh
In important trade talks with China, the U.S. wants to make sure American companies can do business in the world’s second biggest economy…
“U.S. companies have issues with China in many different business sectors.” – John Frisbie, president of the U.S.-China Business Council in Washington, D.C.
Has any part of your life been touched by the rise of China?
credit: ollesvensson
Investing is a lot about trying to predict the future of a company. But what if that future depends on one single person?
“To think of a world without Steve Jobs is a really scary thought because he has had such a major influence on all of our lives whether we know it or not.” – Gene Munster, Analyst at Piper Jaffray (an investment bank)
How would this week’s news that Apple CEO Steve Jobs is taking more medical leave change your decision about whether to invest in Apple?
“It was supposed to be Wall Street’s hottest tech deal in years: the private offering of as much as $1.5 billion in shares of Facebook Inc… Goldman bankers burned up the phone lines in the first week of January, pushing many of their best American clients to invest in the deal. And then, on Sunday and Monday, those same advisers were on the phone with those same clients with some bad news. They wouldn’t be getting any Facebook shares, after all… Goldman worried that the media spotlight surrounding the private offering might violate U.S. securities laws and expose the firm to legal action.”
How would you feel if your bank promised you something it couldn’t deliver? How much would you risk to be one of the first investors in a hot company like Facebook?
credit: lisatozzi
You know how some medications say “do not operate heavy machinery or make important decisions while taking this medication?” Well, according to a new study conducted by Harvard Business School, it might not be the best idea to make certain decisions while thinking about your next big bonus either. Especially if those decisions impact other people – like your boyfriend or girlfriend, your sibling, your friend, your co-worker.
Here’s an excerpt from the study:
Hey, kids – it’s earnings season! That means that companies are starting to report to the world how they did in the last three months of 2010 (that is, the 4th quarter of 2010). Earnings reports are super important, whether you’re a rookie or a pro. Read on to find out why:
credit: Smudge 9000
Here’s the interesting thing about earnings reports: they give investors important information about the past and the future.
For example, overall profits are expected to be 9.8% higher than they were at the end of 2009. (Makes sense – 2009 was a pretty rough year on the economy.) But what about the years before that? Are there any companies that usually bring in 15% profit that are now earning less? Maybe 10% is their new normal. Would you be satisfied with that, as an investor, or would you prefer to find a company with a better track record?
Companies’ past earnings aren’t as important as their future earnings. Even though overall profits rose at the end of 2010, it looks like they’re not going anywhere in 2011. Why? Well, the job market hasn’t really improved. People without money can’t spend money, and companies can’t profit without money.
There are some exceptions: even though the job market is in bad shape, companies that sell luxury goods to a different market have continued to perform well. You can also predict future earnings based on new laws and tax policy. FedEx and Novellus Systems will both be taking advantage of a tax break to buy themselves new computers and cargo jets. (Those purchases not only benefit the businesses – they also increase profits for technology and airplane manufacturers.)
A little bit of bad news for companies that depend on consumer spending to boost their profits:
“…we’re not going to see sustained declines in the unemployment rate.” – Ben Bernanke, Chairman of the Fed
Looking for a job or a great deal on a condo? Well Ben Bernanke has some news for you! Our Treasury Secretary and the U.S. Senate got together today for a little chat about the state of the economy. Ben says:
“We have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold.”
credit: kevindooley
The story:
Basically, Americans are starting to spend more money on everything besides real estate. That’s pretty good. But the unemployment rate is still 9.4%, which is bad. In fact, it may take up to five years for the job market to get back in shape.
The plan:
So what’s the plan? First of all, Bernanke practically begged lawmakers to get their rear in gear and rearrange the federal government’s disastrous spending habits (which have led to bigger and bigger budget deficits over the years). And then there’s… quantitative easing!
The important thing you don’t understand but easily could if you just read this:
Friends, it’s time you learned what quantitative easing is. Basically, it’s a way for the government to pump more money into the economy without causing crazy inflation, which would make all that new money worth a lot less.
Here’s how it works: the Treasury prints some money for itself, and uses that money to buy stuff (mostly bonds) from banks and financial institutions throughout the country. Bam! More money in the economy.
But flooding the economy with cash usually causes inflation (which means your dollar will buy less than it used to). So the Fed is working hard to keep the inflation rate below 2%. But you probably don’t need to get into all that detail in a friendly conversation.
So now you know.