Sep 6 2009

Does a College Degree Protect your Career? Unemployment Rate for College Graduates Highest on Record.

As many students begin applying for the 2010 academic school year, students are looking at an economic climate where endowments are hit, student loans are more restrictive, and parents have seen 529 plans sink along side their retirement plans.  The upcoming school year will be highly competitive and expensive but will it be worth it?  Now college itself isn’t a direct link to a career and many bristle when they hear about vocational training.  Yet when someone is paying $50,000 a year, you have to ask what exactly you are paying for.

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Sep 3 2009

Can the U.S. Dollar Rally while Stocks go Down? U.S. Dollar Fueling Stock Market Rally: Examining the Dow World Index and Dow Index in Relation to the U.S. Dollar. U.S. Dollar down 35 Percent since 2001.

The role of the U.S. dollar is coming into question during this economic crisis.  Most average Americans are oblivious to the fact that since 2001, the U.S. dollar has fallen a stunning 35 percent.  What seemed as good economic times was purely a credit bubble fueled by easy money from the U.S. Treasury and Federal Reserve.  During this time, the stock market brushed off the technology bust of the 1990s only to reach a subsequent market high in 2007.  That of course has gone by the wayside.  The market from the peak in 2007 dropped 54 percent but what is even more startling the world Dow Index fell 59 percent in a few months after reaching its high in late 2008.  First, let us examine the movement of the U.S. dollar since the crisis has started:

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Sep 2 2009

FDIC Insured Institutions have $13.3 Trillion in Assets. 8,195 Banks and 116 Institutions Hold $10.2 Trillion of Those Assets. One out of Four Institutions Unprofitable. 1,000 Banks Will Fail or Merge.

The banking system has taken the country to the financial edge of the greatest recession since the depression.  The enormous number of bad loans floating out in the economy only complicates the unemployment situation.  When we look into the latest banking data, we realize that over 1,000 of current banks will fail or merge with a too big too fail bank.  In fact, the total number will be over 1,000 simply because the “not too big” to fail banks heavily bet on commercial real estate loans that amount to $3 trillion.

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Sep 2 2009

California Economy: $80 Million in Unemployment Insurance Being Paid out Per Day. 143,000 Exhausted Their Jobless Benefits on September 1. One in Four Unemployed Workers without a Job for 27 Weeks or More.

In another sign that California is inching back to the financial edge, earlier this week 143,000 unemployed Californians exhausted their unemployment benefits.  Now, you might think that this is simply a function of a normal recession.  It is not.  In fact, many of these people have exhausted their 26 weeks of benefits plus three additional extensions.  That is, Californians are eligible for up to 79 weeks of benefits and that is still not enough!  That is why even though the layoffs are tempering off, the major question is who is hiring and hiring at a high enough pace to make up for the new workers and displaced workers currently in the economy?

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