Monday, March 30, 2015

Economic Bungee Jumping.

Economic Bungee Jumping.  I questioned what this really meant, and then I read "Catching the bottom of the cycle can turbocharge your portfolio or business plan, while missing the peak can lay waste to both." and then it hit me, stocks.  Business cycles are hard to predict.  Population and productivity have a huge part in making the economy rise and/or fall.  "  Business cycles are an unavoidable and largely unpredictable feature of market economies."  (p.2)  Predictions of the cycle are mainly made on gut feeling, not very statistical at all.  (quite the opposite of what I thought)

There are also imbalances in the economy.  Such as Bear and Bull markets.  A bull market is when prices in a certain area are rising, while bear markets are more violent than a bull market.  Bull expectations are expectations to boost investment and stock prices.

The definition of a recession is "two or more consecutive quarters of declining GDP"  A press release is required for a recession to begin.  " They declare a recession when they conclude there  has been a significent decline in economic activity across the economy, lasting more than a few months"  The word we use "recession" is a just a term that replaced the word "depression" in the business world.

When the economy attempts to recuperate and fails to come out of a recession, it becomes a depression.  Banks become cripple because of their dependency on the loans go bad because of companies investment booms fail.  On top of that, other countries economies can affect us if they are to crash. In the late 1980's and early 1990's Finland's GDP dropped 10% because of the Soviet Union collapsing.  (most of their money comes from vodka anyways)

In conclusion to my blog, there is no producer with out the consumer(s). They both keep the cycle of the economy going.  Once there is an imbalance, recession will be called.  The failure of the natural recuperative process comes from a broken financial system blocks the flow of credit.







snap backs and tattoos, cool whips, fly chicks, all that cause cash rules.  

Saturday, March 28, 2015

Hidden Economy

      The hidden economy is a group of workers who can not find a full-time employment job.  The people in the hidden economy are paid cash for doing certain tasks without the knowledge of the government.  Such jobs that fall under this category one day construction workers, hiring illegal immigrants, and housekeepers. Aside from the government not getting taxes from these workers, they do provide a good position in the economy.  These workers don't get many hours, but they take as many as they can because most have families that they need to provide for.  All workers in the hidden economy do not pay taxes for their jobs because it is done under the tables, which is very convenient for these people seeing as they don't make enough money with their hours anyways.
      Some may say (and by that, I mean other people's blogs) that the government raises taxes for workers  in the actual economy because of the money that the gov. loses from the hidden economy not having to play taxes.  Hidden economy workers also do not receive social security or health benefits for their jobs, also denting the economy.  The hidden economy is said to also lead to drug use, but to each their own. Oold McDonad had a farm, e i e i o.  d

Thursday, March 5, 2015

The FCC won't let me be, or let me be me, so let me see, they try to shut me down on MTV, but it feels so empty without me.

Net Neutrality is the Internet's guiding principle.  This preserves our protected rights to legally communicate online freely.  With Net Neutrality, free speech enabled and protected.  With out NN, ISP could slow down their competitor's content or block political opinions (violation against freedom of speech.)  ISP's can also charge extra fees to extra fees to the few companies who can afford the extra fee for preferential treatment, which would lead to slower service for any small companies.  In other words leading to an empire, and yet another "top 1%" of a group. (ex. food companies).  It is important to the corporations because like real life, we can't just have one big Walmart, we need separate independent stores for more jobs  for the community.  It is also important for the consumers because we are all users of the internet, that would be abusing and taking away the rights of millions of internet users.