Articles About Economics

American households’ net worth moved up a bit as the year began, with rising stock prices, increased savings and debt reductions outpacing an ongoing decline in real-estate prices.  According to the Federal Reserve, average household wealth in stocks, bonds, homes and other assets — minus mortgages and other debts — rose 1.2 percent to $58.1 trillion […]

Venerable Swedish automaker Saab is unable to pay its employees and is likely headed into bankruptcy.  Saab and Zeewolde, Netherlands-based owner Swedish Automobile NV, are in talks to raise cash, the company said.  Options include selling and leasing-back the factory in Trollhaettan, Sweden.  “There can however be no assurance that these discussions will be successful […]

European finance ministers are working to resolve a quandary over how to talk banks into “voluntarily” contributing to a second Greece bailout and avoiding a destructive debt default. This attempt to rescue Greece’s finances hinges on how far banks, pension funds and insurers will accept new terms on old debts prior to repayment by Athens.  […]

Homeowners who took out second mortgages, or borrowed against their homes to use the money as a cash advance,  may regret their decisions.  Close to 40 percent are now underwater on their loans — owing more than their home is worth, according to CoreLogic Data.  The data show 38 percent of borrowers who took second […]

Now that QE2 (quantitative easing 2) is winding down – and with the economy sputtering – will Federal Reserve chairman Ben Bernanke call for a new round of stimulus in the form of QE3? The answer likely is “no”, although it’s doubtful that the Fed will tighten monetary policy until the economy is stronger.  The […]

As gas prices seesaw up and down at the pump and Americans reluctantly pay more to fill their tanks as the economy slows, OPEC (the Organization of Petroleum Exporting States) could not agree on whether or not to increase production and provide some relief. The two key factors are Saudi Arabia and Iran. At an […]

The current national inventory of foreclosed homes represents a three-year supply, according to RealtyTrac.  Not surprisingly, that is depressing home prices.  “This is very bad for the economy,” said Rick Sharga, a RealtyTrac spokesman. In Las Vegas, the foreclosure situation is so dire that more than half of all homes sold in Nevada are foreclosures.  […]

Sluggish job growth in May could be a sign that the economic recovery is losing momentum.According to the ADP May Employment Report, a mere 38,000 jobs were added in the private sector on a seasonally adjusted basis.  That was well below consensus estimates of 170,000 new jobs.  The report also revised downwards the estimated change […]

There’s good news and bad news about foreclosures.  Although the number of foreclosures fell to their lowest rate in 4 ½ years in April, the reason is a delay in processing the orders, not because Americans are experiencing less trouble paying their mortgages.  “Foreclosure activity decreased on an annual basis for the seventh straight month […]

Portugal has become the third European nation to accept a financial bailout to the tune of € 78 billion, with € 12 billion going directly to the Iberian nation’s banks.  It is the third of four PIGS nations (Portugal, Ireland, Greece, Spain) to require a bailout.  Caretaker Prime Minister Jose Socrates announced that he had […]