RateCut To Get Out Ahead Of Credit Crisis (09/20)
"Let me begin with some background on the subprime-mortgage sector. Subprime mortgages are loans intended for borrowers who are perceived to have high credit risk.” Discuss how the Federal Reserve cut short term interest rates to “get out ahead of the situation and try to forestall potential effects of tighter credit conditions on the broader economy (Analysis). What is the current housing construction and sales condition (Construction & Sales)? What may be potential effects of the current housing industry collapse on the U.S. economy (Analysis)?
Raise Debt Ceiling, Paulson Tells Congress (09/19)
"Treasury Secretary Henry Paulson told Congress on Wednesday the government will hit the current debt ceiling on Oct. 1.” Examine why Treasury Secretary Paulson is asking the Congress to raise the public debt limit. What is the current public debt (Debt Clock)? What are long term fiscal challenges for the U.S. government (Challenges)? Assess how much of the public debt is owed to foreign interests (Foreign). Discuss if the public debt is expected to increase or decrease. What is the current deficit projection by the Office of Management and Budget (OMB)? What are the harmful effects of public deficits and debt on the economy (Effects)?
Fed Cuts Interest Rates (09/18)
"The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4-3/4 percent.” Examine the FOMC’s official statement on the current condition of the U.S. economy. Do you expect the FOMC to make another interest rate cut (Analysis)? Review the latest data on inflation (CPI)? Do you think the Fed has taken an appropriate action by slashing its short term interest rates (Analysis)? How is the US economy performing (Update)?
Microsoft Dealt An Antitrust Blow In EU Court (09/17)
"The European Court of First Instance rejected Microsoft's request to nullify sanctions handed down by the European Commission, including a record fine and an order forcing the software giant to adjust the way it sells its Windows operating system in Europe.” Study an internal Microsoft market share forecast and determine if Microsoft is a monopoly (Forecast). Discuss why the European Commission welcomed the European Court’s decision on Microsoft (Decision). Discuss how Microsoft should respond (Reaction)? What do the antitrust laws do for consumers (Dos)?
Teamsters Blast Mexican Trucking Decision (09/08)
" President Bush has "sucker punched" American workers and threatened national security by opening the nation's southern border to Mexican truckers, Teamsters President James Hoffa said Saturday.” Discuss how “this long-awaited project will…work to both save consumers money and help our economy” (Press Release). Examine why the Teamster is against this project (Commentary). Has the NAFTA agreement helped the US economy as theorized (Facts)?
Job Losses A Strong Portent For Rate Cut (09/07)
" The Labor Department's report Friday that the economy shed 4,000 jobs in August — the first monthly drop in four years — shocked financial markets and analysts who had expected employment gains of around 100,000.” Examine the August Employment Situation Summary from the Bureau of Labor Statistics (Summary). Discuss how the loss in 4,000 jobs did not increase the official unemployment rate (Analysis). The loss of jobs portents a recession (Data)?
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