Economy
The economy concerns everyone, whether they know it or not. From employment to prices, debt levels to wealth levels, there is very little in life that is not touched in some fashion by economics.   Credit, in particular, powers the modern economy. While those in the upper income brackets enjoy the cushion of savings and borrowing to increase wealth, those in the lower brackets must often resort to the only forms available to them, namely bad credit loans, pawn shops, payday loans and cash advance loans.   We cover matters of macroeconomics that concern all of us, and help us make better-informed decisions: Is it the right time to risk starting a business? Buying a house? Investing in the Markets?   Our economic experts can help you make those decision by providing a clear picture of where the economy as a whole – globally and locally – stand currently, and where it is likely to stand in the future.

Why George Soros is Short the S&P – and Long Gold

George Soros, the billionaire investor and philanthropist, is betting against the Standard and Poor 500 index due to his fear of another global financial crisis. During the first quarter of 2016, Soros sold 37 percent of his S&P stocks. Market Watch reported that he transferred these funds to gold and stocks for gold producers. Soros’

What Happens when Japan’s Debt Monolith Implodes

Depending on who is in charge of the numbers, Japan’s national debt ranges from 230 percent to 250 percent of its gross domestic product or GDP. To compare, the United States is around 105 percent, so Japan’s numbers are significant. If Japan’s debt monolith implodes, it could have far-reaching consequences. Japan Avoids a Debt Implosion

Federal Regulators Begin Reign of Terror on the Fast Loans Industry

With the Consumer Financial Protection Bureau, or CFPB, gearing up to enact its reign of terror on fast loans, some companies are digging in their heels while others are bailing out. The agency spent more than four years completing studies and listening to industry experts to decide what regulations to put in place. Change is

Explosive Credit Growth Forestalls Chinese Economic Collapse

To fortify its tenuous economic pickup, China’s local governments recently embarked on a new cycle of debt financing. While this step may be effective in the interim, industry experts point out that the rest of the world should consider it a revelation regarding China’s actual financial stability. The country’s explosive credit growth is supporting its

The Future of the Installment Loan Industry – Will Federal Regulation Kill It?

A year ago, the Consumer Financial Protection Bureau, or CFPB, took steps toward regulating the temporary loan industry. Ed Groshans, a financial specialist for Height Securities, said, “The CFPB made it extraordinarily clear that the path they’re going down is intended to eliminate the vast majority of payday lending.” The agency’s recent proposals will surely

Congress Continues Efforts to Reign in Consumer Financial Protection Bureau

Congress has discovered that the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 that created the Consumer Financial Protection Bureau or CFPB is fatally flawed and dangerous to traditional banking interests, politicians and lenders. The Huffington Post reports that the bureau has become everybody’s favorite target for reform or abolishment. These stakeholders include

Does the Consumer Financial Protection Bureau Actually Protect?

Does the Consumer Financial Protection Bureau Actually Protect? Initiated by Senator Elizabeth Warren and designed as a response to the financial crisis and the recent recession, the Consumer Financial Protection Bureau, or CFPB, is meant to stop deceptive, fraudulent and unfair business practices. According to the agency, it will accomplish this by “collecting complaints and

Commodities Rebound on Dollar Decline

A weakened U.S. dollar inspired a recent rebound in commodities. Speculation that this year’s global growth won’t be strong enough for the Federal Reserve to raise interest rates was another factor that fueled commodity growth. These stocks saw widespread increases with gains that ranged from gold to copper. A few weeks ago, oil reached new

Gold Looks Set for Continued Rally

Since gold is frequently the investment choice for those who are too cautious to invest in regular stocks or other assets, the price of it often holds steady. This year, the commodity rallied. According to some analysts, gold’s recent rally could continue. The Recent Rise Gold rose steadily during this year’s economic melancholy. Estimates show

Global Shipping Drops to New Lows

The first quarter of 2016 has been a rough period for many investors and business people. Most people who follow the financial news are aware that oil stocks are low, but the global shipping industry is also suffering. While oil and shipping are separate industries, oil prices can have major effects on the revenues of

Why Georgia Outlawed Payday Lending

When Georgia’s legislators signed the Georgia Industrial Loan Act of 1955 into law, the regulation was designed to outlaw payday loan lending. It did this by requiring loan companies to obtain state licensing. The state also required them to register. With this law, Georgia even imposed austere usury limits for financial institutions that were in

Buying for Time – The Global Debt Bubble

While Paul Krugman, the well-known economist who writes for the New York Times, made a recent recommendation that America’s debt load should not be the country’s main concern, another voice is speaking out that it must be a priority. David Stockman, the first budget chief for President Reagan, believes that it’s time for the country

Should Online Payday Lending Be More Closely Regulated?

Payday loans generate lots of controversy because they’re offered to people who have bad credit or limited credit histories, which makes them high-risk borrowers. Traditional lenders seldom approve loans for these types of borrowers and never quickly enough when a cash emergency occurs. Unfortunately, many of these same people don’t use payday loans as intended

War for Profit – How Defense Contractors Influence Washington Policy

When President Dwight D. Eisenhower left his post on January 17, 1961, he warned the country of what he thought was a major threat. According to the leader, the military industrial complex formed of lobbyists and military contractors is a great threat to the nation since it will strive to keep America at war for

Are Economic Sanctions Against Russia Working?

Opinions about the effectiveness of sanctions on Russia vary. Some experts say that they are damaging the economy, and others counter by pointing to the lack of consequences in the political arena. Understanding the purpose of the sanctions can help you develop an informed opinion about whether or not they are working. Considering the Causes

Regulatory Outlook for the Payday Loan Industry

The Consumer Financial Protection Bureau, or CFPB, made an announcement about a year ago regarding the lending practices of the payday loan industry. Last year, the agency issued a report that included a list of proposed restrictions for short-term loans, long-term loans and the industry’s collection practices. The director of the small dollar loans project

Can Emerging Market Economies Pull Out of Nose Dive?

Signs of financial trouble in emerging markets appear when investors take their money and leave. A slowing economy in China has caused the country to reduce the number of commodities that it usually purchases. The glut of oil on the world market has significantly hurt exporters in emerging markets. Understanding the Scope of Capital Outflow