News

Stocks Primed for a Devastating, 1930’s Style Collapse

A stock market crash appears imminent. A number of renowned economists and even a few well-known investors are warning the industry that a crash is on the horizon. With sales and earnings rolling over sharply, the markets are on shaky ground since earnings drive stocks. Economist Andrew Smithers said, “U.S. stocks are now about 80

Stocks Heading for a Major Crash – Why the Smart Money is Getting Out

A stock market crash appears imminent. A number of renowned economists and even a few well-known investors are warning the industry that a crash is on the horizon. With sales and earnings rolling over sharply, the markets are on shaky ground since earnings drive stocks. Economist Andrew Smithers said, “U.S. stocks are now about 80

Is America Plunging into a New Recession?

If you followed the financial news in January, you already know that 2016 started with a weak global economy. In the United States, Janet Yellen and the Fed raised interest rates in an effort to encourage saving and reduce bond prices. While Yellen clearly had good intentions with this decision, the increased interest rates discouraged

Stocks Continue Rally – Can it Last?

With the Federal Reserve keeping interest rates low and Janet Yellen expressing fears about a rising dollar having negative effects on exports, Wall Street’s attitude remains bullish. The recent stock market rally is reaching a new high for the year. Can it last? There are industry experts predicting that it can as long as the

Oil Prices Rise on Yellen’s Dovish Policies

Markets around the world took notice when Janet Yellen used a dovish tone this week while discussing policy changes that included increasing interest rates. She said, “Given the risks to the outlook, I consider it appropriate for the committee to proceed cautiously in adjusting policy.” Ms. Yellen did not provide details about when she expects

New York’s Payday Lending Ban

Ordinary people in New York who have less-than-perfect credit face regulatory pressure to do what politicians decide is “good for them” as free enterprise, self-determination and the rule of law take yet more hits from “well-meaning and concerned” politicians and the big banks. Despite overwhelming evidence showing that ordinary working people from the lower end

Despite U.S. Economy’s Mixed Messages, Fed Official Insists It’s Healthy

Just when Americans have started letting their guards down and getting their hopes up about the strength of the U.S. economy, a variety of factors are converging to hint at a potential slowdown. What’s worse is that some economists fear that a full-fledged recession is looking increasingly possible. At a time when it feels like

The Economic Fallacy of Pulling Yourself Up by Your Bootstraps

In America, success is commonly attributed to hard work. When someone enjoys financial rewards or a stroke of luck, they are often praised for their intelligence, creativity or dedication. When someone is at the opposite end of the spectrum and dealing with bankruptcy, a looming foreclosure or unemployment, they are often told to “pull themselves

Millennials Struggle to Build Credit

Having reached their adulthood during the recent economic recession, millennials in the workforce are now making some interesting choices concerning their financial stability, many of which have economists and financial experts concerned. Although the economy has continued to improve over the last several years, there continues to be some mistrust with the financial system currently

The Coming Collapse of the Petrodollar

Energy and money make the world go round. Just as the Spanish discovery of Aztec gold mines increased the value of the Spanish gold dollar, the agreements between the United States and Middle East countries has increased the value of the United States petrodollar. Industrial output, consumer transportation and international trade all benefit from stable

TransUnion Expects a Stronger Consumer Lending Market in 2016

The consumer lending market was one part of the financial industry that suffered significantly during the recent recession. As the economy has continued to rebound in recent years, consumer or personal lending, which includes auto and home loans, has also made important strides that reflect an increase in the confidence in the economy. The recent

Was the 12/17/2015 Hike in the Federal Funds Rate a Mistake?

Effective last December, the Federal Reserve raised the federal funds interest rate (short-term interest rate) by 25 basis points (¼ of 1%). This moved the federal funds rate from a range of 0% – 0.25% to a target of 0.25% – 0.50%. Though the rate increase was statistically insignificant, Fed watchers called the move historically

Hiring in a Slow Economy: Tips for Adding Help on a Tight Business Budget

Hiring is usually downsized by companies when the economy is slow, and this often means imposing a hiring freeze until cash flow improves. However, an economic slump may be the prime time to find top talent as competitors lay off staff in an effort to minimize expenses. Businesses may also need to hire replacements for

Loans to Consumers and the Impact of Zero and Negative Interest Rate Policies

The best loans for individuals and their families are often determined by interest rates. Many individuals are not really certain how interest rates are determined. Zero Interest Rate Policies (ZIRP) and negative interest rates can lower the cost of loans of all types, from home loans, car loans, student loans, credit cards and everything in

Is the Cash Advance Industry Hurting or Helping Small Businesses?

One of the ways that many small businesses achieve their goals is through the business cash advance industry. There are approximately 28 million small businesses in the United States, and new businesses open up each year. Opening a successful small business and keeping it in operation for over five years is no easy feat. One

Consumer Protection vs. Governmental Control – Developments in the Payday Loans Industry

Consumer Protection vs. Governmental Control –  Developments in the Payday Loans Industry If someone were to stop random people on the street and ask how they feel about payday loans and installment loans, they’d likely hear a mix of appreciation, confusion and trepidation. Consumers who have gone through difficult times in their life have likely

How Payday Loan Regulations Affect the Industry and Its Customers

The payday loan industry has always been politically contentious, and criticisms tend to increase during economic downturns. Perhaps paradoxically, this is also the time when there is a substantial increase in the use of alternative financial systems. For example, the use of payday loans increased substantially during the fiscal year 2015 even though there was