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

China’s Debt Bubble Raises Fears of Hard Landing

For more than 10 years, China’s economy has been the backbone of world growth. A few months ago, the country’s stock market experienced a big crash sending industry experts into a prediction tizzy. Some claim that if the nation’s economy comes to a halt, countries that depend on their trade agreements with China should prepare

Global Economy Gears for Major Slowdown

The impact of the global financial crisis in 2008 continues to reverberate around the world as countries adjust economic projections year after year. A pattern of downward forecasts causes concerns about the world economy as leaders search for a reversal of the trend. The International Monetary Fund (IMF) cites subdued demand as a cause of

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

Online Payday Loan Solutions – The Appeal and Convenience

Online payday loan solutions continue to grow in popularity among people who need financing for a variety of reasons. As people lead increasingly busy lives, they often have less time to devote to their financial and banking needs. The scant few moments they have each day to balance their checkbook or pay bills may leave