Archive for the ‘Investment’ Category:
Written on March 5th, 2012 by Samanthano shouts
With all of the recent hoopla over Facebook and Yelp! in the stock market news it seems to be a good idea to learn more about trading in the modern world—and in particular, trading online.
Electronic trading has been around for quite some time. As a mater of fact, private corporations have been trading since 1979. It was not until the late 1990′s that live trading became available to the public at large.
Benefits of Trading Online
Modern day online trading is easy to use, offers flexibility, real time trading, and many other advanced or enhanced online trading tools such as online tutorials, calculators, online banking options and more. This is also less expensive than real life trading. These qualities gives even the layman the knowledge and access that is necessary for trading, without having to pay for a broker. Knowledge that was once reserved for professional brokers is now open to the public that wants to know.
You, as the individual trader, are now in control and have more say in trading decisions.
Highly Rated Online Trading Firms
The next step is to choose where you would like to go–who can you trust with your money? That’s up to you ultimately of course. However, a lot of online stock trading company users rate a few quite highly over others. Let’s review a couple of the ones they like the best.
Least Expensive
That is what a lot of people want to know. With award winning software and at $4.95 a trade, MB Trading is one of the best-ranked trading firms by users. The “propriety order routing system” has eliminated the need for a middleman as this system links directly to NYSE, NASDAQ, and AMEX. They also have a large variety of investing options–a favorable quality for any firm you may choose.
Another one that users like is E*Trade. This firm has a varying range of trading fees starting at $7.95 a trade. However, E*Trade offers free trades for the first 100 trades–that’s right, free. This feature allows the user to see if they really can make a profit with this company in the long run.
Other Qualities To Look For
Overall, investors want good quality investment opportunities. Along with finding the lowest price, and varying types of investing (stocks, options, mutual funds, etc.), users find that having access to stock trader training a valuable asset for online firms to have. Some firms may even have a professional broker for you to consult with. This knowledge may help novice investors as he or she is starting out. This may include research tools and personalized trading tools as users become more knowledgeable and develop a sort of system of trading preferences.
Another bonus may be firms that offer account management software and online banking that links as well as tracks all exchanges of money during trading. This can be quite helpful.
Last yet not least is superior customer service. This is one of the most important aspects to customers. Users want to be sure that they are facilitating online stock trading purchases correctly, for the selected company, and in a timely fashion. there may also be other needs that users wsnt attending to. This may be assistance with navigating through the varying support modules that the online company offers, or with the extended banking services they may offer. It is always best to have your questions ready when you contact them. These professionals should be able to guide you through your interests smoothly.
Resources:
Best Online Stock Trading Company: http://www.bestonlinestocktradingcompany.com
Star Reviews: http://www.starreviews.com
Top Ten Reviews: http://online-stock-trading-review.toptenreviews.com
Written on February 1st, 2012 by Samanthano shouts
Facebook has gone public today and now has an IPO. An IPO, an initial public offering is a way that private companies go public which reveals the inner workings of the company including financial information. Francis Gaskins, President and Editor of IPODesktop.com describes this process by using a “real estate analogy,” stating that it’s like a house that was once private and not open to the public is now on the open market where all relevant information is disclosed. The company, now open to the public, is “followed by analysts” and monitored by the Securities & Exchange Commission (SEC).
A company must go public when there are more than 501 investors and worth more than $10 million dollars.
A company usually starts trading about eight to twelve weeks later—after announcing it’s IPO.
This company’s information is being offered to attract investors that want to support the company as a shareholder and hopefully make money as the company grows. To invest, you must already have an account with an investment firm. You can then go through the investment firm to make requests to buy or sell investments.
What does this mean to you?
For such a huge and popular company such as Facebook, there is a lot of buzz and interest—it’s considered to be a “hot IPO.” This means that a lot of investors are going to be initially interested which will result in a spike on investing with the company during the first days on the market.
The people that are going to really see an immediate return on investment—and the making of instant millionaires—will be the employees of Facebook that have shares in the company. Other investors that are able to invest larger amounts of money and acquire more stock will also be prevalent. Traditionally, these are the sectors of investors that are able to afford immediate investment and thus experience a greater or more immediate return on investment.
It has been said that Facebook is going to offer a large amount of stocks so that regular people that hope to invest in the company will also have an opportunity. Being that the United States is the only country that does not have laws against a particular criteria of classes of people that may invest, this may be a huge opportunity for even the average investor.
It has been reported that Facebook opened a $5 billion dollar IPO.
The thing is that with Facebook, everyone knows about it and may sink money in for the moment before “spreadsheet” analysis has been generated that shows actual growth. This could mean a lot of changes by next week. Traditionally, low-key and unknown companies are more attractive for investors because they will be able to buy at a low price and sell at a much higher price—this is a time proven strategy.
Experts are advising that investors that purchase on Facebook today should seek to trade sooner than later, and not hold on to the stock for too long. Gaskins stated that within the after-market, the selling point in the weeks after the initial announcement of an IPO, more analysis would become available to make a more strategic decision on investing.
It seems that only time will tell.
Resources:
Associated Press: http://www.ap.org
Yahoo! Finance – Breakout: http://www.finance.yahoo.com
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Filed under Investment
Tags:after-market, best money practices, facebook, finances, initial public offering, investment, IPO, IPOs, Market, portfolio, risk, stock market, Stocks
Written on November 29th, 2011 by Samanthano shouts
The stock market’s most recent rise is due to the lifting of cash access restrictions made on European banks—due to the serious decline of confidence in the European banks recession recovery.
According to an article distributed by the Associate Press, “‘The central banks of the world have resolved that there will not be a liquidity shortage,’ said David Kotok, chairman and chief investment officer of Cumberland Advisors. ‘And they have learned their lessons from 2008. They don’t want to take small steps and do anything incrementally, but make a big bold move that is credible.’” The stocks of huge American financial institutions such as Morgan Stanley, J.P. Morgan Chase, and Citigroup have gone up between 6 and 7 percent, on Tuesday. These are being seen as big gains in such a shifting economy.
Essentially, rates for loans have been lowered to a point that simply makes it much easier for banks to borrow all of the money that they wish. This is a great alleviation for these banks and gives them more liquidity. However, experts have also been issuing caution to these large establishments and to the world at large. They have noted that this may just be the catalyst for another bubble effect later on and that this latest move may only be a matter of passing the buck. According to them, there has to be a sturdier foundation from which to build a stronger economy than what we are experiencing now—and since 2008.
“‘People are taking comfort that it’s globally coordinated,’ said Peter Tchir, who runs the hedge fund TF Market Advisors. ‘In itself it does nothing, but the bulls are anticipating that this is just the beginning of central bank and other actions’ to ease market pressures.”
“A successful action would be expected to reduce borrowing costs for Italy and other nations, Tchir said. Italy’s borrowing costs edged lower Wednesday, but the nation was still paying more than 7 percent interest for 10-year borrowing — a dangerously high level.”
—The Associated Press
Banks may be relieved at what may be considered a holiday miracle; however, some experts have noted that this could be a set up for an even more devastating financial upset later on down the line.
Even with cautionary mentions, the upward climbs of stocks have given a clear indication that there is more confidence within the market. Perhaps the infusion of morale will foster greater results instead of a more negative financial outcome. The Dow has increased by enough points to take them out of the pointed low the Dow was in only a week ago. The Standard & Poors index increased by almost 4 percent, on Tuesday. However, in another AP article, Standard & Poors is noted as decreasing the credit value of particular US banks—Bank of America, J.P. Morgan Chase & Co., Citigroup, Morgan Stanley, and more. This may also prove to be a most confusing time for some.
Standard & Poors have been noted as lowering credit ratings due to new practices and/or procedures recently adopted by particular banks.
Resources:
David Wagner, “Stocks leap on central banks’ coordinated action,” The Associated Press: http://www.ap.org
Yahoo! News: http://news.yahoo.com
Written on October 21st, 2011 by Samanthano shouts
A New Personal Finance Solution
This is truly an interesting endeavor. Online banking has been with us for quite some time now. Most people refer to this as being able to have full access to the brick and mortar bank they have already joined. The ability to check up on account activity, new payments, and making money transfers with the touch of a button, is very convenient. However, some banks are now exclusively online. This type of banking completely eliminates the need for standing in line, and other related bank lobby issues. Because there is a lowered need for human capital, most online banks offer double and sometimes even triple the interest rate earnings as compared to other banks. This option makes for a profitable move. However, changing rates over the years has become more comparable to brink and mortar banks. Even so, some still believe that online or Internet banks are the new age way to go. And online banks do still have a slightly higher earning rate and lower to no fees. But how are people really getting along with an all-electronic banking system? Let us weigh the pros and cons of this matter.
First of all, higher interest earned with low to zero minimums, is probably the biggest draw to exclusive online banking. Typical brick and mortar banks offer an interest rate earning of less than 1% for most accounts, and some with high minimums to even begin earning interest. At the most you may get 1.3% interest earnings on a savings account. This has led to some consumers finding that online or Internet banks may be able to offer more for less. Even comparable rates may bring out more consumers if there are other existing accommodations being made to them that brick and mortar banks will not offer.
ATM and minimum fees are virtually nonexistent in online banks. And if by chance an ATM charges you, most online banks will reimburse you. To top it all off, most online banks do not charge a debit usage fee either. Now that is really good customer service.
One drawback from online banking is opening up an account to begin with. The typical way of opening up a bank account with a brick and mortar bank is to bring your identification information to the location of your choosing. However, with an online bank this exchange is more rigorous and takes longer in order to avoid fraud concerns. Most importantly, opening up an online bank account will need for you to send in your signature. You can probably send all of this information in electronic format. However, it is best to check with the bank for more enrolling details.
A very important feature that you want to make sure of before signing up for an online banking account is making sure that the online bank is FDIC insured. Some of the online banks are not.
Another issue can be the transferring of your money from your brick and mortar bank to an online bank. This may take a much longer time because you will have to mail in your deposits on a regular basis. Some online banks do take payment via MoneyGram or UPS though. Future paycheck payments may be easier with the use of direct deposit. However, some bank consumers like face-to-face interactions with people that know he or she by name.
All of this becomes a matter of personal preference compared with functionality and pricing that one can live with. The explosive rise of banking fees lately, have consumers begging for a better banking deal. For some, online banking may be the best way for an alternative banking experience, with higher earning potential, and low to no fees attached.
Resources:
Bankrate.com: http://www.bankrate.com
Main Street: http://www.finance.yahoo.com
My Bank Tracker: http://www.mybanktracker.com
Written on October 16th, 2011 by Samanthano shouts
Social Security Loosing Ground for Modern Seniors
We would all like to retire at some point. With the increasingly disturbing economic storm that we have had to weather lately, this is becoming more fantasy than reality. More Americans must postpone retirement, and some believe that full retirement may not be possible anymore.
Americans have been retiring at age 65 since 1938. This age increased to 67 by 1960. The way that this works is that anyone born before 1937 may retire at the full retirement age of 65. As the years have gone on since then, the full retirement age has steadily increased. Options exist to retire from age 62 – 67. However, at age 62, a reduction will occur for those collecting social security benefits. Only at the corresponding full retirement age, may retirees collect the full social security benefit amount. This has been an off putting reality that have seniors scratching their heads trying to figure out how they will survive in today’s world.
Don’t Get Old
Seemingly easier said then done. What can be done is to not allow your skills to become stale and dated. Stay up on the latest working trends, including new software, business machines, methods, and technology. There are many ways to gain access to these training online, or you may be able to take classes at a local accredited school. Keep on buffing up on the latest business tools and keep your skill set growing. You will stay current and in the stream of what is happening now. Make yourself an asset to your company and you will go far.
Keep Saving and Investing
Don’t put a cap on your saving plan. Keep on saving your money, and selecting diversified stocks to invest in. The key is to keep to your saving schedule so that you may have enough to fall back on down the road. And with proper investing, you can make your money work for you.
Part-Time Work
You may be able to subsidize your benefit income with a part-time job. Use the skills that you had in your full-time work life to your benefit. You can also start your own business and take on light contracting work to make ends meet. The more creative you are, the more you will be able to resolve your own situation.
Sell Off Marketable Items
You may have acquired a hefty lot of valuables over the years. Perhaps you may be able to sell off some of it and put that into savings. Make sure that you have had these items appraised and keep track of the certificate paperwork. This can be old unwanted jewelry, artwork, property, books, automobiles, furniture, and other antiques. Make sure you have a clear record of what you have within an inventory log. You don’t have to part with your truly precious items that hold sentimental value for you. Hold on to those treasures.
If you are still holding to a big house, you may want to consider moving into a smaller home or apartment. You can save big on property tax, maintenance, and huge utility usage bills.
With careful planning and constant awareness of what is going on in the world, retirees may be able to enjoy a well-deserved rest.
Resources:
Social Security Online: http://www.socialsecurity.gov
The Wall Street Journal: http://online.wsj.com
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Filed under Cost Of Living, Income, Investment
Tags:American dream, budget, cost, economy, employment, finances, income, jobs, money, retirement, retirement age, social security
Written on September 15th, 2011 by Samanthano shouts
Have to Provide Plans to Regulators
There are quite a few banks that are now under scrutiny by US “regulators,” due to the recent financial crisis they may have been involved in. This includes the purchase or selling of mortgage-backed securities. Coupled with the housing failure that began, roughly around 2008, a lot of financial institutions have been determined to have crossed the line, and are being dealt with quite seriously. This is by official monitoring institutions and investors. There is a lot of money to pay back and those that may consider themselves as an interested party, want to be sure that these banks will be able to pay.
The Regulator
The Federal Deposit Insurance Corp. (FDIC) has created a unanimously approved rulebook to oversee the proper installation of pay back plans, from these banks. Some of these regulations include “rules [that] require banks with $50 billion or more in assets to submit so-called living wills to the FDIC, the Federal Reserve and the Financial Stability Oversight Council and send revised plans annually,” according to an Associate Press report. These banks would have to include how, and possibly to whom, they may sell off assets: if they are not able to produce enough income to pay back debt owed. The plans have to start pouring in by July 2012. However, smaller banks are being allowed to wait to file their paperwork until 2013, according to the same report.
The report further reveals an intent being made by these regulators. These plans have been designed to hopefully prevent targeted, or other banks, from receiving a government bailout in the future. Instead, regulators have seen it fitting that they be wholly responsible, for any debt they may incur.
The Plans Construct
The plans to be submitted have to be extremely detailed. They must contain every aspect of the banks operation, all revenue producing items or products, and “liabilities.” They must provide details on who and how much they owe. There must also be a “risk” forecast for all of these details. If the regulators choose to make modifications, they will be able to. This includes the immediate selling of assets, or completely scrapping the plan – making the bank start all over again. And if banks should want to modify already approved plans, they must send in a detailed report on these changes, or plans to change, within six weeks.
Out of the 124 financial institutions being targeted, approximately 21% are American. The remaining are foreign subsidiaries.
Regulators will possess the power “to seize and dismantle banks that threaten the broader financial system,” according to the same report (AP). And if they come to believe that a financial institution may possibly head down that same road – they will be able to make them submit financial plans too.
It would be very interesting to see how well this will go and how this will affect economic recovery – in the long run. It seems as though this is what should have been going on all along: at least to a certain extent. The financial reporting makes enough logical sense to have always been a necessary factor in place. However, it is the element of forcing a “living will” situation on these financial institutions that will give this operation more teeth.
Resources:
Associate Press: http://www.ap.org
Yahoo! News: http://www.finance.yahoo.com
Written on September 13th, 2011 by Samanthano shouts
Another Growing Trend
The Banking conglomerate is cutting approximately “30,000 jobs” over the next few years. It is estimated that this will save them billions of dollars, according to a report in the Associated Press. CEO, Brian Moynihan stated that the bank has made some significant changes over the past two years. According to the report, the Bank of America has new goals and is setting a new direction for the company – it wants to become a smaller (and possibly more manageable) bank. The bank has already “eliminated 6,000 jobs,” before the announcement, according to the report.
New Executive Team
There has certainly been a change on who is running the show at the Bank of America, as top executives have left the bank, leaving their duties to the “Commercial Banking Chief” and “Investment Banking Head,” according to the article. They will both be answering to the CEO in their new positions. There has been no official word on the exact reasons why the former executives are leaving.
Stocks Going Up
As a seemingly direct result of this restructuring, Bank of America stocks have gone up a bit on Monday.
Why The Change?
There is a lot of speculation – of course the first thing that may come to mind is all of the trouble the bank has had to face recently. According to further reports (AP), the bank has lost “value” over the past few months due to the eventual fall out of “poorly written mortgages,” it purchased. This is a direct result of the bank’s acquisition of mortgages from Countrywide Financial Corp., three years ago, according to the report. They also purchased Merrill Lynch a year after the Countrywide purchases. This was during the big bursting of the housing bubble, as I am sure you can recall. This set a downward spiral into place for the bank. Now, all three lenders are being sued by, “investors and regulators,” as a result of the failing value of those mortgages (acquired), according to the report.
Further reports note that the Bank of America has the highest amount owed, out of the other 16 banks currently being sued for “mortgage-backed security sales,” at over $55 billion dollars. The bank has paid back a little more than $12 billion so far according to those same reports. Experts believe that settlements may be offered very soon with regulators; however, no mention of the same with “investors,” according to the reports.
What This Means to You
If you are an investor, it seems that you are already in line, or will have to get into line for your remedy. Customers or other consumers may expect the usual occurrence when large companies diminish staff: customer care failings, possible fee hikes, service changes, or longer waiting periods for proper service overall. Of course this is only speculation right now. On the other hand, things may improve after the transitional period is over. That is a very real possibility as well.
There are currently no reports of any of the other banks being scrutinized, cutting large amounts of staff or restructuring their line of executives or other departments.
Resources:
Associated Press: http://www.ap.org
Yahoo! News: http://www.news.yahoo.com
Written on September 12th, 2011 by Samanthano shouts
How Things Are Looking Right Now
Stocks went down today, as the fear of a real financial collapse in Europe overwhelms investors, according to an article in the Associated Press today. It seems that Greece is the frontrunner of their worries right now. And any country that has is holding any bonds for Greece right now, like France, may get dragged down with poor credit ratings in the mix up. This could assure a gloomy outlook for the European banks for quite some time. This is creating yet another reason for American Economists to worry – as a collapse in Europe may cause further economic trouble for the US.
Is Anyone Doing Well?
The only rises noted today were in technology, education publications, and a Casino resort. Bank of America was noted in the report as having a small rise that is believed to be due to an announcement of restructuring to combat costs.
Up and Down
Some experts have noted that the market is changing so rapidly that the best thing to do may just be nothing at all. However, with no reconciliation in site, it seems to be quite challenging to just sit still and watch.
Reports of European Economists suggesting that Greece declare bankruptcy has had some mixed reviews among experts. Some authorities have noted that bankruptcy is the best solution for Greece right now, while others have noted it is simply not possible for them to do at all. And yet others have noted that Greece will inevitably recover and does not need to take drastic solutions, according to the AP report. With all of this being said, Greece is still looking forward to a “bailout” from a “multibillion bailout fund.” However, European officials are not “convinced” that Greece is actually meeting the mark on depleting their debt: with the current agreements they may have to do so, according to the report. In defense, Greece has noted that they will have extra revenue by raising “property taxes,” over the next 24 months, according to the report. This is probably what is adding to the confusion and is creating a global uproar as well. Serious concerns are growing in the US as it is believed that a detrimental trickle affect is bound to occur here if any European country “defaults,” or loses its credit standing. This is a lot to think about.
Juergen Stark’s pending departure is definitely one of the reasons for today’s changes in the market, according to the report. He announced his resignation last week.
Expectations
There still seem to be a lot of conflicting expectations. The combination of an unsure European financial system – including the resignation of a top European banking executive – and the currently weak US economy are making things very unbalanced right now. The market is certainly on a roller coaster ride because of it all. This is a time for extremely skilled investors to make a move, or not do anything at all.
Predictions are flying through the wind, and where they will actually land is not very easy to tell. However, a sudden division in authority or leadership is never a good sign. Systems that are simply out of control will be challenging to harness, and not at all if attempted too late.
Resources:
Associated Press: http://www.ap.org
The New York Times: http://www.nytimes.com
Yahoo!News: http://www.news.yahoo.com
Written on September 10th, 2011 by Samanthano shouts
Linked With Resignation of European Executive
America has been feeling the pinch of rising oil and gas costs in recent months. Political embargos or work stoppage with oil rich countries have served as a catalyst for this trend. For the first time, in a long time, oil prices are down and we can expect to get bit of a break. The reason why may surprise you.
Resignation Domination
Juergen Stark, a top Economist at the European Central Bank, has handed in his resignation according to a report by the Associated Press: Stark will be finishing out his term early. This news has inspired the price of oil to go down as doubts about Europe’s debt crisis increases. Although Stark’s exit has been noted in the article for “personal reasons,” it is believed that there may be a connection to a growing divide among European officials. These ideas seem to have taken to the wind and traveling far enough to make people fear that this change may be an indication of Europe becoming overwhelmed – furthering financial demise in Europe. If European officials cannot agree on what to do about their own issues, the world becomes very nervous and a global chain reaction begins.
How Low
It has also been reported that oil is down by 2%: approximately $.30 cents in New York and $1.30 in the UK.
Reasons for Concern
Europe is a huge consumer of oil. Without a stable European debt recovery plan in place, a trend of low usage will manifest itself. There will be no real way to know if Europe will be able to afford the same supply of oil – or other merchandise, for that matter. This will have a direct effect on the price and distribution of oil, as well as on how Europeans travel. Changes in this behavior could certainly be detrimental to American tourism.
The prices went down due to an anticipated lack of demand, according to experts. This includes heating oil as well. However, it has been reported that the U.S. supply of oil has decreased dramatically because of an increase in demand, recently. Of course this has to be related to the recent storms as well. These were a hindrance to transporting oil, as well as causing a spike in demand, for that particular time. It seems that more oil is on the way from Libya, after a stoppage of over 200 days. However, the amount being sent is hardly enough to keep American consumers satisfied for long, unfortunately.
What Else is Being Affected?
What else is not being affected is probably a better question. As it stands, stocks have been going down and the Dow fell to a significant low at close on Friday as a result. Experts have stated that they expect for stocks to fall even further – possibly pushing America into a deeper recession.
This news is quite startling. According to the experts, Stark’s separation is being seen by some as a telltale sign of worse days to come.
Hope in Sight
If Obama’s job plan actually takes flight, there may be a chance for a trickle effect recovery. Many economists are on his side and believe his bill makes perfect sense and truly will work. It is now up to congress to bring the bill into being. This will pump new life into the American economy. It is believed that this opportunity for rejuvenation will be a promising start for all of us.
Resources:
Associated Press: http://www.ap.org
Canadian Press: http://www.thecanadianpress.com
Yahoo! News: http://www.ca.finance.yahoo.com
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Filed under Banking, Currency, Income, Investment
Tags:debt, economy, employment, European Central Bank, European Debt Crisis, finances, jobs, Juergen Stark, money, risk
Written on September 4th, 2011 by Samanthano shouts
What You Should Know
There has been a lot of talk lately regarding the ratings of financial institutions. Standard & Poor’s financial recent rating statement regarding the U.S. has really put the world in a spin about the American debt crisis. The thing is what does all of this really mean for the average American?
Standard & Poor’s, Moody’s, Fitch, A.M. Best
These are the four main U.S. entities that specialize in rating financial institutions. What they do is to figure out how well a financial institution or other such entity’s credit rating is by using similar standards as done for individuals seeking credit. This includes calculating how much debt has accumulated, the time frame of this accumulation, the ability to meet the payment schedule, and the frequency of requests for credit, just to name a few bits of the criteria. This helps to determine if these institutions are worthy enough for investment. These ratings can make or break an institution’s capability to borrow: which is an extremely important aspect in big business. This will determine how far an entity may be able to expand or grow. Without the ability for growth and expansion a potential borrower will surely be stifled and soon shrivel to competitors. And recovery from such a perilous fall may take a very long time.
These four rating powers inspect and report on the credit ratings of institutions such as banks, not for profit organizations, federal and state financial institutions including governmental entities.
Foreign Matters
S&P created an international ripple effect reaction to their announcement, downgrading the American financial status from AAA to AA, in August. This is the first time in the history of S&P that they have given the U.S. such a rating. This has had an upsetting impact on the way people are conducing their business ar0und the world as well as giving way to very public criticism against the U.S. Countries such as China have immediately brought up questions about the stability of the U.S. dollar continuing to be used as an international “reserve” dollar. However, S&P is the only one of the American agencies that has marked the U.S. with a downgrade, so far. Fitch and Moody’s still have the U.S. under the highest rating for their standards.
Meanwhile other regions like Australia have been showing their strength in having a stronger credit rating. They are currently being seen as having one of the strongest economies right now, with stable credit activity.
What this means for the average American
The average American will feel the effect of the downgraded American credit rating if any part of their income is supplemented with foreign funding. A lowered credit rating could mean that the U.S. will have less financial resources to borrow from to use as a reserve to support particular American programs such as government retirement benefit programs, as well as other social specific programs. The U.S. has also been using foreign money to supplement military functions including war efforts in recent history.
Only time will really be able to tell what is going to happen next. For right now a primary task at hand will be to improve job growth and reducing the U.S. debt crisis. This combination will be a sure road to economic recovery and the rebuilding of the American financial status.
Resources:
CNN: http://www.cnn.com
EHow Money: http://www.ehow.com
Maps of World – Finance: http://www.finance.mapofworld.com
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