Mobile Possibilities

Consumers are rapidly changing the way that they spend money. Modern consumers want convenience and better prices even more than ever—in fact, they are demanding it—and they know how to get it too. With the rise of the great and magnificent Internet, a plethora of valuable information has made consumers all the wiser. Along with this phenomenon is the increased interest by advertisers to sell their wares on the Internet, as well as build interest in their retail stores among consumers. Now, the newest phenomenon is the rise of the mobile Internet via smart phones and tablets—and this is only the beginning.

Savvy Shopper

Every consumer wants to feel as though they have the upper hand in making purchases. The modern selling market, with an increase in electronic points of purchase, has opened up more choices for consumers. For most products, consumers no longer have to settle for what’s right in front of them. Today’s consumer can shop around, and at his or her convenience. According to a recent “technology business” presentation at the Web 2.0 Summit in San Francisco by Mary Meeker, an expert in the field, the increasing trend toward online business transactions is officially the preferred way for consumers to shop.

Consumers have driven ecommerce to an all time high. Meeker’s presentation put a spotlight on the tremendous growth of ecommerce over the last decade—retail store sales have risen to a height of approximately 6% with a marked depression of -9% at the beginning of 2009.   On the other hand, ecommerce experienced a 30% height with a marked depression of -3% during the same beginning period of 2009. During the observed ten year spread this significant difference in percentage of sales was maintained with only a 10% minimum difference for at least six years straight, with ecommerce dominating the market.

Recovery of both systems were nearly parallel by the end of 2009 until the first quarter of 2010, when both systems started to split with ecommerce returning to a dominant height.

Commerce Going Mobile

Consumers have become savvier as the age of the Internet has pressed on. Comparison-shopping has always been a strategic staple of shopping. This may have called for a lot of legwork, then on to comparison-shopping online—today comparison-shopping can be done on mobile devices. In fact, there has been an unprecedented rise in mobile comparison shopping—while in retail stores 52% of consumers were able to find items at a better price online, 51% found items at a better price at another store, and 34% found negative reviews about an item on mobile devices Q3:2011.

Another selling point being used by merchants is giving preferential treatment to mobile users such as mobile user discounts, mobile coupon recognition, and specialized apps or subscriber programs that send out text messages advising consumers of upcoming deals that they can take immediate advantage of. As I am sure you can imagine, this is a seriously meaningful prospect for merchants and advertisers alike. This has also proven to be a “rejuvenator” of “local commerce” as a direct result of these activities.

Resource:

Business Insider: http://www.businessinsider.com

American Economic Recovery

The recovery of the American economic system is on the minds of all financial experts. With Europe being deep within a financial maelstrom, onlookers are very concerned if the US economy will be able to recover with better gains and in a shorter time than Europe will. The feeling is that this is very possible and highly likely. America still has a lot of strengths left. There is a lot to consider, for sure.

Human Resources

Middle class Americans are experiencing a very slow and low paying recovery. So while most may be able to put dinner on the table, there may not be much else left to fulfill the American Dream experience. Things are just different now and a lot of people will have to settle for a lot less in order to survive. However, Americans are still positively motivated—noting that they do feel more fortunate than the generation that raised them in a recent Gallop poll survey. This sort of morale will be able to go a long way in building towards a clearer and stronger future. This is the first and probably most important step towards recovery. The backbone of America, the average American, must feel that solutions are possible just to get up in the morning and give it a go. As unemployment is slowly going down, this may be a sign of better things ahead.

Creators

America has been dubbed the creation nation for a good reason. Some of the best inventions, technological wonders, and super gadgets, have all been created by American inventors and scientists—including computers, software, mobile phones, tablets, and social media hubs. Americans are still winning the race on new inventions that everyone wants. This will maintain the high profile visibility of American technology. Other nations simply do not have same status and demand for their inventions as Americans do.

Wholesome Foods

America can supply all of the essentials to her own country. With rich soil and livestock resources, America can grow all of the nourishing foods that are needed to be supplied. Of course foreign imports are a desirable addition—however, the US can survive on what is already there.

With all that being said, experts are on the lookout for new trends in the European economic (currency) system. There has been a buzz recently about Europe finally coming up with solutions for deeper solidarity amongst her many nations. This has led to rumors of the possibility of an increasingly stronger Euro that may appear. Some are speculating that a strong possibility of the Euro becoming the most valued currency in the world one day soon. The European Central Bank’s policy maker Christian Noyer seems to think so. He recently reported this positive news to Reuters.

America can certainly gain some much-needed steam in the New Year. It is not about competing with Europe—however, all global nations need to make significant progress for their citizens and neighbors. Hopefully all of these nations will learn from the mistakes made, leaving them in the past for future generations to learn from—not to repeat.

Resources:

FOX Business: http://www.foxbusiness.com

Reuters: http://www.reuters.com

Latest American Poverty Rate

Highest in Decades

The American dream has been a driving ideal for those born here, and for immigrants seeking a better way of life. Along with this sentiment is a common vision, of this better way of life – a beautiful three-bedroom house, with an emerald green lawn, white picket fence, and friendly recipe-sharing neighbors. Perhaps the dream has had some new additions or modifications such as having a larger apartment within a bustling city, and a room with a view. All in all, it adds up to a want for the most desirable contemporary life experience.

The Associated Press has released information from a Census Bureau report regarding a study conducted in 2010.  It states that almost one out of every six Americans is living in poverty. That is a huge amount of people: over 45 million Americans are. This is up by .8% from 2009.

The reasoning for such increasing numbers is the lack of jobs in America today. As I have reported recently, the unemployment rate in the US is rising at an exponential rate. According to the report, the last three years have had the highest increase rate from any three-year timeline since the ‘80s, and the highest amount of Americans living in poverty since the late ‘50s.

For these reasons a lot more Americans have had to rely on social services such as welfare, and food stamps. Reuters has reported the same amount of people on food stamps – 15%. Up “74% from 2007, just before the financial crisis and a deep recession led to mass job losses.” However, some of those receiving these food stamp benefits may be working as the underemployed. These are astonishing numbers – absolutely incredible.

Hopefully, Obama’s job plan will be acceptable and get Americans back to work. Economists are fully behind his plan. However, some are still reluctant to change financial “growth forecasts” for the remainder of this year, and going into the next. Predictions are still being “trimmed at a percentage point,” according to reports (AP). The US needs to produce about one-quarter million jobs on a monthly basis, to even begin to combat the high unemployment rate. A “rapid” job creation increase is what Americans need, according to the same report. Without that, we may continue at the currently over 9% unemployment rate.

At any rate, we need something extremely positive to happen quite quickly.

The census has determined that those living on less than approximately “$22,314” for a household of four, and less than “$11,139” for any one person are considered to be living in poverty.

The statue of liberty has a greeting meant for all that have chosen to live here. It states: “give me your tired, your poor, your huddled masses yearning to breathe free.  The wretched refuse of your teeming shore.  Send these, the homeless, the tempest-tost to me, I lift my lamp beside the golden door!” Now it seems that we are the tired, the poor, and “huddled masses yearning to breath free…”

Resources:

Associated Press: http://www.ap.org

Reuters: http://www.reuters.com

The Statue of Liberty – Ellis Island Foundation, Inc.: http://www.statueofliberty.org

Yahoo! News – The Lookout: http://www.finance.yahoo.com

Financial Ratings

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