GECON 200

Posted: November 29th, 2013

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GECON 200

Torre, Pablo. Indianapolis will bid to host 2018 Super Bowl. Sports Illustrated. July 18, 2012. Web. Accessed on July 18, 2012.

The City of Indianapolis struggled to clinch the hosting of the 2018 Super Bowl tournament amid renewed economic and public relations scandals and controversies. The city had hosted previous Super Bowl competitions but due to economic problems, had lost the qualifications to do so over a period of three years. Led by the Mayor Greg Ballard, the city expressed their interest in presenting a formal bid on Wednesday amid cheers from different stakeholders such as organizers who assisted in the planning of the February 5th games and other events leading up to it. The financial benefit that was expected from hosting the Super Bowl reached up to $152 million in direct economic impacts and other related benefits.

The Mayor made an approximate that around 84 cents in every dollar for the tournament stayed in Indianapolis. A study on the economic impact of clinching the tender to host the 2018 Super Bowl estimated that over 100,000 visitors would grace the city within the ten days before the games begun and over 200,000 visitors during the course of the tournament. The host committee chairperson Mark Miles said in a separate comment that corporate donations had exceeded $ 1.8 million that would be allocated to the games in 2018.

Retrieved from http://sportsillustrated.cnn.com/2012/football/nfl/07/18/indianapolis-super-bowl-2018-bid.ap/index.html

Fitzpatrick Dan & Kapner Suzanne. Big Banks Prepare another Round of Cuts. Wall Street Journal. July 18, 2012. Web. Accessed on July 18, 2012.

The Wall Street Journal ran an article on the proposed budget and expenditure cuts aimed at banks and other financial institutions. Global financial companies were preparing for downsizing programmes in the wake of unstable markets, shaky stock prices and skewed economic growth. Led by Credit Suisse Group AG and Bank Of America Corp., the drive to introduce new cost cuts was much later taken up by Citigroup and other financial institutions. Most notably was Goldman Sachs who made an outright admission that the economic times were dire and downsizing was critical to survival. Canadian biggest banks also took an inspection of the different ways in which their expenses could be lowered in the preparation of slower growth and profit margins.

            Analysis done by experts such as John Aiken predicted the grappling situation by most international banks needed a quick intervention which downsizing could easily offer. The head-count reduction was however not considered the first option that most banks had. Aiken mentioned that some banks were looking into fiscal measures such as altering their variable compensation structures to defer payments rather than cutting jobs.

Retrieved from http://online.wsj.com/article/SB10000872396390444097904577535180303693776.html?mod=WSJ_hp_LEFTWhatsNewsCollection#articleTabs%3Darticle

Fareed Zakaria Tax and Spend. Times Magazine. July 23, 2012. Web. Accessed on July 18, 2012.

The issue of job creation featured in an article on Times Magazine on Monday that signaled the lower rates of job creation that were beginning to be acceptable by the populace. Over the month of June, around 80, 000 jobs were created which showed a slowing down in the economic recovery of USA. The past recessions were always accompanied by a spring back that featured growth in the employment rates. However, the rate of employment after recessions has been on a receding trend. In the 19th century, jobs were available in less than fifteen months of climbing out of recessions. However, in the 20th century, this period tended to stretch up to 39 months.

Currently, the Times put the employment availability period after the 2008 recession at sixty months. This information was seconded by a study done by McKinsey. Fareed, in the article, attributed this phenomenon to two major forces: globalization and the spread of the Information Age. These two factors were cited as being responsible for the economic growth for many previously third world countries in Asia and South America. They have also expanded the economic activities within America. The downside to the impact that these two forces had was that they made it easier for capital-intensive economic growth that made wageworkers a last resort within America.

Retrieved from http://www.time.com/time/magazine/article/0,9171,2119336,00.html

Randall W. Forsyth. The Euro’s Fate Barrons. July 14th 2012. Web. Accessed on July 18, 2012.

Amid the recent events happening in Europe particularly the elections in Greece, the economic recession and the European Union leaders summit, the announcement by Airbus to establish its first production firm in the U.S. was perhaps the most surprising and intriguing. This was the first sign that the economic crisis that plagued Europe had finally begun taking its toll on domestic companies. In following the footsteps of BMW and Mercedes-Benz, Airbus was not only running away from the harsh economic conditions but also the waning power of the Euro. The best solution to aid the rising unemployment rates and deficits in growth would be through monetary reflation.

            By lowering the bar to have a cheaper Euro, Europe would still be able to retain its competitiveness in the international financial arena, end its debt crisis and salvage the Euro in one move. This proposed solution had been applied earlier in the last decade with excellent results that bolstered the rate from $1.60 to around $1.22. Debasing the Euro may therefore be the best solution that Europe has in surviving the tough economic times.

Retrieved from http://online.barrons.com/article/SB50001424053111904184504577519232109403716.html?mod=BOL_hpp_cover#articleTabs_article%3D1

Dean Hoff Meyer. Capital One repays consumers to end card probe. Richmond Times Dispatch. July 19, 2012. Web. Accessed on July 18, 2012

Capital One was on Monday compelled to compensate its customers over $120 million over federal charge claims that it tricked its shareholder into overspending on add-on services like credit monitoring and payment protection. Richmond’s largest private employer faced a charge against them presented by the court that had violated the Consumer Financial Protection Bureau Act that was created to protect consumers from exploitative companies having hidden exorbitant fees. A large chunk of the compensation by Capital One was expected to go directly to the consumers. The McLean branch of Capital One was reported to have paid up to $150 million to consumers, $35 million to the Comptroller’s Office and $ 25 million to the Consumer Financial Protection Bureau.

Richard Cordray, the director at Consumer Financial Protection Bureau commented in a press conference over the Capital One issue by saying that such problems were not isolated to Capital One and that he expected other companies to follow the same trend in compensating gullible customers who were unfairly taxed or coerced out of their money. A representative at the Clear Point Credit Counseling Services also pointed out that there were no requirements for consumers to add services to qualify for loans or credit.

Retrieved from http://www2.timesdispatch.com/business/news/2012/jul/19/tdmain01-capital-one-repays-consumers-to-end-card–ar-2067611/

Edward Wyatt. Despite Stronger Financial System, Report Cites Threats to U.S. Market Stability. New York Times. July 18, 2012. Web. Accessed on July 18, 2012

 

Among the biggest threats to the stability in the American financial markets was the uncertainness in the Euro zone countries, the fiscal uphill faced by America at the end of every fiscal year and a weakening federal regulatory panel. The assessment by the Financial Stability Oversight Council that was made up of regulatory heads forms the Exchange Commission. The Federal Reserve and other agencies painted a grim picture for the American economic future. The Council particularly mentioned cyber threat as an emerging threat as well as the fact that many financial institutions might have focused on complex trading strategies at the expense of their security that could result in losses due to a change in short-term interest rates.

The council also cited certain financial market utilities as posing the largest threat and recommended the increased monitoring of these utilities. Most of them were clearing agencies that facilitate the operations of trades of financial instruments. Other outcomes of the study done included reforms for the money market funds that were expected to make the funds less susceptible to investors if they were to run losses. Greater customer protection and segregation of customer assets were other recommendations passed by the council.

Retrieved from http://www.nytimes.com/2012/07/19/business/economy/report-cites-threats-to-market-stability.html?_r=1&ref=business

 

 

 

 

Helft Miguel. JC Penney CEO: It may get worse before it gets better. July 18, 2012. Web. Accessed on July 18, 2012

In a conference at Fortune Brainstorm Tech, the JC Penney CEO, Ron Johnson predicted doom for one of America’s leading mobile and online application developer. The introduction of Ron Johnson as the head of Fortune Brainstorm Tech coincided with one of the worst times for the firm. The company had experienced setbacks in their marketing experiments that flopped dreadfully. The firm had also lost most of its customers by withdrawing the discounts and coupons that it previously offered. Sales had dropped sharply and the customer traffic to their stores had dipped significantly. In a rebuttal by critics, Johnson announced that he would stick to his plan of maintaining competitive prices in order to attract customers.

Ron Johnson also mentioned the adjustments that were planned for regional stores. He announced the revamping of the technology infrastructure by installing an Oracle system that included an improved mobile checkout system and RFID tags that were expected to speed up purchases. However, even with these reforms, Johnson warned that the company might experience more losses before it fully recovered and recorded growth. Ron proposed a start-up approach that hinted the possibility of downsizing and a nod from the company board. He also negated claims that physical stores were being ousted by online retailing.

Retrieved from http://tech.fortune.cnn.com/2012/07/18/jc-penney-ron-johnson/

 

 

 

Paul R. La Monica. Will Facebook earnings be THAT bad? Money. June 18, 2012. Web. Accessed on July 18, 2012

            The floating of shares by the world’s richest social networking site, Facebook was followed by predictions that the earnings from the shares would not be as rosy as expected. Basing their arguments on the behavior that the stock had in the two years since it debuted, most critics placed Facebook shares alongside similar flops such as Nokia, Yahoo and Hewlett- Packard. The Facebook shares went down more than 10% within a week and this was from a10percentage rise from its June low of $25.52 that triggered an alarm among economists on the future of its earnings. The sluggish global economy was one of the reasons for the dismal share performance that also affected other firms likewise.

            Facebook however had a problem with finding ways through which they could profit off mobile users even as the consequences of acquiring Instagram at exorbitant prices caught up with the company. The poor performance in the stock market may be due to a realization that Facebook might have been a victim of too much publicity during its IPO period. However, the article stated that it might be too early to write off Facebook as a failure. On the contrary, the mistake lied in the way the IPO was poorly handled. The company will still be able to attract experts and invest in developers that will help it grow.

Retrieved from http://buzz.money.cnn.com/2012/07/18/facebook-earnings/?iid=HP_MP_River

Louboutin Christian. Duchess doesn’t need advice. People Magazine. May 24th, 2012. Web. Accessed on July 18, 2012

Christian Louboutin commented on the sensational debate over whether the Duchess of Cambridge’s top-of-the-line fashion franchise might be in need of advice from top designers by pointing out the success that she has achieved so far by depending on her market skills. The thirty-year old duchess, Kate Middleton came into the international spotlight after launching the red-soled shoes that were posted at extravagant prices and purchased by prominent figures all over Europe. The sales figures for the branches of clothing lines, footwear and other fashion stalls that were owned by Miss Middleton showed a strong selling power even in the continuing economic instability in America and Europe. One of the stores, Debenhams adopted a cutomer-centered approach by meeting the customer’s needs and preferences especially on key events such as Christmas and Mother’s Day.

The total investments by the royalty grew by 34.9% in the first quarter of 2012 and currently stand at 42%. The chief executive at Debenhams stated that their approach involved communication with customers alongside stocking great value increased their sales growth exponentially. Similar sentiments were echoed by the top leaders at Jenny Peckham. Kate Middleton became a significant economic figure in Europe after her economic activities were credited with giving the British economy over$1.6 billion boost through fashion sales.

Retrieved from http://www.peoplemagazine.co.za/article.aspx?id=22325&h=Louboutin:-Duchess-doesn%E2%80%99t-need-advice

Christopher S. Rugaber. US home construction makes slow, steady comeback. Daily News Record. July 18, 2012. Web. Accessed on July 18, 2012

Within America, the general trend in the housing sector has been the increase I the erection of houses. This urgency to build housing facilities contributes to the long-awaited recovery that could boost the U.S. economy. Housing economists commented that the housing sector was expected to recover faster than it had. However, builders had started responding to buyers who were attracted by lower prices, lower mortgage rates and rising rents. This has increased the appeal for purchasing homes. The increased construction activities were reported to have coincided with higher stock prices for building firms and increased confidence in the housing sector.

The bulk of the market was estimated to be single-family homes who contributed the largest growth as was indicated by the highest number of permits taken since March 2010.This housing sector rejuvenation also influenced the Dow Jones industrial average which closed up at 103 point. The continued resurgence in the housing sector was predicted to benefit the flailing American economy that was weakened by lower consumer spending and slow employment rates.

Retrieved from http://www.dnronline.com/hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-07-18-Housing%20Starts/id-93ebc4fd0d814560b100c0ffaa4e33f9

 

 

Preeti Kulkarni .Why top-up home loan is a better option in emergency. The Economic Times. July 18, 2012.Web. Accessed on July 18, 2012

            The article Why top-up home loan is a better option in emergency discussed the hidden ramifications and benefits that a top-up home loan could have in times of an emergency. Most home loans are considered heaven-sent opportunities through which many people can own a house. Most financial gurus also advice individuals to take out these kinds of loans. The problem however would arise when they needed money urgently. Preeti urged new home owners who were interested in taking up such kinds of loans to consider additional loan or top-up loans. Banks generally offer top-ups at lower rates than the actual loan. One of the benefits of top-ups cited in the article included the extension of such loans to the existing home loan borrowers.

            This meant that it was only offered to existing clients of certain banks that would explain the comfortable tenure of top-ups loans that would sometimes go up to 20 years. In considering a potential candidate for a top-up loan, the banks consider the value of the property, the repayment trend, the outstanding initial loan and the ability to repay the top-up loan before approving the loan.

Retrieved from http://economictimes.indiatimes.com/personal-finance/loan-centre/home-loans/analysis/why-top-up-home-loan-is-a-better-option-in-emergency/articleshow/15036450.cms

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