At 40, Earth Day Is Now Big Business

http://www.nytimes.com/2010/04/22/business/energy-environment/22earth.html?ex=1287547200&en=bcf7d596a55c3e81&ei=5087&WT.mc_id=BU-D-I-NYT-MOD-MOD-M146-ROS-0410-PH&WT.mc_ev=click


Terms
1. antibusiness- antagonistic toward business and especially big business
2. eco-consumer- a consumer who makes purchasing decisions partly or largely on the basis of ecological issues
3. pioneers- a person or group that originates or helps open up a new line of thought or activity or a new method or technical development




Explanation

During the first Earth Day in 1970, organizers were anitbusiness. They did not accept money from corporations and had "teach-ins to challenge corporate and government leaders.” In 2010, Earth Day has become a " premier marketing platform for selling a variety of goods and services, like office products, Greek yogurt and eco-dentistry. Companies are adversiting their "green" products. Bahama Umbrella is advertising their special umbrella that has a drain to store and reuse rain water. Many of the original pioneers of the first Earth Day strongly believe that the intense advertising is detracting the original purpose of Earth Day. Denis Hayes, who was national coordinator of the first Earth Day, says "This ridiculous perverted marketing has cheapened the concept of what is really green." A multitude of corporations are eager to be involved with "green" products. This eagerness shows that American has increased tolerance toward "corporate America." Leading environmental organizations now must accept money from corporations in order to expand information about "green" products and living.


Prediction
Earth Day has been gaining popularity over the years and I think in the next few years almost all corporations will be involed with Earth Day. More "green" products will be produced and there will be more advertising for these products, whether it be in the form of a television commercial or billbord ad. It's fantastic that these corportaions are investing in "green" products, but I think they should also inform America that only buying "green" products is not the solution to end land fills, global warming, or other things that harm the environment.

Starbucks Catches A Buzz

http://www.forbes.com/2010/03/16/starbucks-mcdonalds-retail-markets-equities-instant-coffee.html

Terms
1. UBS- is a global firm providing financial services to private, corporate and institutional clients
2. earnings momentum- a term used to describe a pattern of performance where a stock shows increased value from one period to another.
3. VIA instant coffee- microgrinded coffee that preserves all of their essential oils and flavor


Explanation

Starbucks shares went up to a 52- week high on March 20,2010. Each Starbuck share was $25.29. Accoriding to UBS analyst David Palmer, Starbucks had "increased sales and earnings momentum." David Palmer says that UBS is "upgrading Starbucks based upon our belief that sales and earnings momentum can drive ongoing, significant earnings revisions over the next two or more years." Starbucks has created their VIA instant coffee. If VIA instant coffee sales are stong,then as much as 15 cents could be added to Starbuck shares over the next three years. David Palmer predicts that Starbucks could earn between $1.09 and $1.14 per share.



Prediction
I agree with David Pamler. If Starbucks' new VIA instant coffee is a success with customers all over the world,then their shares will definitely go up. Also, if Starbucks created another new product, such as VIA instant teas for non-coffee drinking customers, their share prices could even double.

Slowly, Americans are regaining their lost wealth

http://www.forbes.com/feeds/ap/2010/03/11/personal-finance-us-net-worth_7429532.html


Economic terms
1. portfolios-the securities held by an investor
2. net worth-the value of assets such as homes, checking accounts and investments minus debts like mortgages and credit cards
3. mortgage-a conveyance of or lien against property (as for securing a loan) that becomes void upon payment or performance according to stipulated terms



Explanation

Americans are gradually regaining their wealth. Household net worth rose last quarter because the economy boosted their stock portfolios. According to the Federal Reserve, Americans' net worth rose 1.3 percent in the fourth quarter to $54.2 trillion. However, economists say that consumers need a much stronger and longer wealth increase if they are going to spend more money. In the second quarter of 2009, net worth had risen by 4.5 percent. In the third quarter, net worth had risen 5.5 percent. Before the recession, Americans' net worth was $65.9 trillion. In order to regain the $65.9 trillion, Americans' net worth would have to increase by 21 percent. During the October to December 2009 period, growth in stock portfolios gave the biggest rise to net worth. When the recession began in December 2007, Americans' net worth was $48.5 trillion. This caused Americans to be hesitant to spend. In 2009, consumer spending dropped 0.6 percent. According to the National Association for Business Economics, "the economy and financial conditions slowly recover, consumer spending is projected to grow around a modest 2.2 percent."


Prediction

It's hard for me to predict whether the economy will have any robust improvements, especially since the stock market and jobs are unpredictable. If the stock market and jobs become more stable, then people would spend distinctive amounts of money and buy more assets that could increase the overall American net worth. If more jobs are lost and the value of stocks decline, then Americans will spend less and their net worth will not increase.

Fed Proposes Rules Limiting Credit Card Fees

http://www.forbes.com/2010/03/04/credit-card-rules-fed-personal-finance-fed-rule-changes.html

Terms

1. CARD Act- Credit Card Accountability Responsibility and Disclosure Act
2. revenue- the total income produced by a given source
3. Inactivity fees- A fee charged to investors whose trading activity meets their brokerages' criteria for an inactive account


Explanation

The Federal Reserve thought of a new plan to prevent the credit card industry's ability to "charge certain fees and levy high interest rates." New rules would be added to the CARD Act and could take effect by August 2010. Federal Reserve Governor Elizabeth A. Duke said that the CARD Act would credit card companies from charging large penalty fees and "require issuers to re-evaluate rate increases imposed since the beginning of last year." The CARD Act was passed in May 2009 with bipartisan support. Bank of America and American Express have charged customers inactivity fees for not using their cards often enough. The new rules added to the CARD Act would forbid credit card companies from charging a customer a penalty fee that is much more than the dollar amount involved in the customer's violation. Credit card companies will not be able to charge a customer many times for a single late payment or if the customer goes over his or her credit card limit. Credit card companies will also be required to explain to customers why their interest rates were raised.


Prediction

I think that one of the main reasons credit card companies charge so many fees is so that they can make alot of profit and it's a smart way to make profit. Even though these companies charge alot of fees, people should know that they need to pay their credit card bills on time. It's not like they can decide when their bills will be due, but when they do, they complain that the fees are too high. I do think that these new rules added to the CARD Act will assist people with low incomes who cannot afford to always pay their bills on time. The new rules could possibly prevent some people from going bankrupt. However, the banks will lose alot of profit from the CARD Act and they will have to think of a new way to make profits.

Veterans Affairs would get one of largest increases in Obama's proposed 2011 budget

http://www.washingtonpost.com/wp-dyn/content/article/2010/02/01/AR2010020102068.html


Terms
1. The Department of Veterans Affairs- established on March 15, 1989. This federal agency provides services to U.S. veterans.

2. federal- Of or constituting a form of government in which sovereign power is divided between a central authority and a number of constituent political units.

3. moderate income- having an income close to the national average

Explanation

In President Obama's proposed 2011 budget, he plans to give The Department of Veterans Affairs $57 billion in additional spending money. This amount is 20% higher than the amount given in 2009. It is also one of the largest increases for any federal agency. The Department wants to use $50.6 billion for "medical care program through 2012 to provide continuous medical care not threatened by potential budget delays." With this budget increase, 500,000 veterans will now be able to apply for veteran services. Specialized medical and counseling services for the growing number of female veterans will be funded. About " $799 million would be used to expand services to homeless veterans by expanding VA partnerships with local governments, nonprofits and the departments of Housing and Urban Development, Justice and Labor."



Prediction
I think the $57 billion given to the Department of Veterans Affairs will affect the lives of many veterans. Veterans will be provided with more services and they won't have to worry about not receiving some type of aid. Also, this increase in spending money is important for homeless veterans and women veterans. Homeless veterans shelters will have more funds to house veterans. Female veterans will have more benefits that will enable them to provide for their families.

The City Bolsters Its Effort to Shelter Homeless Veterans

http://www.nytimes.com/2008/12/16/nyregion/16vets.html?pagewanted=1

Description and Explanation

Economic Terms
1. war veteran- a former member of the armed forces
2. advocate- one that pleads the cause of another
3. subsidized- to aid or promote (as a private enterprise) with public money


There are an estimated 1,200 homeless veterans in New york City. City officials are waiting for thousands of soldiers from the wars in Iraq and Afghanistan in the middle of a recession. Some city officials took extra steps to prevent the number of veterans sleeping on the streets from rising. This past year, New York spent $2.3 million to remodel a veterans shelter in Long Island City. Instead of having 243 cots in a large room, the shelter built two apartment buildings. The Department of Homeless Services in New York City and the U.S Department of Veteran Affairs have began to work with Project Torch, where veterans can ask for short or long term housing.
Peter H. Doherty is the director of homeless programs for the Veterans Affairs Department. He predicts that "that there would be fewer homeless veterans from this war than from Vietnam, noting, “It is a very different demographic.” The volunteer service members in Iraq and Afghanistan, he said, particularly those in the National Guard, are older, more likely to be married and have attained higher levels of education — and have stronger social networks to lean on." However, advocates for homeless veterans examine the "crumbling economy and the high number of warriors with post-traumatic stress disorder and see an approaching tsunami of need. And they point out that Vietnam veterans did not appear on the streets in any large numbers until the mid-1980s, about a decade after the war ended."
Michael R. Bloomberg, the mayor of New York City, made it a priority to reduce homelessness in the city. He created a task force that focuses on homeless veterans. This task force is headed by Robert V. Hess, who is a retired Army sergeant.


Prediction


Homelessness will never be solved. You can give someone temporary housing, but it does not resolve his problem. But I do think that major cities should be the first to create more shelters, counseling, and job training for homeless veterans. Also, the government should give more funding to homeless veteran shelters so that they can continue their services and reduce the number of homeless veterans.

Retail sales gains in January could boost growth

http://www.forbes.com/feeds/ap/2010/02/12/personal-finance-specialized-consumer-services-us-economy_7353067.html


Description

Economic Terms:
1. retail- to sell in small quantities directly to the ultimate consumer
2. inventory- an itemized list of current assets
3. consumer sentiment index- Assesses consumer confidence regarding personal finances, business conditions and purchasing power based on hundreds of telephone surveys
4. Commerce Department- The U.S. Department of Commerce has a broad mandate to advance economic growth and jobs and opportunities for the American people. It has cross cutting responsibilities in the areas of trade, technology, entrepreneurship, economic development, environmental stewardship and statistical research and analysis.




Explanation

In January 2010, retail sales were better than expected. This could mean that economic growth might be stronger in the next few months. According to the Commerce Department, the economy gained a 0.5 percent growth. Economists had only expected a 0.3 percent growth. The 0.5 percent growth came mainly from general merchandise stores like Wal-Mart. The Commerce Department also noticed that consumer confidence has decreased in early February. The University of Michigan consumer sentiment index fell from 74.4 in January to 73.7 for early February. Some economic analysts believe that the unstable global economy is deteriorating confidence that the U.S can recover from the worst recession in decades.

The biggest threat to the U.S economy is the hesitation of U.S consumers to spend money. Paul Ashworth, senior U.S. economist at Capital Economics, said "We expect that lingering high unemployment, weak income growth, low confidence, tight credit conditions and the continuing need to deleverage will constrain consumption growth for at least this year and possibly well beyond." The Commerce Department noted that companies reduced their inventories by 0.2 percent in December because these companies think that consumer demand will continue to be weak. However, the economy grew at an annual rate of 5.7 percent from October through December. Economic analysts warn that growth could decline as the benefits of government stimulus money fade. The Obama administration's annual economic report to Congress predicts that an average of 95,000 new jobs per month this year will be created. This average would not provide much aid in the current unemployment rate. The Obama administration also predicts that Americans' personal savings would remain high as credit remains tight, which will result in less spending.



Analysis

Consumer spending is extremely essential for economic growth. It accounts for 70 percent of economic activity, which is why retail sales in January boosted the U.S economy by 0.5 percent.

Prediction

Because consumer spending is 70 percent of economic activity, it is important that new jobs are created. People will only spend money if they are financially stable and/or employed. If people are not employed, then they will mostly spend their money on their bills and basic necessities and not want to spend their money on extra things because they have limited stimulus funds from the government.

AIG to pay out $100 million in bonuses

http://www.forbes.com/feeds/ap/2010/02/02/business-us-aig-bonuses_7324826.html?boxes=Homepagetopnews

Description

Economic Terms:
1. retention-to keep in possession or use
2. Bailout- a rescue from financial distress
3. insurer- one that insures; specifically : an insurance underwriter


American International Group, also known as AIG, plans to give a $100 million bonus to its financial products division employees. AIG received a $180 million government bailout. AIG originally planned to hand out $120 million but agreed to give out $100 million instead. These payments are for employees at the financial division who agreed to accept 10 to 20 percent less than AIG had originally promised them two years ago. In return for getting less money, they are getting their money more than a month ahead of their scheduled pay day. AIG faced intense public and Congressional criticism last March because it paid hundreds of millions of dollars in retention bonuses to employees months after receiving the government bailout of $180 million.


Analysis

In the fall of 2008, the U.S. government rescued AIG from the brink of collapse becasue of the credit crisis. The U.S. government wanted 80% stake in the insurer. AIG's near collapse was not caused by its traditional insurance operations. Its financial products division made risky bets that led the company into debt.









Prediction

I think that AIG should not reward the financial products division with hefty bonuses. The government gave AIG $180 milliom in bailout money. That money should be used for other important matters. If AIG were to again sink finacially because of the financial products division, it most likey will not reward this division with hefty bonuses. Instead, they would replace the employees who brought the company into debt. If AIG fired those employees and did not give out bonuses, neither Congress nor the public would criticize it. Also, the government would give less than $180 million to AIG in bailout money.

Will More States Target Rich?

http://www.forbes.com/2010/02/01/state-income-tax-nike-obama-personal-finance-rich-tax-hikes.html?boxes=Homepagelighttop

Economic Terms
1. income tax- A much-loathed method of taxation based on earnings.
2. referendum- the idea or practice of letting the voters approve or disapprove laws
3. rate- a price or charge set accordingly to a scale or standard

Description and Explanation

Oregon voters approved tax hikes and an increase in Oregon's top individual income tax rate from 9% to 11% because Oregon is in a $773 million budget shortfall. This approval will affect couples making more than $250,000 and individuals making more than $125,000. State employee union and liberal group of Oregon hope that the tax hikes soon go into effect. Tax hikes for high income couples and individuals could occur every where in the United States. If President Obama gets his way, the Bush tax cuts would expire for those who earn more than $250,000.

Predicition

I think that voters in almost all states will approve tax hikes for the rich. Our country is in trillions dollars worth of debt and our economy is not doing so well right now. I think American citizens would want to help our country as much as they can. These tax hikes coulld help fund public schools, after school programs, or even food banks.