Thursday, June 18, 2009

Retail in Detroit: problem or opportunity?

The Wallstreet Journal has a piece about lack of national retail chains in the city of Detroit.

it goes in how lack of retailers is a problem for the city and that true, the city could use a lot more retailers but article focuses on national chain stores only and that misses a lot of the business in the city.

Just because there aren't national grocery stores doesn't mean their are there aren't grocery stores in the D or place to get fresh fruit's and vegetables in Motown

Even though a lot of business stay away form Detroit due to it image and that has effect the city negatively, there are still many small mom and pop business that run in the city.

And maybe having local chains and mom & pop store instead of having big box stores coming into the city is actually a good thing for Detroit.

I've notice that when a big chain comes to one's area people tend to think about the fact that those stores will lead to new jobs. The truth is that these stores usually end up killing of local small business (by lowering prices until the mom & pop stores can't compete) and doing so probably just shift as much jobs (the people that worked at the local store have to get a job somewhere) more then they create new ones.

also it has been shown that stores such as walmart actually cost tax payers, giving that many cities give those types of stores big tax breaks hoping to get them to build in their town and yet in causes like wallmart their jobs or so low paying or give such bad health coverage that many of their employers have to be placed on welfare.

also by their nature of having head quarters in other part of the country (or even world) big chain retailers actually end up funnel money out side of the city their stores are in.

With a track record like that I have a hard time seeing why the lack of such a store is seen as a bad thing, when it seems not having stores like this would be a good thing for local economies.

Instead of looking at the fact that Detroit doesn't have big chain stores in the city as a problem for the city, the lack of these stores should be seen as a clean(er) slate that the city can build a good economy on by fostering local and small business and it this should also be a place for people who want to start to business or co-op to go to.

it seems that the city of Detroit is actually trying to build it's local business base with a number of programs

A Huge BRIC crashes through the world of politics and economics

Brazil, Russia, India and China for of the worlds largest emerging economies have formed a political bloc called BRIC.

together these nations make up 15% of the worlds GDP and 40% of the world population.

BRIC will work together to pull out their plan to fix the world economic crisis at the next G20 summit.

Wednesday, June 17, 2009

Obama puts in strong new regulations of the finical industry

President Obama just got his Warren G on and has announced plans for a number of new regulations on the finical system.

formerly unregulated fields such as hedge funds, venture capital funds, credit default swaps and private equity funds will no be regulated by the fed.

there will be a consumer protection agency that will deal with regulating the consumer credit industry and hopefully will cut down on lending abuse many people have gone through.

the plan will close down the Office of Thrift Supervision.

The Federal Reserve of finical companies that are so large that if they go under they could take the economy down with them (the ones they called to big to fail)

the plan will also put a check on the Federal Reserve by putting a rule in place that if the feds want to infuse any bail out capital to a finical company they have to get the OK from the Treasury Department.

also banks will have higher capital requirements.

and that just part of it. But as stated this is jut Obama's plan, there surely will be some changes once to gets voted on by congress but this is a big change to the ways have been done since Reagan was in office. It a shift form deregulation to putting some more rules back in place and I honestly have to say that this may be a good ideal. Even thought I think there should be some market freedom, the push for deregulation has gone a bit over board, we need rules or we could in end in market chaos.

The S&P has down graded banks ratings once the news of this plan was released.

Tuesday, June 9, 2009

10 top banks are giving the ok to repay "bailout" loan

after the government ran it's stress test it now feels that it is ok for Northern Trust Corp, Morgan Stanley, JPMorgan Chase & Co., American Express Co., Goldman Sachs Group Inc., U.S. Bancorp, Capital One Financial Corp., Bank of New York Mellon Corp., State Street Corp. and BB&T Corp are in good enough shape that they can repay back the $68 billion they received in the controversial bailout loan the banking industry received.

I am sure most people will see this as good news because when the tarp plain was unless it seem most people didn't like the ideal of bailing out the banks that are only in trouble because of their practices and the banks bulked at the ideal that they would have to fallow the governments rules since they had to take the money from the bailout.

and it should be noted that these are the biggest banks to be seen as fit enough to repay their bailout, before them 22 smaller banks where giving the ok.

Friday, June 5, 2009

job losses go down yet unemployment is still going up

earlier today the new numbers for job cuts and the unemployment rate has been released.

it seems in may companies cut 340,000 jobs this less then the the expected 500,000 job loses.

at the same time the unemployment rate is up 1/2 a percent in May, which means at least 9.4 of Americans that are able to work are unemployed.

while looking at a few places online and listening to the radio it seems that a few people are confused by how unemployment can be up while the companies are cutting less jobs last month. the answer is simple, people are still losing their jobs and those figures will show up in the unemployment figures.

it should also noted that there may have been people that have lost their jobs before May but didn't start to take advantage of their unemployment until last month.

Wednesday, June 3, 2009

Jimmy Fallan and the Roots take on the problems with California's economy

I thought this was a funny video with Jimmy Fallon and the Roots signing about the Californian economy

I have to say the ending of the song has a point about the gay weddings could be a boost in the economy.

Monday, June 1, 2009

we are in the it for later

The finical times has stated that personal incomes for average people have risen by .5% this is the first rise in 4 months.

a small raise I know but it's an upward tick and that's good a little bit of good news

also the saving rate for most households is now around 5.7% the highest average savings rate that we have had in 14 years.

I'm surprised that this is the percentage of average house hold saving in 14 years, since it really seems like a low number to me. But I have to say this is good news, bad news for the economy. it's good news that people are saving and planning for their futures but it's bad news because we need people spending.