Posts Tagged economy

Automakers Get A $5 Billion Aid From Fed

The Federal treasury department announced an aid of $5 billion to aid the auto industry out of troubles. This could help all the (or most of them) companies of auto industry ranging from auto parts suppliers to giant carmakers like GM.

Mainly this aid is going to help the Big Three – General Motors, Chrysler LLC, and Ford Motors Corp, out of their recent troubles due to economic downturn.

The Fed is to provide the huge amount from its TARP (Troubled Assets Relief Program). Automakers GM and Chrysler asked for a $25 billion aid to help them revamp themselves as well as the struggling industry. Till now they received an aid of $17.4 billion; but this big amount only helped the two industries to survive from bankruptcy. Now they are asking for an additional $21.6 billion in aid.

This entire program is to help the Suppliers of auto parts to these giants from getting affected due to payment delays or disrupts.
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Google’s Quarterly Profit Drops for the First Time

The recession even impacted the search engine giant Google with less profits. Google released its quarterly profit results, which fell for the first time since it raised public offerings in 2004.

Google had revenues of $382 million in the last quarter of 2008, which was a 68 percent drop from the last quarter in 2007. Google’s income per share was $1.21 in the last quarter of 2008, which was far less than 3.79 dollars per share in 2007.

But these results were enough for Goggle to beat Wall Streets expectations. Wall Street estimated that Google might have profits of $4.95 per share in 2008. But Google exceeded these expectations with its profits of $5.10 a share.

Revenues were solid with an 18 percent increase from the same quarter of 2007. Google had revenues of 5.7 billion dollars for the recently ended quarter.

After subtracting the commissions paid to the ad partners, the revenues of Google are still reported to be $4.22 billion.

Suggested Reading:
Automakers Get A $5 Billion Aid From Fed
Soaring Crude Inventories in US Send Oil Prices Down
Some US Banks May Loose Their Market Share in Next Year
Who Is Not Enjoying Their Christmas?
Types of Mutual Funds
What Is A Personal Loan?

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Soaring Crude Inventories in US Send Oil Prices Down

I do not know how happily U.S announced that it has good oil inventories; but it has turned woeful for the oil prices, which declined with this announcement.

The Energy Department’s officials released a note, which said that oil inventories in US rose by 14.3 percent to 332.7 million barrels since the previous year. Officials said that the inventories rose by 14 million barrels in just the past three weeks. I do not have news about oil consumption in US. The present position of the crude oil prices is in highly volatile condition.

The fall in the consumption must have halted the oil stocks and more production on daily basis must have added up to the already stored inventories.

In order to control this, there must be a limitation over production of oil from our production centers.

And in response to the decreased oil prices, we love our commodities getting cheaper. So do not bother about it.

Suggested Reading:
Automakers Get A $5 Billion Aid From Fed
Google’s Quarterly Profit Drops for the First Time
Some US Banks May Loose Their Market Share in Next Year
Who Is Not Enjoying Their Christmas?
Types of Mutual Funds
What Is A Personal Loan?

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Who Is Not Enjoying Their Christmas?

There are many people who use Christmas in spreading controversies. They don’t like to enjoy the holiday and don’t allow others to enjoy it.

And when this group of people waged a war on Christmas, it became the Christmas Controversy. They kept on raising issues over issues on Christmas and always turned down the holiday mood of people who wanted to enjoy it.

Their first achievement was to ban the word Christmas from mentioning on December 25th by government or corporate or the public.

And even they banned using the word Christmas tree in public and now they call it as Holiday tree.

And the vows of giant retailers are different. First it was Sears Corporation that had to alter all their marketing campaigns with the word Christmas for the word Holiday.

Similar retailers are Wal-Mart, Target Corp, Gap Inc, Best Buy Corp, etc.

But you don’t have to get disturbed with all these thongs. Controversy or no controversy, celebrations remain the same for us.

Suggested Reading:
Automakers Get A $5 Billion Aid From Fed
Google’s Quarterly Profit Drops for the First Time
Soaring Crude Inventories in US Send Oil Prices Down
Some US Banks May Loose Their Market Share in Next Year
Types of Mutual Funds
What Is A Personal Loan?

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Some US Banks May Loose Their Market Share in Next Year

In US most of banks are becoming unsafe for processing any transactions especially depositing. A lot of bank will not survive in next year despites of Government’s $ 700 billion rescue plan.

The big question for government and bank authorities is how they plan to come out of this misery. Due to huge looses on home loans banking industry is shaking. More than 800 federally insured institutions have failed in 3 years, which was during the clean up phase of long savings and loan meltdown to wound up costing of tax payers from $170 billion to $205 billion, for adjusting according to the inflation.

Government committed to spend $700 billion to save the institutions by buying bad debts. The investors have already raised question, why to pour money in these institutions. With more super-sized banks in business, fewer failures could still dump a big bill on federal deposit Insurance Corporation.
Suggested Reading:
Automakers Get A $5 Billion Aid From Fed
Google’s Quarterly Profit Drops for the First Time
Soaring Crude Inventories in US Send Oil Prices Down
Who Is Not Enjoying Their Christmas?
Types of Mutual Funds
What Is A Personal Loan?

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Types of Mutual Funds

Today there are many types of mutual funds are available for us. When it comes to investing in mutual funds, investors have literally thousands of choices. So whenever you are investing money in mutual funds you have to know investment strategy and risks of the fund. So it better to take help of financial consultant help. Once you know what you’re saving for, when you’ll need the money, and how much risk you can tolerate, you can more easily narrow your choices. Generally we have three main mutual fund categories they are:

  • Money Market Funds: Money market funds have comparatively low risks, compared to other mutual funds. Investor losses have been rare, but they are possible. Money market funds pay dividends that usually reflect short-term interest rates, and traditionally the returns for money market funds have been lower than for either bond or stock funds.
  • Bond Funds: Bond funds usually have higher risks than money market funds, mainly because they normally follow strategies aimed at producing higher yields. Because there are many dissimilar types of bonds, bond funds can vary considerably in their risks and rewards.
  • Stock Funds: Although a stock fund’s value can rise and fall quickly over the short term, traditionally stocks have performed better over the long term than other types of investments including corporate bonds and government bonds.

Making any sort of investment involved a certain amount of risk so it is always intelligent to look for the advice of a professional before making any decisions.

Suggested Reading:
Automakers Get A $5 Billion Aid From Fed
Google’s Quarterly Profit Drops for the First Time
Soaring Crude Inventories in US Send Oil Prices Down
Some US Banks May Loose Their Market Share in Next Year
Who Is Not Enjoying Their Christmas?
What Is A Personal Loan?

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