US Trade Deficit: Getting Better

What is this article discussing?

This article talks about the US economy expanding. If the US continues to export and grow in other countries, it will help our economy more than it has in over a decade.

What is a trade deficit?

A trade deficit occurs when a country imports goods from another country worth more then the value of its exports to that other country.

Why is the US trade deficit likely to go down in the future?

The US trade deficit is likely to go down because of all the business that the US economy is doing overseas. Because our exports are growing, it is helping our economy to become stronger creating more domestic jobs and a better domestic economy.

What kind of products is the US selling overseas?

A lot of products are being sold overseas. Everything from GM cars to KFC to the things needed to support the developing world such as factory machinery.

And what about the US dollar - how can a weak dollar actually help the US economy and the trade deficit?

American companies are sending more and more products overseas to countries that have a weaker dollar thus helping to make American goods more competitive in foreign markets.

Taxes- How Does The Government Spend Money?

Type of Tax Specific Tax: How are they collected?
Federal Taxes • Payroll Tax: collected from wages and salaries only
• Income Tax: collected from wages, salaries, rents, interest on bank accounts and dividends
• Corporate Income Tax: collected from a corporations net income
• Excise Tax: collected from the sales of items like gas, alcoholic beverages and tobacco
• Estate Tax: collected from a dead person’s estate
• Gift Tax: collected during the transfer of property between people

State Tax • General State Tax: collected from general sales
• Excise Tax: collected from the sales of items like gas, alcoholic beverages and tobacco
• Estate Tax: collected from a dead person’s estate
• Inheritance Tax: collected from a person after they inherit something from a dead person

City/Local Taxes • General Sales Tax: collected from general sales
• Excise Tax: collected from the sales of items like gas, alcoholic beverages and tobacco
• Property Tax: collected from assets like stocks, bonds, houses, cars and artwork

Miscellaneous Taxes • Pollution Tax: collected from companies that produce air, water, oil or water pollution.

Student Loans

Why do you think some of these culinary school students took out such large student loans? What is your feeling on student loans?

I think students in general take out large loans because they arent given the financial aid that they need to attend the college of their choice. Everyone wants to go to a good school and become successful. Eut college is a very large expense, an expense that most people cant afford. therefore loans are taken out for what they cannot pay for or didn't receive in financial aid.

I personally think student loans are a way to keep people in debt. Students just become adults, dont have any credit and arent too familiar with finance can become trapped when they take out loans. Many parents dont know much about loans either which doesn't help the students at all. With a country worth trillions of dollars, why is it that our children cant further their education without having to spending nearly $100,000 in tuition alone ?

Do you plan on taking out any student loans? If so - for approximately how much

Currenty I am in the process of taking out a student loan. I have $7,500 in a stafford loan given to me by my college. $3,500 of that loan is a subsidized stafford loan which doesn't gain any interest while im in school and i must begin to pay back 6 months after I graduate. The other $4,000 is an unsubsidized stafford loan which has an interest rate somewhere around 6%. I also have a balance of $9,704 which I was going to take out in a private loan but my uncle has decided to loan me the money and I can pay him back, interest free!

Critique of Federal Reserve Podcast

Tiana and Sharonna's Podcast http://mmoloneyiths.com/econ/podcasts/fed/tiana-sharonna.mov">


This podcast was really good, especially compared to mine. They had a good set up of their information and how they answered the questions. The images coincide with the information that was being said throughout the podcast. Their voices were very clear and I could hear what they were saying perfectly. They discussed all the aspects of The Fed and even mentioned some things I did not know. The podcast wasnt outstandingly creative but it was somewhat creative. I would say this podcast was definately educational and interesting. Great sound effects Tiana.

Compound interests and the rule of 72

Compound interest is interest earned on previously accumulated interest as well as the principal. Compound interest is very good for saving and earning money because you accumulate "free" money. Compound interest keeps the money that you originally invested plus adds the extra or the interest money. An example of this is if you had $2000 in the bank and added $500 every year for 10 years with 5% annual interest (which is very very rare), you will have accumulated $9,800.!
The Rule of 72 is a rule that shows how long it will take to double the money you have invested. The rule is to divide the interest rate by 72 and the answer you get will be the number of years it will take to double the money you have invested. Example if you have $5000 invested with a 5% annual interest, it would take 14.4 years for your money to double (72/5.)

Insider Trades

There were 13 people arrested on March 1, 2007 accused of trading as insiders. The scheme involved 4 investment bankers, hedge funds, day traders, lawyers and even some supervisors who found out about the trading and blackmailed traders in order for them to keep quiet about the scheme. Nine of the defendants have been arrested and 4 pleaded guilty to crimes including bribery and securities fraud. The tactics that these traders used were all too familiar to the investigators: tipping traders about potential up/downgrades of stocks, leaking information about stock prices moving and potential stock mergers. Two of the men arrested met in Grand Centrals "Oyster Bar" to discuss debts owed to one another and exchange cash made from the profits of insider trading. One of the men would give his partner tips on rating changes and in return his partner would make quick changes to his funds and gain a huge profit. Over a 5 year period one of the accused men was said to have made over $5 million in illicit profits.

Dow Jones Down

Why did the Dow go down? The Dow went down because the Chinese stock market crashed. When the stocks crash people start selling their stocks for lower and lower amounts of money. This in turn makes the stock market go down. How does this decline compare to the other famous declines (Great Depression) ? this decline compares to other declines such as the depression because it affected people around the world. The GD happened in the United States but it ended up affecting many different countries around the world and international trade declined rapidly. This is very similar to what happened with the Dow. What will you do with your socks ? well I decided to buy some smaller stocks because they are cheaper now and they will probably make more money since the market went down. Is this a time to buy since prices went down? This would definately be the time to buy stocks since the prices went down. Stocks are less money now and they may have a much bigger gain soon.