Aug
18
2010

Written by:
Ankita Kochhar

Could Unemployment Benefits cause further Unemployment?

The Former Treasury Secretary Henry Paulson in an interview with Good Morning America in February this year said that the economy is well on its path to recovery. ‘The Economist’ in July suggested that the recession may well have ended last year. Either way, we appear to be making a slow but steady climb out of the biggest recession since the Great Depression of the 1930’s. This climb out of the recession is primarily reflected in terms of the positive GDP growth rate, which was -6.8% in December 2008; with the 2008 average being -2.73%. The 2010 average currently stands at 3.05%, with a 5.6% growth in the last quarter.; the fastest growth rate in 6 years.

How is this positive change reflected in the employment?

Aug
17
2010

Written by:
Jusvin Dhillon

Circuit Breakers and High-Frequency Trading

On May 6th of this year, one trillion dollars of market value were erased from 2:42 – 2:47 pm. Entire funds traded for one cent and the Dow Jones Industrial Average crashed 1,000 points, but by the end of the day, companies’ prices again reflected their value. Known now as the “Flash Crash”, this five-minute fallout sparked public interest in modern trading and a recent change in the regulation of stock exchanges.

In the spotlight are high-frequency traders, who use microsecond-fast computers to trade on and clear out price discrepancies. 73% of U.S. equity trades are now high-frequency, and competition between traders to be the first to fill orders has led to closure of the bidding price and selling price gap in the 21st century, a modern boon which reduces to fractions of pennies transaction costs for all investors.

Aug
15
2010

Written by:
Reem Hassani

New Credit Check Laws to Help Students Get Jobs

For college students and recent graduates, the prospects of finding a job in this harsh economy is intimidating to say the least. With a job pool that is oversaturated with applicants of all ages, employers are looking for anything to eliminate candidates and make decisions quicker. According to the Society for Human Resources Management, a factor that over 60 percent of employers consider today is something that negatively impacts the recruitment of college students—a Credit History Report.

Let’s face it: “High Credit Score” isn’t exactly at the top of our resume when we’re fresh out of college. Most of us are just beginning to pay off student loans, don’t have much job experience, and are still recovering from outrageous bills accumulated from laptops and liquor tabs. A degree from a reputable university may not be enough to land a job right off the bat—and many states want that to change.

Aug
12
2010

Written by:
Thomas Loeffler

The Gulf Region: Potential for Brain Drain? Try Brawn Drain

The term brain drain refers to a massive emigration of a group of humans containing intellectual or technical skill sets. For example, if people are living in a region where jobs are scarce, many will choose to migrate to another country where their skills will be recognized as valuable contribution with monetary return. Known throughout the world as the land of opportunity, America has often benefited from brain drain in the last 200 years. Today, however, Americans face the possibility of bearing the costs, rather than benefits, associated with this type of exodus. The Gulf region’s series of misfortunate events have left enough job instability to cause serious concern for another type of occurrence called brawn drain.

Aug
8
2010

Written by:
Thomas Loeffler

Bernanke: The Most Power…less Man in America

What can the Federal Reserve Chairman do when the interest rates are near zero, banks are unwilling to lend, and people are reluctant to spend? In the state of our current economic conditions, the answer is nothing. The Fed Chairman will usually announce to alert ears when he steps up to the podium for comments about the direction of the Reserve’s monetary policy, and more specifically, the direction of interest rates. Over the last few weeks, however, attention has dissipated due to several months’ worth of comments very similar to, if not the same as, “interest rates will continue to remain low for an extended period.” As arguably one of the most influential officials in the world, the Fed Chairman has the power to influence markets to sink or soar, until now. Bernanke’s recent reports fail to induce reaction from the public because banks are trying to regain capital on their balance sheet.

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