Economic Edge

Foreclosures Rising—2006 Foreclosure Statistics

EconEdge — Fri, 23 Feb 2007 18:31:35 +0000

Nationally, foreclosures are on the rise. According to RealtyTrac, 1.2 million homes were foreclosed in 2006—up 42% from 2005. The cities with the highest foreclosure rates were:

Detroit
Sacramento
San Diego

Worst U.S. Cities—10 Real Estate Markets to Avoid

EconEdge — Fri, 23 Feb 2007 18:31:29 +0000

Planning to buy a home in the next 12 months? Well, if you live in one of the cities listed below, you may want to postpone buying a home.

According to CNN, these are the worst 10 cities to buy a home, over the next 12 months. The expected percentage decline is listed below.

Korea & Syria Diversify Away From U.S. Dollar

EconEdge — Fri, 23 Feb 2007 18:31:06 +0000

More dollar dumping —

According to The Financial Times, The Bank of Korea plans to diversify its foreign currency reserves to gain higher returns. Apparently the bank is not happy with the U.S. dollar (and who can blame them?). The Bank of Korea plans to invest part of the nation's huge international reserves ($240 billion—the world's fifth largest) in overseas stocks (notably the blue chips of advanced countries) in an effort to gain higher returns. Korea's move follows a policy switch in China which also wants to diversify its $1 trillion+ of foreign reserves (70 percent or more of China's reserves are held in dollar-denominated assets).

52% of West Coast Residents Fear Housing Price Collapse

EconEdge — Thu, 08 Feb 2007 22:22:24 +0000

West Coast residents lack confidence in the local real estate market, according to recently released survey data by The Experian-Gallup Personal Credit Survey. According to Experian, 52% of West Coast (U.S.) residents fear that house prices will severely decline.

Kuwait May Dump the Dollar to Protect Its Economy

EconEdge — Thu, 01 Feb 2007 01:58:39 +0000

In an earlier post, I wrote about how the euro is gaining popularity as countries begin to reduce their dependence on the U.S. dollar. Last Wednesday, Kuwait announced that it may abandon the dollar, in favor of a basket of currencies, to protect its economy. This decision is being studied by Kuwait's central bank.

Could the Euro Replace the Dollar as the World's Reserve Currency?

EconEdge — Tue, 23 Jan 2007 20:40:12 +0000

The U.S. dollar remains the world's reserve currency (for now), with central banks holding 2/3rds of their reserves in dollars. But, according to recent news, the dollar's status as the world's reserve currency is changing. The dollar is being challenged by the euro, which is now five years old.

Brain food for entrepreneurs (or aspiring entrepreneurs)

EconEdge — Tue, 23 Jan 2007 20:40:04 +0000

Ben Yoskovitz has compiled a great collection of articles on entrepreneurship. This week's Entrepreneurship Carnival includes advice for entrepreneurs, characteristics of successful entrepreneurs, thoughts on success and failure, marketing insights, and much more.

Immigrants Are More Likely to Become Successful Entrepreneurs & Business Owners

EconEdge — Mon, 15 Jan 2007 03:22:28 +0000

Interestingly, research shows that immigrants are more likely to become successful entrepreneurs than native-born Americans.

According to a new study released last week by Duke University and UC-Berkley, immigrant entrepreneurs founded 25.3 percent of all U.S. engineering and technology companies established in the past decade. This is very significant, since immigrants make up only 11.9 percent of the entire U.S. population.

10 Best Cities for Technology Jobs & Entrepreneurship

EconEdge — Sun, 07 Jan 2007 15:56:18 +0000

Your geographic location can affect your personal and business finances in a number of ways.

For one, your geographic location plays a role in career options. It can affect the type of jobs that are available to you (if you're an employee), or the type of talent you can hire (if you're an employer). Your geographic location can also affect your maximum salary, the cost of home ownership (can you comfortably afford to buy a home in your area?), and the amount of annual taxes you'll pay. To a smaller extent, your geographic location can affect your professional circle (local mentors, colleagues, competition).

Advisors expect double-digit growth in hedge funds & alternative assets

EconEdge — Tue, 19 Dec 2006 14:15:04 +0000

Morningstar polled 600 advisers in August and found that 65 percent of them expect more than double-digit growth in alternative investments, which include hedge funds.

"We were surprised to find that the majority of advisers expect double-digit growth in alternative assets under management every year for the next five years," said Steve Deutsch, director of separate accounts and managed investments at Morningstar.

U.S. Mint Forbids Melting Pennies & Nickels

EconEdge — Mon, 18 Dec 2006 13:42:43 +0000

Pennies and nickels are now worth more melted down than at face value.

In an earlier post, I wrote about how the government is losing money by minting pennies and nickels. It now costs 1.73 cents to create a penny, and 8.34 cents to create a nickel (6.99 cents for the metal, plus the cost of production).

Wal-Mart to Open Hundreds of Stores in India

EconEdge — Tue, 28 Nov 2006 22:29:01 +0000

Wal-Mart Expanding to India

Like many investors, Wal-Mart smells opportunity in India.

Yesterday Wal-Mart announced that it has formed an alliance with Bharti Enterprises Ltd. (India's leading telecommunications company) to open hundreds of stores in India over the next several years.

Milton Friedman Dies, Legacy Lives On

EconEdge — Sat, 25 Nov 2006 22:17:22 +0000

Many of you may have already read this, but Milton Friedman, Nobel-Prize winning economist and advocate of personal choice and limited government, died last Thursday (11/16) at the age of 94. Friedman championed personal liberty and changed the way the world thought about macro-economics, free markets & enterprise.

Business Owners Pay 54.3% Percent of all Income Taxes

EconEdge — Tue, 21 Nov 2006 01:31:37 +0000

The Washington-based Tax Foundation found that nationally most people in the top 1 percent of earners are business owners and entrepreneurs, and that in 2004, business owners paid 54.3 percent of all income taxes. Or, to put it differently, the top 1% are paying more than 54% of all income taxes.

Chelsea Clinton Gets Job at New York City Hedge Fund

EconEdge — Thu, 09 Nov 2006 00:47:49 +0000

According to an article published by The New York Daily News, Chelsea Clinton will begin working for Avenue Capital Group, a New York City hedge fund that has donated significantly to her mother's re-election campaign fund.

Does Walmart—the World's Largest Private Employer—Deserve Its "Bad" Reputation?

EconEdge — Sat, 04 Nov 2006 05:20:02 +0000

According to a study released by UBS/Warburg, the world's largest private employer — Wal-Mart — can boost a marginal family's spending power by 10% or more.

Very impressive.

But, that's just the beginning. According to the study…

How to Get $250K in Tax-Free Money Every 2 Years

EconEdge — Mon, 30 Oct 2006 18:37:11 +0000

Looking to keep more of your hard-earned money from the tax man? Well, you're going to love this tax exclusion.

How You Can Exclude up to $250,000 Tax-Free on the Sale of Your Primary Residence

How to Invest For High Returns & Avoid Losing Your Original Investment

EconEdge — Mon, 30 Oct 2006 00:43:51 +0000

This post is written in response to a reader's question. The reader asked…

How Can I Get the Highest Return While Minimizing Risk?

This is the $64 million dollar question—the holy grail of investing. Every investor seeks to maximize his return while minimizing risk (mainly the risk of losing his original investment, but also the risk of looking dumb by making unwise and foolish investments). Generally speaking, the higher the return, the higher the risk. "He who bears the risk reaps the reward." This is true in mortgage banking, small business, the financial markets, personal relationships, and many other areas of life.

Top 10 Foreclosure Markets

EconEdge — Sun, 29 Oct 2006 01:56:44 +0000

According to CNN Money, the following cities are experiencing the highest number of foreclosures (Foreclosure data gathered from RealtyTrac)…

Greeley, CO
Detroit, MI
Miami, FL
Indianapolis, IN
Ft Lauderdale, FL
Denver, CO

Top 10 Best Cities (and Worst Cities) to Buy Real Estate

EconEdge — Sun, 29 Oct 2006 01:36:36 +0000

CNN Money recently published an interesting article on the best and worst cities for real estate investing. According to the article…

"The real estate slump could get worse before it gets better. But these 10 markets offer great opportunities for those who have the patience to buy and hold."

Industries With the Greatest Number of Self-Made Millionaires & Billionaires

EconEdge — Thu, 26 Oct 2006 02:07:45 +0000

What are the industries with the greatest number of self-made millionaires? Looking at the World’s Richest People list—published by Forbes each year—the top 3 industries immediately appear. In random order, they are:

Risking Money to Make Even More Money

EconEdge — Tue, 24 Oct 2006 22:17:32 +0000

Fantastic quote from Gary North's latest newsletter…

The poor boy thinks that financial success is based on saving money. He does not understand that it is based on a different principle altogether: risking money to make even more money."

Zain Fancy Searches

EconEdge — Mon, 23 Oct 2006 03:53:21 +0000

According to my logs, people are visiting this website seeking information on Zain Fancy—including his age (yes, that's an actual keyword search term that brought people to this website) and his phone number in Hong Kong.

What Percent of Annual Income Should I Spend on a Car?

EconEdge — Sat, 21 Oct 2006 18:43:13 +0000

Buying a car is one of your largest expenses, aside from housing and food costs. I believe that you should never finance a car. Cars are depreciating assets that do not hold their value. If you are going to finance something, finance an asset, not a liability.

Fixed Expenses Should Be What Percent of Your Take Home Pay?

EconEdge — Fri, 20 Oct 2006 15:33:13 +0000

Fixed Expenses As a Percentage of Income

When setting a budget, it's important to consider both fixed and variable (changing) expenses. Fixed expenses include costs that do not change over time. Examples of monthly fixed expenses include: insurance premiums, the cable bill, the internet bill, your mortgage payment (if you’ve got a fixed rate), and childcare expenses. These expenses change very little (or quite possibly never) on a month-to-month basis. Insurance premiums generally rise over time. However, the insurance agent should provide you with an annual statement, listing each monthly bill for the next 12 months—-thus, you can plan in advance for all insurance payments.

Japan's Money Management Industry Growing–Mutual Fund Assets on Verge of Boom

EconEdge — Thu, 19 Oct 2006 19:08:48 +0000

According to an article recently published by Investment News, Japan's money management industry (particularly its mutual fund sector) could be on the verge of a boom.

Economic Facts about Japan

Japan is the world's second-largest economy.

Google Acquires YouTube for $1.65 billion

EconEdge — Tue, 10 Oct 2006 03:09:18 +0000

Just in—Google bought YouTube for $1.65 billion in a stock-for-stock transaction. After the acquisition, YouTube will operate independently in order "to preserve its successful brand and passionate community." Press release was issued 5 hours ago.

Congress Indirectly Bans Online Gambling By Targeting Payment Processors

EconEdge — Fri, 06 Oct 2006 20:27:07 +0000

Congress has voted against payment processors (credit card companies and banks) who handle transactions for online gambling sites. According to Reuters, "The House of Representatives and Senate unexpectedly approved a bill early [last] Saturday that would make it illegal for banks and credit-card companies to make payments to online gambling sites."

Internet Advertising Revenue Up 37%, Hits Record $8 Billion

EconEdge — Thu, 28 Sep 2006 02:15:31 +0000

According to a study released by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PWC), internet advertising revenue (in the U.S.) rose 37 percent in the first six months of the year, hitting a record of nearly $8 billion. Search-related advertising rose 40 percent in the first half of the year, while classified advertising rose 20 percent.

Viral Marketing Challenge–$15K in 30 Days

EconEdge — Mon, 18 Sep 2006 03:57:20 +0000

Dan Raine, a very sharp internet marketer (and creator of the free "Google Slap" reports) is undergoing a 30 Day Challenge to make $15,000 online in 30 days with only a $150 budget. He's using MySpace viral marketing to generate buzz and opt-ins. Dan plans to make money on upsells and back-end offers to the list, combined with a viral "pass-it-along" component.

Bilingual Babies: Mandarin Speaking Au Pairs from China in High Demand

EconEdge — Sun, 17 Sep 2006 01:49:11 +0000

Nannies and au pairs from China are in high demand lately, according to two articles published in The New York Times and Spiegel International. Wealthy and middle-class parents—seeking to give their children an economic edge—have hired live-in au pairs from China to teach their infant children Mandarin Chinese.

Automated Banking, Technology, & Security of Bank Tellers

EconEdge — Thu, 07 Sep 2006 21:09:13 +0000

Yesterday I went to a federal credit union to deposit a check for my sister. My sister was on vacation in Myrtle Beach, and she asked me to deposit a check that had arrived in the mail for her. (I agreed to collect her mail while she was at the beach.)

Americans spend more time online than in front of TV

EconEdge — Mon, 28 Aug 2006 02:31:03 +0000

According to CNN, 71 percent of American households have web access.

Further, Americans age 13 to 24 now spend more time online than they do in front of the TV. This is extremely significant, since most Americans are addicted to their television sets (a HUGE time-waster) and spend, on average, 4 hours a day watching TV. (Source: Nielsen Ratings) So, in a 65-year life, the average American will have spent 9 years glued to the tube.

Shortage of nickel due to surging demand from China

EconEdge — Sun, 20 Aug 2006 17:00:06 +0000

According to Bloomberg News, a shortage of nickel drove prices to the highest level since at least 1987, and forced the London Metal Exchange to impose trading restrictions for the first time in a year.

United States now issuing RFID Passports

EconEdge — Fri, 18 Aug 2006 23:35:45 +0000

I subscribe to a tech newsletter, and this morning I learned that the U.S. is now issuing passports that contain micro RFID chips which store personal information about the passport holder.