1) How long do you think it's going to take to get to all virtual cards? How many years? (1 point) Why? (1 point)
In my opinion, I think that it will take atleast another 5 - 10 years before we have all virtual cards in our wallets. It will probably take even longer given identity fraud is one of the most common crimes committed in the new world. Even if we have virtual cards in the next 5-10 years, I don't think anyone will be willing to risk it given its unproven legitimacy.
2) Who will not be on board with this new virtual wallet? (2 points)
The people who will probably not be on board with this change would be older people. Everyone that is considered a techie will be willing to change over if it is completely safe, but the people without the skills to operate computers will not. Even online banking is not used by a majority of the people in the world right now. If the switch were to happen, it will be quite difficult as well to convert everyone over.
3) What companies are going to be affected negatively by this? Name 3 (3 points)
Companies that will be affected negatively will be small businesses, manufacturers and cellphone companies. Small businesses in today's economy are already struggling to stay afloat. With this switch over, this would force them to buy new equipment that is not necessarily needed with already lacking funds. Manufacturers will also suffer. Companies that produce wallets and money clips will go out of business if everyone is going to implement their virtual cards into their phones and ditch the wallet. The last company to be affected would be the cellphone companies. They would have to spend unnecessary dollars in developing new technology for this switch over.
4) Which industries are going to make money from this? Name 3 (3 points)
The biggest winner of this switch over will be retail stores. Customers will be carrying around all of their basically all of their money and may be tempted to spend. The company that created this "virtual wallet" will also benefit since retail stores and companies will be forced to purchase this new technology at a profitable price. Lastly, Banks will also benefit from this because they will no longer need to pay bankers during the day and instead have machine operated computers update statements 24/7.
Thursday, June 2, 2011
Wednesday, June 1, 2011
Canadian Banks Outperform Others on Worldstage
Summary;
On Bloomberg's first-ever ranking of Worldwide banks, Canadian banks claimed 5 of the top 20 spots on the list. The top-rated Canadian bank was The National Bank of Canada at number 3. The other banks that made the top 20 spots include CIBC (4), TD Canada Trust (12), Royal Bank (17) and The Bank of Montreal (19). Taking the top spot was Singapore's Oversea-China Banking Group. In comparison to the United States, only three of their banks made it into the top 20. Placing at number 7 was Fifth Third Bancorp followed by JPMorgan Chase at 14 and Citigroup at 16. The rankings were comprised of banks with at least $100 billion in assets, cash reserves, non-performing assets against total assets. According to Andrew Addison, spokesperson for the Canadian Bankers Association, Canadian banks have been managed carefully through the years. In the world, Canada owns the highest capital ratio of all national banks. Other countries with banks that made it into the top 20 include Switzerland, Hong Kong, Singapore, Brazil, Sweden, Russia and the United Kingdom.
Connections;
In chapter 7, we are studying the Canadian banking system and the value of the Canadian dollar. The value of our money has steadily moved along compared to the stumbling US dollar. A major part of having a strong economy is the banking system. Without one, there could come difficult times. In the bank rankings posted by Bloomberg, Canada had the highest amount of top rated banks in the top 20 with 5. In the US, there were only 3 banks. Strong banking systems stimulate the economy, for example if another country looked to invest internationally they would often look for a country that is strong. Canada would seem like a good investment right now as we have some of the strongest banks in the world. When times are tough however, there could be uncertainty with the dollar like the United States. Their dollar has stumbled along the way because of major bail-outs approved by the government to save large American corporations. It may seem like a good time to invest in the United States at the moment, but there are doubts with their dollar and banking system. With these doubts, people are searching for alternatives like changing their assets into other forms of currency and precious metals.
Reflection;
In my honest opinion, these bank rankings tell us a lot about the economies in the world. Struggling or not, banking is a very important part of any country. With many countries changing some of their assets into other currencies, I believe that they are just decreasing the value of their own assets. For example, China has trillions of dollars in US Federal reserves and are starting to change some of those assets into Euros instead of keeping them in dollars. With China being such a major investor in the United States, this could cause an even deeper downfall for the US dollar. Many other people in different countries could follow in the same footsteps and do the same creating a even weaker economy in the States which could ultimately lead to "ditching" the dollar, predicted by certain economists.
Monday, April 11, 2011
The Great Depression vs. The Current Recession
1) How did the great depression start?
The start of the great depression was directly connected to the collapse of the U.S. stock market in 1929. On Tuesday, October 29, 1929, the U.S. stock markets crashed unexpectedly causing many to call that day “Black Tuesday”. The depression gradually spread worldwide as people were afraid to invest and had many loans to pay off due to careless investments in the roaring 20’s. Bank Failures were also a very big thing during the Great Depression of the 30's. People’s savings were uninsured , thus when banks failed, they lost all of their savings.
2) How did the current recession start?
The current recession started when the United States started giving out sub-prime mortgages carelessly. People were not able to afford their mortgage payments due to rising interest rates. Housing was such a hot commodity in the United States at the time, where people who had no business in buying a house were able to acquire mortgages. Bank's were bringing in clients each and everyday. This was known as the "housing bubble" which eventually popped and exploded all over the bank executive's faces. Now in the present, nearly 4 years after the first signs of our current recession, banks are still foreclosing homes with no buyers in site. All of this eventually lead to a decrease in spending and lack of investments which further lead to a deeper crisis. The rest of the world caught on to the trend. Many people around the world were pulling their investments which caused some countries to eventually file for bankruptcy protection.
3) How did the government take part following the event? Were and are they successful attempts?
Following both the great depression and the current recession, the government stepped in with new employment opportunities for citizens. During the great depression, the government tried to increase employment opportunities as much as they could. During the current recession, the government handed out massive bailouts to large companies to keep them afloat. One thing that helped out during the great depression that we have not seen so far was World War II. This allowed for a large amount of people to be employed and then deployed for war. The attempts in the present day don't seem to be working quite effectively as they first initially thought, but only the future will tell.
4) What factors are present now that were not present during the Great Depression? Ex. Banking, online resources?
One of the most misused items in our present time is the credit card. The credit card can be a very useful tool if used correctly. If not, the person responsible for payments will have to be disciplined. The most common thing would be high interest rates and a hit to your credit score. The internet is also a very resourceful tool in our society. People are able to access records of their investments, spending and many others. They can access trends of the current stock market and research based on data posted online.
5) How did these two affect the United States GDP?
The great depression and current depression are quite similar in many ways, but also very different in many ways. The GDP, during the great depression was especially low because many were unemployed and could barely afford necessities and luxury goods. During our current recession, many people have cut back on spending but are still able to afford some luxury goods because of the wages that we make today compared to the 1930's.
6) Reflections: In your own words, tell me which one has made more of an impact on the world?
As of right now, I would have to say that the Great Depression has made a bigger impact on the world. The depression of the 30's lasted more than 10 years compared to the current recession that has only last 4 years. People in the roaring 20's were so optimistic about the future that they basically put everything on the line to save for the future. Some even took out loans to invest. Our current recession started when the housing bubble burst, with banks and mortgage companies giving out careless loans. People, knowing a bit about the previous depression then pulled out large investments which ultimately led to the failure of many large scare corporations of all kinds around the world. Although it has only been a fraction of the time compared to the great depression, this recession may ultimately have a bigger impact on the world when it's all said and done.
Wednesday, April 6, 2011
Even Afterlife Faces iPad 2 Shortages ***Chapter 6***
***Summary***
Since the release of the iPad 2 on March 11th in the United States and Worldwide on March 25th, inventory has become scarce on the market. The highly anticipated gadget has already sold a whopping 6 million units worldwide. Apple, in the past has already been criticized on not being able to supply enough units for waiting customers. At the international launch, studies show that some people waited in line for more than 2 days. Another bump in the road for the supply may be the earthquake in Japan. iSuppli, a research firm from the United States noted that some parts from the iPad 2 are produced in Japan. Back on track now, during the past week, some Chinese families celebrated the ritual "Ching Ming", which is a celebration and offering for late ancestors. During the offerings, the present living generation would burn imitation money and luxury goods to the afterlife. Chinese villagers in Malaysia scoured stores for replica models of the iPad 2. One store owner says that his store had 300 replica paper models of the highly sought after gadget which sold for $1 each. In the end, his inventory was empty.
***Connections***
In chapter 6, the aggregate demand for the iPad 2 is to have a technically trendy gadget. For the item to have been sold out so fast is not much of a surprise because of Apple's inability to supply enough units for customers worldwide. As for the paper replica models, the people purchasing them believe that it is a fashionablly cool thing to have in the afterlife. The aggregate demand for this is the ability to be able to purchase something for their ancestors.
***Reflections***
Many people celebrated the event "Ching Ming", including myself. Before this article, I did not realize that people went as far as to buying new tech-savy gadgets. When my family celebrates, we burn only neccessities such as money and clothes and have not gone as far as burning new gadgets.
Since the release of the iPad 2 on March 11th in the United States and Worldwide on March 25th, inventory has become scarce on the market. The highly anticipated gadget has already sold a whopping 6 million units worldwide. Apple, in the past has already been criticized on not being able to supply enough units for waiting customers. At the international launch, studies show that some people waited in line for more than 2 days. Another bump in the road for the supply may be the earthquake in Japan. iSuppli, a research firm from the United States noted that some parts from the iPad 2 are produced in Japan. Back on track now, during the past week, some Chinese families celebrated the ritual "Ching Ming", which is a celebration and offering for late ancestors. During the offerings, the present living generation would burn imitation money and luxury goods to the afterlife. Chinese villagers in Malaysia scoured stores for replica models of the iPad 2. One store owner says that his store had 300 replica paper models of the highly sought after gadget which sold for $1 each. In the end, his inventory was empty.
***Connections***
In chapter 6, the aggregate demand for the iPad 2 is to have a technically trendy gadget. For the item to have been sold out so fast is not much of a surprise because of Apple's inability to supply enough units for customers worldwide. As for the paper replica models, the people purchasing them believe that it is a fashionablly cool thing to have in the afterlife. The aggregate demand for this is the ability to be able to purchase something for their ancestors.
***Reflections***
Many people celebrated the event "Ching Ming", including myself. Before this article, I did not realize that people went as far as to buying new tech-savy gadgets. When my family celebrates, we burn only neccessities such as money and clothes and have not gone as far as burning new gadgets.
Monday, April 4, 2011
Wednesday, March 2, 2011
B.C. loses 9,100 jobs in January as rest of Canada recovers ***SUMMARY***
***Summary***
The month of January did not look very good for British Columbia in economic standards. In January, there were 9,100 jobs lost due to the reccession. Also in December, there were 12,800 that were cut from the labour force. Most of Canada has seen a steady economic recovery as B.C. unemployment rises. The 20,000 plus jobs that were lost since December puts British Columbia above all provinces except for the Maritimes. The job losses occured mostly in manufacturing, forestry and construction. For the rest of Canada, there were about 69,000 jobs added to the economy. Still, the unemployment rate increased from 7.6 to 7.8 nationally because of more than 100,000 people looking for work. Ken Peacock, director of the BC Business council says however, these economic indicators are inaccurate compared to other provinces. It actually shows that the BC economy is picking up with retailers and small businesses beginning to hire again.
***Connections***
Chapter 5 of the textbook talks about unemployment and GDP as economic indicators. Many unemployment indicators are not included in the unemployment sample. These criteria include things such as people who have not been actively looking for work in the past 4 weeks and students who have graduated school and have not been able to find a job etc. If you look at the stats, there are alot of people who have given up looking for job in the past 4 weeks because there is nothing out there. Also there are hundreds of thousands of new college graduates who are unable to find a job. As you can see, the unemployment rate is reduced by the actual amount of the unemployed. This is why I think people often oversee the unemployment rate as the main economic indicator.
***Reflections***
The economic indicators put out by the Canadian government are not accurate in my opinion as stated before. While it may seem like the B.C. economy is not stable, I believe that it is. People are still spending as much as they were without jobs. E.I. is also a way for people to get money for the time being while looking for a job. Being paid at 65% of your annual salary is pretty good for doing nothing. This makes the numbers unstable because there is no accurate number of people on employment insurance included in the sample.
The month of January did not look very good for British Columbia in economic standards. In January, there were 9,100 jobs lost due to the reccession. Also in December, there were 12,800 that were cut from the labour force. Most of Canada has seen a steady economic recovery as B.C. unemployment rises. The 20,000 plus jobs that were lost since December puts British Columbia above all provinces except for the Maritimes. The job losses occured mostly in manufacturing, forestry and construction. For the rest of Canada, there were about 69,000 jobs added to the economy. Still, the unemployment rate increased from 7.6 to 7.8 nationally because of more than 100,000 people looking for work. Ken Peacock, director of the BC Business council says however, these economic indicators are inaccurate compared to other provinces. It actually shows that the BC economy is picking up with retailers and small businesses beginning to hire again.
***Connections***
Chapter 5 of the textbook talks about unemployment and GDP as economic indicators. Many unemployment indicators are not included in the unemployment sample. These criteria include things such as people who have not been actively looking for work in the past 4 weeks and students who have graduated school and have not been able to find a job etc. If you look at the stats, there are alot of people who have given up looking for job in the past 4 weeks because there is nothing out there. Also there are hundreds of thousands of new college graduates who are unable to find a job. As you can see, the unemployment rate is reduced by the actual amount of the unemployed. This is why I think people often oversee the unemployment rate as the main economic indicator.
***Reflections***
The economic indicators put out by the Canadian government are not accurate in my opinion as stated before. While it may seem like the B.C. economy is not stable, I believe that it is. People are still spending as much as they were without jobs. E.I. is also a way for people to get money for the time being while looking for a job. Being paid at 65% of your annual salary is pretty good for doing nothing. This makes the numbers unstable because there is no accurate number of people on employment insurance included in the sample.
Thursday, January 20, 2011
Homeowners brace for tax hikes after jump in Property Assessments - Summary***
***Summary***
This article talks about a possible hike in property taxes for some home owners in neighborhoods in Edmonton. As the economy improves, property values are going up but people still struggle to make ends meet in some cases. For some areas in Edmonton, saw increases as much as 32%. Overall, the average property in Edmonton went up by 23%. Although there is such a high increase, some neighboring areas did see a decrease in property value up to 7%. Some residents with houses in the depreciated neighborhoods feel a slight ease as they will most likely pay less than last year, while other property owners with unexpected increased assessments feel the pressure of possibly paying more.
***Connections***
In the textbook, it talks about how the government collects taxes based on property values. A person with an increased property assessment in this case may not care if they do not plan on selling. The only problem with this is that they must pay higher taxes due to their increased property value. The problem that I see with our economy today is that it is still lagging. I say lagging because most people are slow and barely able to meet expectations, when it comes to paying bills. With people still losing jobs, it is harder for a home owner to pay higher taxes. I believe that a person with a warm and cozy home doesn't care for these assessments because it just means higher taxes and a bigger headache.
***Reflections***
This article shows that each and every year, the government usually comes up with a new idea to get more tax money out of citizens. Although it may seem good that your property went up, who really cares? Most people in this economy are not looking to buy anytime soon, so it just means more taxes. Again, this shows how the Canadian government gets most of their money from direct property taxes.
This article talks about a possible hike in property taxes for some home owners in neighborhoods in Edmonton. As the economy improves, property values are going up but people still struggle to make ends meet in some cases. For some areas in Edmonton, saw increases as much as 32%. Overall, the average property in Edmonton went up by 23%. Although there is such a high increase, some neighboring areas did see a decrease in property value up to 7%. Some residents with houses in the depreciated neighborhoods feel a slight ease as they will most likely pay less than last year, while other property owners with unexpected increased assessments feel the pressure of possibly paying more.
***Connections***
In the textbook, it talks about how the government collects taxes based on property values. A person with an increased property assessment in this case may not care if they do not plan on selling. The only problem with this is that they must pay higher taxes due to their increased property value. The problem that I see with our economy today is that it is still lagging. I say lagging because most people are slow and barely able to meet expectations, when it comes to paying bills. With people still losing jobs, it is harder for a home owner to pay higher taxes. I believe that a person with a warm and cozy home doesn't care for these assessments because it just means higher taxes and a bigger headache.
***Reflections***
This article shows that each and every year, the government usually comes up with a new idea to get more tax money out of citizens. Although it may seem good that your property went up, who really cares? Most people in this economy are not looking to buy anytime soon, so it just means more taxes. Again, this shows how the Canadian government gets most of their money from direct property taxes.
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