Where is the Stimulus Money going?

Resources  if you want to dig in deep.

Find out how the government is accounting for our tax dollars.

Cool graphic of all the money allocated last fall:

Tracking TARP money:

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A lesson learnt? Preventing the economy from slipping into a depression

Admit it! This is a recession!

The economy is no perfect system, and this statement is no surprise. Like prices that rise and fall over time, the economy expands and shrinks over time too. As we are all well aware, currently the economy is shrinking – and it is doing so more than it would in its ‘normal’ cycles. This abnormal shrinking of the economy is what we call an economic slowdown or a recession. The concept is neither new, nor rare. Recessions have occurred several times in the US economy, the last one taking place in the year 2001. However, deep recessions are less frequent, and are beast to be feared.

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China’s Concerns

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The recession occurring in the United States has lead to financial distress in many other countries over seas, but no country is more intertwined with the US economy than China. In a recent article published by MSNBC, China’s vice governor of the People’s Bank of China discussed the rising fear looming over failing U.S businesses. China is Washington’s biggest foreign creditor, holding an estimated $1 trillion in U.S. government debt. Investing in US treasury bills is

“an important component part of China’s foreign currency reserve investments, so as an important component we are naturally relatively concerned with the safety and profitability of U.S. government bonds.”  Continue reading

Recession Vs Depression

As anyone that has a computer, a TV, a radio, or even two cans tied together by strings has noticed by now that the United States economy is experiencing a recession. So what exactly is a recession? It really depends on who you ask. Continue reading

Ben Bernanke’s First Ever Public Interview Recap

In response to Jordi’s request today that we focus on something pertaining to the recession, I thought it would be helpful and interesting to recap the recent Ben Bernanke interview on CBS’s 60 minutes. This interview was particularly significant because Bernanke has never been interviewed like this before, and it was mentioned during the show that the show was absolutely shocked when they heard he had agreed to do it. The interview was conducted in the Fed Headquarters, which was also a significant occurrence, as it is rarely seen by the public. So, in case some of you missed it, here are some key takeaways. (Some of this will be from memory, but I’m also going to pull from the CBS website because it’d be hard to remember everything…)

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Troubled Asset Relief Program (TARP)

What is TARP and how will it save our economy?

The Troubled Asset Relief Program (TARP) is a funding program established by the US government, which primarily functions to relieve the sub-prime mortgage crisis. It was revised in October of 2008, by then Treasury Secretary Henry Paulson. Through this program, the US Treasury is given the ability to purchase up to $700 billion in mortgages that were issued before March 14, 2008, and any other factors that the Finance Secretary and the Chairman of the Fed find necessary to ensure market stability. In essence, it is part of the billion dollar bailouts that our government has been issuing to banks, car companies, and other financial institutions. Continue reading

You Thought the Dow Jones Looked Bad…

This is what the job loss in this recession looks like compared to previous ones.