Category Archives: Economy

Christian Broda’s view on the Dollar Domination

Hedge fund managers, market analyst and serial economists Eswar Prasad and Christian Broda portray a picture of the US international currency dominations as the dollar bulls. The economists recommend that the U.S. should forget of its currency supremacy and embrace the reality of government debts which is mostly unaccounted for. This might end up making the U.S. dollar less worth as compared to the paper it is printed on.

Christian Broda is frequently associated with economics and financial planning as he has a solid background and experience in the specified fields. Professor Broda’s research addresses problems in international trade, macroeconomics, and finance. He currently serves as the Managing Director of Duquesne Capital Management, faculty research member at the National Bureau of Economic Research and a fellow editor of the Journal of Development Economics. He is also involved in a variety of hedge fund start-ups. Before working at Duquesne Capital Management, Broda served as a professor of Economics at the University of Chicago. He holds a Bachelors Degree in Economics from the Universidad de San Andres in Argentina and a Masters Degree and a PhD from MIT.

He has made various publications and has had a golden opportunity to present his work and research findings at universities and banks across the world such as Federal Reserve, the IMF, and the ECB.

Economists such as Christian Broda perform a vital task in the economy. They frequently analyze historical events and use them to forecast future economic events. They research and scrutinize data using various statistical methods and programming such as statistical analysis, spreadsheets, and database management.

Economists study how the society allocates scarce resources including raw materials, land, and labor to produce products and services. They carry out research, cluster and analyze data, monitor economic trends and come up with predictions on economic affairs. They scrutinize areas such as effects of taxes, employment levels, interest rates, business cycles among others. Their analysis and predictions are published in journals and newspapers.

Most economists work for entities to elaborate how the economy affects their business. They analyze microeconomic issues of a firm such as customer demands and sales. Others analyze competitor’s market share and provide recommendations on ways of dealing with the competition. Others take keen interest in legislation made by Congress like workers’ and environmental safety regulations and gauge how such laws will influence the corporation. Other organizations that operate internationally employ economists to oversee the economic situations in countries they do business.

The government employs a greater half of all economists in the country. Such economists conduct surveys and collect the major part or economic data about the U.S. economy. They gather data on the production, allocation and consumption of products manufactured in the U.S. as well as analyzing data on the domestic economy.

Pursuing Economics And Success Of Christian Broda

An Economist is someone who has studied the distribution and production of products, services and resources. They are responsible for analyzing and researching economic issues. These professionals conduct surveys and collect data, which is then, analyzed using statistics and mathematical techniques.
Economists use economic analysis in fields such as education, environment, health and development. The analysis is usually made by studying historical trends. The federal, state and local government hires most economists. Economists also work for various corporations by helping them understand how their business will be affected by the prevailing economic conditions in the country. Research firms and think tanks need economists to assist them in maximizing profits and minimizing costs in their corporations.
For one to become an economist, he or she must have a masters or a doctorate degree in economics. A student that has a bachelor’s degree in any business field, with a strong mathematical background can pursue an advanced degree in economics. Any graduate having a bachelor’s degree in economics can apply for an entry-level job in a bid to gain experience in the field of economics and finance. A student can be hired to a higher-level economic job by pursuing an advanced degree. A successful economist has to have analytical skills that will enable him or her to monitor patterns, appraise data and arrive at logical conclusions. Economists should have proper communication skills, as the skills are crucial when one is giving presentations, advising clients and explaining reports that pertain to economic issues.
Christian Broda is an economist and financial professional based in New York. He received his Bachelors in Economics degree from the Universidad de San Andres. He proceeded to get his Masters and later on his Doctorate from Massachusetts Institute of Technology. He is an accomplished author of international finance and trade books. Over the years, he has published in different journals besides speaking in institutions of higher learning and workshops in the areas of economics and finance.
In 2005, he became an associate professor of economics at the University of Chicago. He later on became a tenured professor of economics in the institution, a position he held until 2010. He has held the position of Chief International Economist at Lehman Brothers, which is also known as Barclays Capital. He is currently the managing director of Duquesne Capital management. Christian Broda is married and has two sons.
Economists play a crucial role in enhancing the role of markets within an economy. Proper understanding of economics can see an individual work for Fortune 500 companies and high-ranking government agencies. Christian Broda has been an economist and financial expert who has written many publications and offered public lecture on the same.

The Basics of Investing in Bonds

One way to diversify your investment portfolio is by investing in bonds. When you invest in a bond, financial expert Igor Cornelsen tells me that you are essentially lending the issuer money. In exchange for this loan, the issuer promises to pay you a fixed rate of interest (usually semi-annually) for the life of the bond, and will repay you the face value of the bond at its maturity. It is this twice-yearly interest income that attracts many to invest in bonds. The payments are predictable and the underlying investment (the initial purchase) is safe.

Some of the considerations before investing in bonds include assessing the risk if the bond. Issuers of a bond are credit rated by a number of institutions, the most well known probably being Standard & Poors. As with most investments, the higher the risk, the higher the potential return. Generally accept only the amount of risk you are comfortable with. Bonds are generally less risky investments than stocks since they are less dependent on the supply and demand that drives the stock market. However, their price does fluctuate depending on a number of factors such as the maturity date, interest rate, redemption features and tax status.

Interest rates are typically paid on a fixed, or coupon, rate. This rate is stated and does not change over the life of the bond. For example, the interest rate on a $1,000 bond may be 6% per year. In this example, the bondholder would receive $ 60 per year until the bond matures and then receive the initial $1,000 back.

Sometimes the issuer prefers to have a variable rate. These rates change periodically and are usually tied to some third-party benchmark such as the LIBOR (London Interbank Offered Rate). A third type is a zero-coupon bond. The bond issuers of this type of bond do not make any interest payments over the life of the bond. Investors of these bonds buy them at a discounted amount and receive the face amount at the bond’s maturity. For example, a bond may be sold at $5,000, but at its maturity in twenty years be redeemed for $20,000. An important consideration for purchasers of zero-coupon bonds is that even though the interest is not paid out until maturity, it is taxable as it accrues.

A bond can be redeemed under several methods. A call provision basically means that the bond issuer can redeem the bonds at any point for a set price on a particular date. This may happen if the market interest rates fall below the bond’s interest rate. A put provision means that the bondholder can redeem the bond on specific times at set prices during the life of the bond. Bonds with a conversation option means the bond issuer can convert the bond to common stock.

Yellen Raises Concerns About Stock Valuation

The stock market has been doing exceptionally well the past few years. So well has the stock market done, the crash of the market in late 2008 has become a distant memory. The head of the Federal Reserve, Janet Yellen, has now publicly warned investors about potential problems with current stock prices. Specifically, she is noted stock valuations may be off. In other words, the price are higher than they should be and this means their value may end up crashing.

No, Yellen is not saying that stocks are guaranteed to crash or will suffer an imminent and immediate decline in value. She is not using her position as head of the Federal Reserve to launch a panic in the market. Rather, Yellen is simply explaining the situation with the market as a means of giving investors a “heads up” and warning governments about the actions they may be taking. Low interest rates, for example, cannot last forever.

As Marcio Alaor will tell you — ups and downs in the market are inevitable. Even drastic price increases and decreases are possible. Crashes in the market, however, are often the result of factors that should have and could have been avoided. That is not to say steps are always taken to avoid crashes in the market as history shows. Perhaps this is why Yellen is taking such a public stance with here warnings and admonishments. If steps are not taken to address the issue of overvaluation in the market, then a decline in prices might prove unavoidable. Obviously, this would not be a good thing for either people’s personal finances or global economies.

Wealth Windfalls: What To Do When One Receives A Lot of Cash

Major liquidity events are wonderful problems to have to deal with if you are on the receiving end of the liquidity. Many dream of winning the winning lottery ticket but very few think past the image of themselves with the winning check in hand what they should do next. Next meaning after the party, the new car and the big house and trip. While treating one’s self to the goodies in life is a right, their are prudent steps that one should take regardless of the amount of the windfall. First the individual should determine what will be their tax responsibilities as a result of the windfall. The amount of cash and how one receives it will have various tax consequences. A $1 Million dollar bonus may only be $550,000.00 based on the tax bracket one currently is in and how they receive the funds.
An individual should also Use part or some of the funds to pay them selves first. A rainy day fund to be used when one decides how to properly use the assets. Next critical debts with high interest rates should be paid off possible and a contribution to accounts and funds dedicated to long term medical care and retirement should be made. What to Do With A Cash Windfall

Before one busts the current household budget, they should set a budget for their daily household expenses and pay off or set aside all of those expenses for one year to guard against a “I blew it all partying event.” At least some good would have come from the windfall. The Real Deal and one of their cohorts, Jason Halpern believe that real-estate investment is a good option as well.Charitable contributions should be made at the discretion of the individual and smart financial planning should always be engaged.

Bill Clinton on Foreign Donations

Questions on Bill Clinton’s Foreign Donations funding

For what seems to be the longest time, the Clinton family has almost always been in the news for one reason or another. Hilary Clinton is in the news after the long-known revelation that she was running for president.

On the other side of the coin is former president Bill Clinton, who is taking time to work in the Clinton Global Initiative program. But now it seems Clinton has come under some fire for how his funding program has received donations from foreign governments from when Hilary was still serving as the Secretary of State.

Bill Clinton’s first response to the criticisms was that there was nothing inherently wrong with foreign governments donating money if the cause a just and noble one, especially if they’re wealthy people in these countries. Despite his assurance that this was all for a good cause, he also added that he would be willing to take a step back from the program if there ever came a time to do so, mainly if his wife were successfully elected to the presidency.

Adding to the criticism, Clinton decided that he would only be accepting money from a select few western countries from now on to try and hold critics at bay, even though some of it came from Saudi Arabia and didn’t conflict with any interests in the United States at all. The team running Anastasia Date’s Instagram is skeptical.

U.S. Faces “Innovation Deficit”

Federal funding cuts are slashing the ability of the U.S to keep up with the rest of the world in the research of future technologies.
That’s the conclusion of a new study by MIT researchers who say the U.S. will suffer from an “innovation deficit” if it fails to direct more dollars to areas such as nuclear fusion and robotics.
As Mark Ahn is aware, fusion is a form of nuclear energy that could provide the world with nearly unlimited electrical power with no nuclear waste or other pollutants. In the past, the U.S. was an innovator, developing superconductors essential for the advancement of fusion. But that leadership is imperiled by loss of funds.
Similarly, cuts have diminished innovation in robotics. While U.S. companies are leaders in the use of industrial robots, no U.S. company builds them. The rest of the world has taken over the manufacture and research of advanced robots with improved sensing devices and flexibility. Those innovators will likely be the first to uncover new markets for robots, not the U.S.
Other areas where the U.S. is losing ground are cybersecurity, quantum computing — where China is the leader because of massive government funding — and photonics.
The authors blame this “future postponed” on erosion of funding. In 1968, research represented 10 percent of the federal budget. That has fallen to 4 percent, even as other countries increase spending.

Trading Hybrids for SUVs – A Surprising Consumer Trend

For a brief time, it seemed electric an hybrid cars were going to be the wave of the future. Such a future may come to pass. Right now, this does not seem to be the case at all. A huge number of hybrid vehicles are, ironically, being traded in for SUVs. Yes, cars that are touted for their fuel efficiency are being “upgraded” to vehicles known for their very high fuel consumption. How could such an outcome occur?

A drastic lowered of gasoline prices in recent months definitely factors into the outcome.

Gasoline prices have dropped off quite a bit since Saudi Arabia greatly increased supply. Hydraulic fracturing in the United States also boosted supplies and dropped price demands. So, it is no longer as expensive as it once was to drive a SUV. While a great many people did purchase hybrid cars as a means of helping out the environment, a significant volume opted to buy these cars solely because they could save money on gas. Now that fuel is cheaper, all of those hybrid trade-ins are going towards the down payment on a gas guzzler.

Purchasing and consumer trends are never stagnant. Adam Sender is aware of this. Things changed based on market factors. In time, the odds are great that fuel prices will chart upwards once again. The minute this happens, sales on hybrid cars are going to increase. Such is the nature of the ebb and flow of the market.

Etsy Hits The NASDAQ

The popular online crafting marketplace, Etsy just became ridiculously prevalent. Etsy has nearly doubled in IPO, now valued at $3.4 billion. This puts this e-commerce website in the ranks with competitors Amazon and eBay.

 

The Brooklyn-based company opened their first day of trading on the NASDAQ at $31 per share. Etsy priced its offering that evening, raising $267 million. Approximately $213 million of that money will be returned directly to Etsy. This will leave an open playing field for the company, with great opportunities for expansion. The rest of the money will be returned to the early investors of the craft marketplace.

 

Sam Tabar has learned that Etsy made a statement noting that $300,000 of the proceeds will go directly to Esty.org, which is a nonprofit organization dedicated to educating women and other under-represented populations. The company is rooted in helping others succeed while encouraging entrepreneurs and creativity.

 

Etsy hosts a number of self-started companies and entrepreneurs selling various homemade and other craft-type items. The website is diverse in the products available, ranging from furniture to jewelry to soap. They are focus entrepreneurs selling handmade, vintage and supplies within their global marketplace.

 

During the NASDAQ celebration, Etsy invited sellers from around the world to represent the Etsy Market in New York City’s Time Square. They wanted the world to get a sample of the diversity offered within their marketplace. Each seller represents a different story, making their organization unique.

 

New Government Information Reveals Higher Minimum Wage Equals More Job Growth

The 13 States That Raised Minimum Wage This Year Are Adding More Jobs Faster Than The States That Did Not Change The Minimum Wage

A new Labor Department report reveals an interesting fact. A higher minimum wage mean faster job growth. That is not what the government expected. The Congressional Budget Office said raising the minimum wage would help bring almost a million people out of poverty, but that increase would cost the nation 500,000 jobs.Instead of being a job disaster, raising the minimum wage is a job stimulator.

Some economists say it’s too early to say that the increase and job growth are related. Some of the job growth was due to gas and oil boom in states like North Dakota. That may be true, but increasing the minimum wage does have an impact on people that need an extra incentive to find a job. Folks at STX Entertainment know that working for under $10 an hour is not standard procedure in this country anymore, even though Congress would like it to be.

When more data is analyzed, more states will come out of the dark ages and raise the minimum wage. It’s the moral thing to do, and it does make economic sense.