I saw this article and while not directly related to personal money matters or economics, the writer of the article believes that this invention will change the world.
Who knows, maybe you can invest in a company that brings this to the public?
Tuesday, August 21, 2007
Friday, August 17, 2007
U.S. GDP Compared to the Rest of the World
I was reading a weekly news magazine, and one of the opinion writers pointed out an interesting site called Strange Maps. It has hundreds of strange maps from around the world. There are maps about insane asylum districts in Pennsylvania, the retreat of the Cornish language in England, the potential carving up of Europe had Germany and her allies won World War I and the mocking of Britain's invasion of Afghanistan by naming their provinces after locations in England. The owner just loves maps.
One map in particular is interesting from an economic standpoint and compares each state in the U.S. with a country in the world with an equivalent GDP. California's GDP is about the same size as France. New Jersey is equivalent to Russia. Nevada is Ireland. Etc, etc. Here is a list of GDP's of each state and the list. Here is the map that renames every state in the U.S. with its equivalent country.
It is very interesting to see how the U.S. GDP stacks up to the rest of the world and puts into perspective what other countries produce compared to the United States.
One map in particular is interesting from an economic standpoint and compares each state in the U.S. with a country in the world with an equivalent GDP. California's GDP is about the same size as France. New Jersey is equivalent to Russia. Nevada is Ireland. Etc, etc. Here is a list of GDP's of each state and the list. Here is the map that renames every state in the U.S. with its equivalent country.
It is very interesting to see how the U.S. GDP stacks up to the rest of the world and puts into perspective what other countries produce compared to the United States.
Everything You Need to Know from an MBA Education
When I graduated from the MBA program at the University of Iowa, I told some of my friends that I wanted to write down as much of the theories, equations, buzzwords and business knowledge someplace where I could look it up in the future. Preferably in HTML or in a Word document. Unfortunately, work and other life pursuits pushed this lofty ambition to the back of the line of things I'd like to do.
Fortunately, AgentDisco sent me a link to someone who has done just what I had hoped to do myself, expect they did a far better job. Valuebasedmanagement.net is an ugly page and is basically a list of hundreds of hyperlinked words and descriptions of everything I've learned in the MBA program. When you click on something like, "Cashflow from Operations" or "Theory of Constraints" or "SWOT Analysis" it gives you a simple definition of what that is, as well as a picture or two if applicable. There are also links at the bottom of each page to other areas of the internet for further reading.
I've added this site to the list of links so that if you read this page, you'll have easy access to this site in the future. Check out the site and many thanks to Agent Disco!
Fortunately, AgentDisco sent me a link to someone who has done just what I had hoped to do myself, expect they did a far better job. Valuebasedmanagement.net is an ugly page and is basically a list of hundreds of hyperlinked words and descriptions of everything I've learned in the MBA program. When you click on something like, "Cashflow from Operations" or "Theory of Constraints" or "SWOT Analysis" it gives you a simple definition of what that is, as well as a picture or two if applicable. There are also links at the bottom of each page to other areas of the internet for further reading.
I've added this site to the list of links so that if you read this page, you'll have easy access to this site in the future. Check out the site and many thanks to Agent Disco!
Stocks Still on Sale
The Federal Reserve has continued to add liquidity to the financial system which seems to be buoying the stock market. You can still buy stocks cheap and I recommend this being the perfect time.
If you had bought a $100 worth of stock in a diversified portfolio the day after the 1929 crash, today it would be worth millions, if not more.
If you had bought a $100 worth of stock in a diversified portfolio the day after the 1929 crash, today it would be worth millions, if not more.
Thursday, August 09, 2007
Stocks are on Sale
You may have heard that the stock market has gone down recently due to worries about obtaining credit related to a French bank closing down some of it's lending options.
Both the European Central bank and the Federal Reserve will release more money into the system to ensure that there is enough to do business. This will cause a little inflation, but it will also allow businesses to use that currency to conduct their operations.
What does this mean? Stocks are on sale and now is a great time to buy!
Both the European Central bank and the Federal Reserve will release more money into the system to ensure that there is enough to do business. This will cause a little inflation, but it will also allow businesses to use that currency to conduct their operations.
What does this mean? Stocks are on sale and now is a great time to buy!
China to Devalue Dollar: Let Them!
Through "unofficial" think tanks sponsored by the Chinese government, "intellectuals" have suggested China begin a massive campaign to dump dollars on the international market, which would cause the real value of a dollar to drop.
The reason they are doing this is because the U.S. has insisted that China un-peg the value of their currency, the Yuan, to the dollar. This artificially low value of the Yuan makes Chinese goods cheaper in America and makes American goods more expensive in China. This naturally causes the much ballyhooed trade deficit between us and China.
But what would the devaluation do to the U.S. Well, when a flood of dollars is released on the market, this causes interest rates to rise on Treasury Bonds. The reason is that the U.S. wants to control the amount of money in circulation, so they would raise rates, to encourage more people to buy bonds, which would absorb a lot of the cash. The article mentioned above predicts that this would kill the housing industry, as commercial loans are linked to the Treasury bond yield.
What the article doesn't mention, is that people invested in Bonds would be doing quite well. Banks who issue the bonds would be doing well, too. Moreover, China would be shooting themselves in the foot by eliminating the main customer for their goods (30% of goods exported from China are bought in America). It would also hurt other countries in Europe and Japan that keep a large portion of U.S. dollars in reserve. This would, in turn, decrease those market's demand for imported goods.
So, I say, call the bluff. Let them do whatever they want. Sure it will hurt us a little (housing and corporate borrowing), but it would hurt the fledging economy of China much more.
President Bush agrees and made a statement today calling the idea "foolhardy."
The reason they are doing this is because the U.S. has insisted that China un-peg the value of their currency, the Yuan, to the dollar. This artificially low value of the Yuan makes Chinese goods cheaper in America and makes American goods more expensive in China. This naturally causes the much ballyhooed trade deficit between us and China.
But what would the devaluation do to the U.S. Well, when a flood of dollars is released on the market, this causes interest rates to rise on Treasury Bonds. The reason is that the U.S. wants to control the amount of money in circulation, so they would raise rates, to encourage more people to buy bonds, which would absorb a lot of the cash. The article mentioned above predicts that this would kill the housing industry, as commercial loans are linked to the Treasury bond yield.
What the article doesn't mention, is that people invested in Bonds would be doing quite well. Banks who issue the bonds would be doing well, too. Moreover, China would be shooting themselves in the foot by eliminating the main customer for their goods (30% of goods exported from China are bought in America). It would also hurt other countries in Europe and Japan that keep a large portion of U.S. dollars in reserve. This would, in turn, decrease those market's demand for imported goods.
So, I say, call the bluff. Let them do whatever they want. Sure it will hurt us a little (housing and corporate borrowing), but it would hurt the fledging economy of China much more.
President Bush agrees and made a statement today calling the idea "foolhardy."
Tuesday, August 07, 2007
Fastest Growing Suburbs in America
A recent report from Forbes lists the top growth suburbs in the U.S. Suburbs in Los Angeles, San Bernardino and Sacramento are growing quickly. Why? The article cites a study by the Brookings Institution pointing out that cities with restrictive policies on growth or expansion, are artificially raising the overall value of homes and land values in that particular city. This forces people to seek more affordable locations further away (far suburbs or exurbs).
It's ironic that policies that are trying to prevent urban-sprawl are actually encouraging it.
Guess what the highest household expense for people living in Houston is? That's right, transportation.
Another interesting fact from the article is that Boston is considered to have more sprawl than Las Vegas, because Las Vegas has more densely populated land.
I wrote about this before back in 2005, when mentioning a great article by Thomas Sowell, pointing out the restrictions of cities in San Mateo county, California.
The best way to eliminate sprawl and keep people near the jobs that are demanded by the economy, is to eliminate building restrictions, and especially height restrictions. My own city has been struggling with this in regard to their local airport. Values in my county are among the highest in Iowa, and in my opinion, it is because of restrictions on re-zoning downtown areas and placing artificial height restrictions on commercial and residential properties.
You see, people want to live downtown or where there are jobs, or maybe where the air is clean or the view is great. Some of us want to prevent that great view from being soiled by more people. This, however, is selfish and begins to put strain on the fragile relationship of supply and demand.
Cities with higher land values should allow developers to build up. Skyscrapers or tall buildings allow more people to co-habit the more expensive land. They are happy, because they are close to the jobs downtown, or the nightlife, or whatever. The only people not happy are elitists that often feel that they know better than thou and try to control growth through edicts, laws and popular issues and buzzwords, like sprawl.
However, there is a dilemma in wanting people to abide by the most basic forces of supply and demand. I, as a homeowner, should be in favor of building restrictions. It raises the value of my home (closer to the city center than those new ones being built 15 miles away). But my selfishness aside, it is better for the city to allow people (developers) to build where the demand is screaming for more homes or more dense dwellings. With a University, multiple hospitals, banks and other professional businesses downtown, having more people have the ability to live there (wherever "there" is) is the best for everyone.
It's ironic that policies that are trying to prevent urban-sprawl are actually encouraging it.
Guess what the highest household expense for people living in Houston is? That's right, transportation.
Another interesting fact from the article is that Boston is considered to have more sprawl than Las Vegas, because Las Vegas has more densely populated land.
I wrote about this before back in 2005, when mentioning a great article by Thomas Sowell, pointing out the restrictions of cities in San Mateo county, California.
The best way to eliminate sprawl and keep people near the jobs that are demanded by the economy, is to eliminate building restrictions, and especially height restrictions. My own city has been struggling with this in regard to their local airport. Values in my county are among the highest in Iowa, and in my opinion, it is because of restrictions on re-zoning downtown areas and placing artificial height restrictions on commercial and residential properties.
You see, people want to live downtown or where there are jobs, or maybe where the air is clean or the view is great. Some of us want to prevent that great view from being soiled by more people. This, however, is selfish and begins to put strain on the fragile relationship of supply and demand.
Cities with higher land values should allow developers to build up. Skyscrapers or tall buildings allow more people to co-habit the more expensive land. They are happy, because they are close to the jobs downtown, or the nightlife, or whatever. The only people not happy are elitists that often feel that they know better than thou and try to control growth through edicts, laws and popular issues and buzzwords, like sprawl.
However, there is a dilemma in wanting people to abide by the most basic forces of supply and demand. I, as a homeowner, should be in favor of building restrictions. It raises the value of my home (closer to the city center than those new ones being built 15 miles away). But my selfishness aside, it is better for the city to allow people (developers) to build where the demand is screaming for more homes or more dense dwellings. With a University, multiple hospitals, banks and other professional businesses downtown, having more people have the ability to live there (wherever "there" is) is the best for everyone.
How Much Should You Be Paid?
There probably comes a time in most people's professional careers when they ask the question, "How much should I be paid?"
There are a few sites online that may be able answer that question, by comparing the data of the job you enter with hundreds of similar jobs around the country and in your city or area. Most of the sites require you to pay extra for a detailed report, but the free reports give enough info to determine whether you are at the top, the bottom, or somewhere in between all of the other people with a job similar to yours.
Salary.com is the biggest site and incorporates into the job search site, Monster.com. I'm not really impressed with this service. They keep a lot of information hidden, so your free report doesn't have as much information as it could. The one thing they do well is allow you to compare your current job's salary with that of someone similar to you, but living in a different part of the country or city. You can see how much the cost of living would compare to your current city and how much you would need to make in order to maintain the same lifestyle.
I really like payscale.com, as it reveals a lot more information about your salary for free. Another great feature is that it literally compares your information with that of more than 7 million people. It asks you what you were doing 5 years ago. Then it asks what you are doing now, and let's you see what people who had your job 5 years ago are doing now. It's a neat way to see what might happen in the future. Of course with our dynamic economy and the way that you have to constantly adapt with new skills and network connections, you'll have to take the results with a grain of salt!
Check out the sites and see what you should be paid and what you might be paid in the future!
There are a few sites online that may be able answer that question, by comparing the data of the job you enter with hundreds of similar jobs around the country and in your city or area. Most of the sites require you to pay extra for a detailed report, but the free reports give enough info to determine whether you are at the top, the bottom, or somewhere in between all of the other people with a job similar to yours.
Salary.com is the biggest site and incorporates into the job search site, Monster.com. I'm not really impressed with this service. They keep a lot of information hidden, so your free report doesn't have as much information as it could. The one thing they do well is allow you to compare your current job's salary with that of someone similar to you, but living in a different part of the country or city. You can see how much the cost of living would compare to your current city and how much you would need to make in order to maintain the same lifestyle.
I really like payscale.com, as it reveals a lot more information about your salary for free. Another great feature is that it literally compares your information with that of more than 7 million people. It asks you what you were doing 5 years ago. Then it asks what you are doing now, and let's you see what people who had your job 5 years ago are doing now. It's a neat way to see what might happen in the future. Of course with our dynamic economy and the way that you have to constantly adapt with new skills and network connections, you'll have to take the results with a grain of salt!
Check out the sites and see what you should be paid and what you might be paid in the future!
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