Monday, November 7, 2011
Sunday, November 6, 2011
LSU takes it home!!! After a long fought game battled between two best teams in the nation No.1 Lsu and No.2 Alabama, Lsu wins with a kicked field goal with 1 second on the game clock. Not only was it a defensive game but a dogfight to see who wanted it more. Neither team scored a touchdown throughout the entire game. The score was 9-6, and this win by Lsu now moves into the driver’s seat to play in the Allstate BCS National Championship Game. I guess those expensive tickets were worth it after all. Although both teams only have two pretty good SEC teams to play I still don’t think its safe to say that Lsu is the best team in the SEC. But I do think the SEC is the strongest conference in college football and Lsu is ranked No.1, I still feel that on any given day Lsu can be defeated if they don’t stay focused and remember why they’re ranked No.1.
Friday, November 4, 2011
Apple creating the iphone, ipod, and ipad are just some of the many miracle products that Steve Jobs left for the United States and world consumers over the last 30 years. Steve Jobs’s first success was the original Macintosh computer. He had a vision in the early 1980’s of all people owning their own computer, which helped him create user-friendly software. Steve Jobs understood the concept of supply and demand in the free market economy. In other words, with little or no government control, buyers and sellers transact freely. This helps develop unique innovated products that are one of a kind. Steve Jobs understanding of the free markets helped him become one of the richest men in the world. Steve Jobs’s understanding of development was a key factor to his success. The iPhone series just came out with the iPhone 4s, which Steve Jobs knew that all iPhone users would be anxious to upgrade to the latest and greatest. His market driven strategy is to be exclusive with his products and feed the free markets with technology. The U.S. is a technology-based society and it has been fueled throughout the years by Steve Jobs’s creativity.
During the last three years, the government has been very involved in regulation of our financial institutions. It has really been a factor in the U.S. slowed economy. This situation all started by the U.S. government under regulated, the financial institutions back in the late 1990’s. The goal of the U.S. administration at that time wanted to create more home mortgages through the financial institutions, Freddie Mac and Fannie Mae. During the time from 1997 to 2008 Freddie Mac and Fannie Mae created loans to consumers that were under regulated. What this means, is that unqualified and unsecured loans were approved to hundreds of thousands of people. The types of loans that were created were interest only and three-year rate change. Consumers had low payments initially and over time the monthly payments increased. The homeowner cannot afford the increased rate and eventually was forced into foreclosure and bankruptcy. All of this was a huge factor of the start to the housing bubble and financial crisis in 2008. Deregulation started this mess, Freddie Mac and Fannie Mae created more under qualified loans that really triggered the world financial crisis. Since 2008, the U.S. government has changed the regulations to the extreme of slowing the bank financing into the U.S. economy. In conclusion, Freddie Mac and Fannie Mae received a government bail out in 2008 and 2009 for their idiotic mistakes during the years 1997 to 2008. There is no way that any executives from these institutions should receive any type of bonus until all the money has been paid back to the U.S. government.
Thursday, November 3, 2011
No.1 Lsu or No. Alabama? The price to see this game is growing exponentially! I feel that since this game is probably the biggest game that’ll be on nation television the demand to access it will be through the roofs. It shows here that the average ticket prior to the season is $402. Yet if they want it now they’d have to pay $508, which is about a 28% increase in price. Glenn Lehrman of StubHub stated that his highest-priced ticket Thursday morning was selling for about $5,000. Looks like a little excess demand may come in to play if Mr. Glenn keeps selling these tickets at these prices. But I also believe that the tickets can be symbolized as an inferior good. It can be shown as a “status indicator” big tickets for big bucks and high class fancy tux.
Jawbone is coming out with some new technology called the UP. The UP lets users track their daily routines: how much and how fast they walk, calories burned, how many hours slept -- and even the quality of that sleep. Plug the hidden headphone jack into an iPhone's audio jack-in between charges and all that data is synced with an app that analyzes and displays it in brightly colored graphs. The UP is a very new market and no other firm has come up with this kind of technology. If the Jawbone product is very successful many other companies will try to compete with this new product because they will think that they also will be successful with the product. Also in the article it says that Jawbone is testing an untested market, it is in the category of the health products. By being the first in this kind of device there will be no competition, so Jawbone will make a maximum profit until another firm comes out with a similar product.
Wednesday, November 2, 2011
The legendary german automaker, BMW, has recently introduced a new sub-brand called BMW i. BMW, who caters mainly to european city auto owners, has decided to compete in the electric car market. BMW has recognized the huge need to alternative fuel vehicles and wants to enter the electric market with a new approach. BMW EfficientDynamics is BMW's diesel auto line that is ultra gas efficient and has been a pioneer in modern diesel vehicles along with Mercedes-Benz BlueTec, and Audi TDI. BMW i cars will be stylish and innovative, with never before seen auto design. Aerodynamics, plug-in electric ability, and laser headlights are a few things that represent the innovative design. Electric cars such as the Chevy Volt and the Nissan Leaf have had a hard time in today's market. Electric cars are known to not be too appealing to the eye, and BMW is aiming to be the first automaker with performance aspects of a high-end sports car, and futuristic design. BMW is depending on the demand of alternative fuel cars with the bonus of the appeal of the car. BMW i is projected to launch in 2016.
Tuesday, November 1, 2011
James Livingston suggests that instead of corporate spending, more of the spending needs to be in the hands of the consumers in order for the economy to grow. To make this work, he suggests that company income should be put more towards higher wages that can then be spent into the economy than into company profits that would be used for investment and expansion. The changes he proposed would be enforced by government policy. Increased government regulations continue to shift the market farther from capitalism and will limit the ability for the invisible hand of the marketplace to function. Additionally, he says that the economy can flourish while investment spending decreases, which has proved true, but the way he talks about it makes it seem as if he finds reinvestment altogether unnecessary. He does not believe that it can create a sufficient amount of jobs, but at this point in the US economy, any job growth can help. The overall tone of the article, which can easily be seen in the title: “It’s Consumer Spending, Stupid,” seems more interested in the lack of power in the 99 percent and the supposed corruption of the 1 percent than writing an objective piece on the future of the economy.
College is costing more and more forcing students to get loans or just drop out of college. If more students are not getting college education this could substantially affect our country’s economy. If the drop out rate for college goes up that means there will be many empty job spots that require workers with a college education. There will be a low marginal product of labor, and the company’s output will decrease, which then lowers the GDP. If the GDP lowers then slowly the economy will start to contract. The video shows the cost of public and private, around $17,000 for public per year, and around $32,000-$34,000 for private. The costs are still rising for these schools, and the salaries of workers are not increasing as fast as college tuition. Which means some parents will not be able to save up enough money for their children to go to college. If the costs keep on going up many more people will not be able to obtain an education that is necessary for a good economic country.