InvestYoung

According To Data!

Do you thing we’re in a typical recession? If you answered yes, you would be wrong. According to data there is nothing typical about what going on. The world markets are very showing volatility never seen before. In a typical recession, stocks will go up about six months before the economy. But it looks like the economy might need to recover first. Every time a few bad reports come out the markets drop like a bad habit, then go back up the next day. We need good results from the economy to turn the markets around. We need good reports from just about every industry out there. Right now the Insurance Industry is getting hit pretty hard. People are losing their jobs, which means there losing their health care, life insurance and even car insurance. These are only a few insurance products I have listed; there are a lot more out there. Sooner or later people will start to seek out new insurance rates. Some will even look for car insurance reviews , life insurance reviews, and other products. So let’s hope for some go reports on the economy this week, we really need it.

Turbulence In Financial Markets!

Today on Wall Street might not be a good one. Now insurance giant American International Group is struggling with paying out over $100 million to the group that caused their problems. Some say that this group was due over $120 million. But AIG and the real owner, the U.S People are saying take it or leave it. I don’t think these people are due anything, they should’ve fired all of them, contracts or not. Another problem for AIG is that insurance advertising has really picked up on TV, online, and in the streets. Insurance companies are really pushing for our business. This makes for the outcome of the day very hard to predict. Then again who really knows what will happen anymore. The whole financial markets are in a global credit crisis, yes, still today. Think about it for a second, 3 of the 5 biggest investment banks are gone, 2 in one day last year. And now the world’s largest insurance company, AIG will be gone if they don’t turn themselves around soon. The Fed has left the interest rate at zero percent to stabilize the economy.

Another Interest Rate Cut!

The Fed Chairman Ben Bernanke and his colleagues are having a 2-day meeting on the state of the economy starting Monday. On Tuesday most analysts think they will cut the rate by .50 percent. An interest rate cut of .05 percent will but the key rate to it’s lowest point ever, .50 percent. I think they could go all the way and drop it down to zero. And why not take it to zero, it can’t hurt us anymore then we’re already hurting. And who knows, it just might help free up some money for the banks to start lending again. With us being in the worst financial crisis since the 1930s every bit is going to help. But some analyst’s feel dropping the key interest rate might not be enough. If this move isn’t going to be enough what will be enough. I also keep hearing everyone saying things are going to get worst before things get better, but how much worst can things get. Every business sector is in financial crisis, which has never happened. So we’re is it going to get worst, can anyone answer that?

The List Grows!

Most of you already know about the arrest of Bernard Madoff, but did you know the list of clients he had? I was just reading that Madoff said the list of clients that where part of the Ponzi scheme where 25. But that seems not to be the case as Federal Investigators dig deeper. Some of the affected ones of this scheme is Former Philadelphia Eagles owner Norman Braman, New York Mets owner Fred Wilpon and J. Ezra Merkin and the chairman of GMAC Financial Services just to name a few. This scheme as also reached a few non-profit groups, banks, health system, hedge fund and even the Town of Fairfield, Conn. I feel that Bernard Madoff should go to prison until the day he dies. This man had everything, and blow it all away on scheme. And in the end he tried to give what money was left to his family and friends, who turned him in. That’s right, he only got caught because of a few close family members turned him in to the SEC who contacted the Federal Investigators. This guy gets my biggest loser vote for the year.