Positive Economic News? The worst may still not be over

Filed under: Business, Global Economy, World Events

After several months of bad economic news, there are finally positive signs in the economy.  After the fed meeting last Wednesday, the stock markets have been responding positively to the news and some of the economic indicators are leveling or improving.  Banks have started to relax lending terms and the services industry is growing.  Manufacturing indicators are also improving after four months of declines at the end of 2008.  Regardless, this should not be seen as a sign we have reached rock bottom, but instead should be seen as an indicators that we’re almost at the bottom and the economy will be on the upswing soon.

However, despite the positive market reactions, yesterday’s news on the financial sector is quite disturbing where ten of the nineteen largest US banks tested need to raise a total of $75 billion to keep afloat.  These ten banks now have to put together plans to raise new capital and exectute them within the next six months.

Want to see how your bank is doing?  Take a look at the table on CNN Money.

The Danger of Social Networks

Filed under: Business, Personal, Technology

All of us have now heard of social networks such as LinkedIn, Facebook, MySpace, Twitter, etc. The number of social networks out there continues to grow and with it, so do the number of users. I regularly get contacted by recruiters via my LinkedIn profile, so I know that keeping the network updated works. However, there are pros and cons that come with using social networks.

First, social networks are not only viewed by your friends. They can potentially viewed by your family, colleagues, and future employers. You may think “what’s the big deal”, but what you post now can potentially be harmful in the future.
If you have even the slightest hesitation about posting a picture or a statement which you don’t want someone else to see, don’t do post it.

Second, social networks can be addictive. While networks are a great way to keep up to date with other contacts, it should not be the ONLY form of communication. It is simple to spend hours at a time glued to your computer, chatting with friends and updating the networks. I know a couple of people like this (you know who you are). To get past this additiction, set a timer on your computer. There are many freeware software clocks out there. When the time runs out, log out and do something else.

Finally, be aware of when and where you update your network. Some people I have spoken to update their profiles everywhere, including at the office. Remember, management is probably also using the same social networks you are and they can see when you update. In certain environments, this is frowned upon.

While social networks offer great benefits for keeping people connected together, think before you post!

The economic impact of the Swine Flu

Filed under: Business, Global Economy, World Events

As the number of confirmed swine flu cases increases, there is a lot of panic going on. Some people have been buying drugs overseas and importing them for their own personal stockpiles. Others have resorted to not going out at all. The recent drop in oil prices seems to have helped the economy and certain economic indicators have suggested that the economy is starting to recover. Since the swine flu started appearing and governments have closed schools and sent many notices to the people, one of the fears I see is a decrease in consumer spending and once again a slowdown in the economy. One of the hardest areas hit by the flu was Mexico. Since the flu hit, schools, businesses and other social venues have closed down for anywhere between a few days to several months. Small businesses that depend on a steady stream of customers and income may be looking to close. Certain imported goods will also see an increase in price due to a drop in supply and the scarcity of the good.

The swine flu will definitely impact schools and will have a snowball effect on the economy. The question now remains, how much will it impact and how quickly can regain lost ground.

The Job

Filed under: Business, Technology

All of us have seen the current state of the economy and if I’m sure some of you are also holding your breath to see the election results.  No matter who wins the U.S. elections, the economy is going to take a long time to recover and for credit to once again start flowing.  The following video titled “The Job” won several awards at the short film festivals but outlines on possible (but not probable) outcome to our global economic problem.

[youtube:http://www.youtube.com/watch?v=3XGJq8wrw5I]

The Future of the Airline Industry

Filed under: Business, Global Economy, Travel

With fuel costs increasing, many of the airlines are looking for ways to make an extra buck or to lighten the load of the plane.  Over the last year, we have seen that airlines have started charging fees for luggage.  The main question I have for the airline industry is “Is it helping at all?”  With the TSA regulations on liquids, gels and other carry on items, many people do not have any choice but to check their bags in.  All of the carry on baggage which would have gone into the cargo bay of the plane is now stuck in the cabin with the rest of the passengers.  The Houston Chronicle composed a very good article about a futuristic airline, and I have to say they do an excellent job in outlining the potential problems.  I have heard about stories where people are willing to fly across the US and back again on the same day to save their frequent flier status.  At the rate the airline industry is going, I would be tempted to do the same thing if I was in the same case. 

Houston Chronicle article: Fees galore when flying in the future

http://www.chron.com/disp/story.mpl/business/steffy/5933335.html