Linking ≠ endorsement. Enjoy and share:
- Bankrate | Investor Relations | Press Releases
Almost three in four Americans are holding back on spending, according to a new Bankrate.com (NYSE: RATE) report. Stagnant income is the most frequent reason (32%), followed by the need to save more (24%) and worries about the economy (20%).
… Greg McBride, CFA, Bankrate.com's senior financial analyst. "Seventy percent of the economy relies on consumer spending, so when this many consumers are cutting back, it's going to be hard for the economy to get out of first gear."
- Watchdog asleep on Australia's sub-prime scandal
Where was the risk management?
Brailey describes the regulatory failure as 'Australia's sub-prime scandal'. Unlike the imbroglio in the US where the systemic sale of 'securitised' or bundled-up mortgages enabled the banks to lower their lending standards and sell more mortgages, lending standards in Australia appear to have been relaxed by inflating borrowing capacity on Loan Application Forms.
… 800 loans written on the back of wrong data in loan application forms is no coincidence. These are just the cases which we know about, thanks to Denise Brailey's untiring work on behalf of victims. And the failure of regulators and banks to ensure their customers get their loan documents upon request begs a thorough examination.
- How Quarterly Capitalism Stifles Investment And Wages
Weak American investment and weak wages are the consequence of weak corporate governance, with solutions to be found in Australia and northern Europe. Here are the facts:
First, real U.S. wages have gone flat since 1980 despite continued productivity gains, while in Australia and northern Europe they've mostly kept pace with productivity. Today, wages and comprehensive employer costs for labor are about $10/hour higher in Australia and northern Europe than in the United States. In manufacturing, German wages are $20/hour higher.
The article says that being focused on short-term profits and not plowing money/capital back into the business but rather taking it as executive compensation and perhaps dividends are the problems. What's interesting is that these issues have been around for decades, and those who said that changing to the current model would be a bad idea have apparently been proven right.
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