Chinese Tires To Cost More

Chinese Tires To Cost More

http://www.msnbc.msn.com/id/32808731/ns/business-world_business/


President Obama has imposed punitive tariffs on all car and light duty truck tires which enter the American markets from China. This has been done to protect the American tire industry which believes that thousands of American jobs were lost owing to competition from China.

What is the solution to this problem? Is protectionism the answer? Is not the US a strong advocate of free trade? Many a time, important policy decisions are taken not so much on the merits of the case concerned but because of other related issues. This decision too seems to bear the same stamp. The President needs the support of the unions for his health care plan, and this looks to be a step directed to achieve this end.

Oil Touching $75!!

Oil Touching $75!!

http://news.yahoo.com/s/afp/20090825/bs_afp/commoditiesenergyoilprice

The volatility in crude oil prices continues. This is a market that seems to swing very easily with sentiment. Any announcement of potential recovery sends oil prices surging upwards, followed by a rapid decline on some other announcement of drooping confidence.
Monday’s surge was spurred by the US consumer confidence index announcement which showed an increase over the previous month. One would recall that at the same time, last month, when this same index had showed a decline for the second consecutive month, oil prices had started plummeting downwards. From $60 to $75 a barrel, oil prices can be anywhere on any day, depending on what announcement the US Fed has made. The underlying feeling is though of hope and expectations, and hence this quickly translates into buy orders at the first positive sign.

Senator Seeks SEC Review Of Stock Market Structure

Senator Seeks SEC Review Of Stock Market Structure

http://online.wsj.com/article/SB125108149844652889.html

Senator Ted Koffman is expected to seek a review by the Securities & Exchange Commission of the current fragmented nature of the stock markets. In a letter addressed to the SEC Chairman Mary Schapiro, Koffman mentioned that the various regulatory moves in the past one decade have made the current market structure too complicated with high speed traders having an advantage over the retail investors. There is need to check whether the various execution venues such as exchanges and dark pools are being monitored for the best execution and the national best bid and offer, Koffman has said. High frequency trading has emerged as a major form of trading and constitutes a significant portion of the total trading volumes. This has raised concern amongst the various regulatory authorities.

What’s The Objective Behind “Cash For Clunkers”?

What’s The Objective Behind “Cash For Clunkers”?

http://www.msnbc.msn.com/id/32290028/ns/us_news-environment/

Environmentalists are protesting that this program is not going to do anything for climate change. As per their calculations, the reduction in carbon dioxide emissions as a result of replacement of more polluting vehicles with less polluting vehicles is equivalent to only the amount of carbon dioxide generated by the country in an hour in an entire year. In other words, it is just a drop in the ocean. But is it that bad? After all, one has to start somewhere.
I, for one, think that though reduction of polluting gases is a stated objective of the program, the real beneficiary is the automobile industry. This program is attempting to kick start this industry which has been idling for a while and results indicate that it is working. So go trade in your old car, as an owner you will have lots to gain!

GE To End Government Loan Backing

GE To End Government Loan Backing

http://online.wsj.com/article/SB124826079230071787.html

Industrial conglomerate General Electric has announced plans to reduce its dependence on government financial assistance and guarantees. The company which is the largest user of government guarantees for corporate debt intends to stop using the same on commercial paper while restricting its usage for long term debt. GE officials have said that in the wake of the recovery in the overall markets, the company would like to return to normal funding options rather than rely heavily on government funding. General Electric has recently raised $3 billion worth of debt that is not guaranteed. The move is also aimed at warding off greater regulation by the government which accompanies any kind of aid. The Obama administration, however, is working on a financial overhaul of the regulatory system and aims to oversee the operations of large companies having major financial divisions.

Global Trade Continues To Slump In 1Q, Says OECD

Global Trade Continues To Slump In 1Q, Says OECD

http://news.bbc.co.uk/2/hi/business/8151771.stm

The trade in the global world has continued to decline in the first three months of the current year, although the pace of decline has moderated, according to the Organization for Economic Development and Cooperation. The total value of exports of goods and services in its 30 member nations declined by 13.4% in the first quarter of the current year. This compared with an 18.5% decline reported for the final quarter of 2008. Imports in the region declined by 15.2% in the first quarter of 2008 compared to an 18.4% decline in the fourth quarter. The volume of trade in the G-7 nations also continued to decline in the first quarter of 2009 with exports and imports registering a fall of 13.6% and 10.5%, respectively.

Subsidizing College Education

Subsidizing College Education

http://news.yahoo.com/s/ap/20090629/ap_on_bi_ge/us_student_loan_relief;_ylt=Ati6tuq5WAreqSmBP8OMP0eyBhIF;_ylu=X3oDMTJuYXA2ZzYzBGFzc2V0A2FwLzIwMDkwNjI5L3VzX3N0dWRlbnRfbG9hbl9yZWxpZWYEY3BvcwMxBHBvcwMxBHNlYwN5bl90b3Bfc3RvcnkEc2xrA2Zvcm1vZGVzdGVhcg
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A new program launched by the Department of Education seeks to provide relief to those who are struggling to repay loans taken for college education. The program aims to put a ceiling on monthly repayments and write off balances remaining after twenty five years. For those employed in public service, the remaining balance can be written off after ten years.
Why has such a program been instituted? I would think this is to encourage students to seek a college degree. Many might get disheartened seeing people around them who even after equipping themselves with a college education, earn modest salaries and then struggle to repay student loans. As a nation building exercise, it is important that a greater percentage of youth opt for higher education. This step is a move in that direction.