You keep you money in the Banks. Most of the people have their life savings in a bank, in one form or the other.
What will happen to all the money if the banks get trouble and have to shut shop? Maybe they would hold paying you off for some months on the minimum while the banks undergo federal mandated change of ownership and the new owners take charge.
IndyMac Bank failed recently and now everybody is trying to make out how the situation is with other banks. Its hilarious if you look at some of the big name economics/business newspapers, magazines and see what they have to say.
There is an irresistible deal on right now at Best Buy that you might want to check out.
The circular is dated for 7/13/08 - 7/19/08 and the details are mentioned below:
Be aware of these conditions though:
Gas prices are taking America into a hole and there seems to be no getting out in sight. The country is importing almost 70% of its oil paying around $700 billion a year through its nose. This is one issue where we cannot drill our way out.
Its official. Bad economy hurts even the venerable ones who are perched atop. And if the go-back-to-the-retro look can’t save you then nothing can. So Starbucks has now decided to cut down its operational cost by closing down 600 stores all over US.
Most of these stores will be the under performing ones. And you might ask, what will happen to the workers? Well, the company has announced these workers will be placed at the running stores but how this actually pans out. Your guess is as good as mine.
Just who in his right mind will thrown money for drinks that go by size names like Venti! Only the most die hard coffee drinkers I guess.
City Of Angels - Los Angeles is sometimes also known as the “Sultan of Sprawl.” But thats not where the latest growth is. Most of the Californians or new settlers are actually heading somewhere else.
Angelenos are packing their bags and heading 60 miles east to San Bernardino, where twelve of the country’s 100 fastest-growing suburbs are located. Leading the pack? Beaumont. It has experienced 130% growth since 2000.
So why is Beaumont so popular.
_______________________________________________________
This wont probably shock many but U.S. home prices tumbled in April at a record rate.
The fallign prices in April were at their fastest rate since a widely followed index was begun in 2000 with all 20 metropolitan areas surveyed posting annual declines for the first time.
The Standard & Poor’s/Case-Shiller home price index of 20 cities fell by 15.3 percent in April versus a year ago. Prices nationwide are at levels not seen since August 2004.
The high and rising gas prices are altering summer plans like nothing else. If you ask an average American about whats bothering him the most, it may or may not be Iraq and Hillary’s annoying laugh (now that she is no more in the race this issue would recede), but definitely the sky high gas prices and which show no sign of stopping.
Fareed Zakaria, the Indian born oracle with an impish grin, he is also the editor or Newsweek International and also hosts a show on CNN tries to answer some of these most vexing questions.
According to FZ, the basic reason is high and rising demand. This is what makes the high prices we face today different from previous episodes of high price.
In the past, prices rose because of restricted supply; OPEC basically slowed production to jack up prices. This time, it is rising demand, because of American gas guzzlers, but also China and India.
A business magazine had an interesting article recently that raised some pertinent questions about the nationalism of multi national companies and where do their core interests lie, given today’s globalized world.
Most of us are already familiar with the Accenture controversy regarding this. Even tough Accenture is considered a blue eyed US tech services company in popular perception, the company is actually incorporated in Bermuda. Basically a tax haven country which helped the company save big time in corporate taxes.
IBM is based in Armonk, US, but it employs more people outside US, and a substantial chunk of them in India. India is IBM’s hub for global delivery of software solutions template and it has about 80,000 IBMers on its payroll in this south Asian country.
TCS, based in Mumbai, India is the nation’s largest tech services company. It gets more than half of its total revenue (about 51%) from the North American region. Leaves no doubt about where its energies are focused even though its based more than 6000 miles away from its core market.
Not surprisingly, IBM gets a bigger share of its revenue from markets outside of US and has seen its bottom line improving even though the US is witnessing an economic gloom and doom of sorts. Its stock initially rose 3% and then by 25% since mid-February.
On the other hand, TCS witnessed a slight slide in its fortunes, its stock is down by around 10%. Putting all their big eggs in one market is going to make these companies vulnerable. Note, TCS is also one of tech India’s most geographically diversified company. Others are banking on US for almost 60 to 70% of their revenues.
But the situation is not that bad for Indian tech companies. With the US economy already in doldrums or veering close to it, depending on whom you believe, US is going to outsource-offshore more to cut costs and improve the bottom line. But at the same time, Indian companies should work on raising the bar and getting a better traction in the emerging markets like China, Russia, Mexico, Brazil etc.
IBM is now the numero uno seller of tech services in India, where its revenue grew by 41% in the last quarter.
American tech service have not only mastered the art of outsourcing but also beat their Indian compatriots it seems.
Businessweek has an interesting yet nothing-new story on visas for high-skilled workers in the United States. The program is known as H-1B visas and it was initially created to allow local American companies to hire talent from around the world in fields where the man power is in short supply.
