During the recession that began in 2008, traditional banks became wary about awarding risky loans. Not only had bad deals come back to hurt many institutions, but also new regulations required many banks to increase their capital reserves. With less money to lend, banks largely stopped financing risky endeavors like commercial real estate and small business loans.
To fill this void in the market, non-traditional lenders like real estate investment trusts (REITs) and online outlets increased their presence. Fueled by Continue reading
In the mid-20th century, many struggling nations around the world relied heavily on outside governments for assistance. Foreign aid of this nature accounted for 71 percent of all worldwide capital flows as recently as 1960. As the years progressed, however, governments largely removed themselves from the global development game. Today, foreign aid accounts for less than 1 percent of the U.S. budget and only 9 percent of current capital flows.
To fill this void, non-governmental organizations and groups such Continue reading
Even though the U.S. has a gross domestic product (GDP) valued at nearly $17 trillion, that huge figure still doesn’t come close to providing a complete picture of the American economy. Each year billions upon billions of transactions go undocumented, untaxed, and ultimately unrecorded by official GDP statisticians. Whether it’s earning a few bucks by mowing a neighbor’s lawn or by selling drugs, these concealed deals all form what’s known as the underground economy.
Many economists have said that it’s Continue reading
Recent federal banking regulations have placed limits on the fees that financial institutions can charge for things like overdrafts and credit card transactions. Although this has been good news for consumers and merchants, the new rules have reduced revenue streams for banks across the country. As a result, many institutions are looking to make up the difference through additional sources of income, such as Western Union branches.
The more than 160-year-old money-wiring firm sells its services to 52,000 locations throughout Continue reading
Crowdfunding websites like Kickstarter and Indiegogo have allowed thousands to receive the capital they need to realize their entrepreneurial dreams. However, these sites tend to work out best for people whose ideas play to an Internet audience, such as artists or video game designers. That’s why U.S. lawmakers passed the Jumpstart Our Business Startups (JOBS) Act in 2012. The legislation is meant to make crowdfunding more accessible to small businesses that may not have much of a web presence. Continue reading
In the highly competitive world of Silicon Valley startups, entrepreneurs need more than just a great idea if they want to become the next Google. Since new tech companies require huge amounts of cash to get off the ground, many startups spend as much time fundraising as they do developing products. Fortunately for today’s tech entrepreneurs, attracting a first round of investment may becoming easier for some. Increasingly eager angel investors as well as crowdfunding services have allowed the number Continue reading
The Dow Jones Industrial average is often considered a bellwether for the economy. This stock index of 30 large publicly traded American companies offers a snapshot of the nation’s fiscal wellbeing for analysts and day traders alike. Regardless of its popularity, however, the Dow is hardly perfect. Deciding which companies comprise the index is a delicate process that sometimes omits major players. For instance, a couple years ago we shared a story in the newsletter about Apple’s absence from the Continue reading