Between July and September, Mexico's economy only grew 2%, the worst in 2 years. The reasons are that Mexico has cut spending, production has declined, and consumers have lost confidence. Oil makes up a third of Mexico's economy, and with low prices and weak demand from America, they have been waning in that sector. Some reports show that Trump is a factor as well. The value of the peso falls every time Trump's odds rise. This year, the peso is down 8% against the U.S. dollar. Even though the weak peso could help the economy by making things affordable, Mexico has not felt that benefit yet. Political uncertainty in Mexico is also a factor. Their current President Enrique Pena Nieto has the lowest approval rating since the mid-1990s.
Trump having an effect on the peso is puzzling news. Could it be because of consumer confidence? The most pertinent question would be what would happen if he was elected? Would the economy crash? It is good news that the weak peso might make thing affordable in the future, but it is still frightening overall.
Source: http://money.cnn.com/2016/10/31/news/economy/mexico-gdp-trump/index.html?iid=SF_LN
Scare City
Tuesday, November 1, 2016
Thursday, October 27, 2016
Stanley Fischer warns of low interest rates
Stanley Fischer, the Vice Chairman of the Federal Reserve warned of the danger of having low interest rates on Monday, saying they can lead to longer, deeper recessions and can make the economy more vulnerable. He said they can be dangerous to financial stability, though there is no evidence of that as of now. He also said the central bank has limited power when it comes to fighting recessions because they do not control all of the factors leading to it. This contrasted with Janet Yellen's remark on friday saying that the Fed may want to run a "high pressure economy" that has low interest rates. Fischer noted that technology and demographics (an aging population) are contributing to the low rates, as well as weak foreign growth and weak investment.
Source: http://www.cnbc.com/2016/10/17/feds-fischer-warns-of-the-dangers-of-low-rates.html
Source: http://www.cnbc.com/2016/10/17/feds-fischer-warns-of-the-dangers-of-low-rates.html
Consumer confidence for October drops below estimate.
The Consumer Confidence Index dropped to 98.6 in October from 104.1 in September, which was much lower than the estimated 101.5. The survey in question measures confidence toward business conditions, personal finances, short-term outlook, and jobs. People who described business conditions as "good" decreased more than 2 percent to 26.2%. The people describing them as "bad" increased almost 2 percent to 17.7%. Furthermore, people who described jobs as "plentiful" decreased from 27.6% to 24.3%. The Present Situation Index also decreased from 127.9 to 120.6 along with the Expectations Index, which declined from 87.2 to 83.9. This shows that not only the job market is in decline, but the public opinion of the job market is declining as well for reasons including inflation, wages, job conditions, taxes, and technology performing tasks that at one time required human labor.
Source: http://www.cnbc.com/2016/10/25/consumer-confidence-report-for-october-2016.html
Source: http://www.cnbc.com/2016/10/25/consumer-confidence-report-for-october-2016.html
Tuesday, September 27, 2016
Donald Trump criticizes Hillary Clinton's stamina during debate
The following is a summary and analysis of the article, "Trump: Clinton 'doesn't have the stamina' to be president" by journalist Sophie Tatum from CNN.
During Monday night's debate, Donald Trump said that Hillary Clinton "doesn't have the look. She doesn't have the stamina." In response to this, Clinton said, "as soon as he travels to 112 countries and negotiates a peace deal, a cease fire, a release of dissidents, an opening of new opportunities in nations around the world, or even spends 11 hours testifying in front of a congressional committee, he can talk to me about stamina." She pointed out that he changed his point from Clinton's "look" to her "stamina." "He tried to switch from looks to stamina, but this is a man who has called women pigs, slobs and dogs." Trump defended his comments because they were about Rosie O'Donnell. "I said very tough things to (O'Donnell), and I think everyone would agree that she deserves it and nobody feels sorry for her."
Trump has no excuse for his comments, and since he will not admit that he was wrong, he just defends his crude insults by saying they were to someone he did not particularly like. Hillary called him out and he owned what he said, but not apologetically. Of course Trump does this to look like the bigger man, the one with more stamina, but he ends up looking even more ridiculous. This article was written for those who maybe had not seen the debate. It referenced other interviews, but only to push the narrative of the night along. It was not an analysis but a retelling of what happened last night.
During Monday night's debate, Donald Trump said that Hillary Clinton "doesn't have the look. She doesn't have the stamina." In response to this, Clinton said, "as soon as he travels to 112 countries and negotiates a peace deal, a cease fire, a release of dissidents, an opening of new opportunities in nations around the world, or even spends 11 hours testifying in front of a congressional committee, he can talk to me about stamina." She pointed out that he changed his point from Clinton's "look" to her "stamina." "He tried to switch from looks to stamina, but this is a man who has called women pigs, slobs and dogs." Trump defended his comments because they were about Rosie O'Donnell. "I said very tough things to (O'Donnell), and I think everyone would agree that she deserves it and nobody feels sorry for her."
Trump has no excuse for his comments, and since he will not admit that he was wrong, he just defends his crude insults by saying they were to someone he did not particularly like. Hillary called him out and he owned what he said, but not apologetically. Of course Trump does this to look like the bigger man, the one with more stamina, but he ends up looking even more ridiculous. This article was written for those who maybe had not seen the debate. It referenced other interviews, but only to push the narrative of the night along. It was not an analysis but a retelling of what happened last night.
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