Sunday, September 4, 2011

How to bring unemployment down.

There is no doubt that unemployment is one of the most popular topics in the media at the current moment. No wonder, as unemployment remains at high level since the stock market crash in 2008. Whatever the Government does (actually they have done nothing), nothing seems to reduce the number of people without work. If the Government expects that the corporation start opening working places (at least that is their explanation why the corporation should not be taxed) then I could only say THEY ARE WRONG or they think that the people are stupid. A corporation does not need extra expenses, and there is no stimulus for them to open working places in the USA until it is more profitable for them to do it oversea. That is why majority of them moved their customer support to India and China, that is why more and more "made in China" and "made in India" and less and less "made in USA" could be seen on the shelves in our stores. To tell us that if we do not tax the corporation they will have more money (they already have billions) and they will think about expansion and creating work for Americans is keeping us for idiots. We have to tax them and the taxes should be strict.

My proposal - pass it to those who you voted for if you like it:

1. If  more than 20% of corporation's expenses are over-sea's expenses (whatever the expenses are: supplies, customer support, development, etc) than this corporation  has to pay additional 15% tax not from the profit but from the overall over-sea's expenses.

This will make the corporation to think where to expend their business and will make small and medium businesses stronger and more competitive to the big corporations.

2. The exemption from the p.1 are  the companies that has more than 50% of profit coming from export (companies that deal with natural resources, oil, mining and other companies should not be covered by this exemption).

We need to balance import/export and we need t protect those who export.

3. A company that show grows in the number of employees (not over-sea's employees) that worked more than 1 year in this company is entitled for the tax deduction (max 5%)The companies that deal with natural resources, oil, mining and other companies should not be covered by this exemption).

It should definitely attract the companies, small and big to open new working places and make it easier for them to invest the money they have into the company’s expansions.

4. VERY IMPORTANT - The companies which are involved into the extraction of natural resources (oil, gas, lumber, mining, and etc) should pay extra 5% of taxes. The 5% should be calculated from the average yearly market value of extracted resources.

This is very important. The natural resources are not eternal. Sooner or later they will be gone. The natural resources that are on the American territory belong to the Americans and should not be taken for granted. As an example:, If average yearly price of one gallon of oil is $1 on the stock market and the oil company extracted 1 billion gallons of oil over the year, then this company has to pay additional $50 millions (5% from 1 billion times $1) for the extracted natural resources.

I could add more points, but I think it is enough for you to start thinking.

Do you think if we would have such policies it would increase the revenue, it would help with trade balance and it would reduce the unemployment?

If your answer is yes, and you like it then 


SHARE IT
and Pass it to those who you voted for and those who you are going to vote for

Saturday, July 23, 2011

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Tuesday, June 28, 2011

Unemployment

Consumer confidence dropped to the seven's month low while the consumer spending has hit ten months high. I was always under impression that consumers supposed to spend less when they are less confident, and they usually spend more when they more confident.

I would say that overall we have good economic reports. Almost all current bad economic data (excluding unemployment) are narrowed to the point that they are actually positive and are better than before, yet the press tells us that investors would be happier if economic reports would be better. So far, we do not see any points to the dramatic bankruptcies of stock market giants which suggest that overall stock market is quite healthy.

Unemployment is an another story. With growing technology it is obvious that on many working places functions and procedures previously performed by humans are now performed by robots and computers. 2008 recession has pushed many companies to lay off employees and many of these companies have found that they could achieve the same productivity with less human resources. Keep in min that company will always prefer to have more robotus and computerized technologies which means less expenses, less trouble with unions, etc. Because of that, we should expect to see unemployment at the same level for a while (on mine opinion). The public companies and stock market will be "ok" with it.

Sunday, June 5, 2011

Case-Shriller Index

The Standard & Poor's Case-Shriller U.S. National Home Price Index is updated on the monthly basis on the last Tuesday of each month at 9:00 AM ET and is a composite of single-family home price indices for the nine U.S. Census divisions. The Case-Shriller consists of 20 metropolitan area indices and two composite indices. The index is based on single-family home re-sales ( co-ops and condominiums are exempted as is new construction) with two or more sales transactions and is used to measure changes in existing home prices. The Case-Shriller index is normalized to have a value of 100 in January 2000.

Sunday, April 10, 2011

Financial Analysis

Analysis of the financial reports has become quite popular among intraday traders. The fact that in many cases we may see increased volatility on the indexes (S&P 500, Russell 2000, Nasdaq 100, DJI, and etc) has attracted futures and options traders. Simple trading strategy of placing options spreads bet before an economic report release helps to achieve desired result.

In order to properly make a call (place a trade) a trader needs several things: a) history of the index behavior during previous similar economic reports; b) expected economic data for coming reports; c: real time index charts with volume. You need to watch volume on the indexes as increase in volume would confirm volatile trading in response on report's release.