Recession

China Announces 10.7% Increase In Defense Spending Amid Slow Economy

Submitted by News Desk 2 on Tue, 03/05/2013 - 14:37

As China prepares to receive a new premier and change in leadership, it has announced a 10.7% increase in defense spending while forecasting a 7.5% economic growth rate.

China has been increasing its defense spending over the last couple decades by double digit figures, but is still relatively small at $115 billion compared to the U.S. which budgeted $652.2 billion in 2012.

Incoming leader Xi Jinping as publicly stated he wants to bring in reforms to combat corruption, pollution and the economic disparity between poor and rich.

Europe Going Back Into Recession, France Says It Will By The End Of 2012

Submitted by News Desk 2 on Fri, 11/09/2012 - 18:11

European leaders are fearing another recession for the continent as France's central back says it will likely slide back into recession by the end of 2012.

The Bank of France said that it expected growth to shrink by another .01% in the last quarter of 2012, and that is already on top of the .01% it previously announced.

France's new government is caught between making budget cutbacks to meet European Union debt requirements or spend more and risk damaging its ratings with other countries.

Bank Of America Agrees To Pay $2.43 Billion Related To Class Action Suit In Merrill Lynch Take Over

Submitted by News Desk 2 on Fri, 09/28/2012 - 11:42

Charlotte, NC -

Bank of American, BofA, has agreed to pay $2.43 billion to settle a class action lawsuit related to its takeover of Merrill Lynch during the financial crisis that sparked the last recession. The lawsuit alleged that BofA officials made false and misleading statements about the health of both BofA and Merrill Lynch in an effort to ensure BofA takeover of Merrill Lynch.

The class action lawsuit represented investors who had bought or already held BofA stocks during the period BofA announced the takeover.

E.U. Finance Ministers Consider Harsh Protection Measurers If Greece Decides To Leave Euro

Submitted by News Desk 2 on Mon, 06/11/2012 - 14:08

European finance ministers are considering strict and shocking measures to take if Greece decides to leave the Euro-zone. Among some of the ideas being seriously considered are limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls for the remaining 16 nations.

As Greece nears its June 17th vote to pick a new leader and government or something else, the stability and credibility of the Euro has been dropping over fears of a currency collapse continent wide.

Spain Requesting $100 Billion Euro Bailout This Weekend Say E.U. Finance Ministers

Submitted by News Desk 2 on Sat, 06/09/2012 - 11:42

[UPDATE: 6-10-12: 10:20am]
Spain has requested up to $125 billion euros to bail out its ailing banking industry. Investors across Europe were relieved at the bailout request in which many feared Spanish pride would prevent them from asking. Spain is the largest of the nations so far asking for bailouts and is Europe's fourth largest economy. Unlike Greece, Spain's government spending is under control, the private banking sector is what's in trouble after failing to solve the real estate fall out of 2008.

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German And EU Officials Looking For Ways To Rescue Spain's Banks From Collapse; Greece Votes Soon

Submitted by News Desk 2 on Wed, 06/06/2012 - 10:36

German and European Union officials have begun exploring ways to rescue Spain's crippled banking industry from its overburdening debts, though Spain itself has not directly asked for help as it tries to resist political change demanded by the EU.

Spain's banking industry has over-leveraged itself, and can no longer sell bonds at realistic rates which effectively close Spain off from the bond market. This effect creates a situation in which the fourth largest economy in the EU can no longer borrow to pay its bills, setting the stage for a collapse.

Unemployment Rises to 8.2% As More People Resume Their Job Hunt; Employers Add Fewer Jobs

Submitted by News Desk 2 on Fri, 06/01/2012 - 09:17

Washington, D.C. -

The nations unemployment rate rose to 8.2% from 8.1% as more people who had given up looking for work re-start their efforts to find a job. Hiring also dropped, economist had expected to see 150,000 new jobs but instead saw 38,000 less than their goal.

But "this is not necessarily bad news" says economist Greg Forester, who added that the rise in unemployment can be seen as a good sign, that more people are starting t believe they will find work and are returning to the work force.

EU Countries Told To Prepare Plans For Greece To Exit; France To Demand Change To German Austerity Measures

Submitted by News Desk 2 on Wed, 05/23/2012 - 14:07

On Monday, the 17 nations of the Eurozone were told during a meeting to "prepare a contingency plan, individually, for the potential consequences of a Greek exit from the euro," while European stock markets fell about 2% amid anxiety that Greece might have to exit the euro.

Europe is feared to be entering another deep recession and France's new president, Francois Hollande, has told the euro-block that it will not support German led austerity measures meant to keep government from defaulting on their debts by forcing deep government spending cuts.

Oil Prices Continue To Drop; Below $90 Per barrel; Oil Supplies Reach Highest Level Since 1990

Submitted by News Desk 2 on Wed, 05/23/2012 - 13:22

New York City -

The price of a barrel of oil continues to decline, trading below $90 on Thursday, as the US oil supply hits 900,000, and is expected to grow another 750,000 according to oil analyst. The price of gas at the pump has likewise been dropping, with most areas of the country now seeing gas at $3.50 per gallon or less. The US has not seen this much oil on the market since 1990 when gas prices were a mere $0.99 cents.