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This week, the Federal Reserve indicated that interest rates will be raised next year. In a statement issued from the policy meeting, the Federal Reserve said monetary policy will be normalized. Since 2008, rates have hovered near zero, with the Federal Reserve offering consistent assurances that rates would remain near zero to contend the economy …

Interest Rates on the Rise Read More »

Recent data suggests that significant roadblocks could arise in the near future that would challenge those wishing to become homeowners.  The data collected was made public under the Home Mortgage Disclosure Act (HMDA). From this information, we can gather that African American homebuyers represent 4.8% of the total home purchase loans from 2013. For conventional …

Sustaining Homeownership in an Unsustainable Economy Read More »

Manufacturing is an important facet of the U.S. economy, despite the increase in imported goods steady elimination of factory jobs here in the states. With private sector manufacturing jobs representing only 10% of the workforce now versus 25% during the 1980s, it would seem the private sector wouldn’t provide much stamina.  However, this disregards those …

Manufacturing Still Matters in the U.S. Read More »

As banking continues to go through changes and services become more electronic-based, bank branches are slowly falling off the map. Just under 2,600 bank branches have closed in 2014, while a mere 1,137 have opened. SNL Financial reported that 2013 saw a net loss of 1,487 branches while 2014 has seen a loss of 1,462 …

Bye-Bye, Branches-Branch Closures Signal Big Changes in Banking Services Read More »

Here Comes the Surcharge: Big Banks Dealt another Regulatory Blow by the Feds In another effort to reduce the risk of too big to fail banks and financial institutions, the Federal Reserve plans to hit the largest of U.S. banks with an expensive new regulation.  Accordingly, Federal regulators intend to impose a surcharge on the …

Here Comes the Surcharge: Big Banks Dealt another Regulatory Blow by the Feds Read More »

In a recent move by Washington to stunt economic growth, Washington agreed to a two-step strategy.  The first step involves Fannie Mae bringing back low and no money down mortgages. The second step would be to discourage business loans. A few weeks ago, Mel Watts, the Director of the Federal Housing Finance Agency, discussed plans …

The Fed’s Answer to U.S. Economic Growth: Let Them Have Loans-With Little to No Risk Read More »

Congress made a decision to temporarily extend the Export-Import Bank. However, the decision is affecting business owners who depend on the credit agency. The agency decreases their risks when they export items. The charter was extended by Congress until the middle of 2015. The extended time frame was a compromise between people who trusted the …

Small Business Exporters Fearing Credit Crunch Read More »

A recently released report on the economic conditions and earnings of big banks seem to paint a picture of stability. However, a more plausible interpretation would attribute it to stagnation and the difficulties that lie ahead. Overall, investors see a rather unimpressive rate of return in terms of equity. Meanwhile, among the big banks, Citigroup …

Promising Numbers Mask True Problems for Big Banks Read More »

In a recent hearing before the Senate Banking Committee, lawmakers continue to call for increased regulatory reform from regulators in an effort to reduce the risk big banks pose to the U.S. financial system. A distinction was made between large banks and other financial institutions. Several senators encouraged regulators to lessen the burden, or possibly …

Lawmakers Continue to Turn Up The Heat On Big Banks Read More »

The nation largest banks continue to prepare for exams to be conducted by the Federal Reserve next year. These exams are to determine whether they have the financial strength to handle a severe downturn akin to the 2008 financial crisis. Under the 2010 Dodd-Frank financial law, the nation too-big-to-fail banks are required to run themselves …

Citigroup, Other Big Banks Pass Midterm Stress Test Read More »