Archive for July 2011

Apple Has More Money Than The US Government!

July 29, 2011

 

According to the latest figures from the US Treasury Department, the government has been restricted to a budget of around $73.7 billion. Apple’s latest financial results claim $76.4 billion in its reserves, meaning the company has more cash to spend than the government of the largest economy in the world. This may seem mind-boggling, but when the recent financial crisis is taken into account, along with the long-standing success of the computer company, the figures make sense.

With the House of Representatives due to take a vote on the bill to raise the debt ceiling and therefore prevent the US from defaulting on its debts, the world financial markets are crumbling. The government is spending roughly $200 billion more per month than it collects in revenue, and if the amount of money the nation is allowed to borrow to cover its debts is not raised before the 2nd August deadline, the federal government is likely to reach its $14.3 trillion limit. Lets hope they reach an agreement in time, I don’t think even Apple could fix the ensuing financial armageddon.

 

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Bank Stress Test Results To Be Published Today

July 15, 2011

 

The European Banking Authority (EBA) will release the results of the stress tests they have been performing on 90 European banks. The EBA have tailored the tests to discern which banks have enough capital to take any more knocks from difficult economic situations. The same tests from last year have been criticised for not being harsh enough, with only 7 banks failing out of 91. The test failed to spot weaknesses in Irish banks Bank of Ireland and Allied Irish Bank (AIB), both of which passed the EBA test. AIB was in need of a bail-out by the government only months after passing.

 

The EBA have said that the latest tests have been made stricter, but hints from the ratings agency Standard & Poor’s suggest that they are still not harsh enough. During this round of stress tests, 15 banks are expected to fail. This level of failures is hoped to ease the distrust of investors as the European Union exposes the truth about the extent of the banks’ problems. It is hoped that the tests will show investors which banks can be trusted and which ones cannot. It is feared that without such an exposure, all the banks will be lumped into the same category and will simply be avoided altogether. This way, those that credit the banks will know exactly the risks they are taking and the European market will not be completely abandoned, boosting the euro.

 

The test results are going to be published at 5pm today. Let us know about what you think of the revised tests!

 

Education for Everyone?

July 7, 2011

 

So soon after the changes in university tuition fees were announced for 2012, ministers already seem to have massively underestimated how many institutions would plump for the ceiling sum of £9,000. Believe it or not, this will see that student debt alone will reach a staggering £70bn over the next 4 years.

In March The Student Loans Company declared that the top 20 student debts currently owed amounted to over £1 million, the worst being £66,150 for one student. It is true that the majority of these loans were for London based education, and for long courses such as Law and Medicine, but this doesn’t bring much comfort.

Surely this system can only give rise to the privileged few being able to go to university without worries of crippling debts and a lifetime of credit problems. Many young people now will have to think long and hard about whether a degree will be worth it, and may opt for jumping into the world of work straight from school for no other reason than financial.

If this wasn’t worrying enough, debts of this magnitude could go on to affect credit rating, which would hamper former students’s chances of getting a mortgage. As if getting on the property ladder wasn’t already hard enough!