JerichoHill
Bedrock of Knowledge
My first question is whether or not this budget cut you speak of is absorbed into the federal budget elsewhere or if it represents a permanent decrease in spending?
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My first question is whether or not this budget cut you speak of is absorbed into the federal budget elsewhere or if it represents a permanent decrease in spending?
Fugitive Sisyphus
Escape Artist
Let's pretend a utopian ideal where it is a permanent decrease in spending.
A drastic cut in military spending that did not go to other federal spending could free up 2-3% of GDP. In the short term there would be a lot of displaced people and businesses that would need to switch to civilian production.
Military spending is a type of consumption spending. In the long run having civilians doing the consuming would make individuals better off and there would be some increase in investment. But it wouldn't radically alter the economy.
Military spending is a type of consumption spending. In the long run having civilians doing the consuming would make individuals better off and there would be some increase in investment. But it wouldn't radically alter the economy.
jafink
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I am 16 years old and have saved up about $3000. I want to invest $1000, for at least a year, maybe a little bit more. I am not looking at GIC's, or bonds. I am mostly interested in the stock market. Possible companies include Coca Cola, Gillette, and Adidas. Do you think these would be good oportunities?
Also, since I live in Canada, would I be able to invest in them at all? How would I go about investing? Could I simply go to my local bank and they would complete the process for a fee?
Please be specific, I am have virtually no experience in the financial world.
Also, since I live in Canada, would I be able to invest in them at all? How would I go about investing? Could I simply go to my local bank and they would complete the process for a fee?
Please be specific, I am have virtually no experience in the financial world.
Solid companies jafink but investing in a business for a year isn't a good idea unless you're willing to lose a good piece of that investment. Generally a bank or brokerage firm can handle the transaction.
jafink
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Okay, thanks. I'm looking to gain a little bit of experience in the stock market, so I wouldn't mind losing 10 or 20% of my investment.
Do you think a Canadian bank or brokerage firm would be able to invest my money in the NASDAQ (or whatever stock exchange Coca Cola is traded on)?
Do you think a Canadian bank or brokerage firm would be able to invest my money in the NASDAQ (or whatever stock exchange Coca Cola is traded on)?
OK good. I hope you can maintain a long term holding in these businesses.
I wouldn't think it's a problem to invest in these companies. I own Canadian companies (IE Canadian Natural Resources) and have some people who even bought Adidas without a listing on our exchanges.
I wouldn't think it's a problem to invest in these companies. I own Canadian companies (IE Canadian Natural Resources) and have some people who even bought Adidas without a listing on our exchanges.
JerichoHill
Bedrock of Knowledge
I agree with Whomp, I wouldn't buy stock for a 1 year period, taking a big loss isn't worth the learning. To learn about stocks, there's a few good books in the library. One could make a fake portfolio, but put 1000 aside. If you make money you get to do something with that extra cash. But if you lose money, whatever faux amount you lost you can send to a charity or something similiar.
Thats what I would do to learn
Thats what I would do to learn
JerichoHill
Bedrock of Knowledge
A likely slowdown effect as capital/labor moves to other areas of the economy then, and a healthier federal budget
Zenon_pt
Civing on the real world
How is it possible to increase the price of fuels in Europe (euro zone) if the Euro is becoming stronger than the Dollar, knowing that the barrels are quoted in Dollares?
Fugitive Sisyphus
Escape Artist
So, in other words, no intelligent politician would ever do this because it would result in a short term economic slowdown which would ruin his reelection chances.
Perhaps nearly no politician would ever do that because they'd be shouted out of office before anyone actually tried to assess what may be the effect of actually carrying it out.
I would say that I think a slowdown wouldn't be catastrophic, especially since it would be a very small part of GDP. But I suppose it would be best to do such a thing when the economy is heated, as to make the adjustment as seamless as possible.
I would say that I think a slowdown wouldn't be catastrophic, especially since it would be a very small part of GDP. But I suppose it would be best to do such a thing when the economy is heated, as to make the adjustment as seamless as possible.
JerichoHill
Bedrock of Knowledge
Increased demand from India/China and developing nations for oil and other fuels are going to put upward price pressure on oil prices across the world.
JerichoHill
Bedrock of Knowledge
I don't think a shrewd politician would do this unless the US was in desperate times and military spending was highly disfavored.
It wouldn't be catastrophic since a good bit of our MIC exports its products to other nations. A bump, certainly
Zenon_pt
Civing on the real world
True, but don't answer the question of exchange between USD and EUR...
If you see the price of wheat there is an speculation over it. But the exchange aren't the reason for the increase.
Can regulators prevent EA Sports from buying Take Two? Can they make the NBA or NFL sell a license to another developer trying to enter the Sports Video Game market? Is there anything that can be done to prevent all sports video games from turning into the suck that is Madden, thanks to lack of competition?
Nothing prevented leagues such as the NFL to give licenses to multiple developers, hence why there were multiple sports games each year. I don't know the situation, but I'll bet that EA paid a pretty penny to the NFL to be the exclusive holder of the license for a certain number of years.
As for buying another company, yes, regulators can step in and cite anti-trust laws to that effect if they think too much of a market is cornered. I doubt they'd consider sports games as a separate market, however.
As for buying another company, yes, regulators can step in and cite anti-trust laws to that effect if they think too much of a market is cornered. I doubt they'd consider sports games as a separate market, however.
Yeah, I know about that...thats my job.
But I don't think my office would have standing, so the FCC or something would have to do it.
I consider sports video games to be a separate market from say, Halo...but thats just me.
If nothing's happened by now, considering it's been a few years, then I doubt things will change until someone else offers the NFL enough money to make it worthwhile.
Substitute leagues as you wish, though it seems to be contained to the NFL.
Substitute leagues as you wish, though it seems to be contained to the NFL.
JerichoHill
Bedrock of Knowledge
Yes, it does.
The push up on the price effect is greater than the pull down effect of the dollar's devaluation compared to other currencies. The rise in demand for oil worldwide (and worldwide supply disturbances due to war/ natural disaster in recent years) are theprimary factors in why prices for all purchases of oil have gone up, regardless of currency value fluctuations.
I'm sorry, but your response doesn't make any sense to me. Please don't take offense, but its poorly worded and difficult to understand, both in grammar and purpose. I'd happily try to more fully answer your followup comment, but I did not understand what you typed.
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