Bloggy Business Today

In the previous article regarding the failure of the Georgia-based bank, I mentioned that the real estate fiasco that is currently going on in the United States is a great illustration of how the US economy is different from every economy on Earth. In the interests of clarity, I’d like to expand on that idea a little more.

The US business world is based entirely on the idea of extremes. It is essentially the closest thing to a pure free market that exists, but at the same time it is also not exactly a free market in many different cases. The US economy however is not as regulated by the government as most of the other developed nations of the world and that means that the business extremes are more pronounced in the US than they would be anywhere else.

During the good times, this is a fantastic thing because it means that businesses boom in the US to levels that the rest of the world could not hope to match. It is also what allows the country to generate the massive amounts of wealth that it has. However, during the bad times, the businesses and the individuals suffer a lot more than they would in other countries and this is what we are witnessing now. Without casting aspersions or praise on this method of doing business, I will say that it is an interesting difference that the United States has.

[tags]developed_nations, massive_amounts, fiasco, business_world, extremes, doing_business, rest_of_the_world, clarity, illustration, economy, boom, failure, earth, real_estate, united_states[/tags]

The stock market has risen back from the grave despite the continued problems of the economy lead by the celebrated rise of oil prices which is forecasted to reach as high as $6 and at least $128 per barrel. Foreclosures are also increasing and with these two factors for consideration, you have to think, how on earth can the stock market get better?

Apparently, investors and brokers are expecting a better economic run later this year and they are positioning themselves to be ready for it. Risky? Perhaps. But the thing is you have to live with risk.

Bad news has been in the headlines for the past months and people seem to be numb to it already. In fact, they are no longer considered to be factors in business decisions today.

With these things in mind, it is indeed becoming a wacky world as ever. As for the stocks improving, that is a good sign. Hopefully it rubs off on the other problems we have today.

Among retailers reporting solid May results, Wal-Mart Stores Inc. said sales at stores open at least a year rose as consumers sought bargains. Wal-Mart shares rose $2.12, or 3.7 percent, to $59.80.

Subodh Kumar, global investment strategist at Subodh Kumar & Assoc. in Toronto, said the jobs figures and the Verizon Wireless deal offer some investors reassurance about the health of the economy.

“It looks like the U.S. is not in recession but, I would say, tepid growth,” Kumar said.

(Source) Yahoo News