Friday, October 31, 2014

UK Energy Bills Haven't Seen Din Prices 

UK gas prices have be slashed, but house hold energy bills haven’t seen the drop in price. Now the enemy companies are up against a wall to explain why this is. Over the course of a year energy cost has fallen 23%. The company’s explanation was that they but months or years in advance to prevent customers from feeling a sudden change in the market place.  Energy providers wither use the whole sale prices as their standard or they use what they have laid out in a contract with energy producers.


Very interesting to think that they energy boom just isn't happening her in the United States. It has to be happening all over the world. AS energy prices drop we won’t automatically see the savings. It might no be for a few months or to a year. It all comes down to what the energy provider is basing the bill prices off of.
Energy Boom, Can Withstand Price Drop 

Energy is on everyone minds this year. The US has produce more oil this year then the last three years. With so much production oil prices are starting to drop. Good for the everyday joe, but for the producers, if the cost per barrel would drop another 20 dollars it could mean some heartache for oil companies. Many of these companies are medium size, they have borrowed huge sums of money. This was justified due to the high price of oil a few months ago. Now that oil dropping, these companies are struggling to find a ways to pay back the debts . To battle the smaller profits these companies have developed new way to get to the oil. Helping to increase their profits and allowing them to keep afloat for now.


As someone who is trying to fill his gas take I want the lower prices.  Thanks to the energy boom that this country is facing I now have these lower prices. The lower prices have two sides. One side doesn't make my wallet scream. Will the other side hurt the energy companies , the lower the prices the harder it will be for them to make a profit. Time will show weather prices can stay stable or will the continue to drop. 

Wednesday, October 8, 2014

The Next step after Quantitative Easing is Verbal Easing

For years the Federal Reserve has use Quantitative Easing (QE) as a way to push investors into riskier investments. Now though QE time is coming to an end. The next step is Verbal Easing (VE). What this is, is just reassuring the public that everything is going to be ok. Even now the market looks shaky and the Dow is showing the stress. It fell 270 points on Tuesday October 7 2014. At any given time when change is about to happen the market starts to wobble.

This is very interesting concept. To think that if only the Fed justified its action the market might not be so shaky. The VE is the next step that needs to be taken to insure that we have come back from the Recession of 2008.


Euro zone, planing on using Quantitative easing to help struggling economy.

European central bank plans on buys bundles of loans and other forms of debt from mid-month in an attempt to kick start the struggling euro zone economy. The bank last month lowered interest rates to help with the sluggish economy. President of the central bank Mario Draghi said bank would start buying covered bonds, which are a form of secured debt, from banks in mid-October. Their hopes are that they can start helping smaller firms grow. This program would last for at least two years. Within these two years the Central bank hopes to allow inflation rate to return to levels closer to the banks aims.

In recent years the Euro zone was hit my countries with weak economies. These economies lead to a rush of aid that hurt the Euro zone. Many of the stronger economic countries don't want the bank to help the weaker economies. These countries believe that with Quantitative easing their own economies will suffer.

The Euro zone is one of the world largest economies. If their economy is starting to slow, then we will start seeing the effects of it here in the states soon. With the euro slowly falling and some economies in the zone feeling they are carrying the weaker of zone. This might play a huge issue in the coming years.