Articles About Economics

Wal-Mart’s growth strategy is poised to overtake Jewel and Dominick’s as the leader in Chicago’s $12 billion grocery market.  Though not viewed primarily as a place to buy food, Wal-Mart’s new super centers, offer savings in the 10 to 15 percent range over traditional grocery stores.  Wal-Mart currently has 16 grocery stores in Chicago’s suburbs, […]

Ben Bernanke has spoken.  The Fed chairman and the Federal Reserve moved recently to stimulate the economy when the policy-making committee cut the federal funds rate – the rate at which banks lend to each other – to just one percent.  This represents a half percentage point cut from the previous 1.5 percent rate.  By […]

Layoffs and the promise of more to come, falling home prices and shrinking investment portfolios have created the highest level of consumer pessimism on record, says the Conference Board.  According to an online AP report, consumer confidence sank to just 38 in October, a significant drop from the rather rosy 61.4 reported in September. The Conference […]

As if we needed it, even more evidence attesting to the ongoing economic slowdown came to light recently.  According to a Federal Reserve Board report referenced on Market|Watch and known as the Beige Book, the slowdown in economic activity in late September. Among the findings are: Factory activity is slowing. Non-financial services – typically the […]

“It’s not going to be a problem in the short run.  Inflation doesn’t flourish in the face of recession,” said Paul Volcker, who served as chairman of the Federal Reserve from 1979 until 1987.  “It’s something we have to worry about when we get out of this recession.  I have been around for a while.  […]

The Treasury Department is spending the first $250 billion of the $700 billion rescue bill that Congress recently approved in an attempt to defuse the financial crisis that has dominated the headlines for weeks.  According to an article on GlobeSt.com the move – which partially nationalizes the banking system – is seen by some as […]

Housing prices in the United States plunged a record 16.3 percent during July, compared with the previous year.  According to Standard & Poor’s/Case-Shiller Home Price Indexes, this indicates an ongoing home-price decline now in its second year. The S&P/Case-Shiller composite index of 20 metropolitan areas declined 0.9 percent in July, when compared with June.  That […]

A sign of the times from GlobeSt.Com:  Construction of the high-profile Santiago Calatrava-designed and engineered Chicago Spire condominium tower has been postponed – a victim of the ongoing economic slowdown.  The building is still in its infrastructure-construction phase, with the neighborhood’s utilities undergoing updates to support the structure and its residents.  With work at a […]

Marketing green is a new step in the emergence of sustainability.  In a tight credit environment when rates have climbed and LTVs have dropped, green may offer a way to ease the underwriting criteria on a deal. The green-building revolution is spreading, and the underwriting community has embraced sustainable design because it enhances marketability and […]

Two trends in international trade worth highlighting: American exports are booming, thanks to the dollar’s current weakness.  This considerable increase in volume has made it virtually impossible for U.S. manufacturers to get space on container ships within a four-week window, especially for products shipping from the ports of Los Angeles or Long Beach to any […]