Qrb/501 Week 6 Deliverable Essay

workweek Six News Article SummariesPost Lehman Brothers contain Market Crash DiscussionIn 2006, Brothers David and Tom Gardner started a conjunction database to help consumers choose line successions. Developing the concept of enormo utiliser-term investments over extended periods, versus the announce method based on timing and risk. Motley score, the name elect for the firm, asked staff to inter spot the firms top 18 investors to prove lessons learned from the demise of Lehmans Brother Stock at the five-year anniversary mark.Seth Jayson has learned to invest a little bit from each one month into the scoop companies and has halt looking for quick fixes. Morgan Housel, discusses his lessons cash= options, and debt= tone ending of options. A nonher point is to consider acquire more when the stock crashes and to view risk as a gift. The forecast profession is deceptive, and to recognize that the foodstuff place place has recovered in four geezerhood. David Gardner pred icted the fall of Lehman Brothers six months prior to the fall, which beef up his methods of helping investors, succeed in the market. LouAnn Lofton recommends sepa evaluate emotion form investing, to think long term and secure stocks at cut rates during the crash. Alyce Lomax indicates her fears that spate discombobulate not learned from the crash and that history has a habit of repeating itself. Alex Dumortier, who is CFA, explains his perspective of considering the unimaginable as possible and to prep atomic number 18 for un original measures. Jim Mueller recommends his musical instrument for success has been to keep a journal. Stating his process is to analyze motivations and trends before choosing to purchase stock. Charley Travers firmly reinforces investing in companies with cash rich balance sheets and arduous free cash flows. Matt DiLallo took a time out from the market post-crash and looked for longevity instead of timing, stating timing in the stock market is a fo ols errand (Motley Fool Staff, 2012, n.p.). Chuck Saletta shares his process of choosing based on a solid balance sheet. Isaac Pino believes that Main Street has learned and suffered post-crash however not Wall Street, claiming that banks are comfort carrying too untold debt and leverage. Patrick Morris supports what he learned during college studying finance, that stocks are priced to be the present values of prox cash flows, and supports rate of return for stocks yielding more than savings (Motley Fool Staff, 2012, n.p.). Frank doubting Thomas believes in projectning and building a buy list while maintaining enough cash to support daily financial support costs. John Divine stresses the need to remain calm and keep the long goals in the big picture. Joe Tenebruso viewed the crash as an opportunity to move keen into strong companies and developed a new strategy he named storey 1. Jake Keator learned that investing takes time and to be patient. Anders Bylund recommends the approach of keeping 10% of cross outment liquid. John Reeves expresses that in a down market undecomposed companies wish Starbucks and Apple, are misrepresented in the stock market scarce resulting bounce back in time (Motley Fool Staff, 2012, n.p.).In conclusion, the firm of Motley Fool explains skills learned to excel in the stock market reinforcing long-term goals with companies in good financial material body, and consider purchasing those companies stocks during down markets to maximize return.2008 Crisis Still Hangs Over Credit-Rating FirmsThis article has approximately charter links to backup mathss principles because it addresses some concerns from the 2008 financial crisis. In 2008, some financial guru(s) compared it to the bulky depression, revamping the name to the great recession (Krantz, 2013, n.p.). During this time numerous major corporations, financial mainly, went into some sort of bankruptcy and got a earnest out from the regime. In this article th e author addresses how some quote rating agencies were excusing poor credit ratings and banks allowing approval of risky mortgages when they should not have. In 2008 the agencies ratings contend a critical role in the marketing of risky mortgage-backed securities, such(prenominal) as collateralized debt obligations. Investment banks had also bundled collections of individual mortgages, which alone can be hard to trade, into baskets that could bebought and interchange like any bonds. These financial instruments were sold to investors totally if to sell them, the investment banks relied on the receipt of stellar ratings from the agencies to enamour investors starved for return. The author questions whether or not these companies have learned from their mistakes to suspend making the same mistakes again. This article links to this weeks accusings of applying logical argument principles to make finance and operational business decisions because, in these aforementioned instance s, credit rating agencies did not do that. They did not follow the basic math principles of business and instead took a road that surpassed logic and went more into greed. By applying the business math principles these agencies would have known that the risk was too great and would not have approved such deals because of the severity of the risks.Obama to Use Lehman day of remembrance to Cite Progress * In this article, the author discusses President Obamas climb on on the economy. He is using the fall of the Lehman Brothers to show how much occur he has made in the economy. He is using certain math principles to try to help America get out of the financial crisis. He is trying to create a budget system but is collision with Congress on the decisions he is making. President Obama argues that a better capitalized and adjust financial sector will give more credit. This will in turn help fuel the economy. According to the article, the federal government has paying back the debt that the accrued during bailouts of 2008. According to the Pew Research Center poll, the frequent is not convinced that the economy is fixed. The unemployment rate is at 7.3%, which is high school. The article states this high rate is because some people have left the workforce and stopped trying to join it again. Sen. Elizabeth Warren, a Massachusetts democrat stated, We should not pay a financial system that allows the biggest banks to emerge from a crisis in record-setting shape while ordinary Americans continue to struggle (Kuhnhenn, 2013, n.p.). Obama losss to continue with his budget and use part of the $700 billion that has been allocated to help bail out other companies. The public accepted this a general success. The end of the article states that the federal government will bring in more revenue this year but still has $700 billion budget deficit. There is a spending problem, and it mustiness be addressed. As a business it has to have an income throughgoods, sales, and s o forth to succeed. This needs to exceed the liabilities and expense. In the end, this is not what is happening. * The DOW has a Good WeekThe Dayton Daily News reported that the DOW Jones industrial average had one of its best weeks this year, rising 75 points (0.5%). The speculation for this positive execution included reports showing both inflation remaining stable and consumers purchasing more. Another helpful act came from Intels stock rising 66 cents (3%). Analysts found that reports varied on how the economy performed some showed that although Americans purchased more items like cars and electronics, major clothing retailers cut profit projections for the remainder of the year because of lower sales. Wholesale prices, however, did not grow much, lending evidence that inflation is comparatively stable. Investors stated that trading will likely change drastically later the Federal Reserves policy meeting on kinfolk 17-18, citing that they will decide plans for the bond purcha sing program and how much they will cut back spending on those bonds.This article relates to the course objective quite directly. This weeks learning objective ties this course together, taking business math principles and using them to make operational decisions. The DOW Jones shows businesses how they stand against competitors and emit areas for potential investment. Many corporations have investment advisors watching the stock market and advising when and what to buy or sell. Business leaders watching and analyzing the DOW Jones not only reveals insight into how individual businesses perform but also shows them the prices in certain markets. This is a useful tool for investors to know where to put their money, buying stocks when prices in one market are low and selling stocks in some other market where prices have peaked. Your Money Keeping retirement on interbreed takes focusThe main focus of this article was how the financial crisis five years ago has made it harder for peo ple wanting to retire. People today when they want to retire have to take into consideration that in order to retire today there must be a savings in place. According to a retirement survey done byPNC Perspectives people that originally planned to retire between the ages of 60 to 62 will have to work longer than originally expected (Tompor, 2013). According to the survey, somewhat 43% of those who are not yet retired and still working give tongue to they have a pension but about 64% of those who are retired have a pension(Tompor, 2013). This article also shows interviews done with Thomas Palka and Connie DeMetsenare. Thomas is a self-employed business man that does not currently have a pension plan. Thomas at the age of 52 has no plans on retiring any time soon. He knows he has to continue to work in order to have income coming in. Connie is 48 and current is investing in a 401(k) plan through her employer. He and her spouse paid cash for their current house they live in to elimi nate being stuck paying a mortgage they may not be able to afford once they retire. Connie plans to retire at the age of 67. Based on this article many aspects can stop a person from retiring. Those aspects include not having a pension or 401(K) plan in place, financial crisis that can affect retirement funds, and having too much debt. To live comfortably a person must have a savings plan in place and eliminate their current debt. addressAP, A. (2013, phratry 14). Dow has good week. Dayton Daily News. Retrieved from http//www.daytondailynews.com/news/business/dow-has-good-week/nZwx2/Krantz, M. (2013, September 13). 2008 crisis still hangs over credit-rating firms. USA Today. Retrieved from http//www.usatoday.com/story/money/business/2013/09/13/credit-rating-agencies-2008-financial-crisis-lehman/2759025/Kuhnhenn, J. (2013, September 14). Obama to use Lehman anniversary to cite progress. USA Today. Retrieved from http//www.usatoday.com/story/money/business/2013/09/14/obama-lehman-ann iversary/2813687/Motley Fool Staff, (2013, September 12). Five Years later Lehman Investing Lessons from the Financial Crisis. Retrieved from http//www.fool.com/investing/general/2013/9/12/5-years-after-lehman-investing-lessons-from-the-fi.aspx? semen=ihpsitth0000003&lidx=1