Are Businesses the New Banks?

More than half of all cash on the books at corporations is invested in investment grade corporate bonds. The record high comes from the decreased investments in US Treasurys, commercial paper, and CDs. Money market funds are becoming less attractive due to new SEC rules and deposits are tougher on banks due to the banking rules of the Federal Reserve. …

Cars Are Gold

A shoebox in your closet is usually a pretty safe place to keep your money, unless there is a fire or a robbery. A bank may be an even better spot to store your cash, unless the bank goes under or is subject to capital controls. Neither, however, will protect you from loss of purchasing power if the currency spirals …

How Legislation Killed the Community Bank

The total number of banking companies in the United States has significantly decreased in the past couple decades. At the same time, regulations on the industry have increased and legislations have become more complex. The compound effect has not been a broad drop across the sector, but rather a distinct decrease in small or single-office banks. As the government and …

2015 Big Mac Index

The Economist has updated their “Big Mac Index”. The index is a creative way of showing vales of goods and services across the globe. The study is performed annually and is intended to visually represent Purchasing Power Parity (PPP) – the idea that long run exchange rates will normalize towards equal prices for a like basket of goods and services. …