Deficit in critical condition

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Former US Comptroller David Walker says the cost of health care reform will increase the long-term deficit. Source: CNNMoney – video report   Date: 8/26/2009 Keys: Economy, taxes, business expenses, HR Link: http://money.cnn.com/video/news/2009/08/26/n_walker_deficit.cnnmoney/ Questions for discussion:  Summarize the comments made about the state of the economy and taxation. How might a national health tax and… Read more »

AIG stock up 264% in August

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AIG’s stock closed at $47.84 on Thursday. At the start of the month, shares were trading at a mere $13.14. What’s going on here? Source: CNNMoney.com Date: 8/27/2009 Keys: Banking, economy, investing Link:  http://money.cnn.com/2009/08/27/news/companies/aig_stock/index.htm?postversion=2009082716 Questions for discussion: Summarize the reasons given for the remarkable rise is AIG’s stock market value? What do you think of… Read more »

Consumer spending up, but morale at 4-month low

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Worries over high unemployment pushed U.S. consumer confidence to a four-month low in August, while spending rose modestly in July, indicating the economy’s recovery from recession would be lethargic. Source: Bloomberg. com Date: 8/28/2009 Keys: Economy, inventory planning Link: http://www.reuters.com/article/ousiv/idUSN2835824120090828 Questions for discussion: As a corporate finance manager planning inventories and projected cash flows for… Read more »