Saturday, October 5, 2013

This Week in Finance

*Think Im changing the name of these posts from "top 3 for the week" to "this week in finance". What do you think?


Hey fellow present and future investors!

Hope everyone had an amazing week! I have a busy weekend ahead of me. Running my second half marathon tomorrow (Yikes!) and have a fair amount of school work to do; specifically for my finance class. Just want to share that this semester I am taking a course entitled "Management of Financial Institutions" which is mainly focused on bank management. So far we're getting in to the insane amounts of regulations current banks have to comply by, specially after the 2008 crisis. The regulations are INSANE but it actually makes me feel better that the fed is finally doing its job (or at least lets hope so) in terms of keeping a close watch on all the activities major (and minor) banks engage in. We had a great speaker this past week whom is the head of compliance for Bank of NY-Melon. The speaker was extremely knowledgeable and shared a lot of very insightful information about the regulations process from the effects of Dodd-Frank to Basel III to CCAR. After an hour and a half of listening to him I started to wonder, what the heck were regulators doing before the prime-mortgage crisis????? Seriously! It almost seems as if they went from  'taking it easy' to micro management in steroids, for lack of a better analogy. Many bank officials may dislike the regulations but I personally feel is necessary because we all know what 'taking it easy' can do to our economy. I see it as a "necessarily evil" that should help protect no only the consumer but the economy and corporations as a whole. **You can read more about each of the above noted regulations by clicking on the names (links embedded). 

So, enough about rules and regulations. I have to apologize in advance because only ONE news caught my attention this week (not 3). There is no point in my pretending anything else caught my eye. So, below is the major one. If I missed anything else that was "major", in your opnion, please let me know! Would love to read more about it. And here you go: 

The Government shuts down and apparently the stock market could care less-- We all know the stock market loves to react (favorably or unfavorably) to almost any news that pops up in the media; sometimes even regardless of its level of importance. Well, something as "major?" as the government shutting down didn't have much effect in the market. As a matter of fact, major indexes even rallied, in a good way! Read more about it here.
We'll see what happens this upcoming week! Oh! And by the way-- we had no job report this week thanks to said shut down. I am not too sure the market liked that one.

And thats all for now folks. I have to much to do this weekend!!! Thanks for reading and see you soon.

Happy investing,

MABELLE