As the guitar gods slowly die out, so do their guitars. The annual revenue of Gibson, the company that produced the iconic ‘Les Paul’ guitar, has fallen from $2.1 billion in 2014 to $1.7 billion (Edgers, 2017). Fender, who makes the ‘Stratocaster’, has seen total revenue fall from $675 million to $545 million (Edgers, 2017).
We all know the world is pretty unstable at the moment. Some examples are the terrorist attacks in Manchester, London, Paris, Nice, Indonesia, Egypt etc. The social effects are incredibly large, but you also might wonder what the impact is on the economy.
Last year an unknown price competition was going on between oil leaders. By increasing production, and thereby lowering the market price for oil, they tried to compete each other out. On November 2016, members of the Organization of the Petroleum Exporting Countries (OPEC) and ten other countries, among them Russia, decreased part of their production. This month the same leaders decided to extend this policy for nine months. The goal is to increase the price of oil, but MarketWatch came up with an interesting thread by looking at history.
In the beginning of the 20th century the first significant oil reserves in Venezuela were found. This new natural resource sparked the interest of the government because it can be the basis of a very profitable industry for the country. Juan Vicente Gómez, the president at the time, granted several concessions to foreign companies to explore, extract and refine oil. During the First World War, the industry was faced with a lack of technology and machinery because of the difficult and costly transportation of them. As a result, the production of oil was slowed down for the time being.
“ Build that wall! Build that wall!” I guess we all know where those words come from. The populist rhetoric that has been used by many political players, including the don himself has been characterized by a rising hatred towards immigration and foreign trade among others. People believe that the rising unemployment and stagnating wages might be due to foreigners taking their jobs. However, the reality might be different, and thus I’ll be trying to bring forth an alternative explanation in this article.
Greece has been in the midst of perhaps, as some say, the worst financial and economic crisis since the end of the Second World War for almost nine years now. At one moment things seem to be improving, then a harsh realization kicks in that the situation might actually be getting worse and even out of hand. This has been the reality for the Greek banking sector these last couple of years. With a series of large write-offs and big losses that the banks had to incur which have also impacted a number of people, the banking sector still faces great uncertainty and I will try to bring to the table a few of these ongoing problems to try to make the situation a bit clearer.
Now that we have seen the first acts as Trump in his position as president of the United States, the time is now to reflect on his economic ideas and first acts. Obviously, it remains unclear how Trump will fill in the rest of his presidency, but we already are able to have a glimpse of what Trump is going to do the following four years.
Have you ever wondered what a bank run is? And why this phenomenon occurred a lot during the financial crisis? This video explains it!