Another week has gone by in a flash. Luckily I have this series to help me get a swell summary of the more memorable articles that passed my view the last 7 days.
Let’s jump right into this week’s memorable reads.
My memorable reads
Fed raises interest rates, flags end of 'accommodative' policy
Original source: Reuters, 2018. REFILE-WRAPUP 3-Fed raises interest rates, flags end of ‘accommodative’ policy. Retrieved from: https://www.reuters.com/article/usa-fed/refile-wrapup-3-fed-raises-interest-rates-flags-end-of-accommodative-policy-idUSW1N1UT023.
This Wednesday, The Federal Reserve, abbreviated to The Fed, has increased the interest rates once more. With this latest increase the American base rate is now between 2 and 2.25%.
What another U.S. interest rate rise means for you
Original source: Pinsker B. (2018, September 25). Your Money: What another U.S. interest rate rise means for you. Retrieved from: https://www.reuters.com/article/us-money-debt-interestrates/your-money-what-another-u-s-interest-rate-rise-means-for-you-idUSKCN1M52DX
We stay with the latest Fed rate hike. This article talks about how this latest rate increase impacts the daily life of Americans.
This focuses on the American market of course, but it helps me as a European to understand how a future rate increase from the ECB will impact me.
Three things are mentioned in the article:
- Credit card debt: which almost all households hold.
Up to a trillion dollars(!) in credit card debt, according to Nerdwallet.com’s 2017 survey.
- Home equity loans:
If you are in debt and own a home, now is not necessarily the best time to be tempted with a home equity loan to pay off debt” – Tendayi Kapfidze, chief economist, LendingTree.com
- Increased interest rates on savings accounts: Unfortunately, banks first raise rates on what they sell before they raise what they buy.
As you can read, these rate adjustments are very important for the average (US) citizen. We can expect similar effects in Europe once the ECB decides to increase rates as well.
Not enough money? Arrested and locked up in a closed institute
Original source: De redecatie, Belga (2018, September 27). Te weinig geld op zak? naar gesloten centrum. De Standaard, p. 12.
A prime example of how strange immigration law can be. A Servian woman and her child get arrested and locked up for not having enough money while traveling.
Interesting about this is that it’s well documented and easily found that you can’t have more than 10,000 EUR in cash when traveling into or outside of the EU. What isn’t so easily found, is that you apparently must have a fixed amount at hand (either cash or through a credit card that you can prove has enough credit on it). Belgium set the minimum amount necessary at 45 EUR/person/day.
In a follow-up article by A.-S. De Keyeser in De Standaard of 28/09/2018 it was clarified that this applies to everyone that wishes to travel to Belgium. A spokesperson of immigration stated that it also happens to Americans and other people from “rich” countries. Last year, 2193 people got send back (after a short stay at the closed institute).
The whole TSLA fraud by Elon Musk case
Ahmed, S. I. (2018, August 07). Tesla call options soar on Musk tweet, short-sellers hit. Retrieved from: https://www.reuters.com/article/us-tesla-musk-stock-options/tesla-call-options-soar-on-musk-tweet-short-sellers-hit-idUSKBN1KS23A
J. Stempel, A. Sage (2018, September 27). U.S. regulator sues Musk for fraud, seeks to remove him from Tesla. Retrieved from: https://www.reuters.com/article/us-tesla-musk-sec/us-regulator-sues-musk-for-fraud-seeks-to-remove-him-from-tesla-idUSKCN1M72OI
M. Price, A. Sage (2018, September 29). Musk to resign as Tesla chairman, remain as CEO in SEC settlement. Retrieved from: https://www.reuters.com/article/us-tesla-musk-sec/musk-to-resign-as-tesla-chairman-remain-as-ceo-in-sec-settlement-idUSKCN1M90SY.
This isn’t so much one article as it is more the entire story starting with Elon Musk tweeting about taking Tesla private at 420 USD to retracting it and getting prosecuted for fraud by the SEC.
Hate or love Musk for what he does and how he does it, you can’t deny that his last action was more than questionable. Tweeting, which in essence is a public announcement, that it’s only a matter of details before you take Tesla private while in fact, that is far from the case is a more than a grounded reason to prosecute.
He’s very lucky to get away with what is nothing but a slap on the wrist. Both Tesla and Elon Musk are fined with $20 million dollars and Musk must step down as chairman.
This settlement puts a close on a tumultuous two months for both Tesla as a company and Elon Musk personally.
I’m curious how the TSLA stock will react come Monday morning EDT. It made a steep drop Friday on the news that the SEC was suing Musk.
These were my memorable articles of the past week.
Do you have anything that you want to share? Leave a comment with a link or a summary and why you find it interesting.