A Deep Freeze for GE Pensions

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According to the WSJ, General Electric Co. said it was freezing its pension plan for about 20,000 U.S. workers and offering pension buyouts to 100,000 former employees, as the conglomerate joins the ranks of U.S. companies phasing out a guaranteed retirement. Questions: Who is the CEO? The video said the CEO has been aggressive. What has he… Read more »

Loan Forgiveness at Morehouse College

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Billionaire Robert F. Smith surprises 2019 Morehouse graduates with a pledge by his family to eliminate the class of 400 students’ debt with a grant. Questions: White students pay down their debt by 10 percent a year compared to what percent by black students? How many generations have Mr. Smith’s family been in this country?… Read more »

A Story That will Tug at your Heart Strings!

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In Germany, a family owing a debt had the family dog seized by the city of Ahlen. The City then sold the dog on EBay in order to pay for the debt. Questions: 1. What were the other assets that they considered seizing? 2. Who bought the dog and what was the new owner skeptical… Read more »

Under Trump Administration, CFPB scraps requirements to ensure that borrowers can cover basic expenses before loans

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According to the Guardian, the Trump administration plans to abolish key parts of an Obama-era rule that was aimed at protecting vulnerable borrowers from amassing untenable debts from payday loans. Questions: 1. How high can the interest rate be from some payday lenders? 2. What is the Trump administration argument for scrapping the basic expense… Read more »

Millennials: New Results from the Federal Reserve

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Millennials have preferences for consumption that differ significantly from those of earlier generations because: (a) they are anti-materialists and want less stuff. (b) they are less well-off than members of earlier generations were when they were young. (c) they have lower earnings, fewer assets, and less wealth. (d) answer choices (b) and (c) are correct…. Read more »

The End is Near

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The fall of Sears has been well documented. But who else is feeling the grip of Amazon on their once thriving retail business and who will be next to declare bankruptcy? Questions: 1. According to the article, what is the toxic combination that will take the eight named retail companies out of the game? 2…. Read more »

The Fate of GE Dividends

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General Electric’s 119-year-old dividend is a source of pride inside this once-dependable company. Questions: 1. Why is a dividend cut expected? 2. What is the estimate of how much might be cut? 3. Even with the cut, the dividend is expected to do what to GE’s financials? Source: Egan, M. (2018). GE’s 119-year-old dividend is… Read more »

Breaking News: Money Buys Happiness!

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Despite what your parents told you, new research suggests that more money really does lead to a more satisfying life! Questions: 1. What did the study base this information on? 2. How long did the effects of money last, according to the study? 3. How did the surveys measure subjective well-being? 4. What did the… Read more »

Something to look forward to? Bankruptcy in Retirement!

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According to a recent study, the rate of people 65 and older filing for bankruptcy is three times what it was in 1991. Questions: 1. What are some of the main reasons that this is happening? 2. What is happening to the next generation nearing retirement age and why is this happening? 3. In 2016,… Read more »

Worse Than We Imagined!

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According to the National Center for Education Statistics, the typical student borrower will take out $6,600 in a single year, averaging $22,000 in debt by graduation. Questions: 1. Of borrowers who started repaying in 2012, how many had defaulted by 3 years later? 2. By year 5, how many students default? 3. Collectively, how much… Read more »