Abstract This paper analyzes Michigan's economy, attributing the wane to the decline in the motor-vehicle industry and low tax rates. It also discusses bond ratings, and Michigan's present bond rating of AA - which is the middle high range bond rating offered due to the changing economic climate. The paper reviews this rating by studying the demographics, unemployment rate, income and administrative structure of Michigan as well as Michigan's major sources of income and expenditure.
Table of Contents:
Executive Summary
Demographics
Population Trends and Growth
Michigan's population breakdown by age is as follows:
Michigan's population breakdown by race is as follows:
Educational Attainment
Unemployment, and Income
Income
Unemployment
Housing
Administrative Structure
Political Affliation in Michigan's Administrative Structure
Current 2008 Economic Agenda
Job Creation
The No Worker Left Behind Program
Family Health Care
Education Spending
The Michigan Legislature
Government Shut-Down
The Budget Process
Key players in the budget process include:
Development of the Executive Budget
Legislative Action
Governor Signs Bills And/Or Vetos:
Budget Revisions
The impact of economic and political issues on the Budget Process:
Revenues
The Major Sources of Revenue:
Federal Revenue
Sales and Use Taxes
Income tax:
Non-tax Revenues:
Other taxes:
Transportation Revenues:
Business Taxes:
State Education Tax:
Expenditures
Expenditures between FY 2006 and FY 2005
Cause of Budget Problems
Education expenditure
Public welfare expenditure
Hospitals expenditure
Health expenditure
Highway expenditure
Police expenditure
Corrections expenditure
Natural resources expenditure
Parks and recreation expenditure
Government administration expenditure
Utility expenditure
Economy
CreditRating Employment
Debt Analysis
Historical Levels of Michigan State Government Debt
Michigan Government Debt Outstanding
State Government Debt in Michigan Compared with Other States
Economic Analysis
The Economy
Unemployment
Gross Domestic Product
Contributors to the Economy
Museum Industry
Hunting Industry
Michigan Department of Natural Resources
Bond Rating and History
Bond Ratings and Their Definitions
Factors that Affect CreditRating:
Economic Factors
Debt/Issue Structure
Financial Factors
Management/Structural Factors
Standard & Poor's and Fitch Classify Bonds as Follows:
Moody's system
Michigan's Bond Rating Financial Impact of Lower Bond Rating Table One--2005 Full Time Year Round Workers in Michigan by Educational Attainment
Table Two--Michigan Gubernatorial Election 2002
Table Three--Michigan Gubernatorial Election 2006
Table Four--Total State Revenue Source FY 2006
Table Five--2006 General Expenditures by Function
Table Six-- Total Expenditures between FY 2006 and FY 2005
Table Seven--Percentage Difference of Expenditures in FY 2006 and FY 2005
Table Eight--2006 Worst State Unemployment Rates Compared
Table Nine--Yearly Debt Outstanding Between 1979-2006
Table Ten--2006 Specific Debt Outstanding
Table Eleven--State Rankings of State Debt Per Capita 1980-2005
References
From the Paper "Michigan's budget problems are largely due to revenues not keeping up with the cost of maintaining programs and policies. Most of the budget goes towards organizations or individuals that provide services - a little over 80 percent supports K-12 education, community colleges and state universities, cities, counties, Medicaid, community mental health programs and corrections. Trying to reduce spending will mean cutting these programs. Since revenue growth has exceeded expenditures, the state budget demands structural change. Michigan used their reserves to maintain current programs and policies, such as, education, health and corrections - the economy has declined, but spending pressures continues to accelerate. Since Michigan's state sales tax rate is low, difficult to fund major projects and programs. Half of the school aid fund is covered by sales tax."
Abstract The paper describes how our creditratings affect everything from insurance premiums to the interest rates we are offered on loans and deposits required for certain services. The paper explains that a credit score is simply a numerical ranking between 300 and 850 that financial institutions assign to an individual's credit report. This information is then statistically ranked to determine how likely that individual will be to repay credit. The paper discusses how credit scores are established, how they are utilized and what components are considered.
From the Paper "Susan's insurance carrier sent her a renewal quote for her automobile policy, which she had held with them for several years at the same rate. Susan had never had an accident or even a speeding ticket, so she was quite surprised to see that her premiums had increased substantially since her last bill! She called the insurer to find out what the source of the increase was, thinking it could be a clerical error, and found out that the financial difficulties with late payments and large debt she had experienced the previous year had been factored into establishing her car insurance cost. Susan was shocked to find out that her financial issues had affected her insurance prices, even though she had never been late in paying a premium nor had any claims on her policy!"
Highlights the main reasons why membership in the Employee Federal Credit Union (EFCU) is shrinking and why individuals are opting for commercial banking when credit unions offer loans at lower rates.
Abstract This research report addresses the main reasons why EFCU has encountered a decline in membership and what is prompting people to borrow from other financial bodies. In order to better understand these reasons, however, the paper first looks at why people are initially attracted to credit unions instead of commercial banks and the principles that guide the growth of credit unions. The report is based on a survey of EFCU members, which was conducted through mailed questionnaires.
From the Paper "This has been a major setback for most federal credit unions including EFCU the number of its members has decreased and many existing members prefer commercial banks to meet their loan requirements. While the governmental regulations are certainly playing a dominant role in poor performance of credit unions in last few years, we must not forget how banking industry has persistently forced the government to develop such legislation. The worst part is that due to this persistent challenges, market share of credit unions came down to 12% in 1995 from 13% in 1980 while that of bans increased from 50 to 56% during these fifteen years."
Abstract This paper explains that online credit recovery programs are a way to insure optimum high school graduation by providing second-chance opportunities for students who have failed classes. The author describes a research project to assess the effectiveness of online credit recovery programs by comparing two online credit recovery programs: one implemented and designed by a commercial educational resource company, Aventa Learning, and another called the Georgia Virtual School under the auspices of the state of Georgia. The paper relates that weaknesses of this design is a shortage of currently available data, the probability of errors with only two programs being studied and the unreliability of former students answering opinion questions positively.
Table of Contents:
Introduction
Mixed Method Research Design
Integration of Data
Quantitative Validation and Qualitative Verification
Ethical Considerations and Role or the Researcher
Strengths and Challenges and Summary
From the Paper "In order to evaluate the success of both programs, researchers must rate them in terms of success rates in addition to graduation rates. In order to do this, researchers can conduct opinion polls of students taking the programs, asking them whether or not the material was easier to understand or moved at a better pace in the online programs as opposed to the courses they failed. Additionally, researchers must conduct tests five years after the students graduate in order to determine their success rate in terms of income, profession, and community involvement."
This in-depth paper analyzes the significance in assessing and rating a particular country's assets and liabilities as well as its overall impact on the global economy.
Abstract The writer of the well-researched paper examines the history of sovereign ratings which have been around since approximately 1979. This paper details the importance of sovereign ratings, which basically assess the financial worth of an individual country. This paper analyzes the methods in which countries are rated, which include calculating the financial history, current assets and liabilities of a particular country. Sovereign ratings are significant when calculating whether or not a particular country can repay its debt, or whether the country in question will choose to default on its debt, to the lending country. This paper delves into the relevance of these ratings, when dealing with international trade and currency. This paper explores the various risks involved in lending money to sovereign nations. This paper examines the methodologies that are generally used by rating agencies, such as Standard and Poor's and Moody's. The writer discusses the various shortcomings that are associated with sovereign ratings, while discussing why certain countries, such as Korea and Malaysia do not have good ratings. This paper also supplies two tables relevant to this particular topic, including a sovereign creditrating, listed by country.
Table of Contents:
Literature Review
Introduction
History of Sovereign Ratings Methodologies Used by Rating Agencies
Shortcomings
Conclusion
Works Cited
From the Paper "While sovereign ratings are seen to be very important, more recent history is still suggestive of the fact that lending to sovereigns remains very risky. A survey taken by Standard & Poor's that dealt with 72 governments and looked at the debt based on outstanding foreign and domestic currency indicated that 30 of these had defaulted at least one time on either foreign or domestic currency debt since 1970. None of these sovereigns had any type of sovereign rating by a rating agency that was recognized internationally before they defaulted but nine of them have been rated subsequently by Standard & Poor's and Moody's. The frequency of default for many of these countries has been relatively high and this has been something that has caused a lot of stress and concerns for individuals in those sovereign countries that are simply trying to conduct good business today without being held back by the past."
Abstract This paper reviews three of the more prominent rating agencies who are globally recognized and who assist issuers in entering capital markets more economically and at frequent levels. These three rating agencies work in all countries that utilize the universal rating scale.
This paper also takes a look at the history of rating agencies and how their findings influenced major business decisions.
From the Paper "Three prominent credit rating agencies are widely acknowledged globally. They are Moody's Investor Service, Standard & Poor's and Fitch Ratings. They accord domestic and external ratings at the request of borrowers. They are present in almost all the countries having a universal rating scale. The Standard & Poor's rating agency was first instituted by Henry Varnum Poor in 1860 with the guiding principle 'the investor has the right to know'. In the year 1906, Standard Statistics Bureau Company was established to entail the financial information on US companies that in 1916 started to assign debt ratings to corporate and sovereign debt. During 1940 it introduced Municipal bond ratings. (International Credit Rating Agencies)"
This paper addresses the credit report, including how and why a credit report is important and exactly how the credit report can impact the individual.
1,900 words (approx. 7.6 pages), 4 sources, 2002, $ 71.95
Abstract This paper addresses the credit report, including how and why a credit report is important and exactly how the credit report can impact the individual. This paper provides information first on the appropriate steps necessary to acquire a full credit report, and the reasons the average consumer might wish to do so. This paper then investigates the scams that accompany credit and credit reports in order to better inform the reader of the problems that might occur in acquiring a credit report through non- official channels.
Tags: BUSINESS / FINANCE, ECONOMICS, ACCOUNTING, the credit report
Abstract This paper discusses the advantages and disadvantages of credit risk management software as a risk mitigation tool. The author explains the use of credit-scoring models. The paper demonstrates the application of credit-scoring to CRM software.
From the Paper "For more than four decades, creditors doing business with consumers have been using credit-scoring models to determine if applicants are good credit risks. Information about an applicant's credit history including the amount of debt they have outstanding their bill-paying history any history of late payments and the number of times they have been sued or placed for collection are all factors that CRM programs use to establish an appropriate credit limit for a consumer credit applicant. Fay Hansen in "Business Credit" reports that a few years ago ....."
Abstract This paper discusses credit derivatives in modern banking. The paper gives a brief outline of credit derivatives, and further discusses the concept of how they function within the global market. The paper examines occurrences within banking in relation to credit derivatives and how these events have affected the worldwide opinion regarding the limitations of these transactions. The paper draws conclusions from the research provided, and offers opinions for the future of credit derivatives in banking.
From the Paper "When the economy is stable and interest rates are low, banks traditionally struggle for profits because there is not a significant need for loans from consumers or big business. In these moments of financial peace, banks needed methods that would ensure they could survive independently on the downfall of the economy in order to remain solvent. Credit derivatives were born of such concern, allowing bankers, and others, the ability to reduce their risk by selling risk to other parties. Risk was still maintained by lending institutions, but the prospect of intense profit margins was the deciding factor for most banks to begin to participate in credit derivatives. The research will demonstrate that bank use of credit derivatives has been a recorded success, and that credit derivatives continue to grow across the globe as a boom to the banking industry. However, limitations do exist connected with credit derivatives."
Abstract This paper provides an extensive review of the recent literature relevant to pricing credit derivatives. The paper discusses new developments in credit derivative pricing and explains that these new developments are those innovations that expand or clarify the existing variations models for credit derivatives.
From the Paper "The purpose of this study is to review new developments in the pricing of credit derivatives. Credit derivatives, essentially insurance against credit risk through the structuring of and trading in of synthetic financial assets, are little more than a decade old. Thus, a skeptic might state that almost anything that occurs in the credit derivative market reflects a new development. The perspective providing the focus in this study however is that new developments are those innovations that expand or clarify the..."
Abstract This paper examines the issue of foreign tax credit for corporations under IRC section 901(b)(1). The paper first explains foreign direct investment in order that we may understand the relevant issues. The paper then gets into the specifics regarding tax credits and issues where these foreign investment companies are concerned.
Outline:
Chapter One - Introduction
Chapter Two - Review of Case and Ruling Issues
Chapter Three - Methodology
Chapter Four - Case and Ruling Analysis
Chapter Five - Summary, Conclusions, and Recommendations
From the Paper "The first limitation that is important to note is that there is so little information about the case study subject in question - the foreign tax credit. While there is indeed some information, much of it comes from laws and rulings as opposed to studies and research articles. With that in mind it is important to note where the information that is being collected for the study of this issue is coming from. There is no reason not to use the information that is provided by others, but making sure that one is aware of where it comes from and what potential consequences that could have is of utmost importance when it comes to looking at the limitations that can be found in research. Making sure that the most accurate data available is used is significant and when something cannot be verified it should be pointed out in the study that it cannot be verified so that there is no further confusion as to whether that piece of information is legitimate or not for the study."
Abstract This document discusses the marketing strategy of Metro Credit Union (MCU) and its options, focusing on issues such as branding, brand identity and positioning in a competitive environment. MCU is concerned about which market segments to pursue and how to pursue the one it targets. The paper concludes that MCU should pursue a technologically savvy and able online brand identity.
Abstract yThis paper discusses indepth the state of the economy in context of the rise and then consistent drop in interest rates over the last 5 years. It discusses what the impact is such rate cuts is on all aspects of the economy and also highlights the various kinds of interest rates.
Table of Contents
Introduction
Overview of Interest Rates and their Significance as a Macroeconomic Tool
Types of Interest Rates Impact of Change in Interest Rates on the Current Economy
Conclusion
References
From the Paper "The Federal Reserve like other Central Banks seeks to maintain a financial environment within which competitive markets support the efficient use of productive resources. The overarching principle is that central bank should provide the necessary monetary and fiscal stability in a way that leaves the maximum freedom of action to private markets. In keeping with this principle, monetary policy is implemented by indirect means, with an interest rate policy instrument than with direct credit controls. Thus interest rates are part of the Federal Reserve's key macroeconomic tools that it has at its disposal to control the markets? and inadvertently the entire economies money supply. The quantity of money within an economy can determine various exogenous and endogenous factors that can keep the markets and the economy in close range of the equilibrium position. This is important in-order to prevent the extensive number of boom and bust cycles the American economy has faced in the early part of the last century."
Abstract This paper explores whether policy endogeneity partially explains the negative relationship generally reported between parental involvement laws and abortion rates, since parental involvement laws are found to be negatively related to both teen and adult abortion rates. Since parental involvement laws may be more likely to be passed in jurisdictions with a higher level of anti-abortion sentiment, both the laws and anti-abortion sentiment may be responsible for lower abortion rates. To explore this possible interrelatedness, a religiosity-level variable was used as a proxy for anti-abortion sentiment, since anti-abortion sentiment might affect abortion rates directly and indirectly through the greater likelihood of the enactment of parental involvement laws.
From the Paper "The relationship of parental involvement laws and religiosity level to abortion rates was analyzed for teens and adults; regressions were estimated for four age groups: 15-19, 20-24, 25-29, and 30-34 years old. Residence county-level 1995 abortion rates were regressed against parental involvement laws and religiosity levels as well as several control county-level variables--restrictive public funding, unemployment rate, population density, percent of college graduates, extent of poverty, percent of married-couple families, and geographic region. The sample consisted of the 1,008 counties from the 17 states that reported abortion numbers by county and by age group."
Tags: abortion, involvement, laws, parental, rates, research, study
Abstract This paper examines the exchange rate in Australia and its effects on the overall economy of the country. The author looks at the fluctuations and the economic conditions that impact the exchange rate and the advantages and disadvantages of fixed and floating exchange rates.
From the Paper "Prior to December 1971, the value of $A was pegged to the value of the pound sterling. From December 1971 to September 1974, the value of the $A was pegged to the value of the US dollar. From September 1974 to November 1976, the value of the $A was pegged to a trade-weighted index on a basket of currencies. Since November 1976 to December 1983, the exchange rate for Australia dollar was determined by the Trade-Weighted index [TWI], but additional fluctuation was incorporated when economic conditions required them. Unfortunately, the main criticism of the TWI was that it did not make the allowances for capital movements in and out of the economy. "
