Tag: LOM Financial

How changes in the Federal Reserve’s monetary policies influence the global economy

Image source: CNBC

The central banking system of the United States, the Federal Reserve System (also known as the Fed) is one of the most influential central banks in the world. In other words, any changes in the roles, regulations, and responsibilities of this financial institution have direct effects on the global financial state.

The Fed’s monetary policies were designed to achieve three main objectives that primarily benefit the citizens of the state: maximizing levels of employment, price stabilization, and most importantly, moderating long-term interest rates.  Over the years, its reach has expanded as the U.S. Central Bank also focused on the supervision and regulation of banks, stabilizing the country’s financial system, and even providing financial services especially to national and foreign depository institutions.

Just like any nation’s central bank, the Fed’s implementation of specific monetary policies hold the power to control the country’s overall economy. However, given the influence of the U.S. dollar as a preeminent currency in the global market, these changes tend to cause ripples beyond the country’s economic boarder.  For this reason alone, investors and analysts always keep a close eye on every move that this central bank makes.

For instance, in the event of a global financial crisis such as the one in 2007, the FED’s response has proven to be crucial. Here, the American central bank and other leading central banks of the world focused on implementing new policies and programs to aid in the liquidity of financial institutions. Ultimately, these adjustments also helped improve the conditions of the financial markets.

Indeed, the most powerful central banks in the world, most especially the United States’ Fed, have proven to cause not just a national but a global impact on the economy. This is true nowadays that the global market has become highly sensitive to every move of the American central bankers and their future implications of the most respected global reserve currency, the U.S. dollars.

For more about monetary policies, currencies, stocks, and investing as a whole, visit LOM Financial’s official Facebook page HERE.

What really determines oil prices?

Image source: pixabay.com

 

Oil holds its constant title as the most valuable commodity in many modern societies (making it a major element in most local and offshore portfolio management accounts), not only because it is one of the highly-traded non-financial products globally, but also because products derived from petroleum like oil covers a huge percentage of the world’s energy demand.

In the U.S. alone, crude oil provides 39% of the country’s energy source, with transportation topping the list for the industries that rely mainly on oil products on their day to day operations.

Since it’s the most sought-after commodity in the market today, the price of oil constantly changes. There are several factors that determine the price of oil and dramatic changes in these figures greatly affect the economy on a global scale.

However, unlike other products, what determines oil prices defies the basic rules of supply and demand. This is because the primary determinant of this commodity’s price will depend on traders who bid, on a daily basis, on oil futures contracts through the commodities market.

Traders make their decisions every day and their behavior that decides how they bid depends on controlled factors such as access to crude oil’s future supply, demand from the top oil consumers that include the United States, and most importantly, the present supply of this commodity in terms of output.

While traders and their sentiment towards oil as a potentially valuable commodity in the future can dramatically affect its price, other factors that are geopolitical in nature can also predict how oil prices will fare in the market.

Deals among economically dominant countries in the world greatly control the price of oil through pivotal decisions that could, in one way or another, influence the sentiments of traders and financial betters who are always on alert for every possible fallout.

Unforgettable historical events that took place in the Bahamas

Image source: thousandwonders.net

 

The Bahamas is a major archipelago in the Atlantic Ocean and a popular destination worldwide not just as a top tourist hotspot but as a global offshore portfolio management center that serves an impressive domestic and international client base. While the world sees the Bahamas as a top destination for travel and business, there were several moments in history that placed the Atlantic nation on the international headlines.

Here are the important events that took place in the Bahamas:

 

Establishment of Freeport

It was in 1955 when the Bahamas made a historic move to establish a free trade area where tourism and offshore banking emerged and prospered. The mid-1950s was an important decade in the history of the Bahamas when Wallace Groves started his vision to transform Grand Bahama Island into a haven not just for travelers but also for businessmen. That’s when he established a promising city, the Freeport, as a central business and tourism hub.

 

Bahamian Independence

After centuries of colonial rule, Bahamas decided to finally enjoy its independence on July 10, 1973, from the British colonial rule. On that same year, the newly-independent territory became an official member of the United Nations. This was just years after Britain granted the Bahamas self-government, one of the most important historical events in the country.

 

Aaliyah’s tragic plane crash

One of the most known accidents that took place in the Bahamas is the death of Aaliyah, a popular American singer/actress. On August 25, 2015, the actress was onboard a plane when it suddenly crashed just minutes after takeoff from the Abaco Islands in the Bahamas. The artist was not alone in the small plane, as she was also with seven others who suffered the same fate.

Some major takeaways from the recent Facebook “breach”

Image source: buzzfeed.com

 

Cambridge Analytica is a political consulting firm that made headlines days ago because of its links to the U.S. presidential campaign back in 2016. According to the reports, the company allegedly illegally and unethically harvested information of Facebook profiles belonging to millions of American users and utilized the data to create a major political advantage in favor of Donald Trump.  According to investment firm LOM Financial, tech stocks went on a sell-off following the incident.

Although the highlight of the case was mostly American Internet users, it created a whole wave of criticisms and alarming questions about Facebook’s privacy policies and how users felt unsafe and violated. After days of silence, the social media’s CEO and founder, Mark Zuckerberg, admitted that there were indeed policies that allowed the misuse of the public’s data, acknowledging that the company failed their community’s trust.

Lessons will be learned, added by the CEO, but as an individual user of Facebook and other social networking platforms, or even as a policy-maker in a country where SNS are widely used, what are the takeaways from this breach?

Most experts believe that traditional frameworks should be redefined especially when it comes to the principles of privacy and sharing of information. This is because the root of the crisis can be traced back to Facebook’s policies that gave permission to the developers of third-party applications to freely access a user’s personal data since 2007. It was only in 2014 when the company decided to reduce this volume but It was already too late.

For individual users of any social networking sites, remedies can be as easy as disconnecting their private profiles to unnecessary and unused online applications that may have access to the information that they post online. It also goes without saying that carefully choosing which third-party program to give your data to should be a preventive measure.

While these steps can relatively protect you from future hacks, some users believe that completely deleting themselves from the networking site is the ultimate solution.  What do you think?