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The Big Yahoo Yarn Ball

Posted by Unknown on 9:22 PM
A select group of powerful stockholders would rather sell their shares then wait to see what is going to happen when Yahoo tries to go forward with its plan to create tax-free spin off of some of its services like sports, news, and email.
Tax-free spin off refers to when a company, in this case Yahoo, spins off, hence the name, one of its business units as an entirely new company. This new company gets its own stock label, board of directors and all of the other things that companies get because it's a real company. Tax-free spin off is different from normal selling off in that in a tax-fee spin off the company does not have to pay a capital gains tax on the portion it is trying to get rid of. It does not have to do this as long as it meets section 355 of the International Revenue Code.
If it does not meet this code, the Internal Revenue Service can challenge it and get the company stuck with the tax that they had been trying so hard to avoid in the first place. In the past a company could have inquired if their spin off plan actually qualifies as tax free but in September, the IRS decided that it would do this no longer and that companies would just have to wait and see if they got hit with a capital gains tax.
When it rains, it pours
This is actually a concern of some of the stockholders as the IRS does not really seem to be on Yahoo's side in this issue. It actually killed a previous plan of Yahoo to spin off its stake in Alibaba Group Holding Limited when it declined issuing a ruling endorsing its tax-free-ness. If Yahoo had not pulled back on the plan, this action by the IRS would have left them open to having the status challenged at a later point in the game.With that plan down the drain, Yahoo came back with another plan to spin off other things like its stake in Yahoo Japan. Unfortunately for Yahoo, this plan is also in trouble. Stockholders like Mason Capital are demanding sales to be made now instead of later and have written the board of directors at Yahoo twice to tell them so. The stocks of the company took quite the tumble last year, and have fallen 36% . Investors are nervous that this pattern will continue and worry that Marissa Mayer,the CEO, does not actually have a viable plan to fix the floundering company. Some have suggested replacing her but others note that there really is not anyone would could or could have done a a better job.
Some Yahoo investors want to sell Internet business even if it triggers big tax bill

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Standing on the Brink of Insanity

Posted by Unknown on 6:40 PM
Recessions occur when people choose to save money instead of spending it. Recessions can be good things. They give large economies a chance to "take out the trash" as under performing businesses fail they are removed from the market and as financial crimes are more easily discovered/less easily ignored. At the same time, lots of people loose their jobs and their wages tend to drop during this time. A lot of countries fall into a recession and then have a hard time getting themselves back out of it. The way to fix a recession is to get people to start spending money again. Banks try to facilitate this through the lowering interest rates. Since the housing bubble burst in 2008, interest rates in the US and around the world have stayed around 0% and they have been this way for almost a decade. In December, the Federal Reserve decided that they would start to rise interest rates. The Feds plan to increase rates gradually so that at the end of the year the rate has increased by 1. This is planned to last 3 years.
The debate is not whether this is actually going to happen, the debate is over whether the American economy can actually handle it. The Feds seem to think so but investors aren't so sure. Other countries have actually tried to raise interest rates from above 0 before but it did not work out the way that it was suppose to. They all rose interest rates but after a while, the growth that they had seen before started to slow down shoving those countries back to where they were before. Every country ended up having to go back to the 0% rates that they had had previously. The fear is that this is going to happen to the US and the possibility of it is not making investors happy. I imagine, this news is not looking very good to other countries as well. Because the global economies are so interconnected, the US economy taking a downturn would have impossibly negative impact on all of these other countries whose economies are already struggling. If this goes wrong another global economic meltdown could very well be in our cards which would not be good at all for anyone let alone new college grads. How can you pay back your student loans if you can't get a job? You can't.
That is some drop
 If they did not try to raise interest rates, the economy would basically be defenseless against inflation or another economic downturn. You can not have the rates at 0 for forever. The system just was not designed to work that way so hopefully the American economy is strong enough to handle what could possibly be a step towards normal.
Fed Raises Key Interest Rate for First Time in Almost a Decade


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The Economic Reasons Behind Why You Might Die Alone

Posted by Unknown on 2:05 AM
Before the great depression started, a surplus of food was produced by American farmers to compensate for the lack of food being produced in all of the other countries ravaged by WWI.When those countries started to bounce back the market that the American farmers had been selling all of their excess wares to dried up and they were left with a crazy abundance of food. The crazy abundance of food, the surplus, led to prices for that food dropping. To try to make more money those farmers produced even more food. The idea was if they sold more food then they would make more money but they didn't take into account the fact that everyone else would probably try to do the same thing. Maybe, they did know but they did not have any other option to take. Regardless, low food prices dropped even lower.
 For college graduated men there is a surplus of college graduated women which in tern has made women "less valuable". Areas like San Francisco, San Jose, and Silicon Valley have seemingly resisted this trend of women graduating more then men and the rate of college graduated men and women is more even there then in other places in the US. Scarcity has always increased the value of things from pineapples to corn to vintage comic books it would only make sense that humans would also follow this pattern.
The current ratio is that 2 men go to college for every 3 women but that ratio varies depending on the race of the group in question. African American women go to college at nearly twice the rate of African American men. We are talking about a 2 to 1 ratio. On average, Americans tend not to marry outside of their educational class or group or level or whatever label you wish to give it. Women, on average, go to college at a higher rates then their male counterparts and they do not want to marry those men who have not gone to college. Apparently, the thing that is keeping kids out of college is not only the price but the fact that a man does not have to go to college to get a job that pays a decent wage. A high school degree gets men a lot further then it does women with male dominated industries like construction and firefighting. For women, college is one of the main avenues towards a decent wage and although they are go to college more they still are paid less. The wage gap is actually narrower in part to the fact that women to go college at a higher rate then men.
The ratio really is not in your favor
Women are more likely than men to go to college, but they still get paid less
Why Do More Women than Men Go to College?
It's Not Your Imagination, Single Women: There Literally Aren't Enough Men Out There


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