Economic News Investigations
By: Aaron Holder
New York Jets
The New York Jets have spent a lot of money and energy into Sanchez (the starting quarterback) and know have to figure out what they are going to do, since he has been playing very poorly. He has thrown more interceptions in his career than tuchdowns. The team has spent a lot of money on Sanchez and is contracted to pay him 8.25 million dollars if he plays or not. Hal Arkes says and there are lots of executives who would rather be tortured than admit that they are wrong. This is known as sunk cost. Although the team has spent a lot of money on Sanchez they have realized that he isnt good and realize that they have to get rid of him when they get the chance.
Why drop in oil prices could squeeze us economy
A recent boom in the amount of oil the US is producing has been helping out our economy. Although the reduced price of oil will allow people to spend there money on something helping the economy, if the price of oil drops below the profit margin we will have less exports. Unless their is a shortage of oil somewhere else prices could fall further. Researchers think that the price of gas could drop below three dollars a gallon before the end of the year which hasnt happened in four years. The demand would be to low to be able to make a profit, creating a surplus of oil.
The rapid expansion of corn is slowing because the market is saturated. It is expected that there will be an over abundance of corn creating a surplus. In 2012 corn shot up over eight dollars a bushel and now it has retrieved to four dollars a bushel. Since corn is a major cash crop for Iowa this could be devastating to Iowa's economy.
Right now families and businesses are scared to buy anything that requires a long term commitment. It is said that the unemployment rate will drop below 6.0% to 6.1%. As the global economy improves tree will be less of a demand for safe investments and people will feel safe to invest there money. This will help out the economy even more because all the money people are saving because they are scared will be put back into circulation.
Will grain Prices Fall?
Gas prices have continued to fall which means farmers will have a higher yield. It is good that gas prices are dropping but it won't have a major effect on the price of corn or grain because gasoline isn't a big expense. North America has increased their production of crude oil creating a surplus. Unless the oil companies cut back on production to raise the price of gas, prices should continue to fall.