Current Economic State
It is now January 2013 and according to some people, the upper class perhaps, the recession is over and the economy has “bounced back.” However, I have yet to feel the rebound of this bouncy economy. The first quarter of 2013 has no concluded so naturally in order to see what the experts say about the expanding and contracting of the economy we must look to the previous quarter. In first quarter of the year the economy expanded 2 percent and 3 percent at the end of 2011. Towards the spring of 2012, the second quarter, the economy grew only 1.3 percent and come close to a standstill. As of now, I think it is safe to say the economy is constantly contracting and expanding. It is a real give and take type of scenario. The economy sure has not bounced back enough because the unemployment rate was between 8.1 and 8.3 percent all of 2012. There is no way that that is an acceptable unemployment rate for an “expanding” or “growing” economy. Before we get into what the current prime rate is, I think it is imperative that we first explain what a prime rate is. The U.S. Prime Rate is a commonly used, short-term interest rate in the banking system of the United States. All types of American lending institutions (traditional banks, credit unions, thrifts, etc.) use the U.S. Prime Rate as an index or foundation rate for pricing various short- and medium-term loan products. It is important to keep the prime rate consistent and better for business and individual because it gives them the chance to compare it with other similar loan rates. The projected prime rate number are expected to go from 3.25 percent to 10.1 percent between now and 2043. The current credit card interest rates seem to be decreasing a bit which is also a good sign that the economy is coming back on track. From November 2012 to January 2013, the credit card interest rate went from a fixed rate of 14.02 with a variable of 14.58/14.59 to a fixed rate of 13.33 percent with a variable...
Please join StudyMode to read the full document