The Descent into Credit Card Debt

When used wisely, credit cards can be the cornerstone of a sound financial strategy. A solid credit history makes you a good credit risk and that in turn allows you to purchase the necessities of life. But credit cards can also be a slippery slope. One misstep and you’ll tumble into the abyss of credit card debt hell, a mounting spiral of missed payments, fees, high APRs, and rate increases that will take years to recover from. Only by remaining vigilant can you hope to avoid this fate. Here’s our guide to what you may experience on the way down.

[ 34 comments ]

Canada and Mexico vs the US: A Visual Comparison

So close, and yet so far. Tied together as much by geographic proximity as by NAFTA, Canada, Mexico, and the US are dependent on each other for much of their economic well being. Understanding the differences and similarities between these co-dependent economies can provide you with a compelling picture of how various factors play into a country’s economic status. To paraphrase Alice in Wonderland, you might be wondering what the use of a chart without scale or numbers is. But before you decide that we’ve gone too far down the rabbit hole, consider that our infographic is designed to provide a sense of relativity and scale. It’s an at-a-glance view of the most important economic dimensions of the US and our nearest neighbors.

[ 34 comments ]

A Visual Guide to the Federal Reserve

The Federal Reserve steers the American economy and yet it remains a system that is shrouded in mystery. Few understand the logic behind its policy decisions, decisions that have a profound effect on the US economy. And over the years it has operated seemingly independently of the more democratically elected arms of the US government. Its public stance, generally lacking in transparency has fueled conspiracy theories. Some even suggest its formation lead directly to the Great Depression.

So just what is the Federal Reserve? Why was it formed in the first place? And how does its monetary policy affect the lives of everyday US citizens? Here we do our part to demystify the Federal Reserve.

[ 78 comments ]

Visualizing the US/China Trade Relationship

Like it or not, the US and China have a trading relationship that has global repercussions. The plastic US flags that say Made in China don’t tell the whole story. No, not everything is made in China. In fact the US manufactures and exports almost as much as China but it consumes a great deal more. Hence, the trade imbalance. What’s interesting is exactly what the US imports, stuff like machinery and toys and as much steel and iron as it does shoes. And what we export — high-tech stuff like airplanes and medical equipment and, for some reason, 7 billion dollars worth of oleaginous fruit which is used to make cooking oil, presumably for Chinese food. Here’s our visualization on the US/China trade relationship.

[ 11 comments ]

China vs United States: A Visual Comparison

Whether the United States and China like it or not, the economic futures of both countries are intertwined. Everyone knows that China’s got more people and that its importance as an economic superpower has escalated in recent years. What you might not understand is how the differences between our countries, in economic philosophy, in population, in geography and in how the military is built and paid for ultimately play into the entire economic relationship. Here’s a visual comparison based on data from the CIA World Factbook.

[ 92 comments ]

A Visual Guide to Deflation

Deflation is inflation’s polar opposite. It’s what happens when prices go down and you get more bang for your buck. Sounds good right? But deflation, like inflation is complicated and much less understood than inflation. It can lead to what’s called the deflationary spiral and grind the whole economy to a halt. In this second of a two-part series we take a look at deflation.

[ 72 comments ]

A Visual Guide to Inflation

Inflation. It’s bad right? When prices rise your money is worth less and nobody wants to see their hard earned cash decline in value. But what is inflation anyway and what are its root causes? Turns out the situation is not as straightforward as it first appears. In this first of a two-part series we take a look at inflation and examine the pros and cons of this important barometer of the health of the US economy. Stay tuned for part two next week where we look at inflation’s alter ego, deflation.

[ 50 comments ]

The Fall of GM: A Visual Guide

In recent weeks, GM has been making a last-ditch effort to deal with its mounting problems and somehow escape bankruptcy. The final outcome remains to be seen, but any bailout efforts or even the most drastic of moves at this stage seem to be, as visualized below, the equivalent of lifting massive, crushing weights with simple balloons. Yesterday’s announcement of the resignation of GM Chairman and Chief Executive Officer Rick Wagoner at the behest of the Obama administration was just the latest in a series of moves designed to reassure public confidence in the flailing automotive manufacturer. We hope our infographic helps you grasp what has led to the current squeeze on GM.

[ 39 comments ]

Visualizing One Trillion Dollars

It’s official, trillion is the new billion. No longer is government spending talked about in terms of a mere ten digits. With the recent flurry of government spending, we are going to need another three zeros to make sense of it all.

You can explain it this way. A trillion dollar bills laid end to end would reach the sun or you spend a dollar per second for 32,000 years or one trillion dollars in pennies would weigh as much as 2,755,778 Argentinosauruses (the largest known dinosaur). But the real story behind one trillion dollars is in its economic impact. Let’s investigate what one trillion dollars can do.

[ 77 comments ]

Golden Parachutes: How the Bankers Went Down

When high-ranking executives are fired from a company, for whatever reason, they don’t go to the back of the unemployment line. Instead, they typically receive compensation in the form of the “golden parachute.” Golden parachutes can include severance pay, cash bonuses, stock options or other benefits. In the case of the financial crisis and the ensuing bank failures, if it seems like these executives are being rewarded for poor performance, you may be right. Here’s a look at what some bankers made on their way down.

[ 56 comments ]

« Previous Entries