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Eric Reed

Retirement and Investing Expert

Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.

Posts by Eric Reed:

by Eric Reed May 05, 2020

Subsidies, which are a kind of economic stimulus, are government payments made to businesses. Subsidies can target either specific companies or an entire industry, and they typically apply in one of two ways. In some programs the government supports an industry directly, providing cash payments, tax breaks, or paying for certain costs. In other programs the government supports an industry by making their products cheaper for consumers, often by providing vouchers or breaks on taxes. Through subsidies, a government can encourage a business that would otherwise be unprofitable in the free market. Read more

by Eric Reed May 15, 2020

During a recession the Federal Reserve gets the most headlines for dropping its benchmark interest rates to spur lending, and the spending that lending allows. While that’s the most well-known move the Fed makes, it’s far from the only one. In fact the U.S. central bank has a number of ways it can influence monetary policy during an economic downturn. One of those options is to subsidize U.S. money markets through what’s called the Money Market Mutual Fund Liquidity Facility. Read more

by Eric Reed Apr 30, 2020

State bankruptcies have recently become an open question as the coronavirus pandemic shreds many states’ finances. But before that, the issue emerged in 2017 when the U.S. territory of Puerto Rico filed for bankruptcy. And even prior to that analysts were studying the deteriorating condition of state finances. No state has ever declared bankruptcy, though. And, with the exception of Arkansas in 1933, it has been nearly 150 years since any state defaulted on debt. There is no roadmap for what happens when a state goes bankrupt. We review how we got to this point, bankruptcy issues and possible ways forward. Read more

by Eric Reed Apr 29, 2020

The CARES Act includes a temporary change to how companies make use of net operating losses when they file taxes. A company that earns less taxable income than it can claim in deductions can now… Read more

by Eric Reed Apr 28, 2020

In Brookline, Mass., Talia Glass runs a local market called Allium Market, an independent specialty foods market selling cheese, baked goods and coffee. Like many such businesses, the market has been… Read more

by Eric Reed Jun 04, 2020

It’s hard to recall a time when market volatility has been as intense as it has been during the coronavirus pandemic. Over the course of March, federal, state and local governments imposed shutdown… Read more

by Eric Reed Apr 23, 2020

The Small Business Administration (SBA) has a number of programs available for small business owners suffering during the coronavirus pandemic. The most prominent are the Personal Paycheck Program … Read more

by Eric Reed Apr 22, 2020

As the economy remains shut down due to the coronavirus pandemic, export businesses have taken a significant hit. With transport links reduced and consumers staying home, global demand for U.S.… Read more

by Eric Reed Apr 21, 2020

When markets closed on April 20, 2020, crude oil on the futures market sold for -$37.63 per barrel. That minus sign is not a typo. In fact, the price of crude oil had indeed closed negative, tumbling… Read more

by Eric Reed Apr 20, 2020

Investors have gotten surprisingly used to negative interest rates. Originally an extraordinary crutch to help economies recover from the supposedly once-in-a-generation catastrophe of the Great… Read more

by Eric Reed Apr 14, 2020

The Small Business Administration’s most significant function is to help small businesses secure funding. Often this comes in the form of startup capital for someone looking to create a business.… Read more

by Eric Reed Jun 08, 2021

Deficit spending occurs when the federal government spends more than it collects. This means that the federal budget exceeds both the government’s revenues for the year and any surplus it currently… Read more

by Eric Reed Apr 13, 2020

One of the most important functions of the Small Business Administration (SBA) is to help entrepreneurs and small businesses raise funds to open or expand a business. To assist with this, the SBA… Read more

by Eric Reed Jul 10, 2020

The centerpiece of the coronavirus stimulus package, the Paycheck Protection Program (PPP) provides forgivable loans to small businesses to help them maintain their payroll. The program’s original… Read more

by Eric Reed Mar 31, 2020

Most people experience government spending through its fiscal policy, which refers to how a government takes money or spends it. The former happens through taxation, while the latter might include… Read more

by Eric Reed Mar 27, 2020

A trade deficit sounds like a very bad thing. A trade deficit is an economics term which indicates the difference a country’s imports and its exports. If the country imports more than it exports, it… Read more

by Eric Reed Mar 25, 2020

When it comes to fixing an economy, the government has two main tools at its disposal: monetary stimulus and fiscal stimulus. This isn’t the limit of what a dedicated government can do, but most… Read more

by Eric Reed Mar 19, 2020

Did you know you can make money in the stock market when shares go down, or in commodity markets when prices fall? In other words, the buy-low-sell-high approach can be reversed and still produce a… Read more

by Eric Reed Jun 03, 2020

The coronavirus pandemic has had a number of effects on the U.S. economy, including many recession-like symptoms. The Coronavirus Aid, Relief, and Economic Security (CARES) Act has been put in place… Read more

by Eric Reed Mar 17, 2020

An option contract is a form of financial asset known as a “derivative.” Purchasing an option contract it gives you the right to buy or sell some underlying asset on specific terms. You choose a… Read more

by Eric Reed Mar 14, 2020

NAFTA is dead. Long live NAFTA! In 2018 and 2019, the Trump administration announced that it had signed a renegotiated version of the North American Free Trade Agreement. The administration tried to… Read more

by Eric Reed Mar 16, 2020

The Great Wealth Transfer is coming. More than 10,000 baby boomers are turning 65 every day, and over the next 20 to 30 years trillions of dollars’ worth of wealth will transfer to their children. It… Read more

by Eric Reed Oct 01, 2022

The 2020 stock market posted some of its biggest losses and gains since the Great Recession, taking investors on both a terrifying and thrilling roller coaster ride in middle of a global pandemic.… Read more

by Eric Reed Feb 28, 2022

Morningstar ratings are a system for evaluating the strength of an investment based on how it has performed in the past. On a scale of one to five stars, a Morningstar rating measures investments… Read more

by Eric Reed Mar 06, 2020

Participating preferred stock may be the most desirable security for an equity investor to own. Shareholders who own preferred stock generally receive any payments made by the underlying company,… Read more