Category: Economy

The Realistic Reasons Why the Housing Market in MA is Cooling DownThe Realistic Reasons Why the Housing Market in MA is Cooling Down

The Massachusetts housing market is one of the most stable in the country. This is due to a combination of factors, including the strong economy and relatively low unemployment rates. The Boston metropolitan area has seen a surge in population growth, which has increased demand for housing. Massachusetts housing prices are also among the highest in the country, but they are still within reach for many residents (buy houses in MA). For example, as of June 2018, the median price of a home in Massachusetts was $335,000. However, in recent years, the housing market in Massachusetts is seeing a cool down in the market due to some significant factors.

5 Reasons Why the MAHousing Market is Cooling Down

The housing market in Massachusetts is cooling down. This is largely due to the increase in prices and the decrease in inventory.

1) The median price of a home has increased by almost 20% since the start of 2018. This has caused many people who were interested in buying homes to reconsider their options.By going with an alternative option, such as renting, potential buyers can take advantage of these rising prices without any risk to their financial future. .By renting, people are free from the responsibilities of owning a home and being responsible for major repairs. If a renter is having problems paying their rent or if something breaks, they can move to another apartment without any financial consequences.

2) The population of Massachusetts is aging and this means that there are fewer people looking for homes than before. In 2015, Massachusetts had a total population of 6.8 million people and in 2020, this number is projected to decrease by 0.4%. The median age in the state is 40.3 years old and there are more adults living alone than ever before.

3) There are more homes on the market than usual, but not enough buyers to purchase them all. The housing market is undergoing a major shift that has made it more difficult for buyers to find homes in their desired location. The inventory of homes on the market is increasing, but not enough people are looking to buy. This leads to fewer houses being sold each month and more homeowners waiting for the next boom to put their house on the market.

4) The interest rates have risen and this has made mortgages more expensive, which has made it difficult for some buyers to afford a home purchase. This will most likely affect those who are less wealthy and are just entering the housing market.

5) There have been new developments in technology which have made it easier for people who live far away from Massachusetts to work remotely and not commute into work every day – meaning that they do not need as much space as they used to need

Conclusion: The Future of the Mass. Housing Market

The future of the Mass. housing market is still unclear, but it is important to consider the possible implications of this event. There are many factors that will affect the future of the Massachusetts housing market, and it is difficult to predict what will happen in the coming years. The recent changes in federal tax law may be a sign that there will be more demand for homes and less supply in Massachusetts.

Where Blockchain Technology Makes SenseWhere Blockchain Technology Makes Sense

The application examples for blockchain technology are widespread. They range from banking, trade and industry to the public sector.

These are the main uses

International Payments

Blockchain technology enables international payments without a middleman like a bank. This reduces transaction costs and increases speed at the same time. Projects are also underway in some banks to use the blockchain to automate and simplify their manual international transactions.

Peer-to-Peer Transactions

Paypal is an example of such transactions. The aim of the applications is to enable virtual money between individuals and businesses. However, these systems have weaknesses and limitations. Blockchain technology could be used to avoid the risk of hacking or international restrictions.

Insurances

Insurers can use blockchain technology to transparently regulate contracts as well as claims settlement. All contracts and all claims for damages would be managed by the network and false claims would be filtered out.

bitcoin 360 ai

Artists, media, advertising

Pirated copies and the rapid spread on the Internet make it difficult, especially for musicians and authors, to earn money on the Internet. With the help of blockchain technology like bitcoin 360 ai, the created content could be distributed and paid for when used. The advertising industry could easily offer advertising and have it processed via the blockchain.

Discover fakes

Since the information in a blockchain cannot be altered, it can also be used to track individual products. For instance, products or medicines can be provided with a code. With this, the entire history of the product could be called up and counterfeit medicines could be uncovered, for example.

Mobility

By allowing information to be shared and property to be made available to someone for a certain period of time, the blockchain would also change your mobility. So it would be possible to use a car and pay for it directly. Cost, ownership and usage would all be registered on the blockchain.

Energy

Great progress could be made in the complicated energy market thanks to the transparency and traceability of blockchain technology. Private solar systems can bill better, tracking the energy is easier, asset management is simplified and certificates of origin are issued more easily.

Another example can be electric cars.  The energy can be allotted to each car separately, no matter where it refuels in the network. This would make billing easier.

Impact of Auto Loan Market on the EconomyImpact of Auto Loan Market on the Economy

 

The automotive industry is the largest branch in the manufacturing industry. In terms of sales, it is the most important branch of industry.

Auto loan credit score – anchor of stability for the German economy

Auto loan credit score

The value chain in the automotive industry consists of very heterogeneous elements. One example is that vehicle manufacturing requires different raw materials and components. As a result, many industries are involved in the manufacture of vehicles that do not initially appear to be working closely with the automotive industry.

These include materials that come from the chemical industry or the steel industry, as well as parts and components from mechanical engineering. However, the sphere of influence of the automotive industry is even more far-reaching. Engineers, car dealers and workshops are directly or indirectly related to the automotive industry.

Auto supplier industry – a crucial part of the value chain for economy

The added value of an automobile rests ¾ with the suppliers. For example, a total of around 900 companies in Germany are automotive suppliers, with more than 300,000 employees generating sales of over 80 billion euros per year. The two largest automotive suppliers worldwide are companies from Germany. If you look at the 100 largest automotive suppliers, you will find 17 German companies that generate around ¼ of total sales.

Auto loan credit score: Germany’s innovative success

Every third patent that is registered worldwide in the field of e-mobility comes from Germany. This shows that German companies, manufacturers and also many suppliers are working intensively on the technologies of the future. They check Auto loan credit score of people who want to buy a car through financing.

An important factor in the global success of the German automotive industry is its innovative strength. In 2019, it increased its global research and development expenditures to 45 billion euros. This corresponds to an increase of around 5 percent compared to the previous year. This puts it at the top, ahead of Japanese (33 billion euros) and American (18 billion euros) companies.

At the same time, Germany as an automotive location thrives heavily on exports. A total of 3.5 million passenger cars were manufactured in Germany in 2020. Of these, around 2.6 million cars were exported, which makes an export quota of around 75.2 percent.

New Foundation Of Policy EconomyNew Foundation Of Policy Economy

As a policy economist from The Hague, you work in a fun and exciting environment, with smart and ambitious colleagues and with a lot of current events. Unfortunately, the contribution of policy economists to well-thought-out and future-oriented policy is very limited. That’s a shame and could be much better. By the way, visit this site LA Century Law.

Examples of missing thinking

Let me describe this pity with a broad spectrum of examples, examples of straightforward shortages in terms of attention to obvious economic issues that would deserve urgent attention.

Current account surplus

For many years now, the Netherlands has had an exceptionally large current account surplus, ie a national savings surplus. This is also criticized by the European Union and the International Monetary Fund. I am not aware of any plan of approach from the policy economists in The Hague to do anything about it. And they are not questioned.

Lagging income development

Since the turn of the century, the income development of households has lagged behind that of companies. Until a few years ago, policy economists nevertheless maintained that wage moderation is the best recipe for the Dutch economy. But thinking about the function of the minimum wage or the level of welfare is dogmatic, and ignores the psychological possibilities and limitations of people at the bottom of the wage structure.

Cuts

After the credit crisis of 2008/2009, the Netherlands experienced a W-shaped recession, unlike the EU countries that we normally refer to. This was the result of the strict austerity policy of the Rutte II cabinet. This austerity policy was recommended and defended by the vast majority of policy economists in The Hague. After all, it was a balance sheet recession. It was only when the budgetary policy had to be considered in the current corona crisis that the realization dawned that austerity might not be the best way out of a crisis.

Wealth distribution

Every year, policy economists in The Hague are extremely busy with the distribution of income, the result of a political fixation on purchasing power figures. The fact that the Netherlands has an enormously skewed wealth distribution is completely ignored. Fortunately, the Central Bureau of Statistics has recently announced that it will provide more figures for this.

Investments

The policy economists are very focused on the economic effects of budgetary policy with regard to the current and forthcoming government term. Long-term effects of expenditure with an investment character are not covered, and therefore often excluded. As a result, the Netherlands has fallen behind in areas such as education (see the PISA scores) and sustainable energy, and we are also struggling with major overdue maintenance in the housing stock, physical infrastructure, and the environment. Policy economists have no answer for this because they have no model to estimate the long-term macroeconomic effects of investments. For the long term, the Central Planning Bureau (CPB) only looks at the effects of aging in a model.

Risk scenarios

There was no economic recovery scenario during the credit crisis. There was also no analysis of the functioning of the financial sector. At the beginning of this century, there was no single scenario to combat the climate crisis. Not even in 2010. Only a few years ago did the CPB, De Nederlandsche Bank and the policy economists in the ministries recognize the need for sustainability. And finally, there has not been a single economic scenario for the economic survival of a pandemic recently, although the National Security Profile 2016 explicitly pointed out how great the risk and impact of a pandemic is.

Thinking also falls short

It becomes more complicated with examples in which it becomes clear that economic thinking does not match reality. In the example about lagging household income development, I already hinted at this: the policy economist in The Hague assumes self-reliant citizens. Measures are devised with incentives that also have an effect on citizens’ actions because they understand these and see how they can prevent disadvantages or collect benefits. The fact that a large proportion of Dutch citizens is poorly educated has little ‘doing ability’ or comes from a different cultural setting has no place in this thinking. As a result, the social climate in the Netherlands is rather harsh. With a lot of in activities, a lot of debt, and the poor health of a large part of the population. Policy economists, including the CPB, have little connection with the analyzes and thinking of the Social and Cultural Planning Office.

Consequences of Corona to German EconomyConsequences of Corona to German Economy

corona-economy

The Corona crisis hit economic activity hard and had a massive impact. After the severe recession in the first half of 2020, the German economy appeared to be dealing with the consequences of the pandemic better than expected. However, due to the renewed partial lockdown in winter 2020/21, the effects could be more pronounced in the end.

How the virus crisis has affected the German economy so far, what causes the crisis in general, what consequences it has throughout the world, and how you try to counter this with the appropriate measures – that is what this dossier is about.

How is the Corona crisis affecting the German economy?

The world corona crisis with interrupted supply chains has overwhelmed German exports, but also private consumption. Exit restrictions, border closures, and the economy have seriously affected economic life since mid-March 2020. After ten years of growth, the German economy fell into a deep recession in 2020.
After the crisis of Corona, this initially led to another drop in economic output. In 2021, the German economy rebounded in the second quarter. According to the Federal Statistical Office, economic output was still 3.3 percent lower than in the fourth quarter of 2019, the quarter before the start of the Corona crisis.

How does the Federal Government support the German economy?

The federal government started an aid program at the beginning of the corona crisis. They have helped the German economy in the form of loans, recapitalizations, sureties, and guarantees. The economic consequences must be cushioned as far as possible with liquidity aids worth billions of dollars. Corona aid for commercial and autonomous companies is the largest aid package in the history of the Federal Republic. Find out more about the economy on.

Consequences of the crisis for globalization

The year 2020 will go down in economic history as a very special year. That is already clear today. The Corona crisis has caused a global decline in economic and finance growth that has not occurred since World War II. The global financial crisis of 2008 cannot continue either.

There are three reasons why it is extremely difficult to assess the consequences of this crisis. On the one hand, it is precisely its gigantic extension that breaks all previous horizons of experience and devalues ​​the corresponding comparisons.

On the other hand, it is the nature of the crisis that it does not originate in the economy itself, but in a simple medical fact: the extremely easy spread of a virus called: Covid19. And last but not least, its global dimension: almost every country in the world is affected, it is experiencing its own severe economic recession and, at the same time, it is severely affected by massive declines in trading partner countries.

300 Decades Of Money Trading300 Decades Of Money Trading

Pioneers of bank

Holy priests hated Jews, and villainous Italians were the pioneers of banking. They made a lot of money from interest on loans, and they became more and more greedy.

Tempel was the first bank
18th century BCE: In ancient Babylonia and Egypt, temples were pre-eminent places to store valuables, for no one dared to rob the sacred buildings. Babylonian priests also lent money in the time of King Hammurabi (18th century BC). The Babylonians were the first with an actual bank. 5th century BC: The ancient Greeks were merchants and needed a solid banking system. Therefore, in the 5th century BC, Athenian businessmen. Their money to the local bank, where they received a guarantee certificate with which they could collect it at another bank. This way they did not have to lug around heavy money boxes that could easily be stolen. The Greek banks also lent money to their customers and exchanged foreign currency. When it comes to choosing the best broker you can check Low Spread Forex Brokers.

Jews practiced prohibited professions
Middle-Ages: The medieval Catholic Church did not consider the profession of money lender appropriate for a Christian. In the 12th century, the Pope forbade all Christians to charge interest, preventing them from earning money from banking. However, the European monarchs had to borrow a lot of money to build and wage war, so they instructed the Jews, who were not forbidden by the Church’s prohibition, to lend money and in return offered protection. Most crafts were forbidden to Jews, and by lending money they earned a living. Because of their banking activities, they were looked at even more with the neck by the Christian population.

The modern bank originated in Italy
14th century: With creative accounting, Italian merchants circumvented the ecclesiastical prohibition on interest. In the 14th and 15th centuries, Northern Italian merchants succeeded in taking over much of the Jewish banking activities. They were not allowed to charge interest, but the Italians circumvented this prohibition by describing the interest as ‘gift’ or ‘reward for risk’ in their accounts. In Genoa, Siena, and especially Florence, the benches sprang up like mushrooms. In Florence, the De ‘Medici family made a fortune in loans. This gave her the say in the city and was even allowed to supply a number of popes. The Italians’ financial empires are seen as the forerunners of modern banking.

Nationalization in the 17th century
17th century: In 1661 Stockholms Banco was the first bank in Europe to issue banknotes instead of coins. But the company issued more notes than it had in silver and copper and went bankrupt. The state intervened and took over the bank’s estate in 1668. The institution that emerged from this still exists and is today Sweden’s national bank.

9,000 US banks go bankrupt
1929: Black Thursday, as is known on October 24, 1929. On that day, stock prices on the stock exchange on Wall Street in New York took a dive. Hundreds of thousands of Americans had invested in stocks, often with borrowed money, and that seemed like a safe investment. But the bubble burst and the financial crisis that followed killed 9,000 US banks.

Global financial crisis
Until a few years ago, the international investment bank Lehman Brothers had $ 691 billion in assets and employed 26,000 people. But the bank owed its success to high-risk loans, and 2008 went wrong. The financial giant went bankrupt, and a global economic crisis was the result. European pension funds lost billions of euros. Lehman Brothers were the largest, but by no means the only, bank to collapse during this crisis, and its effects are still felt today.

Financial and Economic Crisis Ten Years AgoFinancial and Economic Crisis Ten Years Ago

The world financial and economic system was on the brink. Questionable speculation business with American home loans turned into a global liquidity and confidence crisis between the banks. The financial crisis kept the world in suspense for many months. The stock prices tumbled into the basement, one large financial house after the other reported billions in depreciation, or had to file for bankruptcy. New bad news reached the financial markets almost every day. Governments around the world tried to calm the panicked financial world. Solutions were sought at national, European, and international levels to limit the extent of the financial and economic crisis. Gross domestic product in Germany in 2009 was five percent lower than in the previous year. This was the sharpest decline in the post-war period.

The 2008 Financial Crisis: Crash Course Economics

The central banks steered against the crisis with a policy of cheap money. The taxpayer paid for the crisis. The German taxpayer was there with around 60 billion euros. Banks were supported by government billions. The consequences of the weakening economy – falling tax revenues, skyrocketing unemployment, rising social spending and billions of bailouts for banks – are putting a strain on national budgets, particularly in the weaker countries of the euro area. The result was the euro crisis. One eurozone after the other threatened to slide into insolvency. Due to the European Central Bank’s (ECB) low-interest-rate policy, savers lost hundreds of billions in lost interest, but loans were cheap. Investors migrated to the stock and real estate markets. The DAX has tripled since 2009, real estate is more expensive than ever before.

The world was in the worst financial and economic crisis since the 1930s. Then as now, there was too much speculation, too much trust in the mechanisms of the financial markets, and too little regulation of those who had started the crisis. The stock prices tumbled into the basement, one large financial house after the other reported billions in depreciation, or had to file for bankruptcy. New bad news reaches the financial markets almost every day.

Governments around the world tried to calm the panicked financial world and restore trust among consumers. Solutions were sought at national, European, and international levels to limit the extent of the crisis.

How did the financial crisis come about?

The subprime crisis is seen as a trigger for the global financial and economic crisis. Years of rising real estate prices in the United States, which had developed into a real estate bubble, stagnated and even fell in certain areas. At the same time, more and more borrowers could no longer service their loan installments, partly because of rising interest rates and partly because of a lack of income. Problematic borrowers (subprime – mortgage loans with low credit ratings) were charged with higher and higher interest rates after initially low-interest rates. With a debt rescheduling, the expensive loan for the property, which has now increased in value, should be repaid and a new loan should be taken out. However, real estate prices collapsed in mid-2006 and the business model no longer worked.

The situation was aggravated by daring constructions. In order to refinance themselves, the real estate banks bundled the high-risk loans into new types of securities that were sold to investors worldwide. These securities were initially rated as low-risk by rating agencies – but in the course of the real estate crisis, the securities were rated increasingly poorly, leading to corresponding losses in the banks’ balance sheets.

More and more subprime loans (low-quality mortgage loans) burst, confidence in the value of the securities allegedly secured by US mortgage contracts fell – and with it their price on the markets. As a result, banks sometimes had to drastically correct the values ​​of these papers in their books, which resulted in deep red numbers in the balance sheets. Two hedge funds from New York investment bank Bear Stearns had speculated because they were heavily involved in the property-backed paper.

In Germany, Mittelstandsbank IKB, HSH Nordbank, SachsenLB, WestLB, Landesbank Baden-Württemberg and BayernLB, both under public law, came into crisis because of false speculation on the US real estate market.

In September 2008, the events rushed. The US government had to take control of the bankrupt US mortgage companies Fannie Mae and Freddie Mac. On September 15, 2008, 158-year-old Lehman Brothers filed for bankruptcy, while competitor Merrill Lynch was bought out by Bank of America. The US leading index Dow Jones suffered the biggest daily loss since September 11, 2001. Next, the US insurance company AIG was hit by capital losses and was only saved by a loan from the US Federal Reserve.

While today, the world is facing another threat of financial crisis, the government and private institutions like https://looselending.com/ are coming up with plans to help small businesses through loans.

The Development of Cannabis and Its Impact on New York EconomyThe Development of Cannabis and Its Impact on New York Economy

The chances for the growth of economics in New York City is one of the most debatable arguments in legalizing marijuana. Based on studies, around 63.4 percent of adults say that legalization of marijuana would be justified through the creation of the industry and the related jobs. Furthermore, the act for legalizing marijuana offers a natural study on the economic progress of the industry. The new industry for marijuana is such a rare case for now thus, creation of supply chain must be implemented as soon as possible.

The Supply Chain of Medical Marijuana in New York

The medical marijuana has been legalized in New York in July 2014.

Due to the legalization of medical marijuana in New York and receiving five licenses after a year, the demand for it is really high. Likewise, the integration of the marijuana supply chain is very much required. Actually, there are 32 dispensaries that are allowed to operate in New York. The New York State Department of Health Laboratory for medical marijuana works collaboratively with New York City. They aim to identify authorized and certified laboratories to perform potency testing and contaminants evaluation.

The Impact of Marijuana in the Economy of New York

The economic impact of the adult-use of marijuana needs the target market size. Below are its possible effect:

1. Employment

Based on the employment report of New York State, there are actually 12.4 employees in every $1 million cannabis sales. Therefore, if there is $1.7 billion cannabis market in New York, approximate employment of 21,080 employees would be possible. They can be deployed in cultivation areas, manufacturing plants, laboratories, and dispensaries.

2. Growth on investment

Generally, the utilization of cannabis demands for monetary investments to support big cultivation companies within the state. One company, the Etain LLC, is having a plan to put up manufacturing facility of medical marijuana around Warren County, New York. This would cost for about $9 million investment that would be an adjunct to the existing $4 million growing areas. So, if you are thinking where to invest this decade, this one seems to be a good option. You may also visit Stocktrades for more information.

3. Effect on the economic output

The industry of cannabis will maintain its progress and will also go through the economic state. Marijuana industry will continue to procure supplies from suppliers located in New York. Those employers within the industry will put their earnings on their locality and their own economy.

No Higher Salary In The Midst of Booming EconomyNo Higher Salary In The Midst of Booming Economy

The economy runs like a madman and the business world is crying out for staff, normally a good recipe for hefty pay increases. But they are not forthcoming, inflation is even higher. How is that possible?

Labor Markets and Minimum Wage

We would make some progress. Both the economy and the tax plans of Rutte III would give ordinary citizens a big boost. All those purchases that we could afford would drive the economy and business even further.

But despite the economic boom of recent years, wages are rising less rapidly than inflation.

In the first quarter, salaries rose on average 2.2 percent compared to the same period in 2018. But the money depreciation increased by 2.5 percent, so on balance, we fell 0.3 percent on average. And it looks like that gap is widening. In April, collective labor agreement wages rose 2.3 percent on an annual basis and prices 2.9 percent.

The Central Planning Bureau hints that the forecasts for this year and 2020 will be adjusted next month. The calculators predicted a purchasing power increase of 1.6 percent so far, but with a four-month drop, it seems to be no longer an issue.

This has to do with the government’s tax measures: especially the VAT increase and higher energy tax. Prime Minister Rutte promised to compensate for the extra costs for citizens, but that is not how the consumer works. He sees higher prices, reads about higher costs and adjusts his purchasing behavior accordingly.

Savings interest and pensions

Other issues, such as the pension crisis, with funds that have no longer indexed for years and are even in danger of having to shorten, also play a role in this. The inability of political and social partners to find a solution for this – let alone one that is easy on the citizen – makes older consumers especially cautious. The psychological and financial impact of the low-interest rates, the moderate stock market climate and the tense housing market also play a role.

This reluctance could already be deduced from consumer confidence. It has been in the red since February with the likely consequence that we are all keeping our hands on the bill, which is dampening economic growth.

It is striking that our wages rise so moderately in times of economic boom. Yesterday it became clear that the number of vacancies has risen to a record level and that the number of vacancies is constantly increasing among employees who want to change jobs. Companies could influence that by simply offering more wages to switchers and newcomers.

Where are the trade unions?

But society is changing in that regard: wages and status are not, as before, the main motivation for changing jobs. People in their twenties and thirties, with the tech industry at the forefront, are increasingly counting other issues. Such as company policy, location, working atmosphere, a balance between work and leisure, the secondary employment conditions. Many traditional companies are not well aware of this and therefore miss the battle on the labor market.

Moreover, with their waning supporters, the unions are increasingly less successful in keeping wage increases in line with profit increases at companies. Politics, with the middle-right signature of the past cabinets, also plays a cautious role in this.

This development is ominous because there are strong signals that we are heading for the next crisis. Then many companies will not even be able to offer employees financially anymore and consumers will only fall back.