Category: Economy

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 (https://newhorizons.co.uk/loans-for-bad-credit/no-guarantor-loans/), 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.