When Economics Runs in The Family?

Warne, who served on the Reagan Administration's Council of Economic Advisers, recalled an interview with the Women of Economics podcast, where he deliberately specialized in political science rather than family science. I mean, until he started looking for a job. “I realized I was only interested in my economist, so I went ahead and got my PhD. In the economy. "

Warn, Edward Jones' chief and investment strategist, also advised his knowledge of strategically hiring women as financial advisors - “[We really think this gives us a competitive advantage, so there are great opportunities” - and everyone who wants to pursue a career in consulting has suggested.

Basic Housing Changes

Garriga, Hedlund and Famiglietti argued that the crisis or other factors, such as institutional investors buying in the housing market, could significantly change the housing market. The authors proposed two possible explanations for the growth of housing liquidity.

One explanation is that housing markets have become more liquid during the crisis and have just returned. The authors stated that during the pre-crisis boom, the average time on the market remained stable and was about 131 days. As of 2013, this number rose to 157 days, but in 2017 it dropped to 129 days.

The Macroeconomics Matters

St. A publication by the Federal Reserve Bank of St. Louis and the Board of Fed Governors addressed these and other mobility issues.

In their introduction to Economic Mobility: Research and Ideas for Strengthening the Family, Society and the Economy; Louis Boshara, director of the Louis Household Center for Financial Stability, and David Buchholz, Vice President of the Federal Reserve Board, summarized the authors' views on the challenges relations between people and the power or weakness of macroeconomics.

Mobility, Inequality and Macroeconomic Dynamics

Boshara and Buchholz said that in the past few decades the well-documented increase in income inequality and wealth has been accompanied by a constructive increase that attracted the attention of academics, the media and the public.

However, they agreed on how problematic this gap in income and wealth could be. “Some argue that the ability to climb the economic ladder is more important than real inequality, and in fact relative inequality is an incentive to encourage long-term difficulty in moving forward,” he said. In this respect, evidence that economic activity may become stagnant may be even more alarming than evidence of similar inequality. ”

A country may have high (and growing) inequality without worsening economic mobility, the authors pointed out in an article by Economic Mobility writer Scott Winship, who warned that increasing inequality should not be matched to reduced mobility. If American executives earn more than fast food employees, that doesn't mean it's hard to be the CEO of the daughters of a fast food employee in the United States.”

What Is A Personal Loan?

Lenders can range from 6% to 36% per year. If you cannot apply for a credit card offer with a balance transfer, personal credit rates are generally cheaper than credit card prices and the amount of limitations you can borrow is usually higher. Secured loans or loans may be offered to consumers who cannot use unsecured loans. Most personal loans are unsecured and are not secured. 

You should compare prices from several lenders before making a choice. The lowest APR loan is the most expensive - and therefore is often the best choice. Some credit sites make it easy to compare multiple bids at once. If you meet the requirements, you can receive your money the next day.

“Lenders have extensive industry knowledge and can also analyze the applicant's bank account transactions, Mars said Marsha Kelly, a small business blogger and serial entrepreneur at Best4Buseries.com. "If the bank suspects that the figures are too high, this will result in a red flag on the fraud of the owner and often the rejection of the loan."

Also, if you are applying for a bank loan as the lead owner, your personal loan will be carefully reviewed because your business does not have its own loan.

The Creative Side Of Economics

Lucia Foster knew from the beginning that she wanted to fight the economy. This is facilitated by the influence of the high school teacher and the practical application of the profession. But what he learned from his father were the creative aspects that inspired his career.

In a recent podcast, Foster, chief economist of the US Census Bureau, and Foster, head of the Center for Economic Research, explained how these two impacts have taken a step. In high school, one of Foster's teachers had a direct assignment for the class: each week, students cut off the articles of interest and wrote short articles about how the economy plays a role in this story.

I found it very inspiring to think about what I learned in class, but then I applied it in real situations, and think about how people can use it to help politicians help people, F Foster said. Adding fuel to his economic fire was his father's inspiration. She spent time with her children, as adults, to talk about real problems. They listened when they shared what they thought it was.

To crown everything, he became interested in creativity, which was more inspiring. “I also value creativity, F Foster said,“ and I think I want to say how much creativity is in question when I talk to people in the economy. ”

Reasons Not To Apply For A Bank Loan

As a business owner, you understand how important funding can be in the early stages of creating and developing your business. If you cannot increase capital from other sources, you will likely need a loan to continue operations or purchase assets. Most banks lend to small businesses, especially if your company has just started. In fact, according to a recent survey, only 36 percent of business owners seeking additional funding received bank loans.

Banks, As A Rule, Do Not Lend To Beginners

When determining whether you are a potential candidate for a loan, banks pay attention to the four elements of the loan: capital, collateral, capacity and quality. However, even if you are entitled to paper, the bank may reject you for various reasons. Start-up loans are considered the riskiest for all loans, and banks are less likely to finance a business that cannot fully repay its debts. 

Your Personal Credit Rating Will Be Affected If You Qualify

Most banks require a strong personal credit rating to get credit. When evaluating your credit history, banks can assess how you manage your debt. First, they need to make sure that you pay on time and that you can borrow additional money. To qualify for most SBA-supported loans, you will need excellent business and personal credit points. However, a good credit rating does not give you a credit, but a bad result may result in your detriment. Any stain on your credit report may result in your credit application being rejected.

Global Financial Crisis

The INFE; which could prevent the contraction in demand caused by the slowdown in the world economy and increasing indebtedness rates after the Global Financial Crisis with infrastructure investments, aroused interest all over the world.

6 activity manifests itself in the form of Sino-Pakistan economic corridor, Turkey and Central Asia-China, China-Eurasia, Mongolia-Russia-China, is composed of regions such as East Asia and China-India-China. Sea ports, which were built in connection with high speed lines in countries such as Laos, Myanmar, Malaysia and Indonesia, aimed to transport products quickly to the manufacturing industry in China, while at the same time aiming the products to be processed and transported to the destination by means of re-established transportation channels. China, which aims to establish the Asian-based trade and transportation infrastructure, has also created a network of alternative mechanisms to the Western-based institutional hegemonic structure.

A closer look at the economic, political and social implications of the mechanism suggests that China intends to create a new power center based in Asia.

China, which can produce more products with the decrease in logistics and transportation costs, aims to ensure that the products produced are spread to the countries of the region as well as to reach the consumption centers quickly. When the development history of European countries is examined, it is seen that regional cooperation opportunities are of great importance.

In this respect, it is clear that China will benefit more from regional development.

Fintech’s Impact On Personal Loans

Business economist Eldar Beyseitov said the number and amount of unsecured personal loans (often called personal loans) in US dollars has increased over the last few years for US consumers:

At the end of the first quarter of 2019, around 19.3 million consumers had at least one unpaid personal loan; 2 million more than 2017.

Unpaid loan balances at the end of the first quarter of 2019 reached $ 143 billion, more than $ 26 billion in 2017.

Fintech Lending Increase

The fintech lending growth is a key component of this growth, the author explained. “Since 2013, a significant increase in lending to individuals is due to loans from fintech companies,” he said. Beiseitov said that fintech now provides 38% of lenders' unsecured personal loans and 5% in 2013. 

Why are Fintech Loans Recognized?

A qualified consumer can usually access funds in less than a week, ”he said. He also stressed that the study stresses that fintech firms often offer interest rates lower than those of credit card companies. 1 “The merging of credit cards and other debts through online lenders to consumers,” writes Beiseitov. He also expressed concern about possible problems with the use of data from social networks by consumer lawyers. 

Financial Distress Differences Seen At The Zip Code Level

Examining the data in more depth, Vice President and Economist Vice-President Juan Sanchez and Research Assistant Ryan Mather found that even within the same city, neighboring postal codes faced various consequences that challenged the national trend. 

Although both periods showed an equally stable growth in net wealth (7.4% for 2010–15 and 6.2% for 2015–18), they stated that the structure of this growth was completely different. If housing prices fall again, households may be more vulnerable and fragile than at the beginning of 2015, the authors said.

Postal Code Financial Distress

Sanchez and Mather showed that growth rates spread in postal codes. For example, between 2010 and 2015, postcodes, which were 90 percent in terms of debt accumulation, showed that their debts increased by 6.2 percent annually and the national average was 0.5 percent higher. The distribution is wider for a later period.

For the period of 2010-15. The study also found that 10% of postal codes reduced financial difficulties by more than 1.9 points. On the other hand, 10% of postal codes suffered financial difficulties of at least 1.1 points.

Sanchez and Maser noted that the difference was more significant in the following period: 10% of the best performing postal codes reduce financial difficulties by more than 1.8 points each year between 2015–18 and 10% of worse results. Each year at least 2.7 points financial difficulties.

Economy All Around The World

Economy; Controlling the flow of money and goods that are constantly revolving around the world is the most prominent feature that brings countries the title of leadership and consequently military and political superiority. balances have been established between those who have this power and those who have not. Insecurity and uncertainties about the future lie at the heart of the world economy's failure to grow.

The World Economy

After the rescue operation in 2008 crisis, Dubai suffered in 2010. Some of the major infrastructure investments were made through borrowing from foreign markets and this problem was partially solved with the help of other emirates.

The world economies gradually began to see positive growth rates, commodity markets and oil prices of some products began to fall. This development was good for some countries and bad for some countries. For the economies of consumer and importing countries, it was a development that would create problems for the good producer and net exporting countries.

While trying to understand the net effect of these developments on the world economy, the Greek economy came to the point of bankruptcy and the economies of the European Union began to experience trust problems.

Some time has passed, saying that the crisis is over the last 30 years, China has been able to grow at a rate close to 10 percent incessantly, China's growth rate began to decline. In 2015, China experienced the lowest growth rate of the last 25 years (6.9 percent).

As if all of this was not enough, Britain began to discuss the desire to leave the EU very seriously.

On the basis of these problems, the fact that the world financial markets operate without well-regulated rules, and the fact that many companies do business with high leverage ratios, especially financial companies, also play an important role.

Lever; It is used to try to make more income by borrowing, to invest more than the assets we have with the money of others.

Such investments can also potentially increase the potential loss if the loss arises.

Did The Housing Market Fundamentally Change?

Vice President and Economist Carlos Garriga, guest scientist Aaron Hedlund, and research assistant Matthew Famiglietti, researched the US housing markets with changes in housing prices and average market prices (or housing liquidity as the authors say).

The authors compared housing conditions in 2002-06 and 2013-17. The heat maps in the experiment show changes in house prices and changes in market durations between the two periods.

House Prices

The authors said that the housing boom in 2002-2006 seems to be focused on the east and west coasts. Housing prices rose sharply in metropolitan Florida, in the northeast, northwest and southwest of the Pacific Ocean, Gar (says Garriga, Hedlund and Famiglietti).

At the same time, a more modest increase or even decrease was observed in the Midwest and other central regions. 

Housing Liquidity

The authors found that during the 2002-2006 boom, housing liquidity in the markets across the country changed significantly. In some megacities, the increase in liquidity was in others - one drop and in others - mixed zones in the same subway area.

"However, in the post-crisis period of 2013-2017, housing liquidity improved almost everywhere," said Garriga, Hedlund and Famiglietti, adding that there were some important exceptions in Arizona and California.

Auto Loan: Bank Or Dealership

With funding organized by the seller, the seller collects information from you and passes it to one or more lenders. We call this loan “direct loan”. After that, you can receive an offer or conditional letter of responsibility at a car dealership.

How Does Dealer-Assisted Financing Work?

If the lender (s) decides to finance your loan, the dealer may allocate or assign an interest rate called "interest on purchase" to finance the loan. The interest rate that you discuss with your vendor may be higher than the purchase rate, as it may include an amount that compensates your vendor for financing transactions.

For example, a dealership sends your loan request to several lenders (banks, credit unions, etc.) with which they are associated. The credit union is responsible for a 5% acquisition. The seller will then notify you of an interest rate of 6%. An additional 1% goes to the seller to pay the time of the loan's collection.

You Will Need To Provide A Significant Amount Of Security.

When applying for a bank loan, you may need to provide collateral to ensure secure financing. A pledge can be real estate, equipment, inventory and anything that corresponds to the value of the loan you receive. The provision of collateral may be risky because if you cannot repay the loan, the bank may receive collateral. Without this guarantee, your business may be at risk. If this bothers you, we recommend that you apply for unsecured business credit through an alternative lender.

Accounting Changes Coming For Banks

This article is part of a series titled Auditing of our country's financial institutions ”. St. Written by Julia Stackhouse, vice president and chief of the Louis Federal Reserve, the series was released at least once a month. Since then, many reforms have been made. It is important to note that this model is largely based on historical trends and indicators to estimate potential asset losses.

If the financial and economic conditions are good and do not change, this model works adequately. Unfortunately, when entering the financial crisis, it did not. Provision for asset losses was very low, especially when assets in the loan portfolio were compared to the quality of loans granted and the likelihood of changes in economic conditions.

In addition, insufficient provision of losses meant large accruals on earnings over a short period of time, reflecting expected credit losses. 

Why CECL?

The FASB decided to address these shortcomings by offering a more flexible accounting standard: CECL. Assessments will be based on historical experience in assessments, current circumstances and “reasonable and reasonable estimates”. Finally, CECL, which is mandatory for many companies, can be applied to suit the size and complexity of the company.

3 Mistakes To Avoid When Applying For A Business Loan

30% of small enterprises fail due to lack of money. This is a frightening figure for a novice entrepreneur. If you want to make big investments to grow your business in the long run, it can be difficult to find these funds.

1) Overreporting Income And Minimizing Expenses

When filling out a loan application, you should give potential lenders an idea of ​​how your business is financed. This includes cash inflows and outflows. However, many small businesses distort these numbers in their applications. While you may think that overestimating your income and minimizing your spending will make your business more profitable, it usually works against you.

2) Apply For Wrong Credit Product

There are many different types of loans for small and medium-sized businesses - they are easy to mix. However, when you apply for a loan, it is very important that you apply for the right loan.

“Every business loan is for a different purpose, said Priyanka Prakash, a credit specialist at Fundera. Make sure you know why you're lending money and apply for a loan product that will help you meet your business goals. ”

3) Misunderstanding Of Creditor Qualification Requirements

Prakash also says that many small and medium-sized businesses have entered the process without fully understanding the requirements of their loan types.

Most lenders publish the basic qualification requirements on their website, says Prakasha. Before applying, make sure you meet the minimum required credit score, working time and other requirements of the lender. ”This will not only increase your chances of approval, but will also prevent unnecessary credit checks by unsuitable lenders. for.