| Did anyone out there ever coined the
| |
| | earn income sufficient enough so that
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| phrase ‘The New Era Of American
| |
| | they can go to the bank, get a loan and
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| Socialism' yet? Well alright, that is
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| | go shopping for real estate. Thus, it is
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| unfair. After all Real Estate was sliding
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| | going to take equally long for demand to
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| downwards even before the Democrats took
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| | jump and prices to increase as well. This
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| over the House and Senate, and Nancy
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| | is so because demand is in direct
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| Pelosi became the Speaker to be. However,
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| | function of underlying personal income.
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| it can be safely stated that the recent
| |
| | An increase in personal income will
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| mid-term elections have not exactly shed
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| | encourage investment to a higher degree,
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| a ray of hope on the already faltering
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| | which, in turn, will spur demand causing
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| housing prices. So now, in light of the
| |
| | a proximate levitation of prices and
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| entirely new and revolutionary political
| |
| | subsequent economic expansion.A second
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| landscape in Capitol Hill, what are
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| | but equally important flip side is how
|
| mundane folks like you and I supposed to
| |
| | foreign investors and debt-holding
|
| do?Sure, the social agenda of the
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| | nations are going to view this sudden
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| Democratic Party in general, and the
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| | shift to the left of the American
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| personal ‘socialist' agenda of
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| | behemoth, and whether emerging economies
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| Congresswoman and Speaker of the House
| |
| | such as India and China will continue to
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| Nancy Pelosi (D-Cal.) in particular take
| |
| | finance America's spending habits.
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| somehow the breeze out of the investment
| |
| | Confidence in the U.S. Treasury is out of
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| world, both as it relates to Real Estate
| |
| | the question, but how convenient is it
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| and the Stock Market. But when it comes
| |
| | going to be for foreigners to continue
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| to Real Estate, however, there are some
| |
| | investing in an America tilted definitely
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| positive notes worth mentioning.Housing
| |
| | to the left?Many economists have long
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| supply is produced using land, labour,
| |
| | been expecting America's widening current
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| and various inputs such as electricity
| |
| | account deficit to cause a financial
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| and building materials. The quantity of
| |
| | meltdown in the Dollar, and the main
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| new supply is determined by the cost of
| |
| | reason as to why this has not happened
|
| these inputs, the price of the existing
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| | yet is that emerging economies have been
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| stock of houses, and the technology of
| |
| | happy to finance the deficit. In 2005
|
| production. Essentially, the production
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| | India, China, South Korea and Japan (not
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| of real estate output depends on the
| |
| | an emerging economy but a very important
|
| accumulation of capital, which requires a
| |
| | debt-holder nonetheless) ran a combined
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| constant supply of labour force that can
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| | current account surplus of about USD 2
|
| conserve and add value to inputs and
| |
| | trillions, a large chunk of which was
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| capital assets, thus creating a higher
| |
| | reinvested in American Treasury
|
| value.The rationale behind this is that
| |
| | securities. It is all to be seen,
|
| labour adds value by satisfying demand
| |
| | however, whether the Asian Tigers will
|
| through production, since when people
| |
| | continue to find the convenience in
|
| work and acquire income they tend to
| |
| | investing their foreign cash reserves in
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| invest it, and the more people that work
| |
| | American securities or if instead they
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| and acquire income the more people that
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| | are going to withdraw their support of
|
| tend to invest it. Therefore, there is a
| |
| | the American capitalistic system,
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| correlation between capital and
| |
| | especially if such system will be
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| employment in real estate or, if you
| |
| | perceived increasingly as shifting much
|
| will, between income and labour. An
| |
| | too much to the left.Buy purchasing
|
| increase in levels of consumption sets
| |
| | Dollar assets the Asian economies and
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| forth an increase in prices caused by a
| |
| | Japan are subsidizing American consumers,
|
| corresponding increase in demand, in
| |
| | encouraging too little saving on our part
|
| itself generated by a commensurate
| |
| | and too much spending. But should they
|
| increase in the income-employment
| |
| | decide not to buy anymore and in fact to
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| factor.It follows, therefore, that growth
| |
| | cash in, the American economy is likely
|
| is derived by the equilibrium of capital
| |
| | to suffer a real hard landing. This is
|
| and investment with labour and
| |
| | the reason why it is important to monitor
|
| employment. And since, furthermore,
| |
| | and understand how developments in the
|
| production is in direct function of
| |
| | world economies affect the balance
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| consumer-spending which increases as
| |
| | between domestic demand and supply.
|
| unemployment falls, it follows that
| |
| | Exchange rate movements tell something
|
| capital accumulation increases as
| |
| | about economic developments that may be
|
| employment rises and capital accumulation
| |
| | having a direct impact on aggregate
|
| decreases as employment falls.Therefore,
| |
| | demand.By monitoring the fluctuations of
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| seen from this perspective, the
| |
| | the Dollar in the forthcoming months it
|
| Democratic agenda of both increasing
| |
| | will be possible, therefore, to
|
| minimum wages and put people at work
| |
| | anticipate whether the Central Bank will
|
| through more direct governmental
| |
| | ease or tighten monetary policy by
|
| intervention than the Republicans
| |
| | stimulating the economy through lower
|
| otherwise would like to see, finds in
| |
| | interest rates or by reducing the
|
| fact its long-term benefits in Real
| |
| | stimulus through higher interest rates.
|
| Estate. It is a statement of fact that,
| |
| | And, therefore, it will be possible to
|
| in retrospective, many workers in North
| |
| | predict the impact that anticipated
|
| America have missed out and are missing
| |
| | shifts in interest rates will have on
|
| out on the rewards of globalization, so
| |
| | demand for domestic real capital assets.
|
| trumpeted about by both the present
| |
| | Clearly, in the eventuality that demand
|
| Chairman of the Federal Reserve System,
| |
| | for U.S. Treasury bonds will abate, the
|
| Prof. Bernanke, as well as the former
| |
| | Federal Reserve will have no other choice
|
| Chairman, ‘Maestro' Alan
| |
| | under the present circumstances but to
|
| Greenspan.Rich countries have democratic
| |
| | raise interest rates, so as to continue
|
| governments, so continued support for the
| |
| | to attract foreign capitals and thus
|
| globalization process will depend in
| |
| | contributing to a further slowdown in the
|
| large part on how prosperous the average
| |
| | domestic housing markets.Should a forced
|
| worker feels. Yet in the United States
| |
| | rate increase actually take place in 2007
|
| real wages have been flat or even falling
| |
| | to maintain the momentum with foreign
|
| these past few years while, at the same
| |
| | debt-holders, that would really fly in
|
| time, capitalists and large corporations
| |
| | the face of all those analysts and
|
| have never had it so good. In America
| |
| | commentators who have assumed that a vote
|
| specifically, profits as a share of GDP
| |
| | for the Democrats would contribute to a
|
| are at an all-time high of about 15.5
| |
| | rate settling.Certainly we are entering
|
| percent, and Corporate America has
| |
| | into a period of financial uncertainty,
|
| increased its share of national income
| |
| | all the more remarked by what promises to
|
| from seven percent in 2001 to thirteen
| |
| | be an economic - if not political -
|
| percent this year.In fact the primary
| |
| | stalemate between a conservative White
|
| culprit and cause of the slowdown in Real
| |
| | House and a liberal Congress. And should
|
| Estate is the ratio between wages and
| |
| | this stalemate translate into higher
|
| real estate market values. This ratio is
| |
| | interest rates, the soft landing that
|
| entirely skewed to values. Whereas market
| |
| | Chairman Bernanke was mentioning only
|
| values in metropolitan areas have
| |
| | this past July may very well become in
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| appreciated an average of fifteen percent
| |
| | 2007 a distant, wishful dream.Luigi
|
| per year through 2005 inclusive - or a
| |
| | FrascatiLuigi Frascati is a Real Estate
|
| total of seventy-five percent since 2000
| |
| | Agent based in Vancouver, British
|
| - salaries have increased an average four
| |
| | Columbia. He holds a Bachelor Degree in
|
| percent per annum - or twenty percent
| |
| | Economics and maintains a weblog entitled
|
| total. There is, therefore, a fifty-five
| |
| | the Real Estate Chronicle where you can
|
| percent gap, which accounts for the
| |
| | find the full collection of his articles
|
| problem buyers are facing today when it
| |
| | on Real Estate Economics and Finance.
|
| comes to go to the bank and qualifying
| |
| | Luigi is associated with the Sutton
|
| for a loan. In this sense, therefore, a
| |
| | Group, the largest real estate
|
| redistribution of income from capital to
| |
| | organization in Canada, and is based with
|
| labour is now due.The flip side of the
| |
| | Sutton-Centre Realty in Burnaby, BC.Luigi
|
| Democratic agenda, however, is that it is
| |
| | is very proud to be an EzineArticles
|
| going to take a long time for government
| |
| | Platinum Expert Author. Your rating at
|
| economic intervention to get a foothold
| |
| | the footer of this Article is very much
|
| in the economy, in order to make workers
| |
| | appreciated. Thank you.
|
