The head of China’s central bank said Monday the country’s economy was on the mend and expressed confidence that a government target of 8 percent growth this year would be met. Zhou Xiaochuan, governor of the People’s Bank of China claimed that the economy was on a upturn. Beijing has sought to insulate China from the global recession with a 4 trillion yuan ($586 billion) stimulus plan that calls for higher spending on construction of highways and other public works. Beijing is the world’s largest holder of U.S. debt, which it purchases with its vast foreign currency reserves.

Although Zhou feels that the econmy of China is stabilizing and is actually taking a turn for the better, can we really take his statement literally?

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The International Monetary Fund forecast: “the worst recession in the developed world.” Dublin Ireland a land in which property crippled banks are struggling to remain open. A Washington based lender claims “its economy shrink 8.5 percent this year, unemployment rise from the current 11.8 percent to 15.5 percent next year, and lose euro35 billion ($49 billion) — about 20 percent of its gross domestic product — in defaulting loans chiefly to property developers.” Originally the numbers were much lower and to combat this growing deficit the government of Ireland is raising taxes and cutting spending. In attempts to reduce spending Ireland resorts to an infamous method known as cutting back, cutting back on welfare that is.

How does this recession affect the world economic status?

Will Irelands struggle to remain in the Euro Zone be short lived?

Can such a deficit be possible in the United States?

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As many of you may know the interest rates have gone up!  On Thursday the interest rate for a FHA 30 year fixed non jumbo product with no points went up to 5.875!  It was about 4.75% for the exact same product.  You can take a look at the attached rate sheet to get further details.  Clearly this is alarming due to the need of interest rates to remain low so that people continue to purchase!

What is also shocking is that November 30th the $8,000 home buyer credit will be ending!  As many of you may know their are income limitations with getting this money as well!  A single individual can not be making more then an adjusted gross income of $75,000 and a married couple can not make more then Read the rest of this entry »

The Leading Economic Indicator gained by 1.2%, which is amazing!  This was the second month in a row that increased in 2 YEARS!  What does this mean?  It means that we are going to be seeing this recession, which we are currently in and are tired of, ending closer to the end of this year.  What is causing us issues though are these HUGE job losses.  Most economist believe the unemployement numbers will continue to get worse until they get better.  Specifically, the unemployment numbers will worsen until the second quarter of next year.  Unemployment continuing to increase will continue to stomp growth from occuring and reversing our current situation.

May’s unemployment was at 9.4%, and the highest it has been in recent years was Read the rest of this entry »

Companies are rushing out to sell their stocks, should we be rushing to buy? In May the companies of the US Market sold a record breaking amount of stock around 64 billion dollars worth. In June the trend continued. Stock prices are high causing companies to sell to ensure they get the most money back. Since March, the yield on the 10-year treasury has jumped from 2.5% to 3.8%, sending prices­ — which move in the opposite direction — ­­down a staggering 34%. Due to this rise in prices inflation will take hold during the next couple of years where as other nations such as China have economy’s that are uprising.What are the implications of such inflation during this time of deficit and penny pinching?

What effect does this have on business and real estate?

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