Readers Question: Which businesses are likely to benefit from a recovery in the housing market? I think it is a little premature to talk of a recovery in the housing market. But, nevertheless when there is a recovery in the housing market the following firms will benefit. House Builders. At the moment there is a …
there is a saying if one person dies it is murder, if hundreds of people die it is mass murder and if it is thousands of people it is an act of God. If a single mother gets £20 a week benefits she is a ‘scrounger’ If you avoid paying £1000 tax, you are a …
Already since the start of the year the FTSE-100 has fallen 7%. Yesterday, the stock market fell 3% of 190 points on fears related to the growing credit crunch. In particular, American bank Citibank wrote off $18billion from its mortgage defaults. It hopes this will draw a line under the losses in the derivatives market. …
Since Economists are concerned with efficiency, I thought I would share some ideas about the efficient use of time, particularly on the internet. If you read this post, the chances are you spend a lot of time surfing the internet. But, how much of this time is profitably spent? Just because the internet has great …
Definition of Hedging – Setting up an investment positions which helps to protect against losses from a related investment. For example, if you export goods to the US, an appreciation in the exchange rate can make your exports uncompetitive. Therefore, you can hedge against your position by buying Sterling futures. If sterling appreciates, your exports …
Readers Question: What counts as an import on the Balance of Payments? Current Account measures trade in: Goods, Services, Investment incomes Net Transfers A Debit on the credit account occurs when the UK imports goods and therefore money flows from the UK to oversees to purchase it. If debits are greater than credits the UK …
Readers Question Is tesco’s power a net benefit or a cost to the wider economy? In the UK, Tesco have over 32% of market share for supermarkets. It is a similar situation as the US, where supermarkets are dominated by Walmart. Tesco is now the largest private sector employer in Europe. (working for Tesco) It …
Q. Is A Strong Canadian Dollar A Good Thing? This is an interesting question. The effects of an appreciation are good for some aspects of the Canadian economy, but, create problems for Canadian exporters. The real winners are Canadian consumers who are able to buy US goods at a much cheaper price. US border towns …