Economy Events

Moody Analytics Foresees A Global Recession in the Next 12 to 18 Months

Mark Zandi, Moody’s Chief Economist warns that the possibility of a recession transpiring in the next 12 to 18 months is uncomfortably high. He opines that the reality of a recession will happen if things do not turn out as planned.

According to the Moody analyst, a recession can be avoided if president Donald Trump does not escalate the tariff war with China, and if the UK arrives at a favorable solution to Brexit. Mr. Zandi also factors in the ability of central banks to maintain monetary stimulus. Still, he foresees that even if a recession does not occur, he predicts that the global economy will be much weaker, since he doubts if policymakers will be able to alter the current trend.

Although other economists do not agree with Mr. Zandi’s prediction about a forthcoming recession, they acknowledge the likely possibility of having a devitalized economy.

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According to Professor Eswar Prasad of Cornell University, relying on consumer spending alone is not a sustainable condition. It has helped support growth in various economies but also faltered in other sectors. The professor stated that the key to economic growth is a set of policies aimed at reviving business and consumer confidence in order to boost investments.

Current Trend of Economic Activities in the U.S.

A recent poll conducted by Bankrate.com revealed that in the United States, most Americans have not actually recovered from the blows dealt by the 2008-2009 Great Recession. The latter event left many American households with fewer reasons to celebrate. Bankrate.com’s Sr. Economic Analyst, Mark Hamrick, said they found out that tens of millions of Americans are still struggling to even go back to their previous condition before the economy went south and took a turn for the worse.

Their latest survey showed that more than half of the American adults who went through the Great Recession said they experienced some kind of adverse financial impact. To which half of them said that they are even doing worse now, compared to how they were before the financial crisis of the previous decade took place

Such findings can be supported by the American Association of Retired Persons (AARP) data that shows more than half of American households today are without emergency savings.

Correspondingly, the U.S. Commerce Department came out with a report indicating that consumer retail spending fell for the first time since February of this year. Although August retail-spends went up by 0.6%, September saw a 0.3% drop; providing a clear sign that at present, the U.S. is experiencing slow economic growth.

Affected by the 0.3% slash in household spending are the online retailers, sellers of building materials and automobile dealers. According to the report, the decline in retail spending became apparent in February.

Reduce Financial Stress as an Aging Worker by Taking Advantage of One’s Equity on a Property

Taking out a mortgage under equity release arrangement has become increasingly popular among Britons. Although many do so as a means to supplement their retirement funds, others simply need additional funds for other important reasons. At age 55, retirement is still ten years away and will be a year farther away in 2020 for those currently under age 55.

Actually the UK government is bent on pushing the retirement age further to age 67 by 2028 and to age 68 by 2046. As it is, The Centre for Social Justice (CSJ), a think tank founded by Tory MP Iain Duncan Smith, a former minister for work and pensions, recommends furthering the retirement age to as late as age 75 in the next fifteen (15) years.

That way, the UK government can save an estimated £182 billion a year by making Britons work, way until their mid-70s, instead of retiring and claiming their state pension. That is despite the fact that compared to other developed countries, the British government grants the lowest state pension; just roughly about 16% of the earnings gained by Britons during work.

At present, the new UK full state pension is pegged at £168.60 a week, albeit still dependent on a pensioner’s national insurance contributions. A full pension amount requires at least 35 years of national insurance contributions. Eligibility for even a partial pension requires national insurance contributions for at least ten (10) years.

Most Britons Resort to Releasing Equity on Their Property Upon Eligibility

That is why taking advantage of money locked in one’s property by age 55 or above is a solution most Britons consider.

Since their body is starting to age and weaken, they can at least slow down with economic activities to avoid hastening the deterioration of their physical condition. After all, equity releases under UK lending conditions come with a no-negative equity guarantee. This provision ensures that even if the amount borrowed doubles or exceeds the appraised value of the property at the time the obligation is settled, the heirs or beneficiaries of a deceased senior borrower will not be burdened with unpaid debts.

Cashing out the value of one’s equity on a property before the official age of retirement appears to be more practical than waiting for pensions that will take a long time to come. The amount that can be borrowed via an equity release mortgage can be determined using an equity release calculator in the UK websites of financial specialists.

The Equity Release Council reported that during the second quarter of this year, as much as £971 million in equity release mortgages were availed by qualified older British adults.

Based on a report published by the UK National Statistics Office for the Centre for Ageing and Demography, and covering the years 2015 to 2017, the most recent estimations of life expectancy among older people in the UK is up to 79.2 years among males and 82.9 years among females.

If this life expectancy trend continues when the official retirement age is at 75 years, male retirees will collect only about 5 years of pension that cost him 35 years of contributions. Older female workers retiring at age 75, will be able to claim at least 8 years of pension.

That is why Baroness Ros Altman, who is herself a former minister of work and pensions, brands the proposal to increase the retirement age to 75, as “chilling and immoral.” She deems that increasing the pension age to 75 will lead to a shortening of life expectancy, particularly among disadvantaged British subjects. In all probability, many will not even reach age 75 to enjoy their hard-earned pensions.

How Is Crypto Trading And Stock Exchange Different?

BitSeven is a highly developed platform for cryptocurrency exchange and trading on the market for cryptocurrency such as Bitcoin, Litecoin, Ethereum and Ripple. At present, digital currencies possess a market capitalization of approximately 300 billion US dollars with the possibility in the close future to reach 10 trillion US dollars. Presently, there are more than a thousand digital currencies as well as an ceaseless quantity of crypto tokens.

The quick growth progression of cryptocurrencies has caught the attention of traders around the globe. But, cryptocurrency trading is different from the usual processes of investment like stock exchange. How do they differ and what can one expect when getting under way with cryptocurrency trading?

Crypto Trading and Traditional Stock Exchange – How do they differ?

With the usual exchanges, it could be tough to start trading as there are numerous stumbling blocks with sizeable amounts of paperwork as well as related costs prior to carrying out the initial trade. And even this entire work and process is done, it will be a long-term course to earn a profit which would necessitate a preliminary capital for items like margin fees and trading fees. Additionally, a substantial effort is needed for the assessment of newscasts, business models, global and local indicators and trends in economics and politics, like hints of an economic crisis or recession.

On the other hand, one could delve into cryptocurrency trading with as low as $100 worth of digital currencies which would permit one to make the most of a market that is frequently volatile compared to the usual regulated finance, however that offers more chances to gain better and bigger profits. Volatility of the crypto market has two sides wherein it offers in equal gauge the possibility for profits and losses.

Starting with Crypto Trading is Easier

As mentioned, to begin trading utilizing fiat exchange, there are a lot of paperwork to be done because of traditional finance remaining to be an industry that is extremely regulated worldwide. Companies the offer services for trading necessitate a substantial quantity of info and at times even a declaration of a status being a “professional investor”, wherein it totes up additional cost as well as delay.

Currently, the crypto market is primarily unregulated. Requirements also differ from one country to another, but at present there is no clear global regulations that are standardized and best practices. Nonetheless, this is shifting. For now, it is simpler to begin with crypto trading, not merely because of a lesser capital needed to see some profits, but also because the paperwork to begin trading is frequently easier, simpler as well as time saving with no need for go-betweens like brokers.

The Cryptocurrency market is turning out to be progressively more mature and is more flexible compared to fiat exchanges. And since there are increasingly more tools for crypto trading, the digital currency market will turn into a more constructive substitute to conventional finance.

STARTUP FUNDING EXPLAINED - EVERYTHING YOU NEED TO KNOW
Learne more about business and investment from this... Life of Starting a Startup - such an informative and fun to watch video. This explains the mechanics well, implementing is easier said than done. Applies to tech startups that have a ridiculously high market potential.
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