If the housing goes to recession so the interest will go up or down?? Why?
Answers: Yes, housing is in recession and the feds are lowering interest rates to stimulate the economy. What makes the situation problematic is that inflation is still high. the feds cannot lower interest rates too much when inflation is high, or inflation will simply go higher. Eventually the recession will cause inflation to stop, the feds will lower interest rates to very low, start another inflationary bubble, and the cycle will start all over again.
Recession means that the economy is actually going backwards, meaning you can't afford what you used to be able to afford.
The Federal Reserve will continue to lower the prime interest rate to assist the banks in lowering lending rates to encourage people to spend money, making homes more affordable.
Normally they will reduce interest rates to encourage people to start buying again. When people start to feel more confident about being able to buy things, due to low interest loans (and mortgages), people start buying, which often has a ripple effect in other areas of life (they can start spending on more 'fun' stuff which starts to bolster the economy again). I think however, the American government has decreased interest rates significantly over the last while and it hasn't done much to bolster the economy as of yet.
It doesn't work like that...
In Australia, at this time, interest rates will probably go up and they are already starting to do so without guidance from the Reserve Bank. The problem is not so much the Australian economy, but our exposure to the US sub prime mortgage market. We don't know what the Australian savings' banks exposure is to the sub prime market, but I suspect it is greater than they are letting on.
While ever the likes of RAMs and Centro can't get funding to stave off liquidation, the domestic interest rates will rise.
Are casino/resorts recession-proof?
I have the opportunity to invest contained by a casin/resort condo on the gulf coast, but I'm wondering how casino gaming will do if our economy go down the tubes, as many predict. Will those tighten their belt, or will they head for the casinos, hoping to strike it rich and back their worries away?Answers: I would think casinos would carry hit hard next to a recession. People tighten up their money in recession. The average gamblers gambles one and only with money they can afford to lose, and surrounded by a recession they have smaller amount money to gamble near... I am making a huge assumption that the average gambler is not a compulsive gambler. Just my 2 cents.
casinos are not recession proof.
call up the chart of any gaming operation and look at it over a 20 year length ... you'll see ups and downs like any other. Since the house end in gaming is pretty much fixed, the lead to of their shares going up and down must be either interest rates or change in sale and costs. and since sharp operators do not increase costs until after they're honestly confident the sales will be nearby ... a downturn in the shares is any interest rates going up or sales fragility.
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besides, condos are very expected overpriced atm on the gulf coast [if you're talking florida's gulf coast] ... more are human being built but the buyers are bailing.
I saw one shark investor who paid 40% of the previous asking price for a big slug of properties surrounded by Florida. Since they have big wrangle power, that might be the floor in prices.
I'll bet you aren't mortal offered anything like a 60% discount from the prior selling price.
How does gas prices effect us..Economy, food, stock ETC. I see the prices stir up and down up and down..WHY?
I want to know this, what is going. on, and how does it really effect us as consumers. Is it a supply and demand entry...Answers: crude oil cost effects every aspect of our lives. Gasoline, heat oil, diesel, spout fuel effect our food transportation and production cost. Fertilizers, plastics, lubricants including motor oils. Crude is used surrounded by the production of asphalt used on our streets, public transportation cost, steel, lumber and electricity production. All these must go up surrounded by price when the cost of crude oil increases
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