US Real Estate Market – Are The Bad Times Finally Over?

The US real estate market has been in doldrums for quite a few years now, but few doubts exist at present that the problems it faces have come to an end. There is no doubt that vacancies of residential accommodation are very high while new construction has slowed down tremendously. This might not seem to be very promising, but it has to be considered in light of the fact that residential property prices in the US are expected to bottom out in the year 2012.

There are indications that the economy will finally improve in 2012, albeit moderately. At the same time, unemployment rates will reduce to a manageable 7.5 percent. According to all indications, the US employment outlook has been improving steadily. These factors indicate that all vacant housing units will find buyers, especially since there will be limited supply of housing units. It will be relatively easy for people to buy affordable homes given that prices will drop from their currently depressed levels.

Another factor that will affect the US real estate market is the rapidly worsening economic situation in Europe. The government has also maintained mortgage rates at low levels. This gives investors greater motivation to buy residential property in the United States instead of making a gamble by taking their money to other destinations.

The US Government is putting a radical plan into effect in order to bail out homeowners who have been faced with immense financial pressure because of the current economic scenario. The Government has worked out a deal with major banks (Bank of America, Wells Fargo & Co, JP Morgan Chase & Co, Citigroup and Ally Financial Inc) whereby they will make a $25 billion settlement over mortgage related problems.

The bulk of this money is to go towards loan modifications for delinquent borrowers whereas part of it is intended for homeowners who have been diligently making their payments but are unable to refinance because they owe more than their homes are worth. A part of the settlement is also kept aside to pay up to $20,000 each to people who lost their homes to foreclosure. Not because they lost their money playing roulette at the local casino, but because external conditions they could not control forced them out of their houses. The need of the hour is more regulation on lenders in order to monitor their practices.

Americans have always liked to own their homes, and it seems very likely that will start buying homes again in the year 2012 because conditions seem very favourable since they point to what might be a sustained recovery. Besides, demand for homes has been artificially suppressed over the past few years because of bad economy. By all indications, Americans, whose appetite for risk have been reduced drastically, will bring their hard earned money to the residential real estate market in the coming year. Like poker the real estate market will not die in the USA.

The opening up of people’s purse strings when it comes to residential properties spells good news not just for the US real estate market but also for the economy as a whole because this will stimulate many industries that provide related goods and services. In other words, it seems very likely that the bad times are finally over.

The Indian Stock Market

sensexIndia is one of the strongest economies on Earth and it is expected to be one of the leading global economies within the next 20 years along with China.

Thanks to India and China, by 2050, the world’s economic center will shift from the Western Hemisphere to southern Asia for the first time ever. In fact, this year the Indian Stock Market passed into the top 10 for biggest stock markets on Earth. This is the first time this has ever happened for the country. The Indian Stock Market now surpasses that of Australia. It is estimated that the total market capitalization of Indian companies has jumped 25 per cent this year, to more than $1.43 trillion after a string of jumps for the market.

Currently, India is the third-largest economy in Asia after China and Japan.

One big reason for this is the Indian Stock Market.

The History

To talk about the history of the Indian Stock Market, one has to talk about the Bombay Stock Exchange. Established in 1875, it has grown to become the largest stock market in India, and Asia’s first stock exchange, as well as the fastest one, with a speed of 200 micro-seconds. Its roots actually trace back to 1855 when four Gujarati and one Parsi stock broker gathered under banyan trees in front of Mumbai’s Town Hall. On August, 31, 1957, the exchange became the first to be recognized by the Indian government under the Securities Contracts Regulation Act. It is one of the leading exchange groups. Over the past 139 years, the Bombay Stock Exchange has facilitated the growth of the Indian corporate market, while at the same time providing an efficient capital-raising platform.

Currently, the Bombay Stock Exchange is the world’s top exchange in terms of the number of listed members. With over 5,000 companies, this pushes the total value of the exchange to $1.24 trillion, which makes it account for most of the total market value of the stock market in India.

In terms of index options trading, it is the third largest exchange on the planet.

In 1995, the exchange witched to an electronic trading system. Amazingly, it took only 50 days to make this transition. This system has a capacity to do eight million orders per day. The Bombay Stock Exchange also introduced the world’s first centralized exchange-based Internet trading system, allowing investors from all over the world to trade from that platform.

Its Recent Growth

The India Stock Market has continued to grow over the course of the past little while. Currently, the market is a bull market and by all accounts, it is expected to continue. Inflows from foreign institutional investors could double in the next year alone. This is mostly thanks to Narendra Modi, who is the next prime minister of India. Both the Nifty and Sensex indices rose to their second consecutive record-breaking highs thanks to the rising hopes on the exit polls after India’s month-long election. Modi is expected to put a lot of pro-business policies in his 100 days in office. The Sensex rose by 2.5 per cent to 23,572.88, while Nifty rose 2.35 per cent to 7,020.05. The Wisdom India Fund also settled 3.77 per cent higher. So far, this year to date, the India Exchange Traded Fund has risen 17.6 per cent, while emerging markets have risen 1.26 per cent.

Thanks to Modi’s commitment to boosting investment, the market will continue to grow. Thanks to the new policies coming in, foreign investors are expected to have an easy time investing in the India Stock Market.

India Vs China

Between India and China, India is doing very well with its stock market. A quarter century ago, India’s stock market was worth $25 billion, while China barely had any sort of market. Ten years ago, the market was worth $681 billion in China, while India’s was worth $279 billion. Five years ago, the Chinese market was worth $2.7 trillion, while India’s was worth $645 billion.

While China does have a larger stock market capitalization, India’s is rising much faster. Over the past year, the Chinese stock market has risen 9.1 per cent in value. India’s has risen by an astounding 24.42 per cent.

Compared to the rest of the world, India’s stock market has risen faster than e very single country except for Mexico and Turkey. Turkey has seen a rise of 28.47 per cent , while Turkey has seen a rise of 53 per cent. China ranks well bank of several countries, including the UK, the United Kingdom, South Korea, France, Saudi Arabia and more.

The Greek stockmarket

greek-marketHistory is a big part of any country where people learn from their mistakes, or from the mistakes of others. Sometimes things in history will affect many people, and other times history will affect only a few people. History shows that when a stock market crashes it has a big effect on every person and business within that particular country.

The stock market can be a roller coaster ride, and for those who deal with the stock market on an everyday basis understand this concept. For people who have never dealt with the stock market do not know, or understand how any stock market can affect the history of a country.

Just before the 1930’s there was the big stock market crash in the United States. The buying, selling and trading on the stock market in the United States dropped considerably. This caused a loss of employment, businesses went under, and it was a very difficult time for everyone. When the stock market does not do well it causes a domino effect from the top clear down to the very bottom of the economic ladder.

It does not matter if you are a white collar, blue collar, or what social economic class you are in. The stock market can help many people, and it can also hurt many people.

Back in the year of 2007 in the month of November the Greek stock market took a drastic fall of 85 percent. The United States was able to pull themselves back up on their feet with hard work, and with the help of people who knew the stock market, and how it works. When the Greece stock market dropped back in 2007 it also took time, patience and a plan to get back on their feet again, just as the United States had to do.

With getting the Greek stock market back into shape this takes a plan by many different people from many different organizations. It is the banks people go to in order to receive loans for homes, education, and businesses. Banks not only deal with regular customers they also deal with banks and other financial organizations from other countries. The Greek stock market had to get back on their feet again in order to show other countries that they were reliable and worth the financial risk.

Sometimes when banks decide to merge this can be good, or it can be bad depending on what direction the banks decide to go. Some banks after they merge will only deal with big corporations, while other banks that merge will do business with everyone. Banks who deal with a variety of people and businesses keep their options open, and in doing so keep the money flowing. When the money stops flowing that is when the economic situation goes downhill.

The Greek stock market is doing very well now. It has realized their losses and they move on in order to get their finances sorted out. The bank in Greece now is doing very well with their trading, working with their shareholders, and keeping the economy floating in a healthy way. It is important that the Greek stock market and banks located there in Greece keep good business contacts with other stock markets and business from other countries.

By doing this the Greek stock market has more options of bringing in more customers, shareholders making it much easier for the Greek stock market to stay high and bring in financial wealth to everyone. After going through the Greek stock market crash there are still changes that are happening, but they are good positive changes that will help the economy of Greece today and in the future.