Rob Martin is one of the homeowners in the United States who gave up a part of his privacy in an effort to make an end on the economic troubles. In his student life, Rob Martin has already lived with a stranger. But according to him, it was quite strange having new roommates. Before renting one of his bedrooms, he screens the candidates to be sure to have a suitable renter.
With the renting of his rooms, he can earn $700 a month extra. This monthly extra money makes it more easier for him to pay his bills.
But of course, you have to invest to make your house attractive to hire. Also Mr Martin did efforts, such as the installation of a cable television and the cranking of the thermostat to make it more cozy.
This project is perfect for divorced people or people who are in the inability to sell homes that are too big or too expensive to maintain. This second reason is the story of Chris LaRocco. He owns an exquisite villa. But as a result of his unemployment, it’s difficult for him to take care of his house. Also the housing crisis makes it not easy to sell his house.
Renting a bedroom in your house has also negative points. It’s not that easy for the house owner. First of all, you had to face with their personal stuff. Secondly, family and friends of your renter will certainly visit him in your house. Finally, it's possible to be faced with the emotional problems of the renter. So finding a suitable candidate requires a lot of efforts.
In my opinion, I think it’s really difficult to have a roommate. You have to give up a lot of privacy. But I think in the situation of this persons, they have no other choice.
First of all, their house is less worth as a result of the US housing crisis. So when they sell their house in times of a bad economic situation, they won’t receive the money their house is worth. So in this case, it’s better to take a roommate.
Further, in the economic crisis, people have no money to buy a house. They have other priorities. So it would be very difficult to find a financially strong person who’s interested in your house.
Source: http://www.guardian.co.uk/business/2009/apr/27/homeowners-roommates-recession
vrijdag 1 mei 2009
donderdag 30 april 2009
Optimism about economy grows - poll
More and more people are starting to believe in an improving national economy. A CNN/Opinion Research Corporation survey cleared it all out for us. The survey also showed some figures concerning the new president Barack Obama, who has had his first 100 days in the office. The results are satisfying.
48% of the people questioned in May believed that the current economic conditions are really bad. In February this figure was even higher – about 66% had negative ideas about the nation’s economy. In April this percentage has come down to 37%, which is a positive thing. Civilians who are having positive visions about the improvement of the homeland economy is an important step to actually reach the wanted improvements, since a bad economy is the most important thing on a public’s mind.
Another important figure is showing that 63% of the people who participated the questioning think that Obama is doing a good job. He pays enough attention to the most important problems that the United States is facing these days and he also has the right priorities. Compared to the statistics that were relevant a couple of years ago this is a good thing. Only 46% thought the same thing about president Bush in 2001 and only 37% about Bill Clinton in 1993.
The survey also showed that about 68% of the people questioned believe that Obama is doing a good job in keeping his promises that he made during the campaigns for the White House. 30% say that he’s doing a bad job. This is while only 30% believed that Clinton did a good job here. The conclusion is pretty simple: in almost every area Obama is doing better than Bush and Clinton.
It’s a good thing that people start to think more positive about the future economy of the United States. This will make them consume again and as read in previous blogs I find the demand side of the economy the most important thing. It will cause an even bigger improvement real soon.
I’m also not really surprised about the statistics that concern Obama. I already knew that he is a great president for the United States. I just couldn’t find myself with the ideas president Bush had. He was way too radical. Obama is just more neutral and has much more empathy. I also find it important that there finally is a black president in the United States. I would definitely be part of the 63% of the people who think that Obama is doing a good job.
Source: http://money.cnn.com/2009/04/29/news/economy/obama_economy_100days/index.htm?postversion=2009042911
48% of the people questioned in May believed that the current economic conditions are really bad. In February this figure was even higher – about 66% had negative ideas about the nation’s economy. In April this percentage has come down to 37%, which is a positive thing. Civilians who are having positive visions about the improvement of the homeland economy is an important step to actually reach the wanted improvements, since a bad economy is the most important thing on a public’s mind.
Another important figure is showing that 63% of the people who participated the questioning think that Obama is doing a good job. He pays enough attention to the most important problems that the United States is facing these days and he also has the right priorities. Compared to the statistics that were relevant a couple of years ago this is a good thing. Only 46% thought the same thing about president Bush in 2001 and only 37% about Bill Clinton in 1993.
The survey also showed that about 68% of the people questioned believe that Obama is doing a good job in keeping his promises that he made during the campaigns for the White House. 30% say that he’s doing a bad job. This is while only 30% believed that Clinton did a good job here. The conclusion is pretty simple: in almost every area Obama is doing better than Bush and Clinton.
It’s a good thing that people start to think more positive about the future economy of the United States. This will make them consume again and as read in previous blogs I find the demand side of the economy the most important thing. It will cause an even bigger improvement real soon.
I’m also not really surprised about the statistics that concern Obama. I already knew that he is a great president for the United States. I just couldn’t find myself with the ideas president Bush had. He was way too radical. Obama is just more neutral and has much more empathy. I also find it important that there finally is a black president in the United States. I would definitely be part of the 63% of the people who think that Obama is doing a good job.
Source: http://money.cnn.com/2009/04/29/news/economy/obama_economy_100days/index.htm?postversion=2009042911
zondag 26 april 2009
Obama changes approach to Cuba
President Obama has decided to change the relations with Cuba significantly. He has directed his administration to allow travel and money transfers by Cuban Americans to family in Cuba.
I am sure this will be in the benefit of the Cuban people. It will increase the freedom they have because Obama has also directed his administration to lift restrictions on communications. But more importantly, these measures will allow Cuban Americans to see their families again and send them money of course. Some say that this is the best way to gain the sympathy of the Cuban people. After all, Obama said in a campaign speech that there are no better ambassadors for freedom than Cuban Americans. And I think we must all agree with him. Nevertheless, the Republicans do have criticism. They say that the Cuban dictatorship is one of the most brutal in the world and that the U.S. economic embargo must remain in place until tyranny gives way to freedom and democracy. The Republicans are afraid that the Communist Party in Havana will benefit from this new evolution.
I am of the opinion that the past shows us that the Republicans are wrong.
First of all, Obama is not planning to stop the embargo completely, for example sending money to senior government officials and Cummunist Party members remains prohibited.
Secondly, while the embargo was in place, the Cuban economy proved that it did not need the U.S. economy at all. Maybe it is not bad to try something completely different.
It will help Cubans to become more independent of the state and I think this is the right way to ‘free’ the Cuban people.
Written by De Clercq Stijn
Source: http://www.foxnews.com/politics/2009/04/13/obama-eases-restrictions-cuban-americans-traveling-cuba/
I am sure this will be in the benefit of the Cuban people. It will increase the freedom they have because Obama has also directed his administration to lift restrictions on communications. But more importantly, these measures will allow Cuban Americans to see their families again and send them money of course. Some say that this is the best way to gain the sympathy of the Cuban people. After all, Obama said in a campaign speech that there are no better ambassadors for freedom than Cuban Americans. And I think we must all agree with him. Nevertheless, the Republicans do have criticism. They say that the Cuban dictatorship is one of the most brutal in the world and that the U.S. economic embargo must remain in place until tyranny gives way to freedom and democracy. The Republicans are afraid that the Communist Party in Havana will benefit from this new evolution.
I am of the opinion that the past shows us that the Republicans are wrong.
First of all, Obama is not planning to stop the embargo completely, for example sending money to senior government officials and Cummunist Party members remains prohibited.
Secondly, while the embargo was in place, the Cuban economy proved that it did not need the U.S. economy at all. Maybe it is not bad to try something completely different.
It will help Cubans to become more independent of the state and I think this is the right way to ‘free’ the Cuban people.
Written by De Clercq Stijn
Source: http://www.foxnews.com/politics/2009/04/13/obama-eases-restrictions-cuban-americans-traveling-cuba/
US housing starts is going through a bad patch
New US housing construction plunged sharply and more than expected in March, reversing a big jump from the previous month. The hopes were tempered and the effect is: the housing market stability is on the horizon.
The Commerce Department said Thursday that the construction of new homes and apartments dropped 10.8 percent last month to an adjusted annual rate of 510,000 units. The cause of the decline is due to a decrease in construction of multi-family homes. But there is also good news: the single-family activity may finally by stabilizing.
Some figures: the drop in construction in March followed a 17.2 percent surge in February, which was an unexpected gain. The 510,000 unit pace for total construction is one of the lowest in government records dating to January 1959. The record low was a 488,000 unit pace set in January.
The US economist at Capital Economics said even if the housing activity has turned the corner, it is still very weak. In spite of the disappointing results The National Association of Home Builders reported Wednesday that its gauge of builder sentiment posted its biggest one-month jump in five years in April. The US housing market has been badly hit as the credit crisis has made obtaining a mortgage even more expensive. Moreover the number of US workers filing new claims for jobless benefits fell last week, but so-called continued claims rose to a fresh record as the recession bit.
According to me, the housing market suffers severely from the financial crisis. The impact is considerable, so the government has to tackle the problem by drawing up a plan and lending financial support. Furthermore the consumers are put off by this crisis, but actually their behaviour has to be the same like before the crisis, so there is not an arrest of growth.
Written by Marie Maes
Source: The Financial Times
Article: US housing starts fall 10.8% in March
Published: April 16, 2009
By Alan Rappeport in New York
Podcast 2
The link to our 2nd podcast can be found here:
http://rapidshare.com/files/226018299/podcast_2.mp3
The American Economy team out!
http://rapidshare.com/files/226018299/podcast_2.mp3
The American Economy team out!
Microsoft suffers first sales dip
For the first time in 23 years, Microsoft has announced a quarterly sales drop of 6% comparing to the previous year. Most of its profit is made by selling its operating system Windows and its business software, like Microsoft Office. The sales drop resulted from a fall of sales of personal computers bought by consumers and businesses.
According to Steve Ballmer, Microsoft’s chief executive, the bad news is a result of the downturn in the world economy. They expect the weakness will last at least till the end of the next quarter. The situation is worse than analysts had been expecting. It looks like the demand and consumer preference had reached their maximum. But there are also positive elements, Microsoft is controlling costs and getting that under control.
To solve this issue, Microsoft has cost-cutting plans. Last January, Microsoft announced a disappearance of 5,000 jobs over the following 18 months.
Businesses all over the world are suffering from the financial crisis. So it’s quite normal, Microsoft is also having problems. According to me, the situation is not very alarming. In times of a bad economic market, sales figures are falling in all areas.
The job losses are more alarming. Certainly in countries with a bad system of social security. A lot of families will have problems.
Source: http://news.bbc.co.uk/2/hi/business/8015623.stm
According to Steve Ballmer, Microsoft’s chief executive, the bad news is a result of the downturn in the world economy. They expect the weakness will last at least till the end of the next quarter. The situation is worse than analysts had been expecting. It looks like the demand and consumer preference had reached their maximum. But there are also positive elements, Microsoft is controlling costs and getting that under control.
To solve this issue, Microsoft has cost-cutting plans. Last January, Microsoft announced a disappearance of 5,000 jobs over the following 18 months.
Businesses all over the world are suffering from the financial crisis. So it’s quite normal, Microsoft is also having problems. According to me, the situation is not very alarming. In times of a bad economic market, sales figures are falling in all areas.
The job losses are more alarming. Certainly in countries with a bad system of social security. A lot of families will have problems.
Source: http://news.bbc.co.uk/2/hi/business/8015623.stm
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