• Economic Equilibrium

  • It is in the subject matter of economics that the term economic equilibrium is being widely used to refer to a definite situation in the present day world. The situation is such that the forces that work in the economy are... 

  • What is the Troubled Asset Relief Program (TARP)

  • Troubled Asset Relief Program (TARP) is a formulation of relief for lending institutions who are suffering due to the mortgage crisis because of the economic meltdown. Originally when this program was formulated in 2008 it... 

  • Title Insurance

  • Title insurance discusses about the real estate property in United States. Real estate property holds huge value and there are many valuable properties which carry immense value in terms of monetary measure. So, these properties... 

  • First Time Home Stimulus Plan Extended

  • Owning a home became totally out of the question for many people who were affected by the economic downturn. The cost of the house plus taxes made this an unachievable project for many families. Since having ones home is... 

  • What was the Mortgage Assets Purchases Plan

  • The subprime mortgage crisis not only devastated the US economy but also caused an economic downturn throughout the world. A bailout plan was considered for this crisis and eventually was enacted as the Emergency Economic... 

  • What is The Subprime Mortgage Crisis

  • The Subprime Mortgage Crisis came about because of the boom and bust of the real estate market and the poor precautionary measures employed by the lending institutions. Around 2006 and before there was a boom in real estate... 

  • Whats Next For The Stimulus Plan

  • The aim and motive of stimulus package was to support some of the multinational companies and banks to stabilize their position in the market. Year 2009 gave a lot of upheavals and topsy-turvy situations for many global... 

  • Leading Indicators

  • Leading Indicators are the economic or financial indicators that are used to determine and predict the future. These are just opposite to lagging indicators that are used to measure past performance. The leading indicators... 

  • Income Funds as a Mutuals Fund

  • Income fund is a type of mutual fund that is structured to provide maximum income. This income fund in order to maximize income selects investments that offer interests or dividends. Some of these investments include preferred... 

  • Reservation Price

  • Reservation price or reserve price in microeconomics is the maximum or the highest price a buyer is willing to pay for a service or good. In the same way it is also the lowest or minimum price a seller is willing to sell... 

  • The Three Focus of The Stimulus Package

  • Stimulus package introduced by the Federal Government is aimed at a stabilized spending on various sectors in a span of ten years. This is actually a wonderful financial plan to save jobs, create new employment opportunities,... 

  • More than a Stimulus Check

  • With the changes in the global economy, a lot sure has changed. These changes were a needed part to avert the succumbing trend of the financial aspect of many American’s lives. The good that the 2009 stimulus package has... 

  • Distortion

  • Distortion is a phenomenon that can be noticed everywhere in every from of life. When the natural regular shape of any thing or person changes drastically then the resultant phenomenon is termed as distortion. Distortion... 

  • Federal Housing Tax Credit

  • First time home buyers consider the recession to be the best thing as they can take advantage of the new federal housing tax credit scheme. A federal tax credit up to $8,000 or 10% of the purchase price is now on offer... 

  • Tax Rebate for First Time Home Buyer

  • We all have a dream home in mind but actually purchasing that dream home for the first time is an important mile stone. President Obama has created one of the best first time home buyer opportunities, the rebate opportunity... 

  • Income Property

  • Income property is defined as real estate bought or developed in such a way to generate income. The real estate property can be developed or bought so that one can earn income by leasing, renting or property appreciation.... 

  • SoftLanding

  • Soft landing is the term, which is first coined by the astronautic journalists to explain the phenomenon of safe landing on moon. Now soft landing is used to describe a situation in economy where the economy slows down but... 

  • HardLanding

  • With the global economy in recession there are many after effects. Hard landing is the economic phenomenon that results when government steps in to slow down inflation that is caused due to the economic recession. The government... 

  • More Fiscal Stimulus in 2010

  • As the fiscal stimulus law came into being in February 2009, the effects were not noticed in the beginning. With nearly a year gone by, and on closer inspection, you would think that if successful, more noticeable changes... 

  • Trust Income

  • Trust income or income trust is the trust, which is holding the assets that are producing income. The trust income designates ownership vehicle, capital structure and legal entity for businesses or certain assets. These... 

  • 2008-09 Stimulus Impact in 2010

  • With the latest round of the fiscal stimulus plan taking place, many question what the 2008-2009 fiscal stimulus impact in 2010 would be. Are they going to show that a gradual build-up was needed, or as many have suggested,... 

  • Recourse Loan and Non-Recourse Loan

  • Recourse loans or recourse debts are the debts that are not backed by collaterals from the borrowers. In this type of loans the lenders are allowed to collect the debtors assets in case of defaults by the debtors. This is... 

  • Mortgage Insurance

  • Mortgage insurance is also known as mortgage guaranty. Mortgage insurance is an insurance policy that compensates investors or lenders for the losses that are due to the results of default of mortgage loan. When the down... 

  • 2010 Stimulus Plan Effectiveness

  • In a recent survey amongst business executives, only a third actually thought there was a positive trend in the fiscal stimulus plan for 2009 and two thirds thought the 2010 stimulus plan effectiveness would be greater than... 

  • Rubinomics

  • Rubinomics is the economic terminology coined by the financial experts and economic reformists to describe the economic policies followed, implemented and practiced by the Clinton administration during the period of 1990s.... 

  • Mortgage Calculators

  • Mortgage calculators acts as convenient tools that are used to help potential or current real estate owners in determining how much amount they can afford to borrow in order to purchase a part of real estate property. People... 

  • Internet Income

  • Internet income is the income you earn while you are online. With global economic recession reaching alarming stages, many people lost their jobs and in the process their livelihood. So people in order to make their both... 

  • Obama Loan Modification Stimulus Plan

  • The Obama government is offering several incentives to all lenders for loan modification on the existing home loans of the borrowers. This loan modification stimulus plan is expected to help millions of struggling borrowers... 

  • Free Credit Score Report

  • A recent addition to the federal law instructs the agencies conducting credit checks to give at least one free credit report. The 3 major agencies Equifax, TransUnion, and Experian are required by this statute to submit a... 

  • Zero Down Mortgage

  • The zero mortgage payment is inspired by the niche markets. By understanding the needs of a large part of the market, the no down payment mortgage has gained success. Since not many people have disposable income for down... 

  • Fixed Rate Mortgage

  • The interest rate charged on the fixed rate mortgage does not change through the life time of the loan. Borrowers can work with the same rate for which they acquired the loan regardless of the economic times. Mortgages are... 

  • Interest Only Mortgage

  • The interest only mortgage is an efficient instrument when one wants to buy an asset which does not have the possibility of significant depreciation. This can then be sold at the end of the loan period. Refinancing the principal... 

  • Subprime Mortgage

  • With the volatility exhibited by international markets, people find themselves victims to waves of negative sentiment. This may result from negative returns on your investments in sensitive sectors of the market. Thus a healthy... 

  • Home Equity Mortgage

  • Your home, with home in this perspective being the assets that are in your house, is a priced possession and has a market value higher than what you would normally assume. That is because it has taken you a couple of years... 

  • 2010 tax credits and deductions

  • The past years have been marked with a kind of stability when looking at it from an economic perspective. But the last part of 2008 and for the most part, 2009 has had a whole different story. The economic situation has gone... 

  • Price Index

  • A price index is a standardized average of prices for a given class of goods and/or services in a given duration of time at a particular geographical location. The standardized average is normally a weighted average. It is... 

  • Hypothecation

  • Overview Hypothecation can also be termed as trust receipt. It’s a rare form of security interest whereby one pledges a mortgage or an underlying asset as collateral for a loan. This means that once you hypothecate, the... 

  • Aggregation Problem

  • In economics, an aggregate is a summary measure that describes an economy or a particular market. The aggregation problem therefore refers to the problems or difficulties of treating a practical or hypothetical aggregate... 

  • Interest Rates

  • An interest rate can be defined as the amount a borrower pays a lender for the use of money that is not owned by them. For example, a small business might borrow from a bank to start their business, and the lender receives... 

  • Keynesian Economics

  • Keynesian economics can also be referred to as Keynesianism and Keynesian Theory. It is an economic theory known by the name of the British economist John Maynard Keynes who established it to explain the Great Depression.... 

  • MicroEconomics

  • Microeconomics can be defined in a number of different ways: “Microeconomics deals with the decision making and market results of consumers and firms.” “Microeconomics is the study of the economic behavior... 

  • MacroEconomics

  • This is a branch of economics which considers the performance of economy as a whole. It is concerned with aggregates like national income, national consumption and investment. It studies the national economy and determines... 

  • Supply and Demand

  • Overview Description When the need (demand) for goods increases and its availability (supply) decreases, the prices rise. On the other hand, if the availability of goods increases and the need or desire of goods or services... 

  • Money Neutrality

  • Overview Neutrality of money is an economic theory stating that alterations in the aggregate supply of money only affects nominal variables, instead of real variables. Thus, when the money supply is increased, it will proportionately... 

  • Income Effect

  • Overview According to economics, income effect depicts the effects of alterations in the prices on consumption. It is the change in an individual’s income or an economy’s income, and how that change will have an impact... 

  • Hyperinflation

  • Overview Hyperinflation, according to pundits, is an inflationary vicious sequence without propensity towards attaining equilibrium. In other words, it is an out of control inflation, excessively high and rapid inflation.... 

  • Dividend Stripping

  • Overview Dividend stripping is the process of buying shares just before a dividend is paid and selling off the shares in question after the payment when the shares go back to normal (ex-dividend). Dividend stripping is done... 

  • Purchasing Power Parity

  • Purchasing Power Parity It is a theory that tends to estimate the ratio and extend of adjustment to be done on the exchange rate among countries so that the exchange can be equal to each country’s currency purchasing power.... 

  • Monetary Policy

  • Monetary policy is the actions of the government, a monetary authority, currency board or the central bank of a country to establish the size and rate of development of the money supply which, as a result, affects the interest... 

  • Inflation

  • Definition of Inflation Inflation can be viewed from different perspectives. Inflation is simply the state of being inflated or the act of inflating. It can be described as the rise in the general level of the prices of goods... 

  • Fiscal Policy

  • Overview In simple terms, fiscal policies are government spending and income collection policies that influence the interest rates, tax rates in an effort to control the economy. Fiscal policy acts in contrast with monetary... 

  • Economic Depression

  • Understanding Depression There lacks a clear, stipulated definition of an economic depression, but a projected definition for an economic depression is a continued recessionary period whereby the populations of the economy... 

  • Deflation

  • Deflation Definition According to economy, deflation is a continued decrease in the general price level of goods and services in an economy. In other words, a general dwindling in prices, usually caused by a decrease in... 

  • Balance of Trade

  • The balance of trade is the difference between the monetary or financial value of imports and exports in an economy over a given period of time. In general terms, it includes all activities of imports and exports of a particular... 

  • Transfer Tax

  • What is the description of transfer tax? It is simply an amount paid when an individual or entity is passing property to another individual or entity whereby the amount of tax paid depends entirely on the fair market value... 

  • Taxation Ethics

  • What is taxation? Before shedding light on the taxation ethics, it is imperative to first know what taxation is. To tax, in simple terms is to impose a monetary charge or other levies on an individual or a legal entity where... 

  • Tax Purposes

  • The Four “R”s Basically, taxation has four main purposes also identified as tax effects. They are: Revenue, Redistribution, Repricing and Representation. Revenue The main tax purpose is revenue. Tax revenue... 

  • Tax Burden

  • Economics define tax incidence as the study and analysis of the outcomes of a specific tax on the sharing of economic interests and welfare. It is believed that tax incidence falls on the category that it will ultimately... 

  • Excise Tax

  • Excise Tax is a tax on the production or sale of any goods. It is also called Excise Duty sometimes and, unlike customs duties which are charged on goods which come from outside the country, is primarily charged on goods... 

  • Sales Tax

  • At the end of every fiscal, along with evaluating one’s earning’s throughout the year, another task, which is often referred to as a necessary evil is the payment of taxes. Knowing the different kinds of taxes and the... 

  • Value Added Tax

  • Value Added Tax (VAT), also known as a Goods and Services Tax (GST), is basically a consumption tax which is levied on the value added to a product. Unlike a sales tax which is levied on the total value at each stage of the... 

  • Tax History

  • The system of taxation has been a part of governance for centuries. According to the records found so far, the society in Ancient Egypt was the first society to adopt the system of taxation. It is widely believed that in... 

  • Capital Gain

  • A Capital Gains Tax (CGT) is a tax levied on the profit from a sale of a non-inventory asset that was bought at a lower price. Capital gains are usually collected from the sale of property, precious metals, bonds and stocks.... 

  • Indirect Tax

  • Indirect tax is one which is collected by intermediaries who turn over the proceeds to the government and file the related tax return. Indirect taxes are imposed on goods and services. Unlike direct taxes, indirect taxes... 

  • Direct Tax

  • Taxes form an important part of each of our financial life. Understanding the intricacies of taxes becomes vital as it can help us deal with our finances better. Taxes are categorised into direct taxes and indirect taxes.... 

  • Stimulus Money

  • Ever since President Barack Obama signed the 2009 stimulus plan and started talking about the 2009 stimulus payment, many have been anticipating the upcoming tax rebate check. The government expects that the amount that will... 

  • Tax Break

  • The Barack Obama stimulus plan has brought good tidings to the majority of the US population. However, there are still those who have doubts and are using a wait and watch policy. There is the question of who actually foots...