US record drop of home prices by Barbora Misakova

From time to time I think how great it would be if I had my own flat or a house. I dream about the big windows with colorful hangings, big terrace or balcony where I could every sunny morning have my breakfast. I can clearly see my bedroom and kitchen; the living room will be very spacious and bright with a big and comfortable sofa and rocking chair near the big window. Garden would be simple just a nice green grass and few fruit trees, near the entrance would be hammock where we could sit during the hot summer nights. After this dreaming the reality comes! How such a poor student like me could affords such a comfort? Two young people with good jobs can hardly buy or rent more than 2-rooms flat. It looks that situation in US is quite similar especially nowadays. American cities such as Miami and San Diego with their 7.7 percent annual decline had become the recorders in the sales drop. Even Las Vegas, Detroit, Phoenix, or Los Angeles belongs to cities with considerable decline of home prices. These prices fell 8.4 percent because of decline of Standard & Poor Index. On the other hand Michelle Meyer, an economist at Lehman Brothers Holding Inc. claimed the home prices are declining because of weak demand and the disability homeowners to get out of costly loans. The biggest misgivings of FED refer to continuing crisis of home sector which didn't reach a bottom and its continuous decline could have a negative influence on the US economy. FED reacted on this situation by cutting its federal funds which could give housing a boost, but Shiller thinks "it won't be enough to stop a prices decline. " After all he added: "The best that we could hope for is a slower pace of declines."

related story: http://news.yahoo.com/s/nm/20080129/us_nm/usa_housing_prices_dc;_ylt=At2K_C4UHfNkV_b7OoL9mJ.s0NUE

by Barbora Misakova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

Decline in construction must be solved by government by Martina Harvanova

As it may seem, constructions, renovations and similar building of new places are nowadays experiencing their heavy rise. Almost on every street we notice a building site, on every side of a town we stumble due to temporary traffic diversions or side-walks full of stones and odd rubble, maybe concrete. One would assume, the construction business occurs on its apparent growth as our simple sight reveals the busyness of engineering or real-estate companies. However, this opinion would be absolutely wrong. The reason for my point of view is called intensified slump in home constructions. And it is honestly true. At the beginning of the last year the economists didn't foretell such a steep decline, but even their deepest worries came true. These experts affirm that the housing decrease in U. S. is on the level and possibly it is even exceeding the similar downturn in the late 1970s and early 1980s. Exactly this term was significant by the interest rates pushed to the highest levels since the Civil War. If you want to see it in numbers: in 1980 the plunge was represented by 26 per cent while the slump of 2007 reaches up to 24.8 per cent compared to the year 2006. Even the drop in construction in December wasn't one of the predictable ones; it surprised the experts in a great deal. Those were numbers. And the possible solution? Generally known fact that American economy may face a possible recession in the next years frightens the vast majority of the U. S. population. Affects will namely influence even broader public. President Bush together with the Congress members is in front of tough decisions and adoption of needed actions. Their next movements should prevent a downturn by offering an economic stimulus. It is apparent the American economy needs to be strengthened. However, any natural steps won't help it, the government and the federal officials have to meet the necessary arrangements. The steep slump is menacing further more people and situations as it may seem.

related story: http://news.yahoo.com/s/ap/20080117/ap_on_bi_go_ec_fi/economy;_ylt=ApTzGWKXj0n1llbOUqBpYuas0NUE

by Martina Harvanova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

Rules Of Consumption by Kamila Moravcikova

Do you own a house? To have your own house isn't as easy as it can seem to be. Especially, when you've already got an exact idea how it should look like. And there are so many obstacles. First, maybe you don't have enough money to buy it. Then, you spend hours and hours trying to find the right one for you. And it's even worse if you decided to build it up on your own. Though, nowadays it's so easy to get a loan or mortgage. You just go to the bank, walk in with a dream and walk out with bunch of money so it can come true. And once you have money, with a little effort you can hire efficient workers or estate agent to get it done. But there's much more going on. By buying yourself a home and borrowing money you are not only making yourself happy, you also influence the economy! So be responsible! Don't be selfish! You cannot consume too much when there's a threat of overheating! You must not borrow too much money or buy a car (just get a bike and do something for an environment). Conversely, you have to consume much more when economy needs your demand because market is slow. Buy another car even if you don't need it. Don't forget, if economy is doing bad, you are doing bad, too! Don't ask what economy can do for you, but what you can do for economy instead!

related story: http://news.yahoo.com/s/ap/20080116/ap_on_bi_ge/bank_earns;_ylt=Akprq2FYimp69ANFxikLMQms0NUE

by Kamila Moravcikova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.