Japanese real estate boom or a bubble

The US sub prime crisis in several ways is reminiscent of the property bubble that took place in Japan in the 1980s. The two events, though separated by almost about two decades, share several striking similarities. Both bubbles were inflated by heavy speculation which, in turn, was fueled by a combination of easy availability of finance and an explosion in new, complex financial products. At its dizzying height, property prices in Tokyo’s Imperial Palace valued more than the entire land in Florida. During the 1980s, Japan’s economy experienced rapid surge in asset prices, increase in money supply and credit, and an expansion of economic activity. What further led to the emergence and expansion of bubble were factors like protracted monetary easing, taxation and regulation biased toward accelerating the rise in land prices, progress of financial deregulation and aggressive behavior of financial institution. During the bubble period , Japan implemented policies that facilitated easy credit Japan and organized large trades through loans from banks. The most famous economic bubble lasted from 1986 to 1990 and it has taken Japan over a decade now it recover from that crisis, although banks are still grapping to clean their balance sheets while land prices are on a journey down south.

While such atrocious valuations may be missing from the US real estate scene, the fact is that the US housing prices kept pace with and even outpaced inflation consistently till 2005.

Between 2000 and 2005, the housing pieces in the US leapt up from about 5% to close to triple the digit. The mortgage lenders dearly with many of them, including Citigroup and Merrill Lynch, writing off billions of dollar question is there any lesson to be drawn from the Japanese assets bubble?

China become the largest technology exporter of the world

China was once viewed by the world a manufacturer of low quality and low priced products such as toys, apparel and textiles. However ,this perception is no longer valid.

It is rapidly emerging as a world class producer of advanced technology products, including semiconductors, fiber optics, pharmaceutical, etc. China’s incredible economic growth has been achieved mostly by its trade and export supremacy. Low manufacturing costs, abundant technically-skilled labor and thriving consumer market have pushed China towards becoming a global manufacturing hub.Its ‘global path’ has stretched significantly. It is now the world’s largest producer of the mobile phone,PCs,and cameras.The huge domestic market is attracting mammonth hi-tech firms worldwide,which have found a ninch in China. The country is in the process of becoming a technology superpower soon.For instance,though a meager 8% of Chinese have access to the internate , this equates 100 million people online, second only to the US. China replaced America as the world largest technology exporter.

Nonetheless, China has long way to go before it could catch up with the US on the technology front. The gap between both the countries in terms of progress in high-technology. The dragon is slowly gearing upto challenge the American dominance in the technology world.The main problem with the Chinese electronic sector is that most of the branded producer facing the problem from duplicate items with low quality.Suppose a black berry device which is a branded company provide new feature and gadget in there new model,the feature model with same name available in China with low prices,this will hamper goodwill of the company.

Food prices vs biofuel

The food prices across the globe hit a record high,and show the signs that they will go on rising this year too as well as in future .In fact ,expert are says that year of cheap food over and the world economy has get used to it .The reason behind the spurt in food prices is certainly not bad harvest,but turning too many foodgrain into fuel.More over the increasing in demand of the biomass energy is also diverting agricultural production away from food crops,leading to mass starvation in poor countries.
The skyrocketing oil prices are driving the demand for biofuels. The increasing demand of biofuels indicate that the prices of the basic staples food such as corn is no longer based on its requirement as a food ,but also a fuel.Accordingly the food market is under going a major change,and there is an unexpected rise in the prices of food grain such as wheat,corn,maize and soybeans around the world.

Biofuels are commercial crops and here the return are much higher than the tradition food crops.
Regular cultivation of the food grain also reduce the productivity of the field so production of the biofuels also help to get achieve the recycle of the food grains.

Western countries are highest suppliers of food grain the world market.Canada,US and Australia are the main source.Asian countries produce huge food grain but most part of the production consumed by themselves.So, very low portion go to the world market which not affect the world trade of the food grain.
It is the problem for all countries so it is important to think on this to get the solution.

Bike Insurance basic point

Every teenager or youth generation has passion to ride bike.Bike is not comfortable as like car but the passion and style is always place its importance above the car and also the bike is less costly than car.

Bike or motorcycle insurance dependent on some factor:

Age Group : Insurance company charge lowest insurance premium from older and charge high rate of premium from lower age group ,but if you are new rider your charge might be higher.

Geographical Location : City and traffic jam area has higher risk of accident therefore the insurance premium charge is higher here on the other hand the suburban area or low trafiic jam area has low insurance premium charge there.

Bike Technology : Highly improved and technical efficient bike are less chance of accident therefore Insurance premium is low for these bike user.

Previous record of the Bike user : Previous driving record also impact on the current charge of the insurance rate if you first time buy a bike than the previous car driving record measure.

Home Address : If your house located in high crime jone where most of time bike stolen than generally the insurance premium is high there.

Your profession : Your profession is also matter on the insurance premium suppose you have a building contractor or real state agent than the chance of your bike damage is high when you parked at under construction site .

When you go for bike insurance than remember one thing that the insurance company paid the market value of the damage bike so if you take high insurance to get high cover than you may be in loss.

Life insurance minimize risk of sudden death

Death of the sole earner is arising the financial risk for the family member. Suppose the Mr. .x has four members in his family, and Mr. X’s spouse and two children are totally depending on him. Mr. X monthly income is $10000 in a month but due to sudden death of the Mr. arise financial problem in front of the family member to survive, Insurance is help in this situation.

Life Insurance Company indemnifies a large sum amount to the family member which help to the family for the children education also help to survive.

Life insurance not only paid on death of the policy holder but also when the policy holder reaches a estimated age.

Insurance is the risk which insurer bear and indemnify to the policy holder or the beneficiary in case of death of the policy holder or the when the policy holder age reached as mention in the deed of the insurance.

Life insurance is not come under the category as like other insurance .As in the other insurance the insurance company paid to the policy holder actual loss arises by any loss but in life insurance there is no question arise for the actual or partial loss.

Life insurance is also contract of good faith that means the policy holder need to disclose all the heath related issue to the insurer or need to submit the medical certificate before the insurance company before apply for the life insurance.

Life insurance policy becomes void if the policy holder committed suicide, or the nominee kill the policy holder to get the policy amount.

In life insurance the policyholder is not actually the sole gainer of the risk arises ,only the family member get the advantage of the insurance policy.

Basic Step for Auto Insurance

Auto Insurance is insurance for car, two-wheeler and three wheeler the main segment is car insurance. Auto insurance is also work as a hedge tool to protect your first investment in the automobile or car .Suppose anyone buy his or her first car and it mate with accident in first ride than the owner loss all his\her investment in a day. Auto insurance is helps to hedge the auto investment by indemnify the loss arises by the accident.

Auto insurance is also indemnifying the accidental coverage to the insurer which also gives some extra advantage to the insurer.

The main coverage area under the auto insurance comes as:

1. Coverage for the loss of vehicle: Insurance Company indemnifies value of the vehicle which insured.

2. Accidental coverage to the Insurer: Auto insurance company paid accidental claim to the insurer, claim amount depend on the basis of terms and condition.

3. Coverage the loss arises to the third party: Insurance Company paid the loss to the third party arises by the accident.

Insurance company can’t fulfill the coverage on certain Scenario:

1. Violation of rules and regulation: If the car driven by the minor age and they don’t have valid license.

2. Violation of traffic rules and regulation: If the insurer drive car after taking alcohol.

3. Not disclosed all the material fact of the insured property: Suppose the insurer use the stolen car in that condition also the insurance company not indemnify the loss arises by the accident.

4. If the insurer intentionally met with accident: If the insurer intentionally met with the accident, or damage his car than the insurance company not indemnify the loss arises to the insurer.

Home Loan charges reduce by the PSU Bank

Home Loan is available with low interest rate from Public sector bank with high number of EMI incomparability to private banks.
Public back are supported by the central bank of the country therefore they are able to go into the market with low interest rate with generally more number of EMI than private banks. We are not go with its long term affect on the Economy of the country because definitely these will create some pressure on the economy and arise the fiscal deficit.
The home loan taker is the prime advantage gainer of the plan, and the govt. Employee is the main target for this loan.
Private bank are also follow these strategy in long-term to protect their existing market.
Personal home is the dream of every individual, and the bank provides the chance to materialize the dream.
To buy a home huge amount required and for an employee or middle class people ,it can’t be possible to arrange such a large some money on the primary stage of their career but the house or the property value will increases and at the middle age or at the last part of their service period if they invest their large some of total life reserve for home than its create the financial crises for the future .
Therefore home loan gives one option to pay the loan amount from the monthly salary and it’s only the 40% of the total income and only in 20 years the employee are able to pay the total amount to the bank.
When you go for the human loan than you need to check all the rules and terms of the bank before apply for the loan.