Archive for the ‘Payment’ Category

Spain is a country of contrasts is a constant that is exacerbated in the economic sphere. After decades of stronger economic growth in the country (1996-2006), the markets fear that the ninth power of the world can not cope with their debt payments and incurring bankruptcy.

Brussels is also accused the Government of having squandered the torrent of dollars in assistance from the cohesion funds in building a brick model, inflationary, unsustainable and uncompetitive.

Nothing new. Spain held its first bankruptcy in 1557, when it was the first world power, and only 20 years after the discovery of another source of income well above the European funds: Potosi. Carlos V flooded money markets and, far to modernize its empire, anchored in an unsustainable model of luxury and extravagance.

As has happened recently, excess liquidity fueled inflation impoverished the population and, when foreign investors decided not to lend more money to the Crown, led to nine more insolvencies. How can we explain that large European bankers chose not to give to the richest economy in the world? Simply because they lost confidence in a monarch unable to undertake reforms.

Bridging the gap, how is it possible for investors to flee in a stampede in one of the top ten economic powers in the world, whose main bank has just won 9,000 million euros in the worst years of the harshest crisis in a century? Because I do not believe the government will undertake the reforms that reconduzcan the economic model.

And José Luis Rodríguez Zapatero does not stop them right, first announced a reform of pensions and, hours later, modify it. So who can believe it will fulfill its promise to save 50,000 million to correct the deficit?

Germany, the first pagan European funds, knows that a country becomes competitive in one year to another, and that Spain has lost decade to do so. I only hope that does not sink enough to not pay your debt and take the euro ahead.

When purchasing a home, most people turn to a mortgage. This type of loan is characterized as a guarantee of payment, undertakes to purchase the same property. It is what is called “mortgage” housing.

Sometimes you can also mortgage a home free of charge and to obtain funding at lower rates or amounts greater than the personal or consumer loans.

In Spain, almost all mortgage loans, 98% are contracted at variable interest (see article on EURIBOR). Interest is calculated every six months or a year by reference to EURIBOR for that period and added a small amount (eg, EURIBOR +0.5).

• Variable interest mortgage loans in stable

In situations of low interest rates and low inflation, often not even consider performing fixed-rate mortgages, since they usually have a much higher interest rate as variables. Therefore, in economies that are involved and expect stable medium and long term, which is the duration of the mortgage, provided we chose a variable rate mortgage.

• When inflation rises

But what happens when the economy suffers a more confusing time? When prices (inflation) rise over the account, the central banks increase interest rates to curb consumption and (the money is more expensive, then reduce appropriations, as well as investors do not move your money if the simple interest deposits and offer acceptable.) This has an impact on variable rate mortgages were also affected by these increases when the time comes for their semiannual or annual review.

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