Inconsistency in Spain’s interest rates – Part 2
In the previous article, we discussed how the only asset that provides sufficient confidence to hold your money over time is government debt. However, we also said that for a country to offer low interest rates, translating as zero risk, the country needs to be in a good economic situation. So why is Spain’s interest […]
Government bond interest rates (10-year bonds). Part 1
In recent days we have seen how the 10-year bond has started to pay negative interest rates, but the question is… how did we reach this situation? When economic agents have income, this income can be transformed into savings, and these savings can be used to acquire consumer goods, capital goods or financial assets. Many […]
Should evictions be avoided, is this really the solution?
To answer the question in general, yes, evictions should always be avoided, the important thing is to specify by what means. The government has announced in recent days the prohibition to evict vulnerable families while the State of Alarm lasts. This measure will come into force next week in the Council of Ministers. Socially speaking, […]
If we use less cash… why is its demand increasing?
As we all know, the economic crisis in which we find ourselves has greatly boosted household savings, due to the fear generated. Faced with future complications, families have preferred to save the capital they have, thus maximizing savings and minimizing their expenses and investments. Well, in the last few days, we have been able to […]
How does the economy work?
General idea Public administrations are obliged to present an annual budget of revenues and expenditures, more commonly referred to as the general state budget.On the revenue side, we find taxes, fees and other income derived from financial operations.On the expenditure side, we have the items that cover the public services offered by each country. Economic […]
How the 2008 crisis was forged
General idea On September 15, 2008, Lehman Brothers (a financial services company) collapsed, and was considered the largest bankruptcy in the US, marking the beginning of the crisis. Precedents like this occurred all over the world but… why? Future scenario We can say that the origin of the 2008 financial crisis occurred after the 9/11 […]
The 1907 crash
This crisis is little known worldwide, due to the fact that two decades later, the most important crash of the Great Depression occurred. However, we will take a look to see what really happened. The financial panic of 1907 was a crisis that originated after the New York Stock Exchange crashed (by 51%, compared to […]
Is hydrogen a solution of the present?
Experts have been praising the multiple benefits of hydrogen over other energy sources (including renewables) for several years, and it seems that lately society and governments are opening the way to its implementation. Hydrogen is not something new, it was already being used years ago, but it was not considered a clean energy in its […]
Introduction to the 2008 crisis – Problems in lowering interest rates
General idea We have already seen in one of our blogs what the functions of monetary policy are and how we can apply expansionary or restrictive policy. It is clear that in order to stimulate an economy we should apply expansionary policy, but problems can arise when lowering interest rates, as we will see below. […]
