What is a mortgage

The mortgage is a contract that allows you to take some money but you have to pay it back. If you cannot pay back you will lose your house or apartment. In short the mortgage is a contract in which you agree to pledge your real estate and you take money for your pledge. Some families decide to sign the contract because they need money. But most of the people prefer taking a credit to the mortgage. The money is not so much but you will not lose your apartment. There are some interesting facts about the mortgages.

First, not only the houses and the apartments but all other kinds of property can be hypothecated. So we will mention something more about the terms that are used with the mortgage.

Above all is the property. It is the physical residence or another kind of property that will be financed.
The next is the mortgage – it is a kind of contract that allows you to take a certain amount of money but for that you pledge your property for a certain period.

The borrower is the man/woman who is interested in the property.

The lender as we can see from the name is the institution (a bank, an investor or something else) that pays the money to the user.

Principal is the original size of the loan.

There are a lot of other things we can say about the mortgages and the pledge of real estate but these are the most important things around it. So we will generalize everything we said – the mortgage provides you with some funds for your property and in that way you earn a certain amount of money. Agreements require different periods but mainly they require a period of ten to thirty years.

The period depends on the local conditions and some other things that are different for the different countries and places. So the first thing you have to do when you want to sign a mortgage contract and to pledge your real estate in exchange for money you will have to learn everything about the mortgage.


Rifkin believes: „It’s the backbone of the new economy“

Actually for German readers is not much new in Jeremy Rifkin’s Third Industrial Revolution. Ideas like these for the final conversion of fossil to renewable energy, the use of wind, water and solar energy as an innovation engine of the economy, they act in a country that as no other nation has initiated the transformation of energy. It is the same and when it comes to outlet vehicles instead of petrol or the systematic implementation of energy storage systems to overcome bottlenecks in energy supply.

Nevertheless, there is a point in Rifkin’s book, to which we should pay more attention. Rifkin believes that the smart grid, “It’s the backbone of the new economy“. The current resources stored in large quantities and smuggled to other places or later can be used. It is also about energy production of each private household: Rifkin focuses on change through so-called micro-power plants, which supply about every wind and solar power plants themselves. In Europe alone, 190 million homes could then be converted into micro-power plants.

Who has too much power and it definitely does not, can sell it to other consumers, and by computer or smartphone. Companies such as Cisco, Philips and IBM have already developed software and network technology 20289_460x259and the individuals could swap and trade energy. Rifkin is convinced that there will be future not only for large, but also very smaller power producers. That sounds like a brave dream for a new world, when the power will be distribute over the Internet would be the basis for a new economic orientation.

The energy and Internet revolution would lead to such a capitalism, which will use hierarchical and centralized structures of power. Undoubtedly, this vision this statement will find its opponents at each position. Nevertheless, as advanced Rifkin thinks in just this way. He is grounded and sees its third industrial revolution either similar to a patent, and not as a utopia.

“Rather, it is a pragmatic business plan that we just might in time lead to a sustainable, carbon-free era,” says the American economist. However, this is only part of the world. In fact, he believes that Germany is already in the middle of the third industrial revolution and he looks for in his native America some serious evidence of change.

ECB opens a Pandora’s Box

On Thursday, the ECB announced unlimited bond purchases. The crisis states now have guaranteed access to new credit. Currently, there is great peace of the markets. Nevertheless, how long will the euphoria? In addition, what dangers of the ECB’s policy? The European Central Bank (ECB) has finally opened this week all monetary floodgates.ECB_2250753b The future in Europe openly with the printing presses directly debt financed.

Nothing else represents the result of the unlimited purchase of government bonds of countries in crisis by the ECB except to reduce their interest rates. With this purchase program the central bank, especially the political pressure for reform in Greece, Italy, and Spain or elsewhere, it will wane quickly. Here, the central bank has the letter and spirit of its founding act, exactly this is a bond-buying program.

It comes to exclusively monetary stability required. Only Bundesbank President Jens Weidmann, voted against this radical departure from the old Federal Reserve virtue. Officially, the federal government on the side of the Bundesbank president announced its much support. Unofficially, however, things are quite different. The Europe finally mutated with this decision to transfer union.

The political coup against the national sovereignty of the Member States have succeeded. Instead of the subsidiarity principle, which obliges each Member State ultimately, for their own political errors – such indebtedness and / or lack of structural reforms – assume their own responsibility, now is an unconditional solidarity that leads into organized irresponsibility.

The Germans have paid for more than a decade, a steep price for the economic recovery: First, forcing the economic unification shock wage restraint, overtime and structural reforms, the introduction of the euro. Nearly fifteen years is increased the purchasing power of German citizens.For comparison, in the European countries in crisis partly grew by more than 40%.

While in many circles, the fear of future inflation prevails, the massive expropriation of savers by the low interest rate policy of the central banks is already in full swing. This most insidious strategy of state debt. They also are shocked by the way; they work with a basic pillar of any functioning society. It is about sustained of the ownership savings for the uncertainties of life, for old age, sickness, and the descendants.

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