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Economic Affects of Rising and Falling House Prices
Rising house prices increase consumer wealth and are likely to be associated with an increase in mortgage equity withdrawal. Mortgage equity withdrawal means people remortgage and take out a bigger loan against the value of their house. It means they have more money that they can spend and this leads to an increase in consumer spending and therefore Aggregate demand.
UK Olympic ChallengesThe costs of hosting the Olympic games, awarded to individual cities nearly a decade before the actual event, are understandably hard to predict with precision. Looking to its 2012 Olympics, London is already alarmed at the staggering inflation of estimates costs, and, with the 2008 Olympics in Beijing in the very near future, many people are wondering if the emerging industrial giant will be as glad to have the air pollution that has accompanied its growth on worldwide display as is its stunning modernisation and new prosperity.