Homes Sales Increase Due to the Threat of Increased Mortgage Rates

It's always interesting how the threat of something bad happening in the near future can cause people to take action in the present. People filling up their cars in anticipation of a gas hike is one example, and it is even evident in the housing market. The threat of increased mortgage rates from Canada's biggest lenders has caused an increase in home sales.

Buy Now to Save Later

It goes without saying that a home purchase is likely the biggest purchase most people make in their lifetime. It is also true that securing a mortgage at a lower rate will save quite a lot of money over the course of the mortgage term. For many future home buyers, the prospect of mortgage rates increasing is enough to get them out there looking, whether they are ready or not.

Many people were going to buy a new home a year or two down the road, but have made the adjustments necessary to speed up their plans to avoid those higher mortgage rates. In many cases, it could make things a tad uncomfortable now, but the money that will be saved later is worth it.

Impressive Statistics

In August, the number of existing homes that changed hands in Toronto was 21 percent higher than August of 2012. The 10-year average for August home sales in Toronto is 6,977 and this year's August total was 7,569. The stats show that people are out there and they are buying, and you can bet the threat of increased mortgage rates are one of the main reasons.

Important to Do the Math

Of course, it is always important to work out the numbers before reacting. With the surge in homebuyers trying to save money by getting lower rates, the prices will inevitably go up. And if you end up overpaying for a home, you might end up losing money in the long run.

All things being equal, saving $10,000 or $15,000 in mortgage rates is wonderful, but if you end up spending $25,000 or $30,000 more on the house to lock in those rates, it doesn't make much sense at all. Do the math ahead of time and figure out your max purchase price, and then feel free to jump into the market. If it seems like the actual savings you'll get from buying now isn't so wonderful after all, you may want to stick to your original schedule.

When the Rates Actually Increase

When the rates do jump and take hold, it stands to reason that the real estate market will cool off for a while. Many financial experts feel this is a good thing, because the price of new homes will stop rising faster than consumer incomes. Eventually, the prices should flatten out and there should be a balance between house prices and incomes, which will cause sales to increase again. No one seems to like it when mortgage rates increase, but sometimes it is necessary to keep the market balanced and the economy running well.

A Cashless Society

The term "A Cashless Society" refers to two types of societies. The first case may refer to a society that operates by barter trade as the sole means of payment whereas the second case may refer to a society in which plastic money or any other technology that supports virtual transfer of money are the sole modes of payment. In this particular article I am referring to the second case.

Business activities have been in existence since creation. One nature about business, is that for any product given up, something needs to be given in return. In short, business only becomes business when payment is assured.

Ages ago, businesses were conducted by barter trade which later paved the way for monetary systems. In the recent years, there has been a surge in the use of plastic money despite resistance from various groups. The world has never made an abrupt uniform change in systems of currency; rather, the change has always been slow and has to start from a particular region before spreading to the ends of the world.

The truth is that the world is in a transitional period; from a paper money based society to a cashless society. In the United States of America 93% of their transactions are cashless. The remaining 7% mainly comprises transactions involving meager sums. Norway is even further ahead, with 97% of its transactions being cashless. Presently, 15% of the world's transaction have been cashless.

of the merits and demerits associated with such a society.

The following are some of the merits associated with a cashless society.

• We will have a cleaner society. Phasing out paper money will ultimately result in a cleaner society because it transmits more germs than plastic money. The use of plastic money will hence result in a much cleaner society.

• Improved security. Robbers prefer stealing paper money to plastic money because of the tight security measures provided for by plastic money. This means that in a cashless society there will be fewer cases of bank robberies and even the streets will be safer from money-snatching thugs.

• Easier business transactions. Plastic money will hasten business transactions, in that people will no longer have to worry about carrying cash for them to carry out their business activities. In a cashless society, a card is all that will be required. For transactions via the internet or phones, submission of the required financial information is that is required and this consequently eases business transactions.

The following are some of the demerits associated with a cashless society.

• When using cards, the owner is required to give a valid pin number for them to gain access to their account.

This feature may turn out to be a disadvantage in cases where the real owner of the card forgets his/her pin number. This will mean that they will not able to get access their accounts, at least, after the bank addresses their issue.

• Credit cards make it easy for people to accumulate credit. This may be a good thing but for those who will be unable to clear their balance by the required time they will be charged high interest rates. This will consequently damage their credit record and may hamper future efforts to borrow.

• There will be no privacy. This is probably the chief disadvantage associated with a cashless society. There will be a record for every transaction and this means that financial institutions will have vital personal information on their consumers, which people fear could be used for ill gains.

• Computer hackers can also hack into people's accounts and withdraw funds. This means that it is possible for people to suffer huge losses simply because others are siphoning money from their accounts.

• Printing of paper money is usually an expensive affair. In a cashless society, governments will be able to use the money that would otherwise be used to print cash on other purposes. This will enable governments to save billions of money.

Digital Nomads

But seriously, who hasn't fought back the urge to grab someone's cell phone and stomp it into a million pieces and feed it to them like Moses pulverizing golden idols and mixing the dust in water for the people to drink? I have finally entered the world of the smart phone and all of the bizarre, obsessive and sometimes out-right rude behavior of users all makes sense now. There is literally no end to the mindless distractions available at an instant. The great irony in all this is the fact that we call this being 'connected' and we spend considerable time on websites called 'social outlets' yet all of this digital communion has made us more estranged from each other than ever before. When did community come to be solitary confinement in gigabyte prisons? I enjoy keeping up with friends and family as much as the next guy when it comes to using the technology but is there something more sinister at play here?

Anthropology, the study of man through the lens of Darwinian Theology, believes man has been progressing for millions of years. The two great leaps in our evolution has been from rodent to human being and then from human being to social being. This advancement into a social consciousness is said to have come about through certain technological discoveries such as the use of fire, the wheel and the club for courtship. Before a social awareness entered the thick skull of Neanderthal, he wandered about as a lonely nomad, surviving as a hunter and gatherer... or perhaps, even a scavenger. Living day in and day out thinking only about the moment he was in and never considering the needs of others much. No hopes and dreams. No road map to success. No definition of success. Just being... human.

The book of Genesis introduces man and his capabilities in a very different light. As Adam looked about the animal world, he sensed an incompleteness about himself. So God made for him, a comparable help mate. In the beginning, the law of scarcity and the division of labor was with man in the garden. The Creator instructed Adam to take responsibility for the earth. God gave him a moral duty to think, plan, organize, develop and improve upon all that God had blessed him with. At no time, was Adam given the latitude to put off his responsibilities, turn inward and live a life of nomadic hedonism. Adam learned from the very beginning that he could not do everything himself. He was limited by time, resources and ability. He understood the division of labor would bring down production costs. He taught this to Eve and their children. Cain specialized in farming and Abel in husbandry. Cooperation in a free market was the first economy. If man would choose to rule over sin, he would prosper.

Well you know what happened next, God warned Cain to rule over sin but he chose war over cooperation. It is interesting to note that his punishment was to be a vagabond for murdering his brother. Notice Cain was greatly afraid of this lifestyle. Even he recognized the unproductive foolishness of being a wandering nomad, a rugged individual, a cowboy. When I speak of being a nomad, I do not mean the pastoral type of nomadism that was productive and future-oriented and social in thinking. I'm talking about the wandering, present-thinking, selfish, loner, counter-culture kind of nomadism. The kind that anthropologists claim was how man was organized first but then progressed. The truth is, man regressed into nomadic behaviors. The nomadic culture has reared its ugly head time and again down through history and when it does, it leaves nothing of value in its cultural wake and usually plays a violent role in destroying civilizations.

Solomon declares in Proverbs 18:1, "A man who isolates himself seeks his own desire; he rages against all wise judgment." The nomad rages against his moral responsibility to care for the earth and the people around him. When he does this, it is to his own hurt and to those around him. The Apostle Paul admonishes in Philippians 2:4, "Let each of you look out not only for his own interests but also for the interests of others." Not only must we be planners and investors in growth and prosperity but we must do so with a mind to bring those around us with us in that growth and desire to share the blessings.

As America has abandoned all sense of community from a moral Biblical perspective, the void has been gradually and subtly filled by Darwinian Theology, a Marxist Progressive definition of community that promises you can be a rugged individual who stands alone and can spend your days in hedonistic consumerism while the State fulfills your God-given responsibilities. Let's face it... without God, it is an easy sell. We are digitally programmed by the explosion of realty tv shows like Survivor, Apprentice, American Idol, Cribs, Jersey Shore and Buck Wild to worship fame, fortune and power. We are selling out our ability to critically think and care about the grim reality we are in. We seem all too happy to turn a blind eye to responsibility and immerse ourselves in fantasy worlds induced by unemployment, fornication, drugs, music, movies, video games, apps, widgets and antisocial social networks.

Regressive Nomadism is sweeping across our cultural landscape. Hold on tight to your thinking faculties and don't let love wax cold in your heart. The high calling of God is hard work and the road less traveled but the reward is far above anything we could experience in this vain life. Never settle for just being... human.

Eric Daniel Brown

An Interesting New Trading System Called Binary Options

If you've ever looked into different ways to make money online, you've probably heard people talking about binary options trading. Basically, someone who trades binary options anticipates the direction of the price point of an asset.

Why are so many people flocking to binary options trading? There are a few major reasons why. First, it is by far a much simpler system to learn than the intricate strategic workings of forex and other traditional trading. People do not have to study international markets, which can be very confusing and time consuming. With binary trading, it is actually possible with to get involved in it quickly, with little or no experience at all. That is very appealing to someone who just wants to get started today.

Another reason that people are attracted to binary options is that there is a fixed time limit on all trades. There is a fixed expiration time, which determines a win or a lose for the investor. Usually the expiration is in the near future, which makes the process a little bit like gambling in Vegas. The trader may choose an option which predicts that the price of oil will fall within the next 15 minutes. If the traders prediction is wrong, they lose it all. It's exciting to be able to deterimine the outcome of your trade so quickly.

Many people today are attracted to Binary Options Trading due to the fact that it offers only two outcomes, either you win or you lose. Stakes are all or nothing, which is why they are also called all-or-nothing options. This makes it less confusing, easier to learn and overall more straightforward. The fact that it's so black and white makes it an easier concept for people to grasp. Also, you know exactly what your financial risk is, and you can get started with very little money. These are both big reasons binary options are gaining in popularity.

Before getting involved in binary options, it is advisable to first dabble with a demo account. Before using your own hard earned money, you can test the waters and see the outcome without the risk of losing your shirt. It's also a good idea to choose the best options trading platform. There is a lot of information on the internet, both trustworthy and not, so it's imperative that you do your research and ask all your questions ahead of time. You can choose to trade the options yourself, or you can hire an experienced broker help you. Either way, there are many scams out there to be wary of.

Security of Payment Schemes Are Helpful

If you're working in the building and construction industry you've probably already come across payment disputes in some form or another. This cannot be prevented as the niche is such and there are always last minute additions and changes needed which also result in a rise in the incurred price.

Therefore payment disputes are always present and the courts used to be filled with such cases. Taking into account the amount of construction work going on and the number of disputes filed the government decided to come up with payment schemes termed as "Security of payment schemes".

They were setup in order to allow quick and adequate compensation based on the work involved and the charges incurred to your party. In most of the cases these settlements have happened and the right party has received whatever was due to them and this is the reason most people in the industry believe in these schemes.

The future is nothing like the past

Unlike in the past wherein payment disputes took up a lot of your time and resulted in costly arbitration processes the new schemes have allowed both parties to come to a consensus themselves or include themselves in an arbitration process through adjudication.

They're quick and effective

The adjudication method is one of the quickest and most effective ways of solving such disputes due to the simple process of resolution that it takes up. However, just like always for the process to come into force you would need to begin by filing a claim in the respective office.

Claiming your payment

The only reason that you're signing up for the security of payment scheme is in order to be able to claim your payment and therefore let's take a look into this step of the process.

As already mentioned, before this process can begin you would need to file a claim between the two parties involved and you would be termed as the claimant whereas the opposing party is the respondent. Just like in court, the respondent will fight against the claim.

However for the claim to have any weightage you need to make sure that you file it within the stipulated amount of time. The time period that you're allotted is mentioned on the scheme that you've signed up for or agreed upon by both the parties involved (In writing).

If at all any element of the contract is found to be missing you would be able to make claims at the end of every month.

Which Basel III Capital Requirements Will Be Implemented in 2013?

Basel III is the latest of a set of international banking regulations stemming from the financial crisis of 2009. Building on the earlier set of Basel II banking rules, Basel III Capital Requirements begin phasing in on January 1, 2013 and continue through 2019.

Basel III builds on three pillars introduced by Basel II. The first pillar is increased capital ratio requirements for banks. In 2013, these higher capital ratios, expressed in risk-weighted assets, begin phasing in. As of January 2013, banks must have a minimum of 3.5% of capital made up of Common Equity. This ratio will increase to 4% in 2014 and cap at 4.5% in 2015. The 2013 minimum amount of Common Equity, combined with the buffer for Capital Conservation, will also be 3.5%. The two ratios are the same in 2013 because the buffer requirement does not begin phasing in until 2016. Basel III sets the minimum ratio of the Tier One Capital in 2013 to be 4.5%. This ratio will increase to 5.5% in 2014 and cap at 6.0% at 2015.

Finally, the Minimum Total Capital ratio in 2013 will be 8.0%. This is will not increase over time. The ratio is the same through final implementation of Basel 3 in 2019. The minimum combined Capital/Conservation Buffer, however, does phase in over time. In 2013, it will be the same as the minimum requirement of total capital because the required buffer, which will eventually reach 10.5%, does not begin phasing in until January of 2016.

One objective of the Basel III capital requirements is to increase the quality of capital held by banks, in addition to increasing capital ratios. The regulations increase emphasis on capital made up of common equity, paid-in common shares and retained earnings, by making them the predominant form of Tier One Capital. Some classes of capital instruments will begin phasing out of qualification as Non-core Tier One or Tier Two Capital in 2013. Tier Three types of capital will no longer be considered.

The overall objective of these requirements is to encourage banks to increase their asset quality. One significant element is that the ratios of capital requirement are factored by risk-weighting of the value of the capital. Assets with a higher risk contribute less to the ratio, and less risky assets contribute more. Timely risk data collection and evaluation will be essential from the first phases of Basel 3 implementation.

Dialogue With Customers Remains As the Best Risk Management Tool

A report in Australian Banking and Finance said that the best risk management tool is still the informal dialogue that business officers have with their customers. According to ING Direct Australia's Bart Hellemans, the engagement business managers have with their staff and their customers is still the most crucial tool in improving their products or services.

This way, he said businesses can find out about business risks from the consumers themselves. This is something professional and advanced analytical tools could have missed at any given time. Although these state-of-the-art risk assessment equipment are well and good, Mr. Hellemans believes talking to people is still the real deal.

During a speech he made before the AB+F Chief Risk Officer Panel Discussion & Luncheon 2013, the official said talking with business partners and customers in person will help owners better understand the risk their businesses are taking. When customers and partners are in their environment and their element, they are more prone to be honest with what they think of certain risks.

But it's more than just talking that's needed, Peter Deans of the Bank of Queensland, stated in a separate report in The Australia. Discussions regarding the satisfaction and confidence of customers must be free and open, adding that information about risk management should flow from up and down the business hierarchy.

Even without talking to consumers, business managers should be able to get their opinions and comments about risk management "by hook or by crook." Mr. Deans also highlighted the importance of the participation of senior business officers in the understanding of risk factors to the organisation.

He also said that business leaders must be heavily involved in all aspects of their businesses, so that they will be able to understand the risks they are taking and how to address these risks. There should be an effort for officers to go out there, talk with the business staff and dialogue with customers to get good and reliable analytics and reporting.

In HSBC, there is a plan to establish an open-plan office environment where all risk factors personnel will be placed. Such informal discussions needed for risk management assessment shall be done in that office, says HSBC Bank Australia's Charlotte Middleton.

And because HSBC is a global company, she would usually discuss with regional partners and other international branches about the risks being faced by the company. Ms. Middleton is particularly focused on discussing with her counterparts in Asia.