Economics Forecast Paper Essay Example | Topics and Well Written Essays - 500 words

Economics Forecast Paper - Essay Example Adjustable home loan rates have attracted more consumers. The risk involved in the possibility of increases in interest / repayment obligations which was not realized by the consumers, is now being driven home literally. The crisis got deepened due to the unregulated growth of derivative markets for mortgage loans, which has now impacted everyone – the consumers, the financial institutions, the industry and the national economy as a whole. As can be seen, the rates remained high during 1995 – 2000 and started declining from 2001 to 2004 but again started firming up from 2005 onwards. Increase/decrease in the bank prime rate has corresponding impact on commercial lending in the economy. This period coincided with the decline in the number of housing starts both nationally and in California, which in the later area reduced from 1 million plus to just about 200,000 during the above period. In view of the serious crisis in the mortgage and financial industries, and in order to avoid the lurking fears of recession, one can forecast that the bank rates across the sectors will soften in the short to medium term period, as already confirmed by the 25 basis points cut announced by the FED this week. This policy approach will help to stabilize the home loan industry and at the same time impact the national economy positively. Budget deficit is the gap between the planned spending and revenues of the government for a given financial year (It becomes a surplus if the revenue exceeds the spending). The higher the government spending, the higher is the economic activity and vice versa. However, pumping too much money into the system, without creating corresponding products or services, will stoke inflationary trends and can lead to a decline in consumer spending and hence, a decline in the demand. A delicate balance is maintained to help economic growth without raising

Legal issues in Hydraulic Fracturing Term Paper

Legal issues in Hydraulic Fracturing - Term Paper Example ation of conduits through which gas that comes from the original rocks get to move to the rocks that are non-porous and thus allowing the storage of this oil to get accessed later. In the process of Hydraulic Fractioning, one of the major aspects to observe is that water supplies may get exhausted and thus the importance of having the process in steps which is convenient to save on water. Steel surfaces are aligned along the water pipes in an effort to protect the natural water from being made impure. These steel surfaces are immersed to as deep as 4000 feet and for the least distance as 1000 feet for increased protection. From there, cement is poured into the space between the annulus which is the drilled hole and the casing. After the settling of the cement, there is then the drilling part which is done from below for precision and to get it to the next depth. This is done several times and each time that this is done there is the usage of narrower pipes that ensure that oil from as deep as 10000 feet is got to. There exists a rather large difference between oil and gas fractioning. Gas fractioning is a process that involves different procedures and it goes by the name Fracking. This method involves the removal of gas for extraction to exterior reservoirs. A wellbore from underneath is drilled to create more space for reserve. As opposed to this method, Oil fractioning involves the use of internal reservoirs and thus the process is short. Hydraulic Fractioning has existed in the United States for around the past 63 years. In the course of time, there have been complains concerning the levels of safety that this method of obtaining oil has. It was from there henceforth that the Federal Government sought to engage in debates on the issue and have ever existed. The Environmental Protection Agency has the responsibility of ensuring that citizens of the country are safe from different products that companies manufacture. The agency has over the years carried out