There are literally millions of holiday home owners now advertising on the internet. Some people set up their own website and just sit back and hope that they will be found by prospective holidaymakers looking for their vacation property. After a while they start to realize that there is a little more to getting seen on the internet than just creating a website. The next step for most is using one of the myriad of advertising sites to create a listing. With many of these they are attractive to look at and after about an hour of work you have a respectable listing showing your vacation property or villa in its best light. Once again they sit back and wait for the inquiries to pour in. Once again they are disappointed. The fact is there are several things you should do if you are a villa or apartment owner if you want your property to be seen on the internet. One of the things not to do, is to sit back and think that things will happen all by themselves. As a quick guide to getting your property seen on the internet, we will fore-go the setting up of your own website. If you are a novice at things such as SEO, (if you dont know what SEO stands for then your a novice!) and move straight onto where to list your property and how to get your listing seen by the most people. The first thing is to choose the site to advertise your rental with. There are many ways to do this but I recommend two fairly standard procedures to follow.First make a list of all the keyword search phrases that you would use if you were looking for a villa to rent in its location. A keyword phrase is the words or phrases that you would type into the search box if you were a holidaymaker looking to book a rental. For example if I had a villa in Moraira, Costa Blanca, Spain I might come up with a list that included the search terms, Moraira, Moraira villa to rent, holiday villa in Moraira, Moraira villa rentals etc. Make the list as long as you can and even ask a friend or two to repeat the exercise. Remember to include general terms as well. Sometimes these can be the most search phrases that actually get the most traffic. For the example above, the top searched terms include, villa rentals spain and villa rental Spain, Spain rentals and rentals Spain. Once you have made your list, put it to one side because you will need it later. Now you will need to use some tools that will show you where people actually search and in what volume. The key to successful advertising is getting the maximum number of visitors to your listing page. This is best done by first using a site that receives a lot of traffic for the type of property and the area you are renting in. The best single tool to use is the Google Keyword tool. To find it just type ‘Google keyword tool’ into your Google search. here you will be able to type in some keyword search phrases from your list to find out where people actually search. The tool will give you the terms with the most volume on average and the volume for the previous month. Start working through your list of general and more specific terms ranking them in terms of actual search volume. You should then end up with a list for the most searched terms by volume for the highest traffic general terms as well as your localized search terms. Now go to Google and type in the highest traffic terms. make a note of the websites that appear on the first page results for each term. What you are ideally looking for are the websites that cover not only the high volume general terms, but also rank well for your local keyword searches. Once you have been down the list you should start to see a pattern of which sites rank well in all areas. If not, then look to split your advertising between a mixture of sites that provide high traffic and those that provide more localized result rankings. Remember to avoid the Pay per click sites that advertise at the top and bottom of the page and down the right hand margin. These sites pay a fee to advertise on Page 1 of the results page. If their advertising budget runs out then so does the traffic to the site. The organic results are most likely to give you stable traffic in the long term. You should now have a list of maybe half a dozen potential websites to choose from. To decide which ones to choose will depend on a number of different factors that will be covered later.

About the Author

Neil Ebsworth is the founder of AMLASpain, the Spanish MLS for property Spain and holiday rentals Spain

Property markets on the Costa del Sol and Costa Blanca have seen sales stall in recent weeks as the value of the Euro has effectively wiped out price savings made in Euros during the recent market correction. Property markets across Europe are waiting for action from the European Central Bank, (ECB) following moves by the Federal Reserve in the United States to cut interest rates for third time. The move by the Fed which is directly related to the property crisis in the US has seen the US currency weaken even further against the Euro and sterling, following no reciprocal action by either the Bank of England or the ECB. Whilst moves by the Fed are independent and some would say that indicators in the Euro zone economy are not yet reflecting as large a slowdown as seen in the US, the strength of the Euro against all major currencies is having a knock on effect causing higher energy prices as well as stifling a property market that could do with a little help to stop into sliding into collapse. The effect of the stronger Euro can be most dramatically seen in the Spanish Property market which has been struggling to keep its head above water for nearly three years. Following a sustained period of growth up until 2004/5, the market initially saw a correction in prices as rising interest rates started to dry up demand. With the recent strength of the Euro in the past couple of months, this price correction has all but been wiped out for the largest market for buyers, the British, who now are also beginning to feel the fallout from the credit squeeze which originated in the US, but whose effect was witnessed by the collapse of the Northern Rock Bank and a slowdown in the domestic property market. Whether the ECB will act during its meeting in April is yet to be seen. It has in the past been slower to react to market indicators than other central banks. Part of the reason for this has been the diversity of economies that it is trying to control. It is difficult to set monetary policy in the Euro zone without having different results from different member states. Unfortunately the members of the Euro economies are not necessarily all on the same economic path and the ECB may have to wait until recessionary pressures across the whole zone are clearer, before it finally acts. This was always seen as one of the downsides to the Euro when it was first set up. The convergence of the economic indicators necessary to join the currency was no guarantee that the members economies would stay on the same path. Mobility of labour being just one of the factors that would hinder the economic parity across the region. This hampers any decision making by the central bank as it tries to stay politically neutral when making fiscal policy. Any policy that has a negative effect on one members economy over another could be seen to have been made under political pressure or bias. The result is that, by the time the bank has enough indicators in its favour to make a decision to act that will not anger some of its members, it may well be a case of the stimulus door having been shut after the recessionary horse has bolted. Whether the current situation turns out to be such a case will only be determined retrospectively. In the meantime, property markets across the Spanish Costas must hope that the general indicators of a slowdown catch up with the feeling all to evident in their industry now. Neil Ebsworth is the founder of AMLASpain, the MLS for Spanish Property including Costa Blanca Villas for sale and Costa del Sol properties

Following a rise in interest in January, property purchasers looking to buy a holiday or retirement home on the Costa Blanca coast in Spain have been discouraged from completing on their purchases due to the increasing strength of the Euro against the pound. The Euro which has been gaining strength not only against the pound, but against a weakening US currency, has come under increasing pressure to follow the US lead and cut interest rates to ease pressure on property markets world-wide as well as the spiraling cost of crude oil. Problems for the ECB lie in the fact that the Euro zone economy has not seen economic indicators as strong as those in the US that a serious slowdown is on the way and have been retiscent to cut interest rates until more definitive signs are reported. Part of this problem could lie in the fact that the Euro zone economies are not yet homogeneous enough to warrant the single picture scenario. It could be seen that any interest rate cut would be more of a political move which may end up hurting some member countries economy at the expense of others. This was always going to be a problem with the Euro zone, where mobility of labour has been an issue. With so many languages involved, it is much more difficult for the Euro zone workforce to cross borders and language divide to find jobs in another geographical area of the Euro zone. This means that pockets of unemployment appear next to areas of near full employment in a given industry or sector. Normally, as you would find in the US, a worker would be able to move from the East to West coasts to fill job shortages. In the Euro zone this does not happen leaving divergent economies being governed by one central banking policy. As far as it affects property markets, the 10% depreciation of the pound against the Euro has all but wiped out any correction in Euro based property prices in Spanish coastal areas, which have been suffering from a correctional downturn for nearly three years. Popular resort towns such as Javea, Moraira and Calpe had seen some increased interest in property for the first time in more than a year. Since January though, the appreciating Euro has meant that prices for British residents, who make up the majority of purchasers, have effectively risen in real terms. Hope now rests with the European Central Bank cutting interest rates to bring the exchange rates more into line with historical norms. Otherwise the market will continue to drive agents out of business at a rate never before seen. The lack of business in the sector is not only in the Costa regions of Spain. The domestic economy has seen share prices in construction company stocks plummet over recent months. Fears of over supply in the industry have driven stocks lower on the back off the weakened demand.

About the Author

Hot Property Spain are a local specialist agent dealing in Moraira Property. Also specialist in Javea Property & New Development properties in the Costa Blanca.

The Federal Reserves latest cut in its prime rate by three-quarters of a percentage point may do little to assist home owners across the country who have built in fixed rate mortgages. It will however add stimulus to first time borrowers as interest rates start to reflect in some of the lowest mortgage rate products for several years. The reduction in the prime rate which now stands at 2.25% will also put further pressure on the dollar, weakening it against the major world currencies specifically the Euro, which has been gaining in strength almost as quickly as the dollar has been falling. There are several repercussions to a weaker dollar, not least the resulting rise in the price of oil. US households already struggling with higher gas prices have been economizing in their spending patterns. It is this cutting back that has fueled speculation that the US economy is heading into a recession. A recession, that many believe has already arrived. But with the definition of a recession being at least two concurrent quarters of negative growth and the last figures released for the final quarter of 2007 showing 0.6% growth, it may be more realistic to paraphrase Mark Twain, that in relation to the economy, ‘ Reports of its death may have been over-exaggerated’. The dramatic fall in growth from 4.9% in the previous quarter cannot however be ignored, and if the downward trend continues at the same rate, then a recession may be declared by mid-June. To rescue the economy, or for the cynically minded, to rescue the republican candidate, John McCain in Novembers election, a stimulus package including up to an $800 tax rebate will take effect in April. The package is supposed to boost consumer spending but the overall effect maybe solely to allow the administration the breathing space it needs to delay announcing that the economy, has in fact gone into recession. The influx of $1.5 trillion dollars into the economy should be enough to keep the statistics in the positive for at least a quarter leaving room for the administration to declare that by definition, the country is not suffering from the big R. Like most things though, with every economic cycle there will be winners as well as losers. Whilst many of us whine about higher gas prices, food prices and energy costs, the lowest interest rates for nearly a generation will allow some to enter the housing market at a time when locking in their finance may stand them in good stead for the next twenty years. When Donald Trump is quoted as saying that there are plenty of excellent investment opportunities available in the current real estate market, it is worth taking note. This aside, homeowners who can afford to, may also be attracted into the mortgage refinance market. With interest rates so low, the closing costs of refinancing a home loan in relation to the long term benefits of a fixed home loan at such low rates, now makes refinancing a serious option. The problem that you may still have to be overcome in refinancing your mortgage is finding a suitable lender willing to loan money depending on your credit status. Mortgage lenders who have been seriously hurt by the sub-prime crisis and are finding it increasingly difficult to raise funds on the secondary market leaving less funds available to lend as mortgage finance. The result of this being, lenders have tightened the criteria for loans. Funds have been so scarce that the Federal Reserve has had to inject billions of dollars into the system just to keep the cash flowing around the market. This liquidity issue means that whilst interest rates may be favorable, finding the funds to borrow may need some serious leg work. Whatever your circumstances, the economic road ahead may be rocky. If you are able to find cheap mortgage finance or refinance and take advantage of the current situation whilst interest rates are low, you may just emerge down that road in a stronger position. In todays uncertain times, that would be a good result by any standard.

About the Author

The Federal Reserve in the United States has now cut their prime interest rate three times in as many weeks in an attempt to stave off a recession that many believe has already arrived. Unfortunately the US Real Estate market, which is dominated by long term fixed rate mortgages will not benefit from these cuts in the same way as home-owners in European countries do. The problem lies in the historic nature of mortgage lending which varies considerably in the US from the standard model used across Europe. In the US it is commonplace to take out a mortgage with a twenty-five year fixed rate at the time of purchase, rather than rely on the fluctuating standard variable rate mortgage that is more commonplace in the UK and across Europe. The resulting affect of an interest rate cut in the UK would immediately see a benefit to existing home-owners in terms of lowering their monthly repayments, whereas in the US a rate cut only provides a stimulus to new borrowing that can be now be obtained a the new, lower rate. Whilst this makes first time borrowers more likely to step into a weak real estate economy, the total affect has less of an impact on consumer spending than a similar rate cut by the E.C.B. or the Bank of England. One thing is certain though. A recession in the US is very bad news for the global economy and whilst the sub-prime credit crisis which originated in the US may have little direct effect on the economies in Europe, the knock-on effect of a US recession has historically seen recession across the major economies around the world. The question is then, why are the European Central Bank and the Bank of England refusing to move on interest rates? Surely a cut in the E.C.B rate would take pressure off the dollar which in turn would have a positive affect on the price of oil and help cut rising energy costs across the globe. It would also stimulate both the british and European property sectors, who are currently balancing of the knife edge of a collapse that hasn’t been seen in the UK since 1989. Maybe the European Union is too diverse an economy and it is this, that is holding back the E.C.B. from action. It has always been asserted that the lack of mobility of labour in the E.U. could be a source of keeping the economies of the members on different inflationary paths, making it difficult for the central bank to act decisively on interest rate policy when by doing so, one members economy may benefit to the detriment of another. By doing nothing however, the ECB stand the risk of pushing the property sectors in many countries into decline. It can already be seen in markets such as Spain, where any fresh impetus from overseas buyers due to recent falls in property prices, has been extinguished by the strengthening Euro against the pound. As British buyers make up over 65% of this holiday property market, the nullification of any price adjustments has dampened what was already a pretty ‘wet’ market. What, if any, action is taken by the E.C.B. will have to wait until they meet again at the beginning of April . Until then, it can be assumed that the longer they delay, the worse the overall slowdown may become.

About the Author

Neil Ebsworth is the founder of AMLASpain, the Spanish MLS for property for sale in Spain and rentals Spain

The Federal Reserve cut interest rates by three-quarters of a percentage point yesterday as part of another attempt to hold up the financial institutions on Wall Street from further speculation worries. The stock market took some confidence from the move and posted the largest one day gain on the Dow Jones index for quite some time. But as far as struggling home-owners are concerned, the rate cut has done little to ease pressure on their burden. In fact, by cutting interest rates and further weakening the dollar, the Fed had invited higher oil prices, increasing energy and transport costs at a time when most households are already feeling the pinch. The rate cut which is the third in as many weeks follows the collapse of Bear Stearns, who were eventually bailed out and purchased by JP Morgan for the sum of $2 a share. Bear Stearns had been trading a year ago at nearly $150 dollars a share and fell victim to a run on their shares following rumours over their exposure to the sub-prime mortgage market and the extent of the losses they may have suffered. The positives from this story are that the Federal Reserve was able to move quickly to back the takeover, helping to minimize the loss of confidence in the general banking sector. The negatives however, which will effect more on the average blue collar worker in America through the imported inflation that the lower dollar will bring, seems to reflect more on the political view of the current administration, who will bend over backwards to prop up the corporations at the expense of the man in the street. And when your stoic republican points towards the tax rebate that is about to be delivered to every household, as an indication of what the government is doing for the average American in this time of need, don’t be fooled. The maximum $800 dollars rebate is more of a cynical move to help prop up the employment market before a presidential election than it is designed to combat higher gas, food and energy costs. If the administration wanted to do more to help those affected by the current mortgage crisis they could start by suspending the ability of the banks to foreclose on homeowners by auto-computer programs. A large problem with the mortgage lenders at the moment is that they have out-sourced their administration to companies who are ill equipped or poorly trained to deal with the problems that are arising. These outsourcing companies never foresaw the numbers of cases that they would be dealing with and computerised most of their procedures to cut costs. What has resulted is computerised foreclosure, without consultation and where consultation occurs, it may already be too late to achieve a positive result. If each case was required to be reviewed independently, it could be determined whether it was sold incorrectly to begin with and where possible it could be re-written so that those home-owners who were never going to be able to afford the true cost and were effectively swindled, could refinance under terms they may allow them to keep their home. This would, of course, create a back-up of cases, but this effective delay in foreclosing on peoples homes maybe the delay required to unravel the truths behind the companies that made billions of dollars profit from those who could least afford it.

About the Author

Neil Ebsworth is the founder of AMLASpain, the MLS for properties in Spain and with a home for sale in Mount Pleasant SC real estate in the US is keen observer of US Real Estate trends

When one thinks of Panama several images immediately spring to mind. Panama hats, the canal and offshore tax havens to name but a few. The more literary may think of John Le Carre’s ‘Tailor of Panama’, the espionage story made notable by the film it inspired starring Pierce Brosnan.

It is therefore somewhat ironic that my first thought of Panama, the hat, is a misnomer. The Panama hat does not originate in Panama at all, but comes in fact from Ecuador. The wide brimmed hats woven from the Toquilla plant got their adopted name during the construction of the Panama Canal when the workers that were imported to complete the work, wore the hats to help shelter them from the burning sun. Theodore Roosevelt was even pictured in one whilst inspecting the work on the canal in 1906. 

The Panama Canal which was completed in 1914 is one of the centuries great engineering achievements. Built in two stages and by two countries, the canal took thirty three years to finally complete. Started by the French in 1881 under the leadership of  Ferdinand Marie de Lesseps, who ten years earlier had completed work on the Suez canal, the canal was finally completed by an american alliance that guaranteed Panamanian independence and a perpetual lease on a 10 mile stretch that is now known as the Canal Zone.

Ever since its completion, Panama and the USA have been inextricably linked. These relations hit an all time low in 1988 with the freezing of Panamas assets following the indictment of the countries president, General Manuel Noriega  on drug trafficking charges. US troops eventually invaded the country to oust Noriega in 1989 and he is now serving a 40 year sentence in the US. Following the invasion, the US announced a billion dollar aid package to the country and in the years that followed, Panama returned to democratic rule with successfully monitored elections.

Panama as a tax haven dates back to 1916 when it approved its first fiscal code. This exempted companies that carried out transactions abroad from paying taxes in Panama. By the 1970’s Panama held more ‘offshore companies’ on its company registrar than all of the caribbean tax havens combined. Following the Noriega crisis, some of these left to incorporate in new offshore tax havens such as the British Virgen Islands who since the enactment of its BVI International Business Companies Act of 1984 (IBC) has incorporate nearly 150,000 new companies. Many of these emigrated from Panama whilst Noriega was in control.

In recent years, under the influence of stable government, Panama has evolved into one of the most efficient banking tax havens in the world. Recent tightening of privacy laws in favour of the individual, including the outlawing of the behaviour associated with the Papparazzi mean that Panama has become a leader in not only sheltering offshore profits, but combined with its pensionada provisions under Law 9, it has become a destination for the wealthy looking to acquire new residency from a second passport.

Law 9 allows anyone who registers as a pension holder, (qualification requires only a pension of $500 a month) to benfit from a long list of discounts from cinema tickets to air travel. The benefits are available to anyone who qualifies over the age of 18.

You may need to hurry though. Recent activity suggests that the Panamanian government may begin to tighten restriction on the availability of new residents. A sign maybe of the popularity of the country and its favourable tax regime.

About the Author

Panama Legal are a Panamanian based law firm that specialize in offshore trust and offshore company formation. For information on residency and obtaining a second passport Panama Legal can guide you through the legal procedures.

Ask most people the question ‘Who invented the light bulbs?’ and you are likely to get the reply ‘Thomas Edison’. Whilst the question could be deemed to be a little ambiguous, you may get a tick or a cross depending on the questioners point of view.

It was Humphrey Davy, the English chemist who first attached wires to a battery and passed an electric current through a piece of carbon to create the first arc lamp back in 1809. The list of contributors between this humble beginning and Thomas Edisons’ filament light bulb in 1879 is quite a long one and any one of them could have the title bestowed on them.

Warren De la Rue in 1820 used platinum as the source of his arc. He did use an evacuated tube so this could be said to be the first attempt at a light bulb. The cost of the platinum however was too expensive to make this idea feasible for widespread use. In fact it was not until 1875 that Henry Woodward and Matthew Evans patented the first light bulb and it was this patent bought by Edison and modified that led to him creating a filament bulb that worked for 40 hours.

It was not long after the Edison light bulb that fluorescent lamps were created. In 1890, Peter Cooper Hewitt created the first lamps that used gas as opposed to a filament to pass electric current through to create illumination. It was not until 1973 that Ed Hammer and General Electric came up with the design for the compact fluorescent lamp, or light bulb as we know it today. At the time, it was deemed too expensive to set up production of the low wattage bulbs and the design plans were shelved. Later the design plans leaked out and were eventually copied by others.

The energy saving capacity of the low power light bulbs is due to their use of gas instead filament as the conduit for the electrical charge. Fluorescent lights in industrial settings such as factories and offices have benefited from these savings for years. The percentage of electrical usage in the average household in the United States amounts to 9% of the total usage by each household. The use of low power bulbs could reduce this by 7% to just 2%. Not only would this save on efficiency, the amount of reduced carbon emissions would have an extremely positive effect on global warming.

There are some negatives with low power light bulbs. They contain a very small amount of mercury which has an effect on disposal when they are used up. The environmental impact of breakages also poses a small hazard as broken bulbs release small amounts of mercury vapor. None of these are major problems and the benefits of this type of lighting far out way the risks.

Another set of lights that follow the same compact design are the metal halide lamps. Metal Halide lamps are part of the HID group of lamps or high intensity discharge family. Mainly used in industrial settings these lamps use a high pressure mixture of argon, mercury and different combinations of metal halides to create a variety of specialist lighting effects. Most commonly, the metal halide lamps were used in outdoor lighting settings, street lighting and parking lots. Their high intensity effect being best suited for pointed, directional lighting.

In conclusion, light fixtures have come a long way since the days of Davy and Edison and the future is destined to be one of changing technologies as we strive to become more efficient in our use of electrical power. The use in cartoons of a light bulb above the head to simulate the breaking of a new idea is ironic as we look to the future for ways to conserve our energy resources.

About the Author

Business Lights is a retail supplier of electrical light fittings and accessories. These include light fixtures and metal halide bulbs, fluorescent lamps and ballasts and not forgetting light bulbs. Based in Ohio, use Business Lights to order all your lighting needs.

When you think of Couture there are some names that need no explanation and epitomise the height of fashion. Coco Chanel is one of these names. When you think of the Chanel brand today , you think of the suit, the perfume, Paris, Grace Kelly, Jacky O. The name conjures images of the beautiful women who have adorned the front covers of the world’s magazines wearing designs and accessories from the famous Coco Chanel over nearly a century.

For it was in a modest milliners shop in Paris in 1910 that the designer, christened Gabrielle Bonheur Chanel began her career. Her first dress shop followed shortly afterwards in 1914. Her trademark suit launched in 1923 of short knee length skirt and box jacket was one of many trends set by Chanel in the 20’s. She was accredited with ‘the little black dress’ whose necessity in the closet of every women goes without saying. Hairstyles and handbag styles were also set by designer in pre war Paris.

In 1939 she closed her shop and it re-opened after the war in 1954. It was not long before she was once again influencing the world of fashion. In 1955 she launched the quilted shoulder bag that took the world by storm. It still remains one of the ‘classic’ handbags to own. Through the late fifties and sixties Hollywood endorsed her and stars such as Grace Kelly and First Lady Jacky Kennedy would often be seen wearing Chanel.

By her death in 1971 the house of Chanel was firmly established as the hallmark of Parisian couture and the diminutive ‘Coco’ would be revered for all time as one of the greatest influences in culture and fashion of the twentieth century.

One of the major influences that Coco Chanel made to the fashion world was the introduction of highlighting the impotance of accessories. Handbags, Perfumes and jewelery all became part of the overall couture experience. This rise led to other fashiopn houses of long standing such as Hermes rising to new heights.

Hermes was a family owned business for nearly two hundreds years founded by Thierry Hermes in 1836. Originally a saddlery company Hermes fame grew in the first half of the twentieth century on the back of accessories such as its silk scarves and handbags such as the Constance bag and the Kelly.

The Kelly Bag was, in fact first produced in the 1930’s but got its nickname much later in 1956 when the actress come wife of the monarch of Monaco was pictured wearing the bag on the cover of Life magazine. The nickname stuck and the Kelly bag was born.

Of all its bags though, the Birkin has probably retained its popularity and fame the most. Originally designed by a collaboration between the then head of Hermes, John Louis Dumas and , of course, Jane Birkin, the off the shoulder bag is still sported today by the rich and famous such as Sharon Stone, Martha Stewart and most recently Lindsay Lohan. With such a diverse spectrum of admirers the bag cannot fail to continue as one of the most sold accessory items in the world today.

About the Author

Replica-handbags-shop is a retail supplier of high quality replica handbags Handbag replicas of Chanel, Luis Vuitton, Hermes and many other brands can be found and purchased at our online store

The fears over a declining housing sector were highlighted again this week with Bovis, one of the UK’s leading house builders calling on the Bank of England to cut interest rates to ease pressure on the beleaguered sector. Bovis CEO Malcolm Harris called for a 0.75% cut in interest rates to 4.5% as the company announced a fall in profits of 6% and a warning that 2008 could be worse if the current level of interest rates prevailed.The comments come on the back of a catelogue of indicators all adding to the pressure for the Bank of England to take action.

Ever since the current downturn was triggered in the US by the sub-prime mortgage crisis which, for UK investors turned into the Northern Rock debacle, credit markets and house prices have stumbled into uncertainty. The situation has been compounded by the fact that whilst the US Federal Reserve moved to cut interest rates to ease the pressure on Domestic mortgage holders, this did nothing to help a weakening dollar that has struggled to maintain levels due to the worries over funding for the Iraq and Afghan conflicts. The ECB, European Central Bank has been conspicuous by its silence and has been unwilling to take any steps to assist the dollar, seeming quite happy to see the value of the Euro soar against, not only the dollar, but also sterling and other major currencies.

It may take the knock- on effect on the housing markets across Europe to stir the ECB into action and force a rate cut as economies across the globe follow the US in their fears over recession. If the central bank were to cut rates this would have a knock on effect that would see the the oil price fall further helping recessionary fears in the US.

So what are they waiting for? Its a little like Nero fiddling whilst Rome burned. Could it be that the now vastly diverse economies of Europe, that span 25 very different economic stages of development, is proving too difficult to manage with only one hand on the tiller.

One of the major fears when the Euro was launched was that, although the different economies had met converging economic standards, the sheer complexities of managing them, emerging against mature, would make setting interest rate policy difficult. Rate movements could be seen to hurt one member country whilst benefiting another. This inability to please all member countries, all of the time meant that political influence may come to bear on the ECB when the stronger members were in trouble at the expense of the poorer members.

It seems that rather than claims to be acting partially, the central bank has opted to do nothing and this sitting on the fence could now be seen as being the straw that breaks the camels back, economically speaking. By the time the bank acts to cut rates it may be too late to stave off recession on a global basis.

I am sure that it is at times like these that the UK decision not to join the Euro and give up its ability to set its own domestic interest rates must seem like great foresight. It is surely a fact the the UK economy for all its posturing calls for rate cuts by industry, is in a much better position to act based on domestic indicators that benefit only itself. The rest of the world waits to see if Brussels has the ‘cojones’ to act decisively. I fear we may be waiting some time.

About the Author

Onlystop is a website that covers all your financial need with articles and surveys on the latest developments in a variety of Mortgages, including Fixed Rate Mortgages, Home Improvement Loans and personal loans in the UK.