What Can Unsurpassed Bank Losses Do to Real Estate and the World Economy?

Anywhere in the world, when banks report how their systems are suffering from financial crisis as consequences of gigantic losses, expect that there is a great fallout, too, not only in the real estate and other industries but as well as in world economy.

It has shocked and scared the globe, especially people engaged in the financial markets, when premier banks have declared huge losses that eventually have resulted to an immediate halt of cash flow in the real estate industry called the credit crunch. So which banks gained enormous losses?

Banks from all over the world: US banks Citigroup, Bank of America, Wachovia; Europe’s UBS AG or Swiss Bank Corp. and Union Bank of Switzerland; Japanese banks like Sanwa Bank Ltd, The Long-Term Credit Bank of Japan, Industrial Bank of Japan Ltd; The Royal Bank of Scotland, a British bank.

Who would even think that Citigroup, the premier consumer-banking franchise and key player, is capable of drawing a fault line in their financial system? All of the banks mentioned have revealed billion dollars of losses from credits or problem bad loans. Let us face it. When credit crunch happens, the entire economy is definitely affected; fund shortage will freeze many business entities because financing acquisition is like waiting for the star to fall. Borrowing will be as hard as anyone could ever think of.

The real estate market has been badly beaten by this credit crunch faced by US economy. Both small and big players in the mortgage business are consequentially affected by the declaration of bank losses. Brokers, for one, have been caught in-between by this sudden fallout; they have to pull out some programs for mortgaging, so they will not be agitated and engaged in bootstrapping costs to maintain other running loan programs.

The victims of credit crunch, of course, are evident. Borrowers, who else? Mortgage releases have become hard as a rock; stiff credit regulations have been implemented. The borrowers’ nightmare has started with residential sales at below-the-average rates, just to put up with their timely payments. Nevertheless, with the crisis on housing projects, it is still difficult to gather buyers with ready cash to make purchases, so most borrowers end up filing bankruptcy or foreclosure.

But the question whether credit crunch is really hurting the condition of world economy remains to be seen. According to the Federal Reserve analysis, credit crunch has only affected the real estate market; its effect on world economy is so far only limited. Positive feedbacks have been seen in the employment industry and in retail sales. However, slow sales have taken effect on furniture, manufacturing, and automobile businesses. Even with the worry about inflation rates, minimum changes in prices have been noted down.

Although US credit crunch seems to be a major blow in the financial markets of countries like Canada, few from Europe and Asian nations, the crisis hardly hit other countries like Russia, Morocco, India, United Arab Emirates and other Gulf Arab countries that sustain oil manufacturing.

The federal government of Russia assured that the country is stable and has a reliable support for their financial system. Yet, they also revealed that problems in liquidity might at times arise because of shallow market for government securities and an issue of distrust between local Russian banks themselves or between local banks and foreign companies.

The Arab countries have strong economic support since they primarily supply the needs for savings and credit around the globe. Economies of India and Morocco are irrelevant countries for credit crunch crisis, too. Their security against the aftermath of credit crunch was a result of disassociation with the economic issues surrounding the world and mainly in US.

Banking Jobs – Top 10 Guide to Surviving the Credit Crunch

When there is a ‘credit crunch’ with the prospect of recession the finance and banking sectors are at the sharp end of the stick and ultimately the first markets to feel the squeeze. Whilst experienced bankers and financiers will always be able to find employment, graduates looking to gain a position in the banking industry are finding that the current economic climate is proving tough, with a high level of competition in the marketplace amongst other graduates, whilst financial organisations are also less inclined to recruit at a time of downsizing.

When there are large-scale redundancies in the banking sector and recruitment budgets are already cut then competition to find jobs becomes increasingly difficult. As profitability in the banking sector is being hit companies have to cut costs and often graduate training and marketing budgets are the first to be rescinded. Therefore graduates looking to move into the banking and finance sectors need to set themselves apart from other candidates.

Here is a top 10 guide to help find a banking job and survive the credit crunch.

1 – You shouldn’t send out the same curriculum vitae to every potential employer, instead tailor your CV for each specific job. There’s no need to lie- individual employers are potentially looking for candidates with different skill sets therefore highlighting those specific skill sets in either your CV or covering letter will potentially get you noticed and set you out from the crowd.

2 – Understand the company that you are applying for a role at. Nothing irks an interviewer as much as a candidate who hasn’t carried out any research. If you aren’t interested in the company then why should they show interest in you? At a minimum do your research, explore the corporate website, learn about what the company offers, discover what’s unique about them and read all the latest press releases and aim to ‘fact-drop’ in your interview. It may be an obvious tactic, which will be picked up by an interviewer, but a tactic which will hold you in good merit.

3 – An interview is prime time to ask the company questions too. Prepare a range of questions so that you’ll have something to hand if you’re prompted. Not having any questions can look negative, as if you’re not really interested.

4 – Consider broadening the types of companies you apply to, there can be a lot of people competing for the same jobs at the largest banks and financial institutions, so look to mid-tier investment houses or hedge fund providers.

5 – Graduates should look for financial training schemes, however in a credit crunch these schemes can be harder to come by, so if you’ve just left university consider internship, or work experience. A couple of months working for free may not be of immediate financial benefit but could pay dividends long term as relevant experience can be very important and employers are looking for candidates who can hit the ground running, or show the kind of dedication it takes to decide to do work experience. Those that cannot take a financial hit by working for free should look at taking part-time or related work that can be used to show commercial awareness and business skills. Charity work or a job where you can provide that you have entrepreneurial abilities can also set you ahead of your competition.

6 – When you get an interview don’t act desperate, as if you need the job. Being keen is great, but if the interviewer thinks that you’ll take any job because you need it, the image you a portraying is of someone who may ‘jump ship’ once you get back on your feet.

7 – You can’t avoid the fact that sometimes it’s who you know and not what you know. Anyone can use this to their advantage by utilising social networking, contacting friends and ex co-workers to see if there are any opening where they work.

8 – Your personal statement on your curriculum vitae can be one of the first things a potential employer may read about you, so you need to take this opportunity to impress. Keep your personal statement fairly short and snappy and highlight your professional attributes and goals. Remember to sell yourself and avoid typical cliché and empty phrases such as ‘team player’ etc

9 – Highlight key corporate success stories that you have accomplished. Businesses like facts and figures, so if you’re produced some impressive results in previous employment then state them in your curriculum vitae. This separates you from the other candidates and moves you from the ‘potentially could do’ to the ‘has done’ thought mentality in the employers mind.

10 – Industry sector recruitment firms can also help graduates find Banking Jobs and graduate placements. Many companies turn to these recruitment specialists to help them find appropriate candidates.

By utilising some of the above tips finding a new banking job in the credit crunch can be made a whole lot easier.

Real Estate Investing – Financing

Many of us approach real estate investing, financing it with credit or loans from a bank. But the truth about getting into this field is that when getting involved with real estate investing, financing it using credit can actually be unnecessary, as well as the use of loans, and even any dealings with any and all banks just aren’t needed at all. The main ingredient to establishing this prowess of smooth and unfettered real estate investing, financing it all without any of these, is of course, knowledge.

To accomplish this doesn’t take mere “tips and tricks” that are only doable in isolated situations, or only if the circumstances are just right… there really exist techniques of going about real estate investing without financing it with these common means. Good credit or bad, it really needn’t enter into the picture whatsoever. Banks and loans can actually be a hindrance in many situations, so to heck with them.

Moreover, using these techniques aren’t just practiced by those who simply can’t do it otherwise, such as those with little or no capital, but by the most successful investors in real estate, for whom the more common ways of financing their ventures are no problem at all. Sure, they could go through the process of real estate investing, financing it using these common establishments, but if things could be done far quicker and more profitably without them, then really, why bother? Like the saying goes, “Work smarter, not harder”. These “underground techniques” are the best way to approach real estate investing, financing it without credit, banks or loans, or even with nearly no capital.