What’s Making Waves in Global Finance?
Here’s what you should be aware of:
- Before bank interest rates on loans became so exorbitant that most people could no longer afford to borrow and buy houses.
I recently caught up with an old acquaintance from my past who was always my go-to for monetary guidance. This individual is known among us as someone well-versed in finance, offering valuable perspectives on investment opportunities, timing, and locations. During our conversation, they didn’t seem at all pleased regarding the current state of international economics, particularly following the latest U.S. election outcomes.
He mentioned that his expectations weren’t through the roof regarding market enhancements, yet what is currently occurring definitely wasn’t something he had anticipated or seen coming on his radar.
As certain investors held off selling their dollars, expecting market upturns, the Dollar began depreciating relative to the Euro. Additionally, with the upcoming tax hikes that the European Union plans to enforce on U.S. goods from April 1st onwards—this isn’t an April Fools’ joke—the situation could deteriorate further.
In our faith, as Bahá’ís, we are prohibited from participating in any political activities. People frequently inquire how this works in a world dominated by politics. However, we’re referring to contemporary partisan politics. Over the past century, individuals have attempted to implement the true purpose of politics—examining, based on constitutional principles, what constitutes effective or ineffective governance.
Nonetheless, we appear to be quite distant from achieving harmony between the promises made to us by contemporary politicians and the realities of everyday life.
In Luxembourg, real estate prices have been soaring for an extended period. Despite being among the highest in the area, these prices continued to attract buyers. Consequently, numerous single-family homes were sold and supplanted by apartment buildings.
Before bank loan interest rates became so exorbitant that most individuals could no longer afford to take out mortgages and buy houses.
This all occurred during a period when the construction sector was thriving. However, as soon as clients could not meet their payment deadlines anymore, many of these businesses—especially those known for being astute—took drastic measures and halted operations. As projects came to an abrupt end, buyers left feeling cheated and disappointed.
In Luxembourg, several major and historically significant construction firms ceased operations after being active for many years. This disruption caused instability in the market and left numerous employees without jobs.
I must admit that this isn’t my first encounter with such a situation; we all recall the 2008-2009 global financial crisis, which once more originated in the United States and led to economic downturns worldwide.
Previously, we frequently traveled to Dubai to buy the materials required for operating our woodworking factory. During that time, properties in Dubai were selling rapidly; homes and flats were being snapped up even before construction began, just after the plans were made public. Many individuals invested their life savings merely to reserve these kinds of units.
Luckily, we avoided falling into this trap since initially, we never put faith in assets documented solely on paper. Following the impacts of the Covid-19 pandemic, we find ourselves confronting extremely difficult circumstances once more.
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