ABC of the financial crisis: what do the terms mean?

Berlin – In the European financial crisis, many concepts emerge that are not easy to digest. What do the different keywords mean?

News / Finance

Image: Euro coins as gears

Bankenrun

For fear of bankruptcy, the Greeks have long ago raised billions of euros from their accounts or made them abroad. If the danger continues, it comes to the acute bank run: The customers try en masse to empty their accounts. The banks would bleed out, they could lend the companies no more money, the economic activity succumbs.

Capital controls

In order to prevent the run of the bank, the banks would have to be temporarily closed completely and online transfers would be interrupted. If they open again, foreign transfers would be prevented and withdrawals at the machine would be limited to smaller amounts. This is how it was done in Cyprus three years ago. The last capital controls were canceled there only this spring. The massive intervention would require the government in Athens to decide on an emergency law almost overnight – it can not be forced to do so by the euro partner countries. “The Greeks have not prepared anything,” states an EU diplomat.

insolvency

Whether a state is bankrupt is usually determined by rating agencies by determining a so-called credit event. However, even if that does not happen, Athens will not pay its installment to the International Monetary Fund (IMF) on 30 June, according to ING chief economist Carsten Brzesk. Because this is not about market papers. Crucial is not the market, it says, however, in euro circles: If Athens does not pay back to the IMF, the ECB could actually no longer accept Greek bonds as a pledge and would have to turn the drip for the Greek financial system. The banks would have to be transacted practically overnight.

Grexit

A bankruptcy Athens would not automatically the Euro-Aus for Greece – so the Grexit – the result. In fact, expulsion from the Euro Club by the remaining members is only possible if the Greek Government itself agrees in the end: a new treaty must be concluded – signed by Athens. But a large majority of Greeks want to keep the euro. If they remain in the euro without further financial assistance from the ECB and euro countries, banks and the economy will dry up. So the government would be forced to Grexit and return to the drachma. A chaotic transitional phase of at least half a year would be the result, estimates economist Carsten Hefeker from the University of Siegen.

parallel currency

A kind of middle ground between euro and Grexit would be the introduction of a parallel currency: Because the state lacks cash, he pays officials and pensioners at least partially with promissory notes. To do business at all, traders and service providers would accept the promissory notes as a means of payment, explains the French financial scientist Eric Dor. Due to the risk, however, the promissory notes would be less valuable than the euro. The promissory notes are called in the financial world “IOU”, after the English “I Owe You” (I owe you). California successfully resorted to the aid in the summer of 2009 to bridge a bankruptcy phase.

Geuro

The term was invented by former German bank chief economist Thomas Mayer and in May he explained his concept to Greece’s finance minister Giannis Varoufakis. “Geuro” notes would provide Athens financial latitude and strengthen the competitiveness of the country by the devaluation, so his theory. However, the bill would only come if the international creditors defer their claims and the Greek banking system would continue to be supported by the euro bailout, which is considered excluded by experts. A return from the Geuro to full membership of the European Union would only succeed if Athens generates a budget plus through economic reforms and can gradually trigger the promissory notes.

Primary surplus

The generation of a primary surplus – ie an increase in the budget before deduction of debt repayment – is the deciding factor in the recovery of public finances: if Athens earns more by taxes and privatizations than it spends, it can gradually pay off its debts. The previous government has achieved a surplus through drastic cuts. Instead, to achieve a plus through higher government revenues, can only succeed if the trust returns. “There is no hint for that,” says ING expert Brzeski.

debt cut

Both Athens and the IMF want to persuade the eurozone countries to abandon at least some of their demands in order to enable the over-indebted country to restart. The Greek government has signaled to implement the required reforms in a haircut. In addition to the IMF, many experts also consider it a waiver of the only viable option.

However, that would amount to a third rescue package. The planned special summit of the euro states would have to make a statement for it, to draft a new program and to secure debt sustainability in an application Athens. For this, Chancellor Angela Merkel (CDU) would need the backing of the Bundestag.

 

 

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News New laws from January 2018: tax, child benefit, Hartz IV

News New laws from January 2018: tax, child benefit, Hartz IV

Monday, 01.01.18 , written by Julia Meier As of January 2018, new laws will come into force that will allow parents, workers and retirees in particular to enjoy more money. The basic and child allowance, the child benefit rule rate and the disability pension increase. Other relevant innovations also exist in terms of pension, maintenance entitlement and social assistance benefits. >

Rente, Kindergeld, Hartz-IV: Das bringen die neuen Gesetze ab Januar 2018 New laws from January 2018: Good prospects for families and pensioners

  • New laws promise financial relief from January 2018, especially for families, Hartz IV recipients and retirees.
  • The basic allowance is raised to 9,000 euros for singles and 18,000 euros for couples.
  • Also in the case of occupational pensions, the state is starting to pay off from January 2018.

Whether parents, welfare recipients or pensioners: The new year promises people more money. As of 1 January 2018, changes such as raising the children’s allowance by 72 euros per year, the child benefit rate by two euros per month or the basic allowance are on the agenda. In addition, pensioners and welfare recipients can benefit from the innovations.

New laws from January 2018 provide financial relief for families and single parents

In addition to the increase in the basic allowance to 9,000 euros, on which workers can look forward to January, there are also relieving for parents innovations. The most important are probably that the annual child allowance increased by 72 euros and the monthly child allowance is increased by two euros.

Even single parents can look forward to an increase in the maintenance payment. Because from 1 January 2018, the minimum maintenance rate increases by up to seven euros per month. The exact surcharge depends on the age of the child and the net income of the debtor. For example, the paying parent with a monthly net income of € 2,301 has to cede a sum of € 439 to the child between the ages of six and eleven.

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Rule set for social assistance benefits increases

As of 1 January 2018, social assistance recipients will also be subject to changes in monthly benefits. Thus, the Hartz IV rule set for single persons increases from previously 409 euros to 416 euros per month. For couples, the rule rate increases to 374 euros. Depending on their age, children can expect a subsidy of up to five euros, and thus receive up to € 316 a month.

Employees will benefit from new pension laws from January 2018

Good prospects for all employees: As the statutory pension insurance is well positioned, all employees expect a reduction of the pension contribution by 0.1 percentage points from January 2018 onwards. If an employee earns 3,000 euros a month , this means a monthly reduction of 1.50 euros.

For all those who can not work due to illness or have limited access from January 2018 onwards and have to retire early, from January on, the compensation period for the reduced earning capacity pension will be extended by three months. If, for example, an employee does not have the opportunity to fully pursue his / her profession after the age of 45, he / she is currently provided with the calculation of the disability pension as if he had worked fully until the age of 62. This attribution time increases with the changes to January 1, 2018 by three months. By 2024, the value will gradually increase by three years, ie to the age of 65.

For new pensioners, this means, in the long term, a significant increase in pension entitlements in the event of a reduction in earning capacity.

Occupational pensions should become more attractive from 2018

With the beginning of the year, the company pension for small and medium-sized enterprises should be designed and promoted more appealing. This happens, for example, through the promotion of low-income earners . For this purpose, employers receive a tax allowance of 30 percent, which is offset against payroll tax if they support employees with low incomes in occupational pensions.

In order to convince more and more people of occupational pensions, the adjustments in the law also contribute to relieving employees through allowances of up to € 200 in the future if they are dependent on the basic pension in old age .

East-West Pensions: Seven Steps to Social Unity

From 2025, the pension will be calculated the same throughout Germany. This is the goal of the East-West pension adjustment , which the Federal Council approved in early 2017. Because the pension system is the only social system in Germany that is not uniform in East and West.

So it is all the more gratifying that almost 30 years after the fall of the Berlin Wall, the gradual process of alignment is starting. From July 2018 to July 2024, the East Rentenwert will be adjusted in seven steps to the West Rentenwert. In the coming July, the eastern value is thus increased from the previous 94.1 percent to 95.8 percent of the western value. This is followed by an annual adjustment of 0.7 percentage points until the 100 percent are fully achieved.

From January 2025 onwards, the pension adjustment will finally take place throughout Germany on the basis of the overall German wage development.

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Kfz-Versicherung: Kosten senken durch Tarifvergleich

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Mit der Nirgendwo-Günstiger-Garantie von Verivox sind Sie auf der sicheren Seite. Sollte es denselben Tarif, den Sie über Verivox abgeschlossen haben, doch woanders günstiger geben, bezahlen wir den Preisunterschied. Darauf geben wir Ihnen unser Wort.

 

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Kundenbewertung 24.05.2018 um 15:29 Uhr Man bekommt so günstige Preise die man sonst nicht erreichen würde. Bei Problemen steht Verivos zur Seite und der Wechsel ist wirklich sehr unkompliziert
Verivox

 

Kundenbewertung 24.05.2018 um 06:59 Uhr Benutzt Verivox….und ihr könnt Geld sparen.
Verivox

 

Kundenbewertung 23.05.2018 um 18:02 Uhr Der gewünschte Wechsel des Gaslieferungen lief schnell und problemlos. Die angebotenen Hilfsmittel, wie z. B. Gasrechner, haben zu dem schnellen Wechsel beigetragen. Die Bestätigung des neuen Lieferanten kam sehr zügig.
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Kundenbewertung 22.05.2018 um 09:44 Uhr Alles war ok. Der Gasanbieterwechsel lief reibungslos. Leider rief man mich zu Hause an, um mir weitere Verivox-Produkte aufzuschwatzen. Das fand ich nicht schön.
Verivox

 

Kundenbewertung 21.05.2018 um 16:30 Uhr Der Wechsel dauerte ca. 2 Monate, das lag aber am vorherigen Anbieter der nach einem Jahr den Strompreis um ca. 50 % erhöhen wollte. Das Sonderkündigungsrecht/Kündigung durch den neuen Anbieter wurde nicht akzeptiert, ich musste dann nochmals selber kündigen. Das Ganze war sehr zeitaufwendig bis die Stromanbieter jedesmal antworteten. Durch Verivox gab es keine Verzögerung

 
 

Kfz-Versicherung Kosten – aller Anfang ist schwer

Wohl kaum ein anderer Geburtstag wird so herbeigesehnt wie der Achtzehnte. Volljährig! Schon kurze Zeit später steht es dann vor der Tür. Das erste eigene Auto. Fast so innig geliebt wie Freund oder Freundin. Eigentlich eine schöne Sache, wenn da nicht das leidige Thema: Kfz-Versicherung Kosten wäre. Schon zu Beginn seiner Autofahrerkarriere kann ein Fahranfänger eine ganze Menge falsch machen. Doch mit den Tipps von Verivox lässt sich viel Geld sparen. Denn eigentlich beginnt das Thema: Kfz-Versicherung Kosten für den Sparfuchs schon vor dem 18. Geburtstag. Spartipp Nr. 1 betrifft das sogenannte „Begleitete Fahren“, im Volksmund einfach als „Führerschein mit 17“ bezeichnet. Leider ist es traurige Tatsache, dass es bei Fahranfängern mangels Erfahrung immer wieder zu schweren Unfällen kommt. Diesem Umstand tragen auch die Versicherer Rechnung und quittieren dies mit hohen Beiträgen. Allerdings kommen sie dem Versicherungsnehmer gleichfalls entgegen, wenn er Initiative zeigt und für die nötige „Erfahrung“ sorgt.

Kfz-Versicherung Kosten – der „Führerschein mit 17“ hilft sparen

Ist der Fahranfänger zum Zeitpunkt der bestandenen praktischen Prüfung 17 Jahre alt, wird ihm eine Prüfungsbescheinigung ausgehändigt. Diese berechtigt ihn (innerhalb Deutschlands) zur Autofahrt mit einer Begleitperson. Der Trick bei der Sache ist einfach erklärt. Bis sich der Fahranfänger mit dem 18. Geburtstag alleine ans Steuer setzt, hat er quasi ein ganzes Jahr Erfahrung sammeln können. Das honoriert auch die Versicherung und senkt die Beiträge. Da sieht es dann beim Thema: Kfz-Versicherung Kosten gleich ganz anders aus. Na ja, die gut gemeinten Kommentare des Vaters oder des älteren Geschwisterchens können manchmal etwas nervig sein. Aber der clevere Sparfuchs sollte die Nerven behalten und mit einem Schmunzeln an das eingesparte Geld denken. Dieses Geld könnte immerhin in ein Smartphone oder ein neues Paar Schuhe investiert werden.

Kosten durch den Vergleich deutlich reduzieren

Wer das eingesparte Geld nicht ausgibt, sonder anlegt, wird sich wundern, was da mit der Zeit zusammenkommt. Doch ist das Thema: Kfz-Versicherung Kosten keineswegs eine Sache, die nur Fahranfänger betrifft. Auch erfahrene Autofahrer reiben sich verwundert die Augen, wenn sie durch den Kfz-Versicherungsrechner auf Verivox.de die Einsparpotenziale erkennen. Da ist dann schwarz auf weiß nachzulesen, dass manchmal bis zu 850 Euro pro Jahr zu viel bezahlt werden. Bei Fahranfängern kann die Preisdifferenz zwischen dem günstigsten und dem teuersten Kfz-Versicherer sogar noch größer sein. Es lohnt also, sich dem Thema: Kfz-Versicherung Kosten zu widmen, und sich die paar Minuten Zeit zu nehmen. Nur wenige Daten sind nötig, um sich verschiedene Versicherungsangebote anzeigen zu lassen. Nutzen Sie die Möglichkeiten, die Ihnen der Verivox-Kfz-Versicherungsrechner bietet, und vergleichen Sie. Es lohnt sich fast immer.

Junge Frau am Steuer unterwegs im Close-up von hinten

Führerschein mit 17

 

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The question of property: The house finances are best with simple loans

The link with savings agreements and equity investments should be treated with caution. This is more expensive or dependent on rising stock prices.

Festdarlehen in literally solid components in the financing of owner-occupied homes. Although critics complain for years that the combination of savings agreements and mutual funds is not worth because of the costs and risks. The criticism can be banks, building societies, and investment companies but cold. The suppliers describe their solution as simple, practical and good. The wisecracking should be treated with caution. The packages can be useful in certain cases. Usually combinations but more expensive or dangerous than classic annuity. The reasons are clear in the following examples.

250,000 euros are needed for financing a home. Of which three-fifths or 150,000 euros represented by a traditional mortgage. The fixed rate is 2.75 percent. The repayment is 2 percent. The conditions apply for ten years. The remaining two-fifths consist of two contracts. This is, on the one hand, a fixed loan, and that is on the other side a building loan or a stock savings plan. The savings period of the savings agreement is achteinviertel years, and the amortization of the building society loan is eight years. The fixed-rate loan is up to the allotment of the savings agreement. Overall, this combination so it runs 16 years and three months.

Hardly interest in building savings

The savings agreement begins with the acquisition fee of 1000 euros. In most cases, the costs are offset by the first savings rates. They are in this case at 500 euros a month. Consequently, the first and the second in the pockets of the representative disappear. After that, the rates in the savings pot of cash flow. There they will bear interest at 1 percent per year. After eight years and three months are in the account when the rates have been regularly paid, 50,484 euros.

The sum looks innocuous at first glance. but who is likely to take a calculator and added the installments paid, will take the amount with some frown note. 99 installments of 500 euros or in the sum of 49,500 euros was paid to the building society. This is what 50,484 euros in the account. This is an increase of just 984 euros and should small and large savings foxes, keep in mind that there is little in this contract interest rates are. Mathematically interested investors can be revealed that the annual return of the savings contract is 0.5 percent.

Higher interest rates on loans

In the same period, falling for the fixed loan but borrowing rate of 2.64 percent in the year. These are 220 euros a month, and these amounts are not at some point, but to pay the same, because the credit is needed today.

Otherwise, the financing of a home would not be possible. After years of achteinviertel advance loan can be replaced because the building society will allocate their loan. This credit is, that’s for sure today, cost a nominal 3.75 percent a year. The monthly payment for interest and principal is 600 euros. This leads to the borrower for a term of eight years. Consequently, the combination runs a little more than 16 years.

Now the question is how much the combination costs. There is the one observer, which add up the rates in the sweat of their brow. Upper secondary school teachers, for example, will come through solar calculators to the conclusion that the homeowner will have paid a total of 128,880 euros. This is mathematically and factually correct, but the result is not even approaching useful because the exact times at which the installments are due are not included in the addition.

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