Housing Prices Essay Example | Topics and Well Written Essays - 1000 words

Housing Prices - Essay Example As it takes time for new housing to be constructed (in case of no overbuilding left from previous periods and thus existing housing stock being insufficient to meet the newly increasing demand) the supply cannot react fast to the demand shocks and thus increased prices will stay for some time until the supply is sufficient. Increased prices motivate construction firms to increase their output levels dramatically as the profit margins to be received from housing due to these high prices are expected to be high. That is why the real estate market is prone to known "hog cycles" or "herd behavior"2 where the construction companies overestimate the market demand and thus are myopic and construct too much supply. Other theories claim that actions of constructors to thoughtfully produce more than can consumed over short span of time are rational acts and are based on their trying to take advantage of economies of scale in production and thus economize on each unit of housing to be produced. Also, it is not irrational to have expectations of the economic upswing to be followed by some structural economic changes which will further lead to economic development or increase in the total population of the region due to this better economic conditions of living. Economic development is cyclical and the influence of the factor that lead to economic upturn has its' term. After the factor is not in power any longer, the economy starts stabilizing with real purchasing power not growing any longer. This is usually the time when the majority of the new housing supply comes on the market and it will be absorbed slowly with the prices dropping and vacancies occurring. The downward pressure on the market will sustain until the next economic upturn or until all the overbuilt housing supply is consumed. The biggest problem is that very often construction firm being overoptimistic about the housing or in general real estate prices develop land by using borrowed money. Once they bring on the market their product, the cycle is already in another stage which makes difficult for companies to generate enough income to pay back their loans. The highest risk of overproduction exists in real estate segments where the construction terms are the longest, demand is most uncertain and construction is irreversible. That is why some developers try to eliminate the risk and deliver to the market not niched products but ordinary housing. This further aggravates the crisis as the stock becomes not varied and overproduction is especially significant within some segments of the market. The similar situation was observed during famous real estate which lead to banking crisis in Sweden in 1991 and was also considered a global real estate crisis with numerous international investors being in the market. The theory behind the occurrence of International housing cycles is the interrelationship of overall economic development in the different global regions and due to this increased interrelationship between economies investors find

Factor V Leiden and Prothrombin Mutations Essay Example | Topics and Well Written Essays - 500 words

Factor V Leiden and Prothrombin Mutations - Essay Example Mutations are determined in a consecutive series of 100 controls. It argues that fifteen of 80 current miscarriage patients and four out of 100 carry V Leiden Mutation Factor. Its results suggest that the presence of prothrombin and factor V leiden is the cause of recurrent miscarriages. Additionally, it suggests that the presence of both factors of mutations is major in second trimester, fetal loss and dependent of any additional pathology (Foka et.al, 1999). The readability of the journal is on point because the authors did not mix up the information. They have introduced the topic properly, explained everything a reader would want to know, and summed up the whole information. It is credible in the sense that information is well researched and documented. The authors demonstrate well researched and investigated article. This is because they have used analysis methods to determine the above explained topic as well as analyze it, giving a reader a well understanding of the topic. It expounds on Factor V Leiden and Prothrombin Mutations, causes and consequences which gives a reader a good understanding of both mutations ( Foka et al., 1999). Recurrent miscarriages is a health problem affecting, approximately 5% of women in today’s world. Although there is no specific investigation of this situation, researchers argue that factor V Leiden and Prothrombin Mutations are the cause of recurrent miscarriages. Prothrombin Mutations is acquired and inherited by defect. Recently, it was discovered that the most commonly inherited defect is Factor V Leiden which is resistant to activated protein. It is also responsible for all cases of isolated thrombophilia and thrombotic conditions. However, there are still uncertainties on the accurate role of factor V Leiden in terms of miscarriages which has resulted to bias selection of women regarding their fetal losses. This is in terms of the number of miscarriages type,