During the lecture, there was a clicker question asking whether or not we think the Euro should be eliminated and I chose “no,” because of the several negative effects that might arise if it is indeed abolished. Though, there are a few advantages of the elimination of the Euro such as, the liberty from the “economic prison” that the Eurozone countries have been trapped in. One of the negative effects discussed in class was that the countries Greece owes money to (i.e. France, Germany, Italy) would suffer, since they would not be paid back in full value. Further, trade would be not as convenient if the Euro is abolished. Also, the introduction of a new currency would not be as strong in value and in turn, increase the cost of imports Greece purchases. Further, the people who have money in a bank account would be disadvantaged with the exit of the Euro.

In John Cochrane’s blog, he states that the elimination of the Euro is the “same as the government seizing bank accounts.” The citizens would not be able to make any purchases with the money that they had. In addition, the confidence in banks, for example in Italy, would plunge and other countries would not want to invest/purchase the Euro, causing a decrease in demand and depreciation of its value. Therefore, these factors lead to the reasoning behind why a “grexit” should not take place.

Read John Cochrane’s Blog About the “Euro Explosion:”

Cochrane, John. “Euro Explosion.” The Grumpy Economist. N.p., 15 June 2012. Web. 25 Oct. 2012. <http://johnhcochrane.blogspot.ca/2012/06/euro-explosion.html>.

Photo Credits:

Will Greece Be Forced to Reintroduce the Drachma? N.d. Photograph. Radio Free Europe. Reuters, 15 June 2012.   Web. 25 Oct. 2012. <http://www.rferl.org/content/what-happens-if-greece-quits-the-euro/24615224.html>.

Mis’cel’la’ny Finds is not your average consignment store; instead, it is a social enterprise located in the Hastings neighbourhood that has been in operation since 2009, while recently opening on Commercial Drive. The social good they offer is the job opportunities they provide for women who have either been affected by isolation, drug addiction, sex trade experience, or violence. In support of Women Working for Women (W4), a group of devoted women aim to make difference by providing women who have been unemployed for an extended amount of time, a chance to regain confidence and obtain life skills.

Serving as a pre-employment program, these women are trained with skill sets needed to find a job in the future. The social mission is to empower many of these women to regain control of their life and effectively transition out of their previously precarious financial situation. Offering a wide range of clothes, shoes, and furniture attracts customers, since it keeps up with consumer demands while also providing a social good to society. Because it is a consignment store, they also encourage re-consumption of clothing and furniture to reduce the amount of waste society produces. Partnering with UBC’s H.O.M.E.S, Mis’cel’la’ny Finds is currently collecting blankets for Vancouver’s homeless youth who are struggling to build an optimistic future.

To Learn More about Mis’cel’la’ny Finds, please visit:

http://imedialocal.ca/wordpress/miscellanyfinds/

To Learn More about Women Working for Women, please visit:

http://womenworkingwithwomen.ca

Due to my ongoing speculation of Vancouver’s housing market, Gordon Feng’s blog post on the financial perks of renting a house captured my rapt attention. Indeed, the act of home ownership used to be a prominent investment, where one could accumulate huge profit after selling it 15 years later. However, in today’s economic situation, one is likely to lose a large sum of money due to the possible “bubble bursting” of Canada’s housing market.

“Canadian home prices are up nearly 100% since 2000.”

(Source: Euro Pacific Capital)

To reinforce Gordon’s insights, there is more financial freedom and flexibility associated with renting a house. In addition to mortgage payment, owning a home means that you’ll also have to pay for property tax, insurance, and utility bills. For many homeowners, the value of their home occupies a significant portion of their net worth; whereas, renters can achieve more investment diversification from the amount of free cash they possess. Furthermore, renters have the advantage that annual rent rates are regulated (in some provinces). Some may believe that renting a house means that money is being thrown away, but buyers do the same, since they have to pay interest. Besides the financial reasons to rent instead of buy, comes with the flexibility of moving, fewer worries about high property tax rates, and monthly spending will be more predictable. The housing market in Canada has boomed for quite some time, but the question is, when will the bubble burst? Perhaps in the wake of a crash, buying a house will seem more reasonable.