50 million people a week bankrupt the U.S. housing bubble "burst Eve".

<P> U.S. real estate bubble burst in the precursor may first appear in the credit market. .</ P> <P> Although until now the U.S. real estate market has no direct evidence of the collapse, but the credit markets already show problems is approaching. .</ P> <P> the overall U.S. housing prices between 2000 and 2004 rose 65%, benefiting from low interest rates during this period. .However, this situation has changed now, the Fed raising interest rates 12 consecutive times, the momentum began to become a drag. .Fed Beige Book released last week on that, although the overall U.S. housing market remains active individuals, but individuals in many parts of the housing market activity slowed, Philadelphia, Richmond and Cleveland home sales release .Slow, mediocre Chicago and Atlanta, Kansas City area can not sell more stock. .</ P> <P> some time ago, a number of Bank of America announced a quarterly third quarter of the year, and have made a profit warning. .U.S. largest bank, said earlier that a quarter of the bad debt losses could reach over one billion U.S. dollars. .In addition to "Katrina" hurricane reason, there is a 10-month implementation of the new bankruptcy law caused by the U.S. surge in the number filing for bankruptcy. .</ P> <P> the new U.S. bankruptcy law bankruptcy raised the threshold of the American people, prevent the use of loose bankruptcy system to avoid debt, nature of the banking sector should be welcomed. .But even the banks themselves did not think of estimates, the problem is very serious. .</ P> <P> this year, raised interest rates, rising oil prices, hurricanes, plus prices no longer rose sharply as before, Americans are not good at saving the already stretched out. .Therefore, in the bankruptcy bill on Oct. 17 deadline for a few days before, a large number of Americans flock to the court for bankruptcy. .According to statistics, only in the Oct. 17 week, there are more than 50 million people declared bankruptcy, the equivalent of one-third of last year, grand evident. .Ironic that, in the formal implementation of the policy bias on the eve of the Republican Party, House of Representatives Republican leader TomDeLay also been investigating the financial situation, and the Republican campaign headquarters is also chief financial officer at the moment even declared bankruptcy. .</ P> <P> has repeatedly been warned, repeatedly pushed to new U.S. personal debt ratio, now seems even more horrible reality is much more than expected. .U.S. residents over the national debt 8 trillion U.S. dollars, the latest figure is $ 8,084,000,000,000, liabilities, primarily from a substantial increase in housing prices driven by increased credit lines, which is the formation of a crisis. .</ P> <P> of California, the average price was $ 533,000, according to the buyer 20% down payment, 30 year loan, the loan interest rate of 6.5% calculated, then the amount of $ 3,400 monthly mortgage repayment each year .4.08 million. .The average family income in California is currently only 6.3 million, about 65% of household income for mortgage payments. .In this case, there is no line of credit driven house prices continue to rise to improve the consumer's financial situation will be hard to imagine. .</ P> <P> in the American people find that they are unable to pay personal loans, they first take into account is the default credit loans. .Individuals generally did not dare not to pay the mortgage, because the house was closed to nowhere once lived, but the attitude of credit is more tough. .U.S. credit loan rate is fixed at 19% rate hike from the impact of high interest rates and not very serious consequences of credit default loans has become a priority target. .If the situation continued to deteriorate and credit market crisis will likely turn to the mortgage market, and if by doing so, the overall economic impact may be more than just a few banks to profit warnings so simple. .</ P> <P> real estate market, how important the U.S. economy, the figures can be seen. .Merrill Lynch released a report in August showed that the scale of real estate although only 5% of the U.S. economy, but for the first half of this year, contributed half of the strength of economic growth, creating more than half since 2001 civil employment opportunities. .</ P> <P> 80s last century, the U.S. real estate bubble has caused banks to go broke the chain, while the Japanese real estate bubble burst in 1989, the Japanese economy has led to the downturn. .Although the debt securities by U.S. banks will not be taking on himself all risks, and will not re-broke a wave of bank failures, but enough to the U.S. economy into recession, deflation will be the formation of 90 than the last century, Japan more .serious. .</ P> <P> if the Fed want to support the real estate market, then we must increase the money supply, that is to change the current Fed tightening. .Some analysts believe that the need to increase supply of dollars next year, 1.2 trillion dollars can stop home prices. .If the Fed really did that, inflation will be like a wild horse dollar more will be at risk. .</ P>.