The Wall Street Journal recently noted that Wall Street's days are numbered, and even lists the stock market crash again: top ten reasons to guard against excessive prices the market beyond the historical average, fed from buy state debt, deflation situation to buy chips, personal and national borrowing record high, employment situation, the housing market slump and the United States Government powerless, etc.
At which time the Dow Jones index has fallen to 10040.45 point, this time million point mark if broken, the world economy at the end of the second exploration becomes inevitable. It makes people think, 1929 on 24 October, the Wall Street stock market crash causing panic so far have let investors shaking with terror.
As Ben Bernanke said, the United States from the comprehensive economic recovery is still a long way to go, many United States people are still struggling against unemployment, housing, foreclosure and savings decline. Especially in the United States financial services industry is about to usher in a new round of bad debt crisis, Wall Street financial institutions not bad is only temporary relief in the United States Government may be caused by the substance they just be "temporarily" has saved the Government. As the second round of mortgage repayment deadline, rising unemployment, a large number of failed to repay House slave had to put the House back to the Bank, the Bank confiscation, will come through a discount in exchange for auction running capital, house prices and the Bank is a vicious circle circle, banks in the old bad assets not yet resolved, and press "new" bad assets.
In United States history for the past eight times of economic recession, the real estate market has seven times the tide, the United States economy rescued pit. But this time, it is the real estate market atrophy and foreclosure again United States economic recovery process to kill. Low real financial leverage and the abuse of real estate financial derivatives, are the root causes of the crisis!
April this year, the United States Federal Government's tax policy depleted after purchasing, United States House sales data from prior false prosperity in its torrent dashes down. Starting in the second half of 2009, economic incentives of manufacturing-oriented model of economic growth, in the month of April has gradually starting from failure. This one, apply for an increase in the number of unemployed gold and factory orders plummeting PMI, United States (purchasing manager index), raises the height of the United States economic worry!
Due to the economic situation deteriorated again, more and more people who also does not give up real estate mortgage, resulting in the loss of the increasing number of real estate and housing prices are also declining, the Wall Street banks are holding a large number of real estate does not dispose of, then this will make the tribulations of the United States economic recovery results nullified. You know, real estate market and the economic dimension of the United States is closely linked to bone fracture gluten.
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