U.S. recession is near collapse of property prices.

Yukan Yu <P> U.S. economic outlook is not good, although a proposal President Bush's proposal to revive the economy, but the day has become Wall Street forecast has turned pessimistic than the day, Federal Reserve Chairman Ben Bernanke to cut interest rates to save the public that .City, increasingly give rise to escape the recession hunch. .</ P> <P>: http://finance. Recession and stagflation, has become the lingering shadow. .In order to meet the economic slowdown against the Fed and the White House continue to hand stimulation factor in a good light after a long struggle, the market pessimism seems to have gradually gained the upper hand, thirteen thousand U.S. stock market this month fell below the psychological barrier point, even the original trend .very strong technology stocks have begun losing light wind. .US-Goldman Sachs chief U.S. economist Dahon recent letter to clients that the U.S. economy has entered recession, the U.S. cut interest rates sharply in order to save the economy. .Since then, Bernanke has publicly hinted that the Fed may cut interest rates much further, and take more significant measures to support economic growth, to prevent economic decline. .Words came out, although the U.S. stock market crashed rebound, but sell order on Friday to close at See also emerged, particularly financial stocks cast winds, indicates the market is skeptical about the effect of the central bank bailout. .</ P> <P align=center> save the economy before the Fed curb inflation </ P> <P> catalyst for a U.S. recession is the subprime mortgage bubble burst, there is no ability to repay the purchasers in the first fall .then drag the huge increase in the property market, prices are now around the United States decline to different degrees, a conservative estimate the average rate of about seven to one percent into. .For any a mature economy, where most of the representatives of wealth as property prices come down a will so that the economic slowdown, the situation is particularly serious in the United States because American consumers by nature, rise in the property market, everyone .dependent increase consumption by borrowing, did not rise or if the property market, not only undermines confidence, and real-time weaken consumption. .We understand this principle, although the U.S. government would see through the full prop up the market, but the recession has already knocking on the doors of the Americans. .</ P> <P> Western economies share a common lot in the past decade, rising prices of non-limited to American, the United Kingdom, Australia, Canada and other English-speaking countries, prices are full up. .The cold U.S. housing market, now blown to other parts of the first to feel, is astonishing increase in property prices in the UK, the results forced the Bank of England, have begun to cut interest rates by adding anti-recession camp. .</ P> <P> accordance with the general definition of recession is two consecutive quarters of declining GDP to the current situation, there for two consecutive quarters of negative growth, it seems not too surprising things, and how to control the spate of negative growth, .President of the Federal Reserve is the matter of tenure. .</ P> <P align=center> bumps investment market conditions to "tolerance" "stability" </ P> <P> current inflation heating up, some people worry too much if interest rate cuts for fear of triggering inflation. .Bernanke's remarks from last week shows that he attaches importance to the U.S. economy and competitiveness, more than the U.S. dollar, if both inflation and recession Optional their while, he will be the first choice to take care of business, and he will tend to .believe that when the economy slowing, the demand of natural decline, inflation sooner or later disappear, so that many Wall Street analysts have estimated that the U.S. will continue to cut interest rates more than a quarter of Sanli to one PCT. .</ P> <P> U.S. recession, when Hong Kong began to pick up in domestic demand, two factors offset each other, theoretically ideal situation than the periphery. .However, when recession-step sound constantly approaching, the atmosphere of Hong Kong will inevitably tense, the past week, the U.S. stock market down to hit new lows, Hong Kong stocks also began to get restless, unable to back on the twenty-eight thousand points of resistance, it is subject to external market .psychological threat, not only the test of market conditions that investors concentration, and also a test of financial resources, to achieve the "tolerance", "stability", the U.S. recession will not be toppled. .</ P>.