Global stock market crash and recession in the U.S..

<P> News, Jan. 22, the world and there was a serious stock market crash, on this day, the market value of global stock markets lost $ 5,000,000,000,000 (about 166 500 billion), in Europe and the drag of the stock market crash ., Asian stock markets also fell at the bang, which Malaysia's stock market, overnight, the market value of 413.1 billion ringgit actually evaporated! .</ P> <P>: http://finance. The cause of the global stock market crash is 21 January, the New York Stock Exchange closed due to mark Human Rights Day, had nothing to do with the stock market, but it caused around the world .fear that the U.S. economy might fall into recession worries, so jittery, real or imagined, so in Asia, Europe and Canada stock markets, causing panic and blew! .</ P> <P> In fact, signs of a recession, as early as last 2,3 month, when the U.S. subprime mortgage market crisis first emerged, the impact, the UK and U.S. banks and other financial institutions .have a problem. .</ P> <P> It is reported that Citibank due to huge losses, as the support situation, the Bank and Merrill Lynch had to beg investors to nearly 19.1 billion injection of funds, Citigroup's loss events, indicating the sub-prime crisis did not .near the end, in fact more serious than expected. .</ P> <P> signs that the United States began to weak domestic demand, unemployment, inflation, housing prices and other factors, Americans are tightening purse strings, and purchasing power is declining. .It is said that consumer spending, the U.S. accounted for nearly 70% of GDP, therefore, reduce consumption, the U.S. economy will have a huge impact. .</ P> <P> However, some optimistic economic experts believe that even if the U.S. subprime mortgage crisis losses up to 3,000 billion (more than one trillion pounds), it will not drag down the U.S. economy, as long as the loss making institutions .injection rate cuts and other measures to remedy the depreciation of the dollar. .</ P> <P> course, if the above measures can effectively prevent the U.S. economic downturn, the U.S. economy may be back to normal, but so far, people do not see any more effective ways to save the U.S. economic crisis .. .</ P> <P> 23 this month, Federal Reserve announced a 0.75% lower interest rates, to stimulate the U.S. economy. .In addition, the U.S. Republican and Democratic parties, seems to have temporarily abandoned their political differences and agreed to discuss the current task is complete unity to solve domestic economic problems. .It is said that the content of this economic package is substantial tax cuts to help raise the purchasing power of the American people, but to which class tax cuts, how to tax cuts, the details have yet to be consensus between the two parties in order after the argument. .</ P> <P> Because America's economy is closely related with the global economy, the U.S. subprime mortgage crisis, if not properly addressed, further delay, once the impact of expansion may bring disaster to turn into a credit crisis in global financial markets. .According to statistics, the total size of global capital markets has reached 165 trillion U.S. dollars, the U.S. accounted for nearly 50 trillion dollars. .If unfortunately, the credit crisis, investors will be competing to sell their financial products, such as stocks, securities and bonds, etc. This way, will cause economic panic, it would be destitute enough. .</ P> <P> Therefore, at present, the United States the trend is towards economic recession could be avoided, the key lies in whether the U.S. government to take drastic reform policies in the future, the right remedy, the normal direction towards the development of the economy, people will wait and see. .</ P>.