Wednesday, February 8, 2012

Buffett aside 800 billion bailout plan behind the warning.

<P> Buffett recently publicly declared after the rescue, and then a surprise. .According to domestic media reports: He has officially renounced to save 800 billion U.S. dollars in assets. .Reason is that even from the common sense point of view, the current U.S. economy in recession is also very clear, but the extent of how deep the current recession, is still difficult to judge. .</ P> <P> "by any standard," the U.S. economy already in deep recession, the remark can be described as shocking four. .A reputation for vision, far better than the market, Buffett is known for the popular view on the market called the most pessimistic observers, but his words and actions will directly affect a large number of investors in the market mentality, which has been bogged down in the mud .difficult to extricate the United States, and thus have far-reaching global impact of the securities market. .</ P> <P> Although the macro has not yet reached the United States recognized the economic recession in the academic standards?? Two consecutive quarters of negative growth, the latest statistics show that the U.S. economy in the fourth quarter, a slight increase of 0.6%. .However, Buffett never "common sense" point of view to infer: "As house prices fall, many people in fact already in negative equity condition. Although experienced a slump, but the current stock is not cheap." .</ P> <P> It http://finance. Hearing, in fact, "common sense" is behind more dynamic analysis. .Many market analysts had more to analyze the data from the past, the lack of more accurate judgments about the future reasoning. .The real estate market, the stock market and macro-economic linkage between the three parties have a mutual enhancement mechanism. .If the real estate market continues to cool, then many of the stock market related investment products will be of further losses, the loss of bank lending will further increase its lending to further improve the care of the securities and investment institutions will be further deterioration of the performance of listed companies .end macro-economic and employment data will become worse. .</ P> <P> far as the major Wall Street investment bank, from the real estate market, the subprime mortgage crisis triggered the nightmare is far from over. .Recently Goldman Sachs Group analyst, says: the uncertain U.S. economic outlook, and credit has led to the financial costs of repeated distortions rise under this double blow, in the next two years, U.S. commercial property values are diminished rate may be as high as 21-26% .. .</ P> <P> In fact, after following the individual housing market, with continued weakness in U.S. housing market, Wall Street will have to face down by the commercial real estate prices caused financial losses. .And sub-loan crisis of the market swings than the loss of the field of commercial real estate may last longer. .Reference to the precedent of individual housing markets, it is easy to infer, after the commercial real estate market falls, followed by commercial real estate mortgage loans will be well supported by the lower value of securities, which will eventually form a large Wall Street investment bank speculators and investment .those who write off the assets of the account and the huge losses. .The fourth quarter of last year, Bear Stearns, Citigroup, JPMorgan, Lehman Brothers, Merrill Lynch and Morgan Stanley and other Wall Street investment bank directly involved in commercial real estate capital of about 141 billion U.S. dollars, these are likely to become the investment bank in the future .The huge losses. .</ P> <P> can be foreseen that the crisis in the real estate market, further spread to commercial real estate, the financing of bank credit and securities markets will become more difficult, along with global commodity prices continue to heat up, the United States and .investment in global business operating environment will worsen and further impact on employment and macroeconomic growth. .Federal Reserve Chairman Ben Bernanke recently applied in congressional testimony statements: In response to the economic slowdown, the Fed's current position in 2001 than the more difficult. .</ P> <P> If Buffett's prediction come true, then the global stock markets and economic growth, it is nothing more than a heavy blow. .In this special historical period of the current, and only maintain a more cautious attitude of objective analysis, a reasonable anticipation ahead of the trend of the future in order to avoid potential losses and choose a more reasonable investment opportunities. .</ P>.

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