Current Issues with the Global Economy

">"> Current Issues With The Global EconomyThough the housing bubble deflated about two years ago, whose real effects are only beginning to emerge. 2006, when the economy began to show signs of weakness in the market Housing, most economists predicted a recession which was highly unlikely, and that any fall in house prices would be localized and sweet. Actually, a slowdown in the world economy today is a real threat, with the final price of the credit crunch is expected to exceed $ 1 trillion dollars. not only the drop in property prices have in the United States spread to other markets abroad, they have helped massive losses in other areas such as loans and credit card statements, and the financial sector, which is now shaken by the American government bailout of Bear Stearns. What does this mean for emerging economies like China and India? In the short term, the instability appears to be on the agenda, with India, the young exchanges rocked by jittery investors. until fina! ncial centers and investors may return confidence, the market conditions are exaggerated. Early trading also plays a psychological role for investors, as the impact of new developments in Asia before Wall Street opens. The United States and the United Kingdom deal with the difficult times of home pricing corrections will continue to hamper growth. Most of the owners are waiting, if not to make a profit, not to sell their house at a loss, which is hard to swallow. Et if they can not sell their homes for what they think they are worth, then waiting it out helps to lower prices, thus exacerbating the problem. While government intervention has been exceptionally forthcoming in efforts to build confidence in the financial markets, less attention has been paid to the beneficial owners who are on the course of the next year, which is only so low because of the strong growth in Asia. Another prospect looming over every government is the spectre of inflation that threatens to exceed! the slowdown in the economy as the number one priority for th! e Federa l Reserve and other central banks, which have had to take extreme measures to prevent further loss of liquidity. The Fed has sold more than $ 100 billion in auctions and lowered interest rates five times in an attempt to lower mortgage interest rates, but confidence remains fragile until that the full extent of the investment bank of the first under-exposure is achieved. Caught between a rock and a hard place, the central banks are taking decisive steps in the hope that the economy will stabilise without pushing l inflation at levels.By dangerous: Dane SmithArticle Directory: http://www.articledashboard.comKi works as a real estate agent in Austin. He runs a real estate site on Austin, which provides a free search of the MLS and a mortgage Austin without a calculator.

By: Dane Smith

Article Directory: http://www.articledashboard.com

Ki works as a realtor in Austin. He runs a site about Austin real estate which provides a free search of the Austin MLS and a free mortgage calculator.

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