Jupiter, Fla (PRWeb) 5, Μαρτίου του 2008
Martin D. Weiss, Ph. D. takes a closer look at the U.S. recession and all that has similarities to the Great Depression. Dr. Weiss examines the U.S. market and gives advice on what can be done to avoid further losses.
the U.S. recession is undeniable and has a greater abundance of early data from any other recession of modern times. Plunging home sales and prices, reduced consumer confidence and spending, growing unemployment and more is enough evidence to build a solid case. Inevitably, with nothing the Fed, the Treasury Department, the White House and Congress can do fast enough or powerful enough to stop it. Indeed, with inflation already surging and the dollar have been sunk, it is most likely that the housing market bailouts, stimulus packages and interest rate cuts are unlikely to achieve anything more than push the dollar over the brink, the prices commodity drive through the roof, pushing inflation beyond control and, ultimately, to deepen the crisis.
For the first time since early 1980, the U.S. is witnessing the virtual closure of some of the major credit markets in the country for many types of mortgage loans, certain types of corporate bonds, including municipal bonds. For the first time since the Great Depression, the value of residential real estate is plunging the country. For the first time in U.S. history, countless middle-class Americans are defaulting on their mortgages, abandoning their homes, sending a whole new set of shock waves through the banking system. And for the first time in history, trillions of dollars in derivatives are now blowing. Most stock investors are frozen in a vacuum. They are constantly waiting for the government to swoop down with the next big rescue. Not even recognize the severity of the storm. And do not even realize how fast it can destroy their portfolios.
Take a long, hard look at falling prices at home. The decline in residential real estate prices are already the worst since modern records are kept. The S & P / Schiller Home Price Index fell 9.1% in December. Even worse, the average price of new homes sold has tanked 15,1% from January 2007, the biggest decline in any month since at least 1964, when he first began tracking this measure.
If you go into a bank in the 1930′s, it is absolutely certain that the mere mention of the mortgage without payments, no documented income or any capital payment would be universally greeted with ridicule. But these new loans recently created by over 10,000 banks, thrifts and mortgage lenders in 3,000 counties and 25,000 cities across the U.S.
Then, very few homeowners were upside down with more debt than the value at home and it was unheard of for Americans to abandon their homes for this reason alone. In 2008 the situation is so widespread, half a dozen government agencies and thousands of lending institutions are desperately trying to find ways to reverse the trend.
Take a look at how this situation is starting to impact consumers. With home prices sinking and the cost of living soaring, consumer confidence is hit hard. Just at the beginning of 2008 has decreased by some of the highest levels recorded at the lowest level in five years.
The best evidence: The Conference Board just reported that the confidence index fell to 75 in February. This is far below the 83 reading that analysts had predicted. And it’s down to the lowest level since February 2003, a time when Americans had a strong fear a new war was about to begin.
“Also note that prices are skyrocketing. The U.S. Labor Department has just announced that wholesale prices rose 1% in February and increased by a whopping 7.4% over the past 12 months, the largest annual increase the end of 1981. Moreover, these figures do not yet include the new burst of energy price increases of crude from the past 100 U.S. dollars per barrel, gas is high double-digit gains, and run gasoline to $ 4 per gallon level. Also, do not include the most recent parabolic rise in food prices. And most importantly, do not include the most recent decline of the dollar, which inevitably drives up the prices Americans pay for huge quantities of imported products, “Dr. Weiss states.
To read this online version, visit:
http://www.moneyandmarkets.com/Issues.aspx?1494-Housing-Bust-Creating-a-New-Superboom
about Martin D. WEISS & Money Markets and ????
Martin D. Weiss, Ph.D., founder and president of Weiss Research, Inc and the top prosecutor for the safety of investors, is a nationally recognized expert in domestic and international markets. With more than 35 years experience including many years in Latin America and Asia, Dr. Weiss has helped empower millions of investors to make better financial decisions through monthly report secure his money and daily Money and Markets.
Strong understanding
Dr. Weiss »foreign markets and the global economy, has earned a reputation for thoughtful, in-depth analysis that investors can rely to make informed financial decisions. Regularly called upon by the media for independent investing guidance, has been featured in national publications including The Wall Street Journal, The New York Times, Chicago Tribune, Business Daily Investor and Forbes and has also appeared on CNN and CNBC.
Throughout his career, Dr. Weiss was an advocate for consumers and investors in the industries of insurance, banking and brokerage, devoting his time and resources providing analysis and data for Congressional testimony, constructive proposals for reforms Securities and legislation for full financial disclosure as well sound accounting and fiscal policy. In November 2004, the Commission established the Sound Dollar, a nonprofit organization dedicated to creating a network of investors seeking to protect the nation’s future, demanding honesty in government accounting, a balanced budget and sound economic policy.
Dr. Weiss is author of The New York Times best-seller, the final Guidelines Safe Money, which gave baby boomers will get a road map to grow their wealth safely. It was listed on the New York Business Times, Wall Street Journal, and BusinessWeek best-seller lists, and Barron’s Roundup for 2002.
Dr. Weiss holds a BA from New York University, a Ph.D. from Columbia University and is fluent in eight European and Asian languages.
Money and Markets (http://www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest finance and investment ideas for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc located in Jupiter, Florida. For more information about our editors, or create an interview, please contact Jennifer Moran at 561-627-3300 or visit http://www.moneyandmarkets.com.
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