Topic: Will there be a market crisis unfolding in the USA? - page 2. (Read 427 times)
At present, the US market is still under control, and there will be no market crisis for the time being. But in the next five years, the United States will certainly have serious economic problems. This must be the truth. Trump has been crazy to save the US economy, it is not stupid. But this only delays the timing of the market crisis, when the market crisis comes, it will be more serious than imagined. Now the status of the dollar has begun to waver, and the uneven cooperation is meaningless.
I think there is a market crisis unfolding in the U.S.A because of the trade war between U.S and china so the affected parties are the countries like in the third world countries are suffer their acts.
will trump has a point to collect taxes to all goods coming from china thats why U.S. economy is boom right now, dollar has a superior but the returns is all goods must be high price,third world countries are affected called INFLATION RATE.
will trump has a point to collect taxes to all goods coming from china thats why U.S. economy is boom right now, dollar has a superior but the returns is all goods must be high price,third world countries are affected called INFLATION RATE.
And economic crisis happens when people go crazy for purchasing a stock or a scrip or a commodity, or even an asset. Just buying that will not cause an immediate down trend of global economics. When people are fascinated by extremely low interest rates, most importantly that of the US FEDERAL RESERVE, which is now near zero; people end up buying too much on leverage. They take too much loans just on the blind faith that the returns they get will be sufficient to repay back the interest. This blind faith is based on the blinder faith that the asset they own will forever Increase in value. So, there forms a bubble. It grows and grows, feeding itself on the never ending faith of the people on the asset. When many people buy the same asset, it's return on investment falls, but still manageable to pay back the interest.
Renowned international stock investor, George Soros, who broke the bank of England in 1992 by shorting the pounds and pocketed over a billion dollars, sounds the alarm of a financial crisis?
Despite China stock market woes and global economy weaken, U.S. economy stays strong.
Why is that the case ?
The effects of real exchange rate overshooting might be the cause.
With the spillover effects from commodity markets of declining oil prices into international asset markets, the U.S. real exchange rate, as an endogenous variable that is system driven, was altered. To conquer this real shock, the central bank exercised their money supply. With effects of short run expectations and exchange-rate overshooting, U.S. economy responded to the impact with greater magnitude than anticipated. To understand how this works, one would require to employ the Uncovered Interest Rate Parity Model, which is too technical for discussion beyond this point.
Despite China stock market woes and global economy weaken, U.S. economy stays strong.
Why is that the case ?
The effects of real exchange rate overshooting might be the cause.
With the spillover effects from commodity markets of declining oil prices into international asset markets, the U.S. real exchange rate, as an endogenous variable that is system driven, was altered. To conquer this real shock, the central bank exercised their money supply. With effects of short run expectations and exchange-rate overshooting, U.S. economy responded to the impact with greater magnitude than anticipated. To understand how this works, one would require to employ the Uncovered Interest Rate Parity Model, which is too technical for discussion beyond this point.
There is another crisis coming and it's caused by the central banks and their fiat money printing machines,negative interest rates and their totally wrong money supply policy.We can see it coming,without the expertise of George Soros.A man,who makes money from the financial chaos.
OP,it would be great,if you try to explain the Uncovered Interest Rate Parity Model.
To understand how this works, one would require to employ the Uncovered Interest Rate Parity Model, which is too technical for discussion beyond this point.
You sound like you know what you're talking about, and this also sounds like a discussion that's above my level of understanding of global economics. Why not break it down for dummies like me? I wouldn't mind hearing a bit more about Soros and the world economy. There do seem to be some dark clouds forming--I can sense it but don't really know what's going on with the global economy. Metals have dropped, bitcoin has dropped, and the US stock market is dipping a little. I was expecting the latter, since we've been in bull market for years now, but I'm curious about what to look forward to as far as prices go (bitcoin, silver, stocks in particular).
Not to mention the over-leveraged assets and the derivative markets that adds weight to all of these factors. You can also add the Man-Baby president playing a dangerous trading game on loads of countries resulting into severed ties and broken trust from other countries. Give it <5 years and we'll see yet another financial crisis starting from the USA and deliberately affecting the world as well on its wake. We just don't know the severity of such a crisis but we know that it's near.
Renowned international stock investor, George Soros, who broke the bank of England in 1992 by shorting the pounds and pocketed over a billion dollars, sounds the alarm of a financial crisis?
Despite China stock market woes and global economy weaken, U.S. economy stays strong.
Why is that the case ?
The effects of real exchange rate overshooting might be the cause.
With the spillover effects from commodity markets of declining oil prices into international asset markets, the U.S. real exchange rate, as an endogenous variable that is system driven, was altered. To conquer this real shock, the central bank exercised their money supply. With effects of short run expectations and exchange-rate overshooting, U.S. economy responded to the impact with greater magnitude than anticipated. To understand how this works, one would require to employ the Uncovered Interest Rate Parity Model, which is too technical for discussion beyond this point.
Despite China stock market woes and global economy weaken, U.S. economy stays strong.
Why is that the case ?
The effects of real exchange rate overshooting might be the cause.
With the spillover effects from commodity markets of declining oil prices into international asset markets, the U.S. real exchange rate, as an endogenous variable that is system driven, was altered. To conquer this real shock, the central bank exercised their money supply. With effects of short run expectations and exchange-rate overshooting, U.S. economy responded to the impact with greater magnitude than anticipated. To understand how this works, one would require to employ the Uncovered Interest Rate Parity Model, which is too technical for discussion beyond this point.
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