MORGADO FOI PEDIR AJUDA DA ESPECIALISTA E O EMÍLIO NÃO PERDOOU | Pânico 2022 #111

Over the last 40 or 50 years USA has made some of the most horrible financial mistakes anyone could ever carrier. With the economy hanging in tatters and the U.S. Financial System on the verge of default, there are many questions being asked right now whether the actions of the fed are correct or not.

US government policies in the 1970s emphasized deregulation of businesses such as less oversight of activities, less disclosure of information undertaken by banks and financial institutions, investment banks and hedge funds. While the housing and credit markets were building the financial systems grew and became increasingly fragile. Decreasing interest rates by the US Federal Reserve from 1982 on along with the large inflow of foreign funds and easy credit conditions fueled a housing construction boom.

With the present state of the U.S. economy, the total amount of the U.S. federal deficit has significantly increased. The outstanding total public debt is now amounting to $14.46 trillion according to June 2011 reports. This number is also equivalent to an estimate of 98.6 percent of 2010’s Gross Domestic Product or GDP.

The U.S. government right now is making the same mistakes a Japan did back in 1997 where it sent its economy into a tailspin dive. That horrible mistake led 25 consecutive quarters of negative growth in Japan. For a Time Japanese Banks set interest rates to negative. This meant that when members of the public took out a loan, the bank would pay the interest for them. Right now the fed has interest rates close to zero.

The global economy suffered a recession, which started in 2007 and apparently ended in 2009. Unfortunately, the debt problems in Europe with countries like Spain and Italy, the world fears that a double dip recession might be on its way. We have seen the world markets jump up and down on any source of information. We have seen the prices of gold sky rocket, and even though the credit rating of the United States was downgraded by S&P, investors are still running to the safe haven bond markets with their money. The Federal Reserve Bank has already stated that they do not plan on raising interest rates for another two years.