Monday, March 10, 2008

The price of the credit

House Vinitza
We are witness of hard shocks in the world financial markets, which not little watchers are defining like unique. Supported low interest levels from FED and other leding central banks in the world after the terrorist attacks in the Autumn of 2001, as a anti-action of the affraids for global economy damage gave expected results in economy plan, but created the serial financial phenomenon. The investors found a decision of their problems with the profitability with investing in real estates. The population prefered also to invest in real estates, in stead of staying with zero profitability of financial markets with depositing the money into banks. The ballon inflated and with normalizing of the processes broke. When it reached its final point started its turning back. This turning opened other processes and started the fully global restructure
The leading Central Banks in the world activated their work. The medicine is the same - agressive monetary politic, which is act against the possible economy recesion. In 2002-2003 the interests of FED decreased with record low levels, even on some periods less than 1%. From the beginning of 2004 started their low increasing and primary credit rate reached even the top level of 6.25%. The work was broken quickly in the second half of 2007, when for less than a halg year was erased the work of 2 years.

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