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Global Economic Times and Real Estate

by Brianna - December 7th, 2016.
Filed under: News. Tagged as: .

The situation in the credit card market is not far from the U.S. reflected by the subprime market estaounidense. Robert Reich, former Labor Secretary and current professor at the University of Berkeley reflected very clearly in his page what is happening: “For years, banks and credit card companies have sent us increasingly attractive offers. But it hid the real cost of interest and how to calculate the outstanding debt … not surprising that sudden increase annual interest rates, impose high punitive and even shorten the maturity to make it difficult to pay on time. In other words, they offer what appear to be great opportunities, but opportunities are becoming nightmares for millions of Americans.

Do you remember anything? It is equal to what the mortgage lenders made until the outbreak of crisis. Learn more at: Richard LeFrak. ” Gail Cunningham, director of Communications at the National Foundation for Credit Counseling, linking the situation in the credit card industry a direct consequence of the subprime crisis, “the explosion of household debt is a result of the subprime crisis . Until now, Americans used to pay off their debt with credit lines made on the value of their homes. But the depreciation of the real estate market is again made this impossible. ” In this situation Bernanke and company are looking for actions to avoid the worst.

That is why the Fed plans to prohibit the increase of interest on purchases already made and prevent shorten maturities, and the application of excessive penalty rates. But the problem is that these measures would be implemented only at the end of this year, which may imply that it is too late. Surely, although the fiscal stimulus plan launched by the Bush administration will not succeed in reviving the U.S. economy hit hard, it will help contain the threat generated by the issue of credit cards. What can be said of positive amid all this negative context? Fortunately, the strength of emerging economies is acting as a dam preventing the crisis from further spreading in the world. And not only the emerging world, not invited to the feast of the subprime crisis has prevented from spreading, but also with its economic growth has maintained a more than acceptable performance (thanks to the international prices of commodities and the strength of domestic demand). Hopefully, the authorities of the principal global economy are taking note of the consequences that the lack of adequate prudential measures and proper supervision of the risks. Meanwhile, it will take time go with the least possible damage in the global economy.

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