How Long Will The US Economy Last?

The report points out that the government hopes to save the housing market and credit market in many ways, so as to avoid paralysis of the financial system.

The US economic downturn has lasted for a long time. In the face of the Fed's repeated reports, some people believe that the credit market has improved, but others insist that the impact is far from the bottom.

Federal Reserve Chairman Bernanke is actively engaged in preventing the next possible outbreak of a more serious crisis.

According to a report released by the Federal Reserve recently, the average loan amount of Wall Street investment company in the past week is 32 billion 600 million US dollars, which has declined compared with the previous two weeks.

The emergency loan scheme was launched by the Federal Reserve in March 17th, which allows investment companies to provide emergency loans to the central bank as well as commercial banks. It is one of the supporting measures for the central bank to solve the financial system. This temporary measure is scheduled to be implemented for six months.

Many analysts say this means signs of improvement in the credit market.

In addition, data released by the Federal Reserve indicate that this will provide us $33 billion 950 million treasury bonds to investment companies, which is also lower than the US $50 billion provided by the central bank.

Analysts believe the move also indicates that demand for government bonds by Wall Street brokerages has weakened.

L Loyd B lank Fe in, chief executive of Goldman Sachs, said recently that the subprime crisis, which has caused nearly $250 billion in global financial losses, may have come to an end.

He said: "at present, we are closer to the end, rather than some people say the starting point.

The end of the crisis may be at the end of the third quarter or the beginning of the fourth quarter of this year.

But some analysts think it is too early to predict the end of the subprime crisis.

Morgan Stanley CEO John M ack said that although the loss caused by the credit crunch crisis that started from the subprime mortgage crisis is already at the bottom, its impact is likely to spread to those European loan operators who hold commercial real estate and crisis affected assets, as well as small and medium-sized banks in the US.

It will take some time for the European banks to recover their assets.

He said at the annual shareholders' meeting that the credit market is facing difficulties that he has never seen in 40 years. "This year will be a very difficult 1 year for Wall Street."

Bernanke, chairman of the Federal Reserve who has consistently insisted that the US economy has not entered a complete recession, pointed out publicly that the US government must take immediate measures to prevent another bomb outbreak still hidden in the US financial system.

He said in his speech: "there has been no idle time waiting for the market to stabilize, and from now on, we must prepare for the rainy day."

Meanwhile, a working group composed of him and the US Treasury Secretary Paulson and other important economic decision making officials also announced a loan supervision proposal report recently, hoping to avoid the recurrence of the credit and financial crisis again and hurt the US economy.

The report from the president's financial market task force covers various parts of the credit market, including mortgage lenders, intermediaries, Wall Street investment banks that repackage loans into financial securities, credit rating agencies to assess risks, and regulatory agencies.

The report puts forward various proposals to save the troubled housing market and credit market, and to avoid the paralysis of the entire financial system and to crush the US economy.

Bernanke strongly supported the reform proposal. He said: "this report lists many of the improvement measures that must be carried out at present, including increasing pparency, strengthening risk management and control, and monitoring the coordination of units, so as to provide effective assistance for restructuring the financial market back to normalize."

He also said that if the working group's improvement proposals can be implemented, it will reduce the chances of future financial problems and reduce financial shocks.

But Bernanke also stressed that no matter what preventive measures the last government adopted, the risk of financial crisis could not be completely lifted.

According to The Associated Press, when asked about the extent to which the financial problems facing the United States now are more serious than the great depression, Bernanke did not insist on seeing the impact of the subprime crisis as before. Instead, he said, "the current economic depression is indeed the most serious one after World War II, and it has also affected economic development." in the The Associated Press,