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U.S.A. has passed by at most dangerous moment of loan once
American times of most dangerous moment of loan already go over

Several weeks recently, as every large financial institution begins to reveal the quarterly report of the second quarter gradually, the credit crisis initiated by loan once welcomes the new peak. Because the market of American real estate after the foam breaks has not still touched the bottom sign, new rounds of assets person who reduce loss unavoidable, market further worried balance sheet in imminent danger of financial institution, and the protagonist of this one is subsidy housing loan organizations of two major governments of U.S.A.: It is beautiful with the room that the profit of room is beautiful.

After US stock market Internet foam break, more and more U.S. dollars the U.S.A. bond market has poured in, lead to the fact the long-term interest rate ' I.e. the earning ratio of U.S.A.'s long-term national debt) Drop year by year, pursue investor and eager to get rid of because size issues of profit fall sharply and financial institution that profit rate drop of superior returns, have facilitated the unexpected fast prosperity of product market of assets securitisation of the housing loan jointly unconsciously. This prosperous greatest achievement lets a large number of credit funds of low-priced house enter the market of American housing loan, reduce the threshold of the housing loan prominently, let some persons who totally have no ability to refund must use the loan and buy house, thus blow to ultimate attainment of the foam on the market of American real estate, let the room rate reach the summit in 2006. At the beginning of 2007, the room rate beginning to drop make the rate of violation of housing loan begin to resume, Reciprocating Pumps| Metering Pumps long long ago
drew a piece of rest suddenly in prosperity of the assets securitisation products of housing loan.

Because the height complexity and related of the modern financial market, the credit crisis begins to rise one after another. Bayles will step on the flag two hedge funds which invest in the assets securitisation products of housing loan go bankrupt in July of 2007, have raised the curtain for this credit crisis. So a large amount of heavy selling that produces makes relevant securitisation products such as CDO,etc. nobody shows any interest in, the price slumps, consign and hold a large number of the securitisation financial institution of products have calculating a large number of assets loss of making a reduction of etc. under the pressure of just and sound value accounting criterion that get in touch with market. In the face of huge assets reducing value losses, backward Bayles steps on in the contest that raises new advantage to come to fill in and suffer the loss, pour it under the tide of run on a bank of the bank, Morgan Chase Manhattan Corp. purchases for inconceivable low price under the bringing together of American Federal Reserve Committee.

By July of this year, the assets reducing value losses of the global financial institution have been added up to already over 400 billion dollars, the new capital that they raised exceeds 300 billion dollars. And it is the decline of the sufficient rate of the net capital to raise the cost that the money can not be happened to lose, and then collapse at the first blow while encountering the run on a bank even more, Bayles steps on and is broken with IndyMac bank down by the run on a bank because of raising the money in time. High pressure pumps Piston Pumps

At the beginning of July, large quantities of financial institutions begin to reveal the wealth is offered in the second quarter, the market begins again to be tense, however, the focus this time is from the bank and conduct of investing to hold loan of room of 12,000 billion dollars and nearly half subsidy housing loan organizations of two major governments in the whole America: It is beautiful with the room that the profit of room is beautiful. Room profit beautiful and room American awkward lie in they are listing enterprises run by the local people, there are government's backgrounds. According to 1992 OFHEO regulation, if room profit American and room the beautiful net capital was lower than certain proportion, the U.S. government will take over these two enterprises, the result taken over is that the government is responsible for debts of these two companies, but shareholder's stock on hand is not worth a pin at this point.

This make room profit beautiful and room beautiful to raise capital to be very much difficult in present cases, want, lose several ten billion may touch the cordon at least, but consider their housing loan of over 5,000 billion dollars, the losses of this kind of scale may not be impossible either. Have will it be the first ten days July two company malignant heavy selling that stock suffer ' Drop 60%) in two weeks ,Drive the slump of the whole financial plate, and then initiate the first aid measures of the American Ministry of Finance and American Federal Reserve Committee.

In mid-July, the American Ministry of Finance announces, the beautiful American line of credit with the room of profit of the room that offer, meanwhile, open the rediscount window beautifully for the profit of room is beautiful and room, in order to improve their short-term flowability. In addition Ministry of Finance consider, buy two stock right (half nationalization) of company these also . In this way, 3 realize finally as described above, room profit beautiful and room a beautiful one short to hit long-term financing perplex, can solve. Then, borrow the east wind of the wealth newspaper of Wells Fargo, Morgan Chase Manhattan Corp. and better-than-expected second quarter of Citigroup, room profit beautiful and room beautiful stock price go up by nearly 100% within 3 days, drive finance burst realize loud reversion miraculously.

Reveal from the wealth newspaper in the second quarter of every large bank, assets person who reduce loss present trend that obviously reduce compared with first two quarters ' Though the provision of the non-performing loan increases by a wide margin) ,On the whole, the situation is being improved. Reflect 5 peaks have appeared since July of 2007 in fluctuation indexes of investor's panic mood, but this peak peak value( 28)Lower than the first 4 peak value of peak obviously ' More than 30) ,This improves after explaining the market environment in another perspective too. As the American real estate market expects to stop falling in the second half of 2009, the calculating financial institution is most losses, having raised more capital, the state of affair will get further improvement.
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