Meltdown
after the repercussions of the mortgage crisis Chairman of the Sub again in 08, the US federal government has faced along with the Federal reserve with the unprecedented financial challenge that threatened to exterminate the very base of the so-called strong economy of the United States basically. Hit by the collapse of Lehman Brothers, the country was staring at an imminent recession that will have a ripple effect across the border and could lead to a domino effect in the coming months. Truth be told, it is the size ($ 10 trillion in housing debt) from the disaster that it sent shivers down the corridors of the White House, forcing the Fed to take action against the traditional laws of economics. It was not long before the TARP (Troubled Asset Relief Program), which was signed by US President George W. Bush on October 3, 08.
caught
raised tarp beginning of lunch Free theory, and it was closer to addressing the victim of a snake bite by injecting a dose of the same poison in the victim's blood stream process. There was no turning back with the Federal Reserve launched a barrage of QE (quantitative easing worth $ 475 billion) measures, which sent Wall Street in a frenzy. Global economy sigh with assurances from central bankers to re Lehman fiasco can be avoided in the future, with measures such as monetary easing the Fed aka TARP.
choked again
eight years down the line, revealing the US economy is ample evidence of the possible shift although bond yields drop to 1.5286 on February 12, 2016, the labor market and came to life. It has paved the way for the Federal Reserve to raise interest rates after successfully tapered off to the regular price, followed by unemployment figures, which reflect a record low of 4.9% in February cycle. The uneasy pall of gloom weighed on global markets until the Fed settled to raise interest rates after a hiatus of eight years. Again in China, it resurfaced tremors, while the Brazilian story was dirty at all hours of its economy and the debt shift was staring from close range in one of the worst recessions in the history of the country. The People's Republic of China, one of Brazil's largest trading partner in terms of imports and exports will soon feel the full heat of the Brazilian recession, while markets in China braced for higher interest servicing costs. The dollar-dominated loans lead to contagion effects in the Chinese stock markets in the coming months.
History repeats itself
Even before the dust could settle, markets regained consciousness, I decided to go out of the United Kingdom from the European Union and restores political structure and banking activity. Fuming with frustration, the voice of the people in Britain in favor of a referendum historical Brexit which would put the financial world again in a cycle of monetary easing, nicknamed TLTRO (re-targeted funding over the long term), launched by the European Central Bank option. History repeats itself despite the drop in bond yields around the world, and I found a new assurances from the free lunch of central bankers markets. The world is facing yet another Snakebite day scenario, only this time it's called "currency war." Ironic as it may seem, treating snake bite is all about by injecting a dose of the same poison in the victim's body, "currency war" syndrome is no different. It needs more currencies to be injected into the bloodstream of the ailing economy.
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