market economy

As any rookie investor has noticed in the past year, stock market prices have fallen considerably across the world. Trillions and trillions of dollars have been lost in world wealth, due to the housing crisis we are now experiencing. In the past 5 of 6 trading days, we have begun to see this process reverse. Housing companies are reporting positive gains in their stock prices, and even the major banks pouring out bad loan after badc loan have reported a positive gain in their stocks. Home building in February grew, and investors have rallied around this, creating a mini bull-market. The sign of home prices stabilizing has created a key economic stabilizer. With this stabilizer incomes will now correlate with home prices, and retail capitalists will follow suit, and soon the economy shall pick up. With this restored confidence, everyone will soon spend their money, creating huge increases in demand, which will in turn create many jobs to create the supply needed. The government may soon follow suit by de-privitizing major corporations which they have taken into their control. With less Keyseian economics, and greater classical markets, and global market may soon restore to their pre-housing crisis levels of wealth.

My opinion is that beginning signs are appearing towards a stable economy. We may not attain the levels of wealth we once experienced soon, but I believe if this momentum keeps going then we will have a favorable increase in our countries GDP on a year to year basis. We, as a world, have learned now to invest in stable long-term assets that will yield a profit to them, while creating a multiplier effect to create great wealth. I think we are in the trough region of the economic cycle, and soon will get to the growth period of the cycle.

http://www.startribune.com/business/41392437.html?elr=KArks:DCiU1OiP:DiiUiD3aPc:_Yyc:aULPQL7PQLanchO7DiUr