The onset and impact of phase II global credit financial crisis, recession

US , EURO, UK  and Japan just entering phase II housing, credit, financial, crisis, recessibn, continuation of phase I, casused by housing bubble burst resulted subprime, mortgage crisis spreading into credit, financial crisis and onset of recession, with housing prices plunged 15 %, resulted equties price bubble burst, stock indices plunged 50 %,( Dow Jones plunged from 14300 to 7300, GDP plunged below -3 %, SP500 from 1500 to 750) Dax from 8500 to 4200, FT from 8000 to 4000),drag oil,  commodities , metal bubble burst 50- 70 %
The phase II banking financial crisis is caused by prolonged housing market slump drag economy  into deep recession,housing prices plunged 25 % and GDP plunge 5 % this year, Japan GDP plunged 12 %, Nikkei index plunged from 19000 to 7300, Dow Jones will plunge to 6000 this year further drag banking and nonbanking into all out deep liquidity, d credit,default , financial crisis and deeper recession, delay the credit market recovery for
highly risky, high yield junk bond leveraged finance and acquisition housing ( will be following housing market slump and recession)

comment to Asian leverage finance, acquisition conference, Feb. 17, 2009, Hong Kong, Greensburg of Goldman Sach on credit market recovery learning process

 

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