Can someone tell me if Dow Jones's fall will affect the real estate? And what other chain reactions?
What causes the big fall since 9-11-2001?
Thanks!
2007-02-28 02:40:14 · 6 answers · asked by ? 3 in Business & Finance ➔ Corporations
The trigger was a combination of things. The first was the fact that the Chinese stock market fell 9% in one day of trading due to worries that thier government might implement a capital gains tax. The Chinese government denies that they are thinking about it.
The other was the former Chairmen of the Federal Reserve, Alan Greenspan, forcasting a recession by the end of 2007. Combine this with the current slowdown in the realestate market and investors got nervous and pulled thier money out of the market.
It's effect on real-estate is uncertain. Typically real-estate is seen as a safe investment, so in times of big market falls, people put thier money into real-estate because they think it's safer. This drives prices up. But I am not sure that will happen now given the over-inflated nature of realestate these days
2007-02-28 02:52:37 · answer #1 · answered by Louis G 6 · 1⤊ 0⤋
Mr. Greenspan's speech contained a statement that a recession
is possible in the U.S. where a great part of Chinese exports are
sold. Consequently Chinese and other Asian securities tumbled
yesterday morning and heavy selling continued on European
markets and on Wall Street all Day. This morning luckily the Dow
is up more than 100 points so far (11:15 am). If the stock markets continue the major trend which started yesterday in Asia,
real estate prices will be affected sooner or later. If the securities markets stabilize near this level the bull market will continue.
Other chain reactions would be less liquidity and more unemployment.
2007-02-28 11:46:17 · answer #2 · answered by Fred W 2 · 0⤊ 0⤋
The real estate bubble has been a drag on the Wall Street. But the Shanghai market cause the drop on Tuesday. It appears that a global market correction is in play. The market has been on a bull run for so long--that a correction is due. But already are reading into it as signs of a weak economy.
2007-03-01 16:04:26 · answer #3 · answered by chuck h 5 · 0⤊ 0⤋
The Chinesse Stock Market fell alot like 9%
2007-02-28 14:08:26 · answer #4 · answered by Jord 2 · 0⤊ 0⤋
China and US durable report!
2007-02-28 11:18:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋
trigger is when i buy a stock it goes down
2007-02-28 10:48:07 · answer #6 · answered by Anonymous · 1⤊ 1⤋