(Tokyo but not Paris)Maybe a War but Not a Crisis
It is that sharp fall of the Dow Jones Industrial Average that has made ordinary people feel change in the air in the market, the society, and economy.
(Click to enlarge.)The three among the ten largest NYSE stock-price falls occurred in 2008.
Everybody knows now that they were triggered by the subprime loan defaults.
In the source of the above figure, there are some data as of 2007:
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• Nearly 1.2 million foreclosure filings were reported last year, a 42% rise from 2005. That is a rate of one in every 92 U.S. households.
• Colorado, Georgia and Nevada had the nation's highest foreclosure rates last year, according to RealtyTrac. Among the top 100 metropolitan areas, Detroit, Atlanta and Indianapolis topped the list.
• About 80% of subprime mortgages today are adjustable-rate mortgages, or ARMs, that have been nicknamed "exploding ARMs" because they have low fixed-interest payments in their first few years but then usually adjust to higher interest payments.
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Yet, the house purchase is just part of total economic behaviors of a U.S. consumer.
Since late 1990’s, the total U.S. consumer loans have become almost twice larger.
Yet, you need money to buy goods and services.
Since the middle of 1990’s, the currency component of the U.S. money supply has almost doubled.
This trend also reflects a sharp rise of the total debts in the U.S., though it might not be linked with the global warming.
But, to your astonishment, FRB is further infusing money into the financial sector to save the U.S. financial system.
As conclusion, it is time to stop the unlimited and unregulated growth of U.S. money economy.
The subprime loan crisis is just part of it, no matter how crucial it may be.
But, to rescue financial institutes, FRB has to ironically supply more money into the market.
The ultimate crisis might be triggered by the unbearable amount of the total debts of the U.S., if not the more global warming.
(Today, one dollar has been traded at 95 yen in Tokyo, which could be a key to solution to this financial crisis or a trigger for an international money war.)
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It is said that a human body consists of 60 trillion cells.
But, it is still mystery why these 60 trillion cells do not lose bonding force among them and disintegrate onto the ground.
Indeed, 6 billion people on this earth must be integrated by neighborly love but not money.
If the 60 trillion cells are combined together by the love of God to function wholly as a human body, mankind should try to combine 6 billion of its members also through love but not money, since six billion is one ten-thousandth of sixty trillion.
(As the mankind enters the era, economically, where the order of trillion counts, Armageddon might be near, since there are only one trillion times 100 billion stars in the entire universe:
http://www.fukuchan.ac/music/j-folk2/miagetegoran.html )
Mar 10:24 And the disciples were astonished at his words. But Jesus answereth again, and saith unto them, Children, how hard is it for them that trust in riches to enter into the kingdom of God!
Mar 10:25 It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God.