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World crisis
Even the World has problems

The economic world is very unstable now. Biggest problems are coming from USA. Yesterday biggest USA bank Lehman Brothers was declared bankrupt. AIG - biggest USA insurance company is near collapse. And I need not to mention, how many world companies depend on those organizations. And at the moment the market continues to fall…

Everything started with mortgage lending in USA. People had no money to pay for their real estate. Banks started to sell property, but nobody was able to buy. Here started the vicious circle. People can not pay, banks have no money, because nobody pays back loans and real estate is standing without owners. So the real estate value started to fall. People are not able to pay back loans. In the beginning billions of dollars were write off (around 400$ billion). But unfortunately, this was not enough. World was reacting on that situation, investors were selling the shares, bank loan percents started to grow. Now USA has a lot of economical problems, other bankrupt will be declared. This will continue until the real estate market will stop to fall. Government and banks are trying to stop the crisis, by investing more money, but it is already to late. And USA can not stop the problem for themselves, because of the depts.

Now let us look for the Europe and Russia. Europe can only react on world news and activities, because the biggest players are still USA, Russia, Asia. Europe can not do anything by itself, almost.

Russia. Few days also having big problems, and mainly, emotional. Russian share market was already forced to be closed two times, and the new opening time is not defined yet. Fall main reasons are: withdrawal of investments because of the war with Georgia, world crisis, oil price lowering, emotions. War in Georgia- this was a mark for investors that Russia is politically unstable, what is important point for investment(war influence is the worst one). World crisis- Russian funds, banks are connected with world banks also. Oil price- Russia last years economical grow was succeeded with high oil price, because it is exporting it. Emotions- mainly, there are not so much reasons why Russia market should fall. Major part of stock prices are undervalued, what can be proven by biggest banks target prices for shares . Of course, the world crisis is playing the biggest role.

World crisis has good name- it proves that World will suffer.