(1) Bubble increase of the housing industry.
Following is the background of Bubble increase of the housing market.
Easy Money Policy of FRB(Federal Reserve Board)
In the housing industry of USA formed mortgage-system, the interest-rate is the factor that decide market price and adjust the demand and supply of the housing market, and also is main channel of currency policy.
After 『dot-com
A case of interestrates rise, but bond prices fell.
Interestrate changes impact on bond prices in the different economic conditions.
Base interestrate raising when uneasily economic conditions can getting decline in market interestrates.
When market interestrates decrease bond prices has increases.
Therefore, when interestrates rise, sometimes the price of bonds rises.
In addition
the net cash flow in the CFS from one year to the next should equal the increase or decrease of cash between the two consecutive balance sheets that apply to the period that the cash flow statement covers.
e. Check the main accounting policies of your company. Choose one interesting/doubtful accounting policy. Then, comment on the chosen accounting policy.
Policies of three
1. Limitations of economy supporting by financial, interestrate policy
Budget deficit, quantitative easing did not worked
2. Export for survival
Increasing worries about double deep
Beggar thy neighbor policy
3. U.S strategy – Election on november
a. Macro Economic Indicators (ex. GDP) : GDP ↑ → Currency↑
b. Capital Market : Money Supply ↑→ Currency↓
c. Government Policy : InterestRate ↑→ Currency↑
Japanese Yen surged by 4.6% to 80 yen per dollar just within minutes on Wednesday in practice and it was the biggest move in history
Insurance companies and many other Japanese Companies withdrew their foreig