1) The housing market crisis is brewing again.
Payment difficulties for those who have taken out jumbo loans have increased in the USA. And those kinds of loans are taken for housing. So those people are bought homes, but then they cannot pay their loans back to the bank. That thing causes problems.
Because even if those homes are foreclosed for banks. That thing doesn't mean that the bank ever gets its money back. Banks must sell those apartments. That there is even a possibility to get the money back. And if nobody offers enough the rest of the loan turns to bad debt. If there is enough bad debt that can cause bankruptcy for banks. That causes bank crises. And the trust in markets is gone.
When that loss of trust in economics happens in a large- worldwide economic area or area that has a big influence on the world's economy, it can cause the situation. That this area pulls the entire world into an economic downturn with it. The fact is that a financial boom and an economic upturn cannot continue forever. There is always an economic downturn after the economic upturn.
The housing market crisis is one of the things that cause problems for the economy. The problem is not that the housing flats are not produced, or they are not produced enough. The problem is where to get money for funding that thing? If there are lots of housing squares the price of those housing squares is decreasing like in all other forms of inflation. One of the reasons for the housing market crisis is that when people are made money in the town they want to move to own house.
And the thing that makes this thing problematic is that when those people's children are getting cheap land area they are not willing even to move to towns. That leaves the apartment buildings empty. When only a few people are living in some apartment buildings that rises the costs for single people.
When some people are buying a new flat there is the possibility that they cannot sell their old flats. And that causes problems in the financial business. If people cannot pay their loans that thing turns into bad debt and falls to the state. The thing is this. The problem with housing squares is that no one wants to pay those housing squares. If government produces the flats for the people and pays for those flats that will not bring any money to the state.
2) Domino effect of the raw material.
When the need for raw materials is rising that means the production cannot fill the hole. So the raw materials must produce in new areas. And some of those areas are politically unstable. The thing that makes producing raw materials complicated is that people would not accept things like slave work. Also, things like guerilla movements are controlling some raw material sources.
And that thing causes also political problems. Buyer of those raw materials acts as a supporter of terrorism. But the fact is that things like lanthanides that are important in high-tech products are not very common. The resources of Earth are not endless. That's why decreasing Earth's resources can cause a collapse of the economy. And the race for decreasing natural resources and food is causing conflicts. When one raw material is ending that thing causes a chain reaction, because some of those extraordinary metals are needed to produce other metals.
3) Death spiral of Euro-area.
When demand is falling that brings pressure to raise prices. The reason for that is that entrepreneurs must replace the lack of the incoming money that they can pay for their expenses like raw materials and business premises. The problem with that is that can cause a situation where the customer's loss increases.
The death spiral means an effect where lack of customers is causing the rise in the prices. Then that will cause a chain reaction where the new prices are banishing more customers. Sooner or later the price of the product rises so high, that nobody buys it anymore. And they are starting to look for alternative solutions.
4) China's expanding problems.
China is one of the biggest marketing environments in the world. But the major problem of that nation is that the regular people have no money to buy things like mobile telephones. The fact is this. Even if China is a big economical area that area is not endless. There is always a limit when people will not buy things like tablets and mobile telephones anymore. And when the demands in that area end, China is lost. That thing affects the entire world and its economy.
The biggest problem with China is that it's not an open nation. There is hard to get confirmed information about the economic situation in that country. And the second problem is that the Chinese authoritarian government makes people afraid that something happens to them. The authoritarian and corrupted authorities are the thing that can cause many problems for people who are visiting those countries.
Another problem with production in China is that people are awakening about the freedoms and merchandise products in the country, which is very authoritarian and is negative marketing for those products. And another thing is national security.
The aggressive willingness to expand its territorial waters, especially in the South China Sea causes other governments to want to limit the production of mobile devices in China because the Chinese military can get benefit from those products.
Because only a couple of words against the government cause arrest there is always the possibility that somebody has written something on social media in the name of the person who visits China. And that thing causes problems. Also, there is the possibility that the investors are losing their investments. Because authorities seized that money.
But also things like the possibility that the government's attitude to companies is turning negative. The fact is that those governments like large-scale companies. And they don't support micro-entrepreneurs. That kind of thing means that China is not a very promising operational area for start-up companies that have no relationships with authorities.
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