When will financial crisis end?

No one can exactly foresee the end of financial crisis. It is also hard to predict the end of mass unemployment, cease of multiple bankruptcies and the quietus of chaos currently reigning over banking sector. Still there are some things that are known to all. The crisis will end. Though we cannot know the exact date, there are signs which foretell the beginning of the new cycle of global economy.

The future forecasting is similar to lottery, where at best one might know the probability of wining. Different experts have different opinions concerning the signs that signalize the end of current cycle of global economy. Thereby in this article we will review only the most significant indicators.

1. S&P 500 index should incur a further rise. Index started to rise in March, but the experts claim that in April it will hardly exceed 1000. The rise of prices in stock markets exhibits the changing in public opinion concerning the recovery of economy.

2. The unemployment is starting to reduce. In March the unemployment level in the U. S. have risen from 8 to 8.5 percent. During the recession which started in the December of 2007 5.1 million people have lost their jobs. The creation of new workplaces is the indicator of a healthy economy.

3. It is vital to soften the real estate loaning conditions. But what if it leads to another crisis? That’s a different question, but the conditioning of loaning could help improve the demand. With the improvement of demand the construction business could restart, thus creating new workplaces and investment projects.

4. Real estate should sustain further decrease in prices. No, experts at News.World-Estate.com are not mistaken – the real estate value will decrease based to the experience of different countries. The real estate prices incurred a rise in prices only after two or three years after the economy has reached its bottom.

The experts claim that the real estate crisis will not be over until 2012 and that the prices should sustain a further downfall. After two or three years the rise in prices should be slow but constant.

Some investors allege that the golden days of the real estate business will not be back for another twenty years. They propose to look for more profitable and naturally more risky investment alternatives.

A short historical review. Upon remembering the past events of depression in 1929, we can make a conclusion. Regardless of a large downfall, the U. S. economy has incurred a rapid boom after the depression ended. The same scenario is likely for today’s situation and that should provide new investment possibilities.

If the recovery of stock markets is predicted in this autumn, the recuperation of real estate market is anticipated only in 2011 or 2012. Those who plan to invest in real estate shouldn’t make hasty decisions and observe the market.