2 weeks after the market crashed.

Today matches the 2 weeks after the market crashed in the US that led to subsequent slumped in the Asia's markets. Last week, have seen many Central Banks pumped in liquidity in the economy to curb the drain. A week after the crashed, the US Fed Rev announced its most anticipated move, declaring to cut the discount rate in order to curb major loss. It was from 6.25% to 5.75%, and lengthened the term of loans to 30 days. Elsewhere, Central Banks reduced or the least, halted the interest rate rise. The market calmed down but the investors are still loss direction.

The solution offered by the US Fed and the Central Banks is only a short-term measure. The underlying issues which relates to the subprime practice is still far from over. The issue concerns the mortgages and the credit-cards. Due to the subprime practice, the market that offers mortgages and the credit cards were booming before, due the easy loan applications. After the crisis, those who mortgaged their assets started to take out the assets back. This is due to the mistrust to the bank to handle them. Another reason, the mortgage holders are afraid the their collateral will increase higher.

In regards to this, bank really has to pull the trust because, the assets that are being taken back were used for investment. In order to do this, it is then up to the loan lenders to be more strict when approving loans. The issue of credit-cards has always threatened the economy. The inability for the credit-card holders to payback (rising unemployment) the debt adds to the economy suffering.