Subprime Crisis, Bank of America and US spiralling toward recession

Despite emergency measures from financial institutions such as The Bank of America, the US subprime crisis continues to drag the American economy down into a recession.

Many feel that the fact that China is refusing to relax its currency policy its affecting the US economy, but market analyst Sam Kirtley of The Gold Prices Newsletter thinks differently:

“The reason that we think a real estate crash is coming is that the US housing market has been over inflated by easy credit and the Federal Reserve printing masses of dollar bills. The real estate boom is a bubble that is about to pop and when it does, the US will go into a major recession and gold prices will soar.”

Donald Straszheim, vice chairman of Newport Beach, California-based Roth Capital Partners has said:

“Losses in subprime will solidify China’s resolve to go slow on financial and other market reforms to the dismay of Secretary Paulson, the U.S. Congress and others in the West that believe China’s financial system remains its weakest link and that market forces work best”

Where do you think the US subprime market is going?

What is going to happen to the US economy?

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