The result of Sub Prime melt down.

Unbelievable! Bear stearns!

How big is the Sub Prime melt down can be? Look Bear Stearns is a well known ompany in US that unable to withstand the melt down may subjected to buyover by other that are rich enough to pay off their bad debt. If the Sub Prime Melt down cannot be control the economy may fall into recession, it will like Japan's property bubbles maybe the next will be a severe deflation in housing value that may lead the economy fall into a halt.

The present world level inflation may cause by US heavy debt that cause by servere credit creation, too much of credit create will cause economy overheat and may lead to bubble.

What can Fed do? the best for Fed is to create more credits to pump into the market, I mean in present situtation. Unless the Govt. want to stop using Dollar policy and coming out a new curency policy that able to help the economy also able to get once and for all problem solved.

Too much Dollar flowing in the world, too many countries using Dollar as a reserve currency for their saving. there is too many US trading partner that trade with US therefore many Dollar is used. let's hope things can turn around fast.