Wow, even though this topic won only the 6th place on the favorites list, it has originally been suggested by four of you, Luke, Han, Roy, and Shangyan.
Also, the following articles were selected for us to read:
http://www.actionforex.com/fundamental-analysis/weekly-forex-fundamentals/economics-weekly:-financial-and-economic-crisis-getting-worse-2008120871299/,
http://www.marketoracle.co.uk/Article7099.html,
http://www.techcrunch.com/2008/09/26/the-us-government-engineered-the-current-economic-crisis/,
http://www.spiegel.de/international/business/0,1518,578944,00.html,
http://www.independent.co.uk/news/world/americas/usa-2008-the-great-depression-803095.html,
and http://www.moolanomy.com/866/what-caused-the-financial-crisis-of-2008/.
Some of these sources are shorter, others longer. I would suggest for everyone to read a minimum of three of them, picking the ones that you consider the most interesting for you. You are welcome to read all of them, especially that some provide good visual aids for a greater understanding.
Your task is the same as for the previous posts with a deadline of Sunday, March 1, 2009.
Take care,
Kinga
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15 comments:
The currency crisis right now was a horrible event. I have lived through one, back in Indonesia. in 1998 there was an economic crisis very similar to this one in America right now. The extent of the damage, monetarily is similar. People lost jobs, money became an issue with just about everyone. What struck me most about this event happening now is that how could we repeat the same mistake again? I can't believe that hundreds maybe thousands of fully educated and trained professionals whose job is to understand this economic structure made such a massive mistake. It is sad actually, how a country can make the same mistakes. Apparently, we don't learn from history. we lost sight at the past when we look too far into the future. I just hope that this kind of mistake doesn't happen anymore, or at least not soon.
What I’ve noticed about this topic today, is that it’s not as controversial as used to be three months ago. People apparently seemed to have come to a consensus that the world is now going through an economic recession. But it is only normal that the world is going through this phase right now, because I believe that this is the cycle of life. Whatever goes up must always come down. And that is done to maintain balance in life and the world. The economic field is like a game. People keep winning for sometime until they run out of lick, and they get kicked out. Then it ends up being time for the young generation to take part in this game and go through the same cycle.
What’s really sad about this crisis though, is that there is no person in this world that would not be affected by it. It only depends on how bad you’re going to get hurt. You may either lose your, your fortune, or you may just have to cut off some expenses on luxuries. But what’s important is that people should learn form their mistakes and lead by example. People live the present and study history to predict the future and its content. So, if the people do not get anything from what’s going on around the around, then they have proved themselves as both stupid and useless.
Economic crisis is not a foreign term for Indonesians. Young adults that born after 1990 will know how the booming economic conditions in Indonesia suddenly changed abruptly to a disastrous crisis and then led to the riot that included massacre. It was starting from small things that we did not care so much in the past such as the social gap between the different ethnic groups, the level of unemployment and the progress of the exploitation of resources by the foreigners. Indonesia was too dependent on the economic theory on how to deal with economic crisis and too complacent when the signs of the crisis was already observed in 1997, due to the booming economy. The result is the slump in the living condition and the deteriorating standard of the people of Indonesia. However, if I see it in a more subjective way, it is not he fault of the government totally, but rather because of the Indonesians that are suffering right now. They are lazy. They only complained about the social gap, blamed this to the government, and protest. Some would even ended up doing crimes. It is the nature of the people, as economy is about behavior of the people. If the people can change the mindset, not to be lazy and to blame others, I do not think that the economic condition right now will be a crisis for m,much longer.
Economic crisis is one of the major problems that more or less each and every country has in common. The smaller countries worry on the smaller scale while the bigger nations with the rest of the world staring at it, face it as a larger threat. An unstable economy is something that every country fears, as over it depends the next 10 years of the country's future. It will determine how the people will live, how the country will prosper and on what grounds the country will stand. Coming from Bangladesh, a country that faces a constant crisis in its economy, I would say, life is hard. People live on incomes below the minimum wage, the education provided to the next generation is bound only within the metro politon areas leaving out the children in the rural villages; unable to afford anything, health care is as bad as it will ever get. Therefore if anything is to be done regarding this, it is now, before it is too late. We need to correct the mistakes we make and set things right. As someone once said, it is never too late to do the right thing.
The current economy crisis caused by sub-prime mortgage loan. Since housing market was so hot in last few years, people borrowed money from bank and since bank got nothing to lose they let their customers to take that money and made a profit. However, since housing market's bobble went off, people were unable to pay their loan. Finally, banks and some insurance became unable to pay their loan. Since most of sub-prime mortgage funds are from Japanese’s bank, currency also goes also crazy. Yeah, we are in crisis and pretty much all of us are suffering now. We as an individual can do nothing; our small greedy became a huge monster and came back for revenge. Our only hope is government’s involvement. Since these sub-prime mortgage problem needs to be handle first, government should aid them. Also we need to find new way to investment our money other than funds and stock market. Those market is good and valuable but not for average family.
The economical crisis right now is getting worse right now, comparing to the financial crisis in 1997, both of the events had similar situation, the difference was that the finical crisis was about the Asia, and the economical crisis was spreading around whole world. And this time I thought it was really a big issue, all the price of the commodities were raising up. And lots of people got lay off by the companies, the unemployed population were increasing in a high rate every month. Like now in Taiwan, the news always came out with how many people lost their job in this month. The students right now are afraid of graduated from college, because they are scared there are no jobs for them after graduated. For this big issue toward our world, we must have some movement immediately to get rid of this situation. Otherwise, it’s going to take long time to recover.
Recently, the American financial crisis has affected stock exchange and financial institution in many countries around the world. As a result, many countries, such as Iceland, Ukraine, and Hungary have requested I.M.F. relief loans. In addition, many markets in around the world have been more critical to go down of stocks. The world economics have got into a panic.
Many countries are trying to overcome financial crisis each other and to find a solution. By way of example, the central banks, such as the EU and Japan, are trying to overcome in one accord. Also, the central bank of Korea and F.R.B of the U.S decided a swapping currency each other to protect their economics from the financial crisis. The American financial crisis is a very difficult to find a solution. However, we have to know this problem currently and try to find a solution in one accord.
According to common opinion of economists, because of the American financial crisis, the central of world economy that are the U.S for the present, move on other economics market before long, such as China, the EU or just London market. The American financial crisis is world economic trouble, so all countries have to try for economic stabilization of the world in one accord.
The current economy crisis is a disgraceful event that eventually will hit all of us, maybe we don't feel it as much because we are still students, but I am sure our parents do, even if they got prepared for it. What's funny is that I was talking about this with my dad the other day, before I read this new assignment. My dad is the electric cables business, and he has to be aware of how the copper prices variate every day. He told me that he previewed the crisis like a year ago, and that he started to watch his investments to be prepared for what would come next. Now, he is handling the crisis a lot better and his business is still generating profit. What is true that i've also read in the other comments is that the cycle of the economy has its up and downs, and that eventually the economy had to go down in a hard way. What has to be done is to be more careful with spending and doing it smartly. History has to teach us from our mistakes, and lets hope this one won't happen in the future. Lets remember that after the storm, the sun comes out.
Economic crisis is such a professional topic that as a freshman, I cannot analyze the reason and the course. But as a consumer and a citizen, I can strongly feel the influence of it. It is so horrible that thousands of people lost their jobs. Half a year ago, the price for a Gallon gasoline was over $4, but now it is only $2. This phenomenon means that people can no longer afford the price of gasoline and other things. After I read the articles, I have a brief idea about the cause and the course of this economic crisis. Subprime mortgage is the arch-criminal of this economic crisis. 10 years ago, there was too much money held by banks and government. The Clinton administration found a new way to get more loans to those who were not qualified. Subprime mortgage appeared. It was quite a safe way if every could operate it in a right way. However, because of the attraction of high interest, some people repacked the bad mortgage and sell it as many other derivatives which laid the cornerstone of the economic crisis. Since rate of the development of economy decreased, many people could not pay the mortgage off on time. The housing market fell apart which caused the other derivatives to collapse as a chain reaction. To make things worse, the size of the derivatives was out of proportion which means that there was no way which can fill up the deficit. It is like a chain that if one joint of it is broken, all the other joints fall apart. The businessmen of wall street should rethink this fail profoundly.
Everyday I turn on my computer I can see currency changing every hours. The currency of dollor has went up way more than few month ago.Because living expences are sent from Korea, the money that I'm spending in US cost much more than when I first came to purdue. Since US doesn't have money in the bank, it takes money from other nation. So the economy crisis of US is not just promblem for them but also other country as well.
Like the phrase, history repeats itself, the depression can may be happend. The thing is that did we learn something from the great depression. I just hope the same thing doesn't happen again and wish that this time the government knows what to do about it.
People say that it's the worst economic crisis we have ever experienced after the Great Depression. I don't really know much about the economy but I think I know the reason how did the cnonomy get bad. It's because people always want to have more than others have. People of this greedy mind come up with ideas of taking away others' properties in legal ways and actually take actions for their ideas to have more than others. Governments are always one or more steps behind them. This cycle has always existed in any time of, and everywhere in our history. Money is a definately big issue for everyone in this world. I understand and agree the fact that we can't live a proper or normal, I would say, life without money. However, does money really necessary be the number one concern in our lives? I believe there are so much more valuable things than money around us. Money does not guarantee a happy life. I hope every one in this world keeps this in mine
It has been a while that people and Tv media started to talk about the great economic crisis. The current economic crisis is global. My country. south korea is also heavily influenced by the current economic crisis. The dollar exchange rate rises a lot. Therefore, dollars became really expensive. My parents want me to save money becasue they have to pay a lot of korean money to buy me dollars. Besides that, the current economic crisis did not really affect my life, so I did not realize this is that bad problem.
However, the second article says it is worse than the great depression. In my high school us history class, I learned that a lot people suffered. I saw many pictures and information about how bad the situation was. I cannot believe the situation now is worse than that. We need to take more ground breaking action like "new deal" program.
The global economic crisis has been around and been a hot topic among people for quite a while and more and more evidences of it's presence can be feel and tell from lots of aspects of our daliy life. From the gas price to the photo-equipments price, from the deficit of SONY to the bankrupt of circuit city. Though the so-called experts and politicians have been saying they are looking into and trying to solve, or at least relieve the criss, from my prespective of view, nothing has achieved by them and the situation is of course getting worse and worse over time as well as the number of involved country and industry is rising at an astonishing speed.
Of course, as a fresman in engineering, I've got no clear idea of neither the reason of this crisis nor the suitable way to really address it. But I've heard that the origin of it is somewhat related to the credit system here in the States, it is because of the amount of unreasonable loans is too big for the banks to handle and the bankrupt as well as deficit of some banks that initiated the chain reaction which eventually casued the global crisis. This sounds quite reasonable and is also my belief.
However, though it is a hard time, we should never abundon hope. I do believe that everything will be okay, some day in the future!
I’m not very clear about what causes this economic crisis we’re currently suffering. Nevertheless, it has brought a lot of changes in most people’s life. As far as my family is concerned, my father sometimes complains that the exports of their company are getting less and less. Most companies in my hometown are undergoing tough days. What they can do is to save money as much as possible. Some companies have started to reduce the staff and daily spending. Some small factories were closed in my hometown and some foreign capital corporations were also suffered from the crisis. Some foreigners have to go back to their mother countries. It was said that 2 million mobile users (most of them are not native) in my hometown are currently not in my hometown, which meant that the majorities have to leave due to the economic crisis. The crisis made people learn how to save money which is the only benefit that I can think out.
America is a leading country and has their crisis is really effected the economy of the world. America economic crisis is almost the same like world economic crisis. This crisis is really dreadful and i've seen this crisis almost the same like the crisis in my country back there in 1998. But our country has the worst crisis in my mind because during the crisis the capital city of Indonesia which is Jakarta is in chaos. Everybody or maybe homeless people is everywhere. They broke glasses and burn some building. It's really a chaos. America crisis is really bad for everybody and it also effected to the university student who seek for a job. As nowadays i came to several job fair and usually they don't hire more people and just asked to apply online. This crisis is really reduce the job employment.
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