This is a discussion thread · 4 replies
A generation ago before the miraculous invention of internet and the Pentium 4, no one could have foreseen the outcome and impact of information age produced by these two inventions and the course of human evolution they have altered. They practically had changed the way we live and how business transactions are done today. The tandem becomes the standard household necessity. World news and information which would have taken weeks to travel from one country to another; and may take months for the people to learn about it from word of mouth, now is instantly available on the Internet. The old world was evolving at a much slower pace. When disastrous events, like the tidal wave of Wall Street happened struck a few days ago and the unfolding banking crisis would take many days for the shockwave to reach the ears of the people many thousands of miles away. But today, nearly everyone will learn about any event regardless of its nature minutes after it happens. This morning, the Nasdaq’s 100 point avalanche has set off the world stock market to sell of. Investors were learning the bad financial news on the internet. The world wide sell-off has begun. The sell-off was carried out internet almost instantaneously by people from anywhere in the world, at home, or on the go. All they need is a laptop and WIFI coverage . The impact of the Wall Street plunge is far-reaching and unprecedented. The collapse in the banking system has already weakened the confidence of people around the world.
In the 1930’s the depression was devastating to the
Living in the information age, everyone is vulnerable. The worldwide banking crisis has already caused the tightening of credits which small business depended on, and constricted the flow of currency and therefore choked the world economy to a squeeching halt. Every government of industrially developed country has pumped billions into its banking system to assure the continuous liquidity of currency to prevent withdrawal frenzy and normal business transactions. An average person may not comprehend the enormity of a “trillion” dollars, but that was how much money evaporated into thin air on . Who knows how much is lost today with the Nasdaq down 140 points at this minute!
Looking forward, the “bailout” will cost 700 billion dollars in the form of future debts to be paid by many generations of American tax payers. It’s unfair and it’s criminal for those who are responsible to get away with no consequences. It’s not an accident and it should not have happened. The fact that the crisis it’s here and its impact is affecting everyone, what can we do to protect ourselves?
Some nice points, but I'm not sure we can apportion any blame to the internet or the 'information age' for the current crisis. I worked for 18 years as a money broker pre-internet days, and news travelled just as fast. There was also electronic dealing then too.
Remember that when shares fall, the money is not lost, it is redistributed from the paper value of the share into the pockets of the sellers, so no money is actually lost, there is still the same amount of money in the system.
I agree with you that financial institutions should be held accountable for their actions, and it does seem wrong to use public money to keep them afloat, however, the alternative of letting them go under would have such an adverse effect on the public that I feel there is no choice. The current crisis will have far-reaching effects on economies throughout the world. I for one am not convinced that the $700bn will solve all the problems, and I think things will get worse.
As for being affected by it. I do not dabble in the stock market, so I have no fear there. I am, however, affected by exchange rate moves, and I watch these closely.
At the end of the day there will be winners and losers on the market, the only question is where will the winners keep their money (will there be any banks left to deposit in?) and what will be the value of that money.
Very very worrying times indeed - I see more credit defaults, manufacturing declining, companies going bust, unemployment rising. Sorry to be the prophet of doom, but I can't see, yet, anyway of turning things round.
The leading American socialist George W. Bush has devalued the entire United States. The present economic crisis is a culmination of his policies, which have cost the American taxpayer dearly, and as the crisis has spread across the world, the whole world has been hit.
Even in Sweden politicians are talking about changing laws concerning banks and banking in that country. The kind of socialism that has occurred in many western countries (= the bailouts) is illegal in Sweden at the moment. Iceland is more or less bankrupt as a country, but that doesn't bother people in big countries as Iceland's population is only 320,000.
Some may be interested in a Norwegian researcher's predictions. Johan Galtung said in the late 80s that the Soviet Union would collapse in 10 years. Everybody laughed at him, including Americans and the Soviets themselves. In 1991 no one laughed at him.
In the late 1990s Galtung's prediction was that the United States will collapse in 25 years. When George W. Bush was elected president, Galtung changed his prediction to 20 years. That leaves about 11 to 12 years left for the country - if Galtung is right. I am not making any predictions, I'm just a keen observer myself.
Timothy Garton Ash sees a better future for America, though:
As for the decline in American soft power, that is something for which George Bush was directly to blame. His arrogance, his unilateralism, his insensitivity, his long-time denial of the need for urgent action on climate change: all fed directly into the plummeting credit of the US around the world. It would have been a different story with a different president.
For years now, we have seen those who hate the US abusing and burning effigies of Bush. The truth is, the anti-Americans should be building gilded monuments to him. For no one has done more to serve the cause of anti-Americanism than GW Bush. It is we who like and admire the US who should, by rights, be burning effigies. But now, at last, we live in hope of a better America. - The Guardian, September 25, 2008
If you like, you can read his column [url=http://www.guardian.co.uk/commentisfree/2008/sep/25/georgebush.republicans ]here.[/url]
I posted the last thread because of my concern over this unprecedented crisis which not only affected me, surely, everyone in America as well as those living in economically developed countries in some indirect ways. I can comfortably say that I am a good planner. People told me I was crazy thinking about my retirement when I was in my 20’s. Crazy or not, the answer is in the outcome. Those who partied and had fun for the past 15 years will have a tough time catching up for their retirement. My wife has a great influence on my life. She has an extraordinary skill for planning and I learned it from her. As a results, we are in good shape financially, even with the recent losses, we are still on track with our future retirement plans. However, it’s heart wrenching to see our 401k contribution for the last 3 years vanishing practically over night. I was thinking. How could so much money vanished so fast in the financial world and where did it go? What if this crisis happened in the 70’s when Internet and Pentium computers were not available. Would it then slow down the bleeding ?. The irony of this is, mankind invented these technology to supposedly improve his life but did he? I have no doubt, the technologies had contributed in some way to the outcome of the severe bleeding in the financial world globally this past week. Can I blame Bush, yes. He has been the captain at the helm this past 8 years. He is recklessly spending tax payers’ money to the financial black hole.
He is in my opinion a financial moron, and please excuse my anger. But, he couldn't have done all the damages alone. The democratically controlled congress is the check and balance which supposed to keep him in check. The lack of supervision on the financial institutions, the greed of the speculators in the stock and housing market, the fraudulent loaning practice which is the biggest wound and the corrupted ’s are the main ingredients for this crisis. From the non-professional standpoint, I see a stagnant economy for at least a year. Large number of layoffs is inevitable. Household spending will be scaled back, corporate earning decreased, factories reduce production and so the vicious cycle is set in motion. The sad thing is, we have 2 presidential candidates who know and show very little in the way of solving the problems faced
How we would wish this were only a nightmare
The crisis is at our door step, are you prepared
You’ve done the right thing and joined the 401 K
Trying hard to safe for the those retirement days
How are we to know this is The
Financial world collapsed, our confidence fades
Banks fallen one by one like the domino cards
Watching our future disappearing broke our hearts
Who is to blame, where did we go wrong
Lehman Brothers and , the list is mile long
Can someone help to answer this question?
Why ’s are paid millions for the destruction
Of our banks and insurance companies
Instead of getting 20 years in penitentiary
How many mistakes can one country afford to make
Time after time, we seemed to forget our mistakes
I hope we can dig our way out of this latest one
The way it looks, I think the nightmare has just begun
People are waiting to help.
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