Thank God for this topic been raised, first and foremost the problem of the credit cruch was caused by prisendent bush administration....his urge spending on iraq conflict, he spend hell lot of money on the war against sadamm and also on alqueda, bin laden saga....this monies was from the US treasury...Now banks no longer have more credit to loan to each other, they are short of cashflow..business men can get loans from bank if they manage to get the interest rate is above normal.this banks in wall street has crumbled because of the mutiplying effect and the burden his passed back to business men, working class etc.When business dont have enough credit in thier disposal they can have monies to spread arround i.e creating more jobs....so on the interim people has to loose their jobs. i was listening to sky news few days ago, about 20% of jobs has been cut down.....Now the bail-out of 700 billion dollars has no effect at all...banks in the UK has gotten their fair share of the problem...just three days back....icelandic banks drop by 10% of thier capital inflow...you know what that means...your guess is good as mine. Here in the UK that i stay investors are loosing thier savings on stocks all because of the financial difficuties the world is facing right now.... ECONOMIC EXPERTS HAS FAILED IN THIER PROJECTION....ANYWAY IT IS A WORLD RECESSION....ONLY GOD CAN GIVE IDEA OF A BAIL-OUT, NOT OBAMA POLICIES CAN SOLVE IT NOR MCCAIN PHILOSOPHY OF GOVERNANCE. |