Global Credit Crisis

This is one of the most talked about topics nowadays so I would just like to briefly shed some light on this topic.

The Global Credit Crisis actually started quite a while ago when the stock market started declining steeply around 2000. To limit the damage, interest rates were lowered to promote consumer purchasing and so because of the low interest rate every started buying things on credit. Mortgage bonds payment became cheap and so the demand for property increased. Eventually people started having problems paying back those loans and defaulted with payments. Strangely enough the mortgage loans were still given out at the low interest rates. Eventually the banks were in such financial trouble that they repossessed items and some even merged to stay afloat. Now everyone is scared to lend and the economy is suffering from lack of credit. No one is liquid, nothing can be financed and people are suffering for the mistakes of those who are supposed to "know it all".

My thoughts always boil down to "did no one see this coming?" Top banking and business executives, earning way more than the ordinary person earns in a lifetime, are too busy sitting in their nice offices and strategising - which is just another term for solitaire and leaving early to play golf. Now even though they are feeling the bite as well, it’s nothing compared to the worker who just got laid off because his employee can’t afford to keep him due to bad business. What does he tell his wife and 2 children that he has to provide for? I’m sorry but it’s the global credit crisis?

But on a lighter note at least fuel prices are low :-)