Credit Crisis The new disease of 2008

Creditum krisis – The Global Disease of 2008

The economists are on the verge of a nervous breakdown… And some media think that the economy might be too!

quot; The economy was in deep pain even as the government pushed forward Wednesday with its latest financial rescue plan to exchange taxpayer money for stakes in the nation's banks . quot; October 16th, Associated Press

quot; President George W. Bush reassured Americans on Saturday about the long-term health of the economy, insisting that the United States is still quot;the best place in the world to start and run a business . quot; Agence France-Presse, October 18th

quot;…still, credit - the lifeblood of the economy - isn't flowing freely by any means. quot; Los Angeles Times, October 18th, Tom Petruno

Let’s put our white coats and see how economy is. really

First, let’s see the symptoms

quot; Since January 2008, owners of stocks in U.S. Corporations have suffered about $8 trillion in losses quot; Which would cause anybody a major headache! Source : En.wikipedia.org/wiki/subprime_mortgage_crisis

quot; The year 2008 as of September 17 has seen 81 public corporations file for bankruptcy in the US quot; Already higher than the 78 in 2007! Source : Formaementis.wordpress.com/2008/09/26/economic-crisis

One of them was created in 1850

What caused such a global, international disease? Should we talk about contagion? Epidemic? Pandemic?

Our system! International corporate executives and traders made about $100 Billion of income… while losing more than $1 000 Billion.

Who’s money did they lose?

Which pill did the Government gave the patient? The patient, a.k.a. The ECONOMY

The American Government gave this treatment: Injection of $700 Billion to purchase troubles mortgage assets and contain financial crisis

$700 billion Is, ironically, almost the same as the Department of Health and Human services budget for 2009 ($736 Billion)

Enough about economy’s health What about the people?

What about the 159 000 people who lost their job in September? http://en.wikipedia.org/wiki/Image:Homeless_-_American_Flag.jpg

What about the 6.1 percent of people who are unemployed? Unemployment rate in the United States is at 6.1, highest level since September 2003

What about the families who are losing their house? As the house prices drop, the families wealth declines

What about Lehman Brothers shareholders and its 26 200 employees? Who’s going to pay them? Who’s going to find them a job?

What about the families and people who can’t afford food prices raise? Prices raised because of financial speculators seeking quick returns.

Is someone talking about THEIR health, their lifeblood and their pain?

After 8 months of consecutive job losses, it’s called a recession… If I am right, it has been 5 months. In the event of a recession, how many people will be below poverty?

Who will pay the families who lost money because of hungry traders and business executives ?

So, can we recover from this Global Disease?

Yes, we can.

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Credit Crisis The new disease of 2008

by Nancy Frenette on Oct 21, 2008

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Credit Crisis The new disease of 2008 — Presentation Transcript