Credit Crisis. The Short Explanation.

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This document summarizes the causes of the global credit crisis and economic downturn. Excessive borrowing driven by greed, temptation, and competitive pressures inflated an unsustainable asset bubble. When the bubble burst and credit markets seized up, widespread economic pain ensued as home and stock values declined. The author argues for a return to more ethical and sustainable local economies based on innovation, productivity, and meeting community needs rather than endless growth and consumption fueled by debt.

Economy & Finance Business

Credit Crisis. It’s serious. ,[object Object],[object Object]

We had… Economic Growth. ,[object Object],[object Object]

The Pie could grow by: ,[object Object],[object Object]

Sin. Oops. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Same old sins. Asset bubble. Debt binge. Wall Street. With no more suckers at the bottom of the pyramid…

… And with no exit strategy. ,[object Object]

As, we loaded up with debt. ,[object Object],[object Object],[object Object],[object Object],[object Object],There were great expectations , you see.

First, Our Kids. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Competition. ,[object Object],[object Object],[object Object]

Bankers said. ,[object Object],[object Object],[object Object]

Now, Regret. ,[object Object],[object Object],[object Object]

And now got less Pie. ,[object Object],[object Object],[object Object]

Let’s ask thy neighbour. ,[object Object],[object Object],[object Object],[object Object],[object Object]

Money lenders in temples? ,[object Object],[object Object]

If only… we had an ethical guide. ,[object Object],[object Object],[object Object],Greenspan said it was ‘complex’.

The Torah & Koran have something to say about ethics too.

What’s Next? ,[object Object],[object Object],[object Object],[object Object]

But, don’t Envy. ,[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],Well, at least he’ll be warm.

Economic policy is just a theory that hasn’t failed. Yet. Or… not too badly. Speaking of which, this is Milton Friedman. So, Milton. How do you feel now?

But even Economists agree. True Economic Growth is derived from productivity & innovation. They don’t agree much. ,[object Object],[object Object],Image from Lietuvos nacionalinis muziejus (National Museum of Lithuania)

That’s Local Innovation. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Local Innovation. Local Economy. Local Jobs. ,[object Object]

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