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10 reasons for the financial turmoil


									10 reasons for the financial turmoil
10 reasons for the financial turmoil
   Recently, the U.S. financial crisis has led to global financial turmoil, the crisis led
to unrest, instability panic. Publicity of this financial crisis media coverage and
comments made at great length, called upon States to take emergency measures
"to rescue the market." I can say on the economy, "a
piece of shit do not know," but there are two articles in my book review
deep touch, seems this global financial turmoil came to realize something. I travel
next week, now these two articles are summarized below, to share with you the
Friends of Bo.
First: "10 reasons for the financial turmoil"
Singapore's "Straits Times" article on September 21
   ?1. Begins with easy credit and housing bubble. In the U.S., since the last century
since the mid-90s, extremely easy to obtain housing loans. As easy credit caused by
low interest rates, house prices from 1996 to 2006 soared by about 85%. Buyers by a
low interest rate (which was later "adjusted" to a very high level)
low-interest loans under the temptation.
   ?2. Investment and mortgage-tied. Housing bubble with mortgage-related
investments spread to the banking industry. In the housing market boom, trillions of
dollars worth of mortgage loans were entered into Touzi products, investors receive
the promise: They will get loans repayment income. These products are designed for
banks, and then to buy and sell. In the property market boom, their interest payments
than other types of assets, higher, so banks around the world has tried its best to invest
into these funds.
   ?3. Mortgage loans extended to the secondary market. Faced with this demand,
banks started to provide loans to high-risk "subprime"
mortgages, many lenders no proof of income. When prices rise, this is not a problem.
Sellers benefit because the owner can, so foreclosure or a low risk of default. Then the
bubble burst.
   ?4. The housing market depressed the value of the banking book assets shrink and
loss. Once falling house prices, mortgage arrears and the proportion of foreclosures
surge. And the investment value of bundled mortgages began to fall. Forced many
banks to write down mortgage-related investment book value, resulting in huge losses.
As the housing market slump Shangqie no end in sight, it is not possible valuation of
these assets because their market has disappeared.
   ?5. And then developed into a credit crisis. Banks desperate to raise new capital,
but to attract new investment has become increasingly difficult. At the same time, as
banks are by no fear while also lending more and more shunned, they began to tighten
credit. Other low-cost loans to businesses and individuals have gradually disappeared.
   ?6. The lack of government regulation. Since the late 90 century, the United States
to relax the regulation of banks and securities firms, banks and securities companies
can legally subject to a lot of investment losses are not included in the
"balance sheet" so investors know the truth. Regulators should
develop new regulations, but did not.
  ?7. Poor risk management. In many banks, to understand the increasingly complex
investment products, few people, let alone any control.
  ?8. Rating agency errors. Rating agencies were criticized: they reduce the
customer's bank, as its rating issues too slow.
  ?9. Short selling out of control. Short sellers can be faster and greater rate would
have weakened the bank's shares were pulled lower.
  10. Greed.

Second:      "Today's          capitalism     has   come      to     an
United States, "Yale globalization" online magazine article
dated 7 1O
Author: 巴希尔戈特
   ?With the free market economy to a free drop, including a variety of prescriptions,
including socialism emerged. As the Somali proverb says: "There are 100
people around a patient make plans."
"Privatization Fever" evil exposed
   Socialist ideology and the capitalist leaders and those who feel the unprecedented
growth of wealth left behind may be shouted: "could be said to catch
you!" Consensus view is that capitalism and its current free reign of all
social structures Globalization has to end for adaptability. Just as we need in the
ecology and promote biodiversity, economic sectors also need economic diversity.
   Over the years the Nordic countries practice a kind of hybrid model of socialism
and capitalism, they have obtained the advanced education and achieve economic
prosperity and to every citizen can enjoy government medical. In many developing
economies and third world countries, the public sector to protect the poor from the
impact of economic difficulties, play an important role. But with the explosion of
information technology, the Internet appears, ". Com" bubble
Jiao Yi, the rapid expansion of the huge multinationals, market speculation Hurricane
Xiang popcorn machine same fast to create wealth for each country were forced to
obey orders, to accept the U.S. free trade global standards, including the privatization
of public institutions.
   Globalization requires the unity of the free market requires the output of some
ultra-modern concept of the U.S. banking system, hedge funds, are not reliable
corporate debt rating companies, mortgage system, and false, "after my
death, which control Hongshuitaotian" movement has occupied the world.
   Public sector, government ownership and centralized management has been marked
"obsolete" the mark. In the frenzy of privatization wave in the
world many countries have thousands of people lost their livelihoods. Everyone in the
world are doing the fortunes of the American dream. But, as every time, as evidenced
by the gold rush, people are heavily in debt and in other people's endless
pursuit of consumerism, while only a few lucky ones can really make a fortune.
?Western leaders to fool the world
   While the interconnectedness of the world has been so close to profitable
investments for the purpose of constantly jumping from one place to another, but it
seems no one took note of a harbinger of disaster will be temporary. The Asian
financial crisis, many Third World countries the central government caused the
collapse of a large number of economic migrants flocking to the rich border, the root
causes of terrorism, Enron's bankruptcy and even the recent surge in world
oil and food prices ... ... ignore these warnings capital Marxism in the
world's elite and politicians decided to attention from the accusations
against them transferred to the ecological crisis of global warming and go.
   Kenya's independence leader Jomo Kenyatta said: white hands and the
Gospel to Africa, they told Africans, God lives in heaven: the existence of Africans
looking for God in the sky, the white in the plunder of their land . The leaders of the
capitalist world seems the same way "entertainment" to their
citizens and people around the world, they promote the threat of climate change,
while concealing a will and made off with people's homes and hard-earned
pensions of large floods .
?Only a handful of the rich system of care for defeat
   Once disaster strikes, the scandal was made public, climate is clearly in a very long
time relegated to a secondary position. The most important issue now has become
even more catastrophic man-made financial "global warming."
Obviously, if you do not take prompt remedial measures, the U.S. financial whirlpool
volume will go in the world economy. In addition to emergency relief are made
outside the critical point is that the current capitalist system should change course.
   Overall view of the world and diversification should be based on a thorough
structural economic reforms, rather than continue to support an aging system. We
need this economy: it is respect for other countries, time-tested financial system, it is
not as shell companies to avoid the third world countries, like Bikai remittance
companies, nor will Arab sovereign funds as 投机者. Such foreign capital is now
urgently needed funds for the U.S. economy ride out the storm. Current man-made
financial crisis herald a new period of capitalism; it indicates the beginning of a major
change. Now, everyone must be clear, if a system not only take care of a handful of
rich people to respect everyone's economic well-being, it will be destined
to end up the same fate.

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