The coming worldwide credit crunch

REGULATION FAILURE

The FSA need to be made accountable for the failings they are the reguators of Financial Institutions in the UK and are supposed to be protecting the CONSUMER interests etc

SOVERIGN DEBT

Greek bonds have been written down by 50% since earlier this year so the ECB is living in cloud CUCKOO land over its further PLANS for GREECE

MONEY WHAT TO DO

Spend it by an ASTON with HYPERINFLATION in 5 years you will be able to sell it for more than you paid.

And now the crunch question TJ......... why aren't they implementing this (worldwide) if it's so simple? Is it because as you mentioned the Banks have bought  all the support they require?

How do you see this panning out? Is there no effective way of ensuring that this solution is enacted before we are all further exposed to yet more unacceptable levels of risk? Why should we all have to wait for a further major deterioration that could affect a generation, before anything effective is done?

Why are we all sitting by and letting this happen? It's crazy!

 This thread is just over 4 years old (Aug 07) and i wrote it to try and warn people about what was coming with property, banks and unemployment and depression. Sadly i suspect very few people took seriously what i was saying and many i fear went ahead and bought property anyway. In those days estate agents were a plenty on here and many told me how i was plain flat wrong - with quotes like "property always recovers/ goes up etc etc."

I even went onto threads like " I want to buy a property in xyz region etc" and tried to disuade them.

I mention this because this is part of the answer to the last question you raise. The plain facts are that most people know diddle squat about the economy and whats more they are not bothered to learn. Whilst everything was "good" and the economy was booming on credit and debt based consumption, precious few knew or were even bothered that "free" money does not exist and that it was all going to go horribly wrong.

With a population like this, what is to stop corruption in all forms of power from running amock?

The banks made money hand over fist with the boom knowing full well that when the music stopped and it all went bad, that they would be bailed out by the CBs and the taxpayer and their bonuses would remain intact or increased. What was there to stop them? The people in the UK voted Labour in again and again to do even more damage, despite the fact that they were running the economy into the buffers along with the banks. Are you seriously going to tell me that Brown didn't know that running an economy on debt based consumption backed by ever increasing house prices with the real productive economy and jobs having been shipped overseas, was not going to go badly wrong?

But while house prices were going up and people could watch telly and buy cheap goods from overseas, what did they care for economics and politicians and banks. It was all a bit boring compared to X factor!

Some would say that the people got the politicians they deserved.

Its not even that this is a new phenomena.

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." Thomas Jefferson, Letter 1802 to Secretary of the Treasury, Albert Gallatin 

Fast forward to 2011 and  now you have tent cities in the US and people are homeless.

So we have had the inflation, now we get the deflation and the poverty. This cycle will continue until the general public wake up and start to realise that this is what you get when you leave bankers and politicians in charge when the people are asleep or prefer to watch telly. In Roman times it was called bread and circus to keep the masses distracted. In those days it was Gladiators, now its WFC on ipads and the bread is food stamps.

So what do you think is the answer to your question?

I couldn't agree more with your statements TJ,

"The plain facts are that most people know diddle squat about the economy and whats more they are not bothered to learn. ",

"With a population like this, what is to stop corruption in all forms of power from running amock? "

" This cycle will continue until the general public wake up and start to realise that this is what you get when you leave bankers and politicians in charge when the people are asleep or prefer to watch telly."

Please to goodness people will wake up and recognise that they can't afford to stay asleep, to remain unwilling to learn, to ignore the realities without suffering the consequences. I think many feel it's impossible to effect change however.

 There is this article by this Belgium Proffessor of Economics who clearly described, in 1998, before the Euro came into force, what the consequences would be for countries such as, for instance, Spain:

http://www.econ.kuleuven.be/ew/academic/intecon/Degrauwe/PDG-papers/FT_articles/FT%201998%2002.htm

I think that roles of Banks and companies in society need to be reassessed with its corresponding translation in reform of Laws. That simple.

But laws need to be enforced and adhered to Maria, so sadly it's not so simple!

Thank you for the article. I look forward to TJ's analysis on this!

It's greed that has caused all this debt. At one time you bought a house to live in but now they buy three and hope to sell two to pay for the one they live in. When all goes tits up they cry and cry. The banks never forced them to take on large debt but they did encourage it . Who is to blame for mans greed? Credit cards and 110% morgage, they have lived on debt for far too long let them now live in the mire they have caused. It's the old who lived through world wars and lived on rationing that are the people that deserve sympathy not the greedy so and sos who are in all the debt

 Big and strong leaders, politicians and legislators come!!

You two are like a pair of girls you have absolutely no influence of the crisis and yet it consumes your lives it seems

I suggest you read Stephen Coveys book on Circle of Concern Circle of Influence stop moaning

It changed my life took me from a sad person ,moaning and worrying all the time to a happy succesful person

I love Stephen Covey´s stuff!

 Break Out of the Box

It's only a matter of moments before our time on earth is over. Ask "What is my Work?" Pay attention fiercely, compassionately, and playfully to the deeper patterns of your life. Benefit from my 25+ years of coaching experience: coach@breakoutofthebox.com or 352-374-6916.  

Circle of Concern - Circle of Influence

Of all the good suggestions in The 7 Habits of Highly Effective People, "Habit 1: Be Proactive" is particularly useful when you feel powerless against life's forces. Covey recommends examining what you can do instead of focusing on worries over which you have no control. First notice all your concerns. Then, among those concerns, determine where you can take action:

Agreed, proactivity is all to address the things you can do something about (and believe me there's one hell of a lot of going on behind the scenes in that regard!) , but equally imperative is to stand outside the box and appreciate the wider picture that TJ has adequately exposed within this thread.

In some people's eyes that willingness to learn may well be percieved as "consuming your lives". But it's all part of the same equation and commitment to regaining empowerment. Each to their own of course. But agreed it's important to strike a balance in life, when striving to expand your circle of influence as a means to effect change! Positive distraction is just as important in life, but we don't talk of private lives, so the perspective on forums such as this is often hidden.

Now back to  some proactivity, please take a look at this:

http://www.avaaz.org/en/europe_people_vs_banks_1/?cl=1295163793&v=10491

 found this suprising!

http://www.pagetutor.com/trillion/index.html

 For those interested in a little more detail and i think that should be every decent human being, here is a great short movie into exactly who and what caused the housing crisis.

http://www.zerohedge.com/news/meltdown-part-1-men-who-crashed-world

However i think its wrong to assume that the sub prime crisis was the sole cause, in reality it just speeded the inevitable bust. All booms based on credit expansion turn to bust, as history shows this happened in exactly the same way long before sub prime was invented. Of note is Brown's light touch regualtion that was key to the UK's role in this.

I have to symapthise with haydnj's view that it was all greed, the blame between greedy lenders and greedy borrowers is morally difficult to share. However banks and governments are now running up huge debts to paper over this crisis and save their euro disaster without any consent from the public. Debt is now being piled onto debt with no vote of confidence from the public as we in the UK gradually lose power to Brussels. 

Don't read it then and get off the thread, do you actually mean boring or are you unable to understand.... thats nearer the mark I think.

I find it very interesting and at the same time it should worry all of us !

Take a look at this:

http://www.simplynetworking.es/news-8371-31-former_head_of_cambank_faces_accusations_of_fraud.html

Looks as though this was only picked up since BOS took over control of the CAM bank.

Begs the question who monitors and controls these Banks in terms of effective inbuilt EXTERNAL auditing procedures etc?

By the way TJ, dare I ask is there a part 2 to that video?

Dear All,

the truth is revealed by the single word stated - FRAUD........

AND OF COURSE FRAUD IS INVENTED BY GREEDY PEOPLE OF ALL KINDS.

so when does a little exaggeration become downright SPIN ????

professional crime is the world's growth industry............all professions are at it.

Justin has met it in mechanical engineering, I meet it in construction and surveying particularly where insurance companies pay "loss adjusters", Faro meets it with lawyers as I have done with the Spain debacle.

The "big C" is everywhere.

Regards

Norman

 http://www.zerohedge.com/news/meltdown-part-2-global-financial-tsunami