Economic-financial crisis is coming.

America is in a recession.

Economic trouble has spread far beyond the USA to major countries in Europe and Asia.

Some business companies and banks are going  bankrupt.

Yes, you are right, the whole civilised world is aware of this - it is on televison 24 hours a day at the moment and reported in every newspaper you pick up and now we can read about it on TC as well.

Well we have ridden recessions before, and we will get through this again.  I feel no sympathy for the greedy young city folk (on both sides of the Atlantic) who have been gambling through their cocaine filled noses, with money that did not exist, and making millions of pounds from the back of it.  As for the founders of those prestigious banks?  I am sure they are turning in their graves at the activities of their institutions over the past few decades.  Would YOU gamble with ten times more money than you actually had?

Well done to the US government for refusing to bail them out this time.

The stupidity of those financial institutions will affect us all for years - maybe we will have higher bills and less public spending for a while, but they are in debt by billions and have lost their executive houses and flashy cars - and I can´t help but smile!

Bad times also goes away 

October 2008:

Economic Crisis (Financial crisis) in the U.S.

The new hard times in the U.S.

An economic collapse.

USA Dollar 850 billion financial bail-out plan ( An economic resque package) finalized.

Congressional leaders and the White House agreed Sunday to a $850 billion rescue of the ailing financial industry after lawmakers insisted on sharing spending controls with the Bush administration.

The biggest U.S. bailout in history won the tentative support of both presidential candidates.

Will the bail-out work?

They ask : World on the edge?No!

A new age of global capitalism starts now.

And a presidential debate in the U.S. 

A struggle between Mr.Barack Obama and John McCain.

Mr.Cool vs. Mr.Hot.

The presidential candidates see the world very differently.

Mr. Obama will win the election?

What will happen to the world economy?

We´ll see it.

nothing will not  change on world unless riches and capitalists never learned value of sharing....

 I think a more fundamental answer is "don´t have what you can´t afford" and that does not mean don´t borrow, but only borrow what you can realistically afford to pay back.

Icelands financial industry has today collapsed!  The country borrowed five times what it´s economy was worth.  Sounds like a good plan!

thats the sad side humans creating monster economies then trying to don´t be food of this monster,such a big shame of who responsible on that and who using to innocent crowdeds as a victim...For a healthy economical system matter is not the how big of it,i think main is how its sharing....

This isn´t the first time we have had a recession and it won´t be the last....why are people so shocked?  So many companies/people have been excessively greedy for so long....its hard to imagine that it took this long!  Wasn´t it dear old Mom who said, "never live beyond your means?" Best piece of advice I ever got!

 .....or -

"Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

Wilkins Micawber (David Copperfield by Charles Dickens)

(Translation into new money! £20, £19.98p/£20, £20.02p)!

Either the rulers must be philosophers and men of letters, or philosophers and men of letters must be the rulers; if this is not the case, than happiness cannot be expected for the State or mankind.

Plato (The Republic).

(Translated by  MorioninTurkey)

 Because this is the first time that it has become global and it is close to a depression.

 Plus... living within your means becomes irrevelent when you are faced with no job - the situation that many face this morning as more companies in the UK closed yesterday...

 Very true and very sad.  And when these big bankers take their fat cat bonuses for actually cocking it all up, think about the cleaners on the minimum wage, scraping by, who will be the ones who will suffer. 

I´m with you all the way on this one WT  

 Pity some of Bushes cronies didn´t get the same advice  then we (the world) would not be in this mess now.

 Crikey!

elephants kicking and ants to be crushing....

I think individuals who put thousands of dollars on credit cards at high interest rates for goods and services they don´t need are responsible for this mess as well as the fat cat bankers and business men. 

I know SO many women who go out and buy a new wardrobe every season whether or not they need it.  Or what REALLY burns me up.....a woman who makes half what I do who buys 10 Coach bags with matching shoes but can´t pay her rent!!  This mindset is why corrupt CEOs get away with what they get away with.  We are too busy filling our own closets with useless crap to notice what these people are doing and then we say...shame on the politicians! 

hummmmmm.......I think we as a society need to be a little more responsible. 

I agree about irresponsible borrowing ..... however this is NOT the cause of the current crisis and actually does contribute to a healthy economy!

Nah, I am afraid governments (especially policies that were adopted during the Thatcher/Reagan era) and the banks are the only ones to blame ...

I didn´t say individuals were responsible but I did say that while we were all busy shopping, these companies were able to steel part of our future with the governments help.  When people are content and have all their nice "things" they are blind to what is really going on. 

Well I dont really believe that the kind of people you talk about were particularly interested in the economy anyway!!!

Banks were gambling with savers money in a frightening way.  They lost..... we (as tax payers) bale them out.  End of story.

I think when we start to talk in billions we forget the actual amount that a billion is.  To put it in persective, a billion hours ago it was the Stone Age

Our government gave 500 billion to the banks today.......

God Bless   I guess, theorectically we are all bank owners now

 Never thought of it that way.....I bet if I went into my bank and acted like I owned the place they wouldn´t be so uptight then, right?? 

 Worth a try

Let me know how you get on (before I try it )

From what I´ve been able to gleen, the problem started with Credit Default Swaps .

Sort of an insurance that really isn´t insurance in as much as there are no "real" funds to pay off and no regulations as to how they work.

I think the issue is no regulations and no oversite.....

I’m no expert but think I have good understanding what‘s going on with our economic crises beginning with the Carter administration and greatly advanced by the Clinton administration. The government forced banks into providing loans to people that otherwise could not afford them. They did this as a social experiment to increase home ownership by the poor. In a regular market this would have only happen with higher interest rates to offset the higher risk But since the housing market turned to government support through Fannie May & Freddie Mac investors were thrilled to make millions of loans to the poor. This is definitely not capitalism but quasi-socialism. This great social experiment has turned into a 700 trillion expense that is going to cost all of us. It appears our social engineers never thought home prices could fall, since the Great Depression.

This was clearly a trigger of why were in the situation we are. It’s not solely based on people making poor choices, but a situation of a sizable minority risking shutting down our financial system. We can do the blame game, however we need to be accountable and take personal responsibility for our own financial well being. Do we need a bigger home or a better car? Yes, we NEED them, so let’s take out a floating loan interest rate in which we can’t afford to begin with. I want a big flat screen TV..get the credit card out. There is nothing wrong with purchasing items to keep the economy going, however when you run yourself into financial ruin is another thing.

You can also contribute Wall Street thugs for overcompensating or misjudging. The finger is pointed at the over compensated executives and CEO’s. All of these things triggered to what we are facing today, but it is the behavior of the people that laid the groundwork for what we see in front us.

And yes Alamada oversought and more regulations would have helped or possbily prevented, however this was posed to Congress in 2005 and was turned down.  Politicans who gained a kickback off of this didn´t want to cut their profits short.  It´s greed on both the goverment and the public..

International “Newsweek” Magazine  criticize today:

The future of capitalism?

The end of the age of Reagan and Thatcher , and what will follow?

And the Palin problem?

"European stock markets slumped in early trading Friday following massive sell-offs on Wall Street and Asia as lending rates between banks continue to rise despite this week´s efforts by central banks to break the logjam in credit markets.

In Vienna, the stock exchange has been suspended until midday after stocks tumbled 10 percent at the opening bell, and in Russia representatives of the MICEX and RTS exchanges said they suspended regular trading until further notice under orders from financial regulators."

Curious question: Anyone here panicking that much that s/he is selling now all stock investments? Anyone trying to change their mortgage because of the crisis? Or do you think things will get better and you don´t do anything (like I do)?

 Trudy, it´s not a good idea to pull your stock now as you could face huge losses.  In fact if you have a 401k, keep adding to it and here is why.  You will be able to buy more shares than you have before and when the stock market sustaines, as it always has before at some point, you will be able to have more shares and a potential to earn more money on them.

If your investing long term try to keep your emotions out of it, the market will rebound.  It may take months or even years but it will happen.  Remember buy when the prices are low.. If you need this money in the short term CD´s are another option, instead of individual stocks.

I´m not sure what you mean about trying to change your mortgage..you will definately have a hard time trying to refinance right now.  Banks are not wanting to take on this risk.  However, people are still buying houses, getting car loans.....I don´t know anyone who has lost their job, house etc.  I´m not really seeing the affects of this yet..

I don´t have stock but my mortgage is partly based on stocks, it is on of the many types of mortgage we have here. I´ve heard of people who´ve changed their ´stock-mortgage´ in a safer (??) one, a savings-mortgage. I won´t do that, as you said it is long term investment.

 I´m not familiar how your mortgages are where you live.  But I also feel  the media has created another "hype" to create panic.  I don´t blame people for being concerned, however 95% of Americans are paying their mortgages and they are paying them on time.  It´s not as bad as what the media is referring to back to 1929. You can relate to the downward stock market against what we saw after 911, but nothing like 1929.  Who knows what the future holds this could change.  But I think by creating panic it´s hurts the ecomony as well.  Just my thought.

 teas....you´re my idol!  I am now a Teaschipafarian!! 

 Absolutely spot on.  Unfortunately, too many people are uninformed when it comes to economics.  They are media-fed and reactionary so whenever they hear negative reports in the news regarding the markets....instead of researching and figuring out what would be best long term, they panic and turn into lemings, jumping off the cliff with everyone else.

This is a financial crisis.

A global financial crisis.A sea of debt.Into the storm.

But don´t worry.Because it is not an economic crisis.

How the financial crisis affects you?

 Well, since I have lost a large percentage of my retirement (which hopefully will bounce back) I have had to change my retirement plan from, "early retirement in Turkey" to "work until I die!" 

But I am fine yilgin, how are YOU??? 

so do you suggest people to go buy some AIG stocks? would you do that yourself? No matter what the governments do to bail their big companies out of bankruptcy, the investment will slow down for a period.

I think its pretty amazing that people can somehow conclude the media is trying to create a panic. If anything I believe they would try and hide how bad things "really" are, but I´m the "paranoid everything is a conspiracy" type   I just find it ironic seeing 10 men from my company that were due to retire in Dec. now will have to wait 3 years due to the "media hyped" recession. Hmmm

As for me, I am fine...... poor and can´t get and worse

Karekino,

Never mind.

I see this is only a financial crisis.An accounting crisis or debt crisis between  payables and receivables.

A liquidity crisis on financial flows of the companies.

They call it a liquidity and cash flows crisis.

In my opinion This is a big professional fault of the accounting and auditing firms in the U.S.

Because these accounting and auditing companies cannot manage and inspect-audit accounting transactions in some sectors like mortgage and construction.

But it It will goes also like everything.

Bad times also goes away.

It is not a big problem.

I think it will be solved soon.

Because this is not an economic crisis.

Not an economic crisis like 1929 global economic depression in the world.

Glad to see you bed Americans are not affected

It is no "media hype".  I would hate to tell that to all the people who are now unemployed. The only reason it has not affected us as bad as in the 1920s is because our governments have bailed out the banks, but this can´t continue. 

However, the media DO affect the situation dramatically.  They create fear, which exacerbates the situation.  A good example was when the Irish banks guaranteed savings.... all the money from UK banks suddenly disappeared and was transferred to Irish banks which simply made the situation worse.

Personally, most of us are still unaffected.  My mortgage went up slightly last month, but I changed it to a tracker one and it decreased again this month.  We see oil prices coming down again and petrol is getting cheaper.  However, if you have a small business or are trying to purchase your first house, things will be very hard indeed.

The effects on the rest of us will be more long term - retirement pensions, savings etc.  Salary increases will be less than inflation.  Public spending will be at a minimum because local authorities invested our money unwisely, so this will affect public services, roads, amenities, schools (and in the UK´s case, hospitals). People are spending less, so retail and leisure industries will start to suffer and many will close. Banks will never again operate in the same way as before (which is probably a good thing!!!).  There will be a dripping tap decline...... and Yilgun you are wrong, it will get worse before it get´s better

My bank has a BRILLIANT way to help you save money in this "credit crunch"!!  Every time I use my bank card to buy things, it takes the amount up to the next pound and puts the balance in my savings account!  For example, if I spend £1.20, it takes £2.00 and puts 80p in my savings

I love this kind of simple idea.  I am saving up mine to buy Temora a one-way flight to Siberia

each economic crisis showing us ugly face of wild capitalism´s ugly face one time more,and each crisis creating  a big morale depressin on the wide part of people  (except who feeding more about this crises).So we have to take enough leson on each crises,especially glutttonous riches who prefer to save instead of sharing.Ý think we all can survive our lifes with the less luxary,but we all need to trust our tomorrows.....So i believe we can´t think an economical system by sperating moral values.economy and moral rules goes together and haven´t to be no more  no less...

 This is a nice sentiment which we would all love to practice, but in reality?

Questions:-

(1) What is your job? (I am sure it depends on capitalism)

(2) Do you give your extra money away, MrX67, or do you like to save some money to help your family when they need it?

what is your suggestion aenigma? are you saying we have to stay loyal to capitalism and make no alternative system?

 No, but i am saying that Turks do tend to preach to us about capitalism and yet they have embraced it in the same way.

You like to be eastern, but you have embraced the evil capitalist system yourselves

To Ciko and MrX67:-

How much money do you give to charity each month?

we just have to embrace the system what big governments make. this has been the same for 200 years ( since industry revolution ) "The west Rule, we obey."... it wont change as long as west have financial, industrial and cultural power.

 I feel so powerful today, tesekkur ederim

 i never deny anything if its about common happiness instead of happiness of a small group,just i want to say wild capitalism creating big differences on the society and after a period economic crises coming itself and sure we all deserve more comfortable lifes,but never as selfish and by never forget moral values while saving moneys.And i´m afraid to be mercifull contrary of wild capitalism´s soul or self...

Sorry MrX67, but I am not keen on being called rich gluttonous westener, and merely asked what you do with YOUR savings.

I see big big talk at Bayram about you giving money to the poor....ONCE a year.  How often do you help the poor except that time.  You save your money too, for your family.  You are no different.

We pay very very high taxes in our guttonous country to ensure there are never any poor people.  People without work can have a similar lifestyle to people who work, nice homes, food and excellent hospital care.  There is no real poverty.  The people in our country who call themselves poor are the ones who would like a nicer car than their neighbours and can´t afford it. That is why our system is so abused by people who criticise it....they move to our gluttonous country and take money for doing nothing.

 i didn´t mentoin of any country ,i just mentoined abouth mentality and seems you are a real patriot,thats good for you,but i bet everythings not light pink in ur country to as on every country???

 Hahahah I am no patriot!   I just think that this system does work to ensure there is no poverty.  There will always be a capitalism of sorts in any society, you cannot remove it.  The important thing is to take care of the old, poor and ill - and I believe our country does that (although I think we could do much better for the old).

If you want me to talk about all the bad things in our country, I would still be sat here typing next year

 i advice you walk around on the back streets a bit more,for see realy face of wild capitalism Not easy to see reals at the lightfull large roadsAnd if you try to think a bit larger you will see thats not a problem of any single country or continent,thats the problem of whole globe...

 If I do that, I will see corruption yes, but you cannot blame capitalism for that . I won´t see poverty though (except self-inflicted poverty) - drugs and alcohol are expensive dimi?

 and seems you don´t want to see difference of capitalism and wild capitalism??

 Bingo!!!!!!!!! You are right.  But YOU are the one who should see this, not me.  You were blaming capitalist west for this, but it is universal

 I know the difference.  And the worst cases of this I saw were in a communist country...

BTW if you continue to patronize me, I will start to do it to you too

 drugs and alchol just some materials of  wild capitalist shopwindows......

I hope you are running through the streets now MrX67 and giving away all the jewellery from your money making capitalist shop

 aren´t we all here for to beeb patronized for find betters and  goodness,so no harm for me.Ý´m not blaming any responsible entreprenuer or justical system,but thats all what i know wild capitalism always ready to crises in some periods

 What is your answer, MrX67 - communism creates an even more materialistc country and poverty and corruption increases.

Perhaps you can come up with a new world plan (from the offices of your capitalist jewellery shop of course)....

While you sit there criticising me, I am working in a non-profit making establishment that is created for the community and donate 10% of my salary to charity and pay taxes to ensure there is no poverty in my country.  Unless I am made a world leader, I can do no more.

I do not see that you do ANYTHING.  It is the small things that change the world .....

you mixing apples and pears now,and sure communism is a big lie and and unrealist system,but  theres a colour between white and black and its name grayif you really wonder about my money or my little capitalist shop,let i say you i do love to share in my limited abilities...

what we have to see is that capitalism caused an unfair world and we need a new system. it is not important what we call it. it does not have to be communism, socialism or capitalism, we need  a system which is good for all people ( african, asian, europen ) i dont understand why do you ( both) make it a west-east issue :-S

 I have not made it an east-west issue - if you knew me you would know that I hate this whole "east-west" thing that you love to throw into conversations.  However if you begin an argument where you blame the "gluttonous" west, how else can I respond?

 While you have MEN ruling the world, no system will be uncorrupted.  Money is power and men love power

The sad fact is, if Turkey were the United States, you would all be saying what a wonderful thing capitalism is!  You pretend you a humanist, but you are no different you just want that same power. 

Don´t worry, the US will lose it´s big power soon.  Another country will take that power and do no more good with it than anyone else.  The world is essential greedy and corrupt and ruled by men

i dont care if it is US or turkey,men or women. the truth is the world is fucked up by this wild system and it has to be changed or has to be made more humanist. i dont understand what are you defending here... does it seem fair to you that billions of people are starving when the world has food that can satisfy 60 billions people? some thinkers in the country you live in developed a third way. this is what i am talking about.... a third way which has freedom of capitalism and humanism of socialism ( not communism at all ) could cure mankind...maybe

 +1

Let´s take everyone´s earnings and redistribute it to everyone equally.  Whether you work 60 hours a week or decide to be a couch potato...wow that´s logic for you.  Using this same logic, I could then come into your house and basically take what I want.  What´s yours is mine and what´s mine is yours.  Nice...

 such an extrem looking way,but i think you get the meanings totally wrong??Noone didn´t want anything without working or stealing other one´s earnings or wealth,just need more usefull social and economical policies for make less differences or need a new ethical or moral self critisms while sharing to national and international incomes...working hard to producing more and sharing it justical and ethical,isn´t that what we need?

This is an experience for the capitalism.

I think capitalism needs a new organisation, a new and social shape, a philosophical approach and a new change.

 MRX, you are asking then for people to change their behavior, it has proven over time this doesn´t work.  People are driven by incentives...this has always been the better way to motivate people. I believe we need to reward for success and penalize for failure.  We even display this behavior in our homes.  When our kids get good grades we praise, when they fail a subject we discpline.  If you take away incentives, who would strive to be the best they could. What would motivate me to work hard or even work at all, if the theory is to share equally?  In a perfect world political and ecomonic systems would be irrevelant.  Unfortuantely, we don´t live in a perfect world.  Centralized planning has never worked and never will.

Dear Ciko and MrX67,

Call me cynical, but these are my thoughts regarding your objection to capitalism.  Your objection is the unfair distribution of wealth and money.  This is understandable – you were born to a country that does not have economic domination.  I understand this and agree.  You feel like a poor relation and feel hate to those wealthy countries and injustice when you see people starving in Africa.  We all do.

However, don’t embellish your objection by pretending you are humanists.  We have a saying that “charity begins at home”.  If you were truly humanists you would choose to live in a simple shelter, eat basic food and do without your cell phones and internet and your nice clothes.  You would ALREADY be giving any  excess wealth to the poor and needy.  Instead you walk past poor people every day and do nothing to help them.

I wonder how many of you “humanists” would be if Turkey had economic domination in the world?  Do I think you would do things differently?  No.  You probably don’t even realise it yourselves, but you just resent another country’s power.  As I said before, it is about men and power - if it was about humanism then Africa would be helped by the money sent by you eh? It is natural and normal, but don’t preach humanism at me until you can show me that you give up your nice comfortable lives to help others around you.

 Dear teaschip,who can deny certain rules of a more productive and healthy economy´s rules??Sure must be incentives and penalizes,and who can defend idleness or laziness.But i want to replay it again thats never a location or system problem,thats all about mentality.Sure to be more powerfull one of basic behaviour of human nature,but till where ,must be some borders of it,for create  more peacfull tomorrows.We travelling on same boat,and goverments have to creat  better conditions for everyone for a safe journey by the helps of who taking biggest part of cake...

 i like richeness and i´m never enemy of wealth or wealth countries,i just trying to talk about virtue of to be more sharing

 Politically incorrect question actually.

 Actually it was not.  I was talking about percentage of money.  If you can afford internet, you have enough money to give a little away, instead of preaching about humanity.

 I meant that this is a type of question you will never get an answer. And you know it well.

It is convinient  to blame you for the starving children in Africa that is for I have an Internet at home that I pay for

According to some economists:

Maybe it is an economic game,  an excuse;  there is no financial crisis, who knows?

Because economic growth is good in the world.

 Dont tell me..... another conspiracy theory?

Conspiracy theory?

This is IMF and WorldBank´ s business.

World economy is good now.

Well who knows Yilgun.  All I know is that business is suffering all over the world, people are losing jobs, inflation is hitting people hard and they are losing their homes.  I know it has affected Turkey too and business is suffering badly

Yes I understand, TheAenigma,

As you said this is a sad period.

This financial crisis has affected Europe and Asia (China, Japan, India).

It is a dangerous time for banks, factories, business enterprises.

Unemployed people are a big potential danger for countries.

I hear many American people are losing their homes and jobs.

Inflation is rising and hitting people.

This is a cost-inflation.

Stagflation theory?

And Türkiye?

Why did not International Monetary Fund (IMF) and World Bank (WB) warn the countries?

But this is not an economic crisis like 1929 World Economic Crisis.

This is a financial crisis: A liquidity/Cash-Flow crisis only.

This bad times goes away as well.