The Real Reason for the Financial Crisis
Well it is no secret, that financial cirsis is a big problem at the moment. There are many theories about how to stop it and how to prevent it from expanding and you can expect an aticle about it on this blog very soon. But first, let’s take a look on how it all began. Americans won’t like this, but it is a fact, that it all started in USA. I do not blame the people for it, it is not their job to see this coming and to prevent it. I blame the American government, who should have seen what is going on in their banks and should have done something about it way back in the past.
I was thinking how to explain it all for few days now and then i randomly ran on a very good movie about it on youtube. You can watch it below and find out the reason for the financial crisis. Note: Do not forget to put on your speakers! Sound background is great 
. Enjoy!
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Tagged as banks, financial crisis, investments, recession + Categorized as Economy articles, Global economy
Oh this is one great movie! Not really good comercial for McCain though
Keep up with good work guys
Dont believe everything that you see on wikipedia and you tube, but you and they have a point.
Financial Crisis that we are currently suffering is just like way back in the 30s and ended with the WW2. Lets just hope we wont see any blood.
Normally, when those in Wall Street end without money, things in the third world get really messy.
I don’t think it’s really the same… Banks and the government admited, that it all started becouse of the mistake, which the author has mentioned above. While in 1929, the reason was in unright alocation of resources in economy. To explain it with other words, there were to many products on the market and people could not buy it. The reason was huge industiral growth (before 1929). There for they were destroying products in order to regain the value…
Well to be honest, i really don’t know that much about reasons of crisis in 1929 either i do about this one. But i really doubt it is the same and i belive that the reason for this one is mostly in bad financial economy in US.
@matt, thanks!
and yes, situation is very similar as the one in 1929. Same thing started then. And the reason was similar. People were taking loans, to buy stocks. And then recession striked, stocks went down, and people could not repay the loans. So banks crashed and soon after that, Wall Street followed.
However, it is not totally the same right now, you are right andrej. Back in 1929, first came recession, then stocks droped down, then the banks crashed. Now it’s kinda other way around. Becouse of loans, banks are crashing, and becouse od that, stocks are falling and becouse of that people cannot buy stuff and becouse of that (law of offer and demand) recession is coming.
I am hoping to DG89INO, in case this finacial crisis ends itself the same way as the one in 30s did, we are screwed…
i am not really optimistic about the whole thing :S
this financial crisis is getting worse and worse… look what is going on with island atm
island and UK were really close to start an internation conflict that could easly turn into something like… somethink like you guys are talking about above
i really hope it will end soon and with no deaths
Well PEOPLE, previously i just don’t care about money and politic roaming around the planet.
Lately, i try to find out what is happening due to my curiosity. Even it does not affect me so much.
Opinion from my side (does not know well about what happen):
PEOPLE:
1. want to have easy running life (relation of loan and make investment in wall streets),
2. increasing needs (consumerism lifestyle-especially in third country),
3. economic egoism,
4. instant money, power, good lifestyle, etc….
If everything are done almost in the same place, then who will be the POOR?