What are the fundamental reasons for Global economic crisis?

Question

I kept wondering why Global economic crisis is happening? Every news you turn on - you got to hear about the Global Crisis. Every Person is saying that Global economy is sinking - but I really have not idea what factors caused such a breath taking crisis!!!

Could you enlighten me?

Thank you

Answer 1

Greed

Answer 2

Parasitic bureaucracy has finally outgrown its host, on a global scale.



America's historical rejection of parasitic bureaucracy and embracing of semi-freemarket capitalism was what initiated and maintained the unprecedented surge of global prosperity during the past 150+ years. However, parasitic government bureaucracy, along with government-sponsored corporate entities, grew steadily in size and scope into a massive parasitic behemoth that preyed on those who create and produce values, often while masquerading seductively as the champion of its victims. This behemoth preyed its host through ever-increasing taxes and arbitrary regulations and restrictions on the producers.



In the past, whenever bureaucracy became too much for the producers to bear, it was always possible to retreat to the frontiers. Today, we face a situation that has no historical precedent. The parasites have once again become too much for the host to bear, but this time there are no frontiers to escape to. No matter where one goes, there is yet another parasitic government taxing and regulating everything that moves. The only possible outcome this time, is global poverty on a scale never before seen, as the parasites wipe out the value producers in their final feeding frenzy.



Only once the parasites have succeeded at causing their own extinction, or the producers wake up and unanimously reject parasitism in ALL of its manifestations, will humanity have another shot at prosperity.

Answer 3

The main reason for the current crisis is too much debt in the private sector. People have maxed out their borrowing and spending ability. And now they have no choice but to start repaying their debts.

http://globaleconomicanalysis.blogspot.com/2009/01/brink-of-debt-disaster.html



Which means that people are cutting back on their spending and increasing their saving in order to pay down their debts. This has made many manufacturing and service sector jobs redundant and unnecessary. And the banks are in trouble because a lot of people have borrowed so much money that they cannot repay their debts to the banks.



This kind of a crisis has happened before. In 1920s people also ran up huge debts that they couldn't pay back. And this resulted in the Great Depression of 1930s.



There is a theory going around that every couple generations people forget what it's like to be deeply in debt. And they run up huge debts that they cannot pay back. Which results in a great economic catastrophe, like the present one.

Answer 4

Hello Love and Peace (nice name). Tom summed it up in one word in his answer and I agree. Beyond all the speculation the media feeds us with, the truth is that the crisis was brought on by humanity's growing egoism. We have been in global crisis for some time now in education, the breakdown of the family, culture, drugs, depression, nuclear threat, and more but we have looked past it. Now that it has reached our global economy we are now beginning to take notice. The growth in human egoism is revealing to us how much we are all connected and alongside how we use our ties to one another for our own selfish benefit with no concern for others. Our egoistic connections between one another is what causes all the corruption in our social systems and the suffering in our every day lives. The global crisis will effect other parts of our life and worsen if we do not choose to leave our selfish egoism behind.



Our world is now global and integral. One global village. Everyone is one part of that body called humanity. Which means we are interconnected and interdependent. Like cells in one body. Connected to one another to the point of the butterfly effect. No matter how many bailouts we put in place or how we change our economy these plans will fail cause we won't be addressing the root of the problem. We have to change our egoistic connections to those of altruism. The global crisis is actually a invitation for humanity to unite and bring us to a much happier life in our times and for generations to come. Once more and more parts of humanity start to be educated on what it means to live in a global integral world and how to succeed in mutual altruism all our lives will begin to brighten and surpass the days of our past. We could learn a lot from examples from Nature where all the parts of a body work together to benefit the whole. The links below explain more and I hope they help answer your question...Peace



http://www.youtube.com/watch?v=yGf4fEFvsIQ

http://www.youtube.com/watch?v=HhoTCiNrdW4



http://www.laitman.com/2009/03/new-crises-emerging-under-imf%E2%80%99s-leadership/

http://www.laitman.com/2009/02/what%E2%80%99s-good-about-the-crisis/

Answer 5

It really is the result of easy credit both here in the U.S. and over the world. The start here has a ripple effect throughout the world. Here it was easy credit to buy homes by unqualified people. Added to this was easy credit (low interest rates) offered by the U.S. federal reserve banks and the world bank. Other nations banks followed suit so the system almost collapsed (out of money).

Answer 6

Individuals and governments overextended on their credit, same thing

with all the corporations, no one lives within their mrans anymore, so eventually we all have to pay for our collective mistakes. Notice that

the poor people of the world don't get any poorer, they just die in greatrer numbers. That's what the real powers that be want in the end, a huge population dieback event(less mouths to feed, less people to pollute...etc.) SsSsS