world financial crisis reasons

India
February 11, 2009 8:14am CST
world financial crisis reasons is on flash news every where almost in every country and almost every person every company more or little get infected in this horrible situation . People judging and blaming Oil prices, wall street monopoly etc. What you people think about this bad situation that whats the actual reason of these crisis and how long it comes to end ?
1 person likes this
4 responses
@vishwaskg (514)
• India
11 Feb 09
Hi there Its more to do with sub mortgage loan given by the sub banks without checking into the individuals payment history and his capabilities in paying them back ... this led to some defaulters and the bank could not recover the amount they had lent and so the sub banks along with Major banks went bankrupt ,,, with it came a cycle where the companies associated with started to get affected ... Thats how the cycle is continuing ,,,, But maybe in a year or 2 this whole thing will come back to normalcy ... till then its good time to learn financial management Cheers Vishwas
• India
16 Feb 09
ya lets hope for the best
@max1950 (2313)
• United States
11 Feb 09
ya know i just saw today that a guy from merril lynch who we just bailed out and bank of america bought got a 121 million bonus check for 3 months work thats like over 200 grand a day i truly believe that the pharmaceutical companys and the oil co' run this country and we just keep lining their pockets.
• India
16 Feb 09
yes you are bit closer
• India
24 Feb 09
The main problem behind the financial crisis all over the world is the "home o every man" policy which was started during the time of President George Bush. Under this policy the banks started giving loans to every person without cheking much about the person's wealth income his wealth,etc which he or she actually own. After some time it gradually became difficult for the people of America who were awarded with the home loans and returned the keys to the banks. But it was really late since the money was already invested by the people. And hence the banks could not raise the actual sum which was rented to the people and the net bank deposits and funds came down gradually. Finally the retail business went down when the banks themselves bacame bankrupts. This problem did not affect the indian economy very much bacause 70% of the people of India do not prefer to keep their wealth in banks and this really safeguarded the Indian banks to become bankrupts. But more or less there were small percentages of the economies of the world which were affected by the economy crisis.
@aisaellis22 (6449)
• United States
12 Feb 09
Hello honeyitsfunny! I got so sad actually whenever I wheard the news about thousands of people getting laid off and that many big companies closes down. It's kinda scary. I thought when I first heard the news about financial crisis, it will eventually go back to normal but as time goes by it's getting worst and worst. I hope the second responder of this discussion is right. I hope it will go back to normal as soon as possible.