The world pays the bill for US credit crisis?

The world pays the bill for US credit crisis?
Dec 6, 2008 05:03	#11
GEARBOX Points: Join Date: Dec 3, 2008 Status: Offline	The US transitioned from an industrial power to a service industry back in the 80's hoping to sell our intellectual properties and financial prowless. Unfortunately, outside of the short lived internet/high tech boom of the early 90's, the economy was limping along. To prevent the country from falling into recession, the monetary policy was to increase money supply to keep the economic engine going which started back in the 80's and ramped up to high speed over the past decade. Needless to say, this caused the devaluation of the US dollar. Problems that I saw was the insatiable need to mortgage our future for current high profits by all of the CEO's making hundreds of millions of dollars in bonus monies, and this included the epic center, Fannie Mae and Freddie Mac. This resulted in the wholesale off shoring of all our technologies and jobs for the sake of lower costs and higher earnings. This in turn took away entry level jobs from our college grads and the experience they needed to create that new product and mitigated our long term viability. Fannie and Freddie was just shear fraud and if in China, they would be behind bars now or worse, but due to their political ties, they collected 90 million dollars in bonuses and resigned. The US is still a major power and strong trading partner for the world for now and will recover but need to clean house. And no, we did not have a party and stuck the world with the bill as everyone involved was a willing participant and profited. I see the long postponed reccession as a good thing and something that we need to reset the economy and get back on the right track.

Dec 6, 2008 05:03

#11

GEARBOX
Points:
Join Date: Dec 3, 2008
Status: Offline

The US transitioned from an industrial power to a service industry back in the 80's hoping to sell our intellectual properties and financial prowless. Unfortunately, outside of the short lived internet/high tech boom of the early 90's, the economy was limping along. To prevent the country from falling into recession, the monetary policy was to increase money supply to keep the economic engine going which started back in the 80's and ramped up to high speed over the past decade. Needless to say, this caused the devaluation of the US dollar. Problems that I saw was the insatiable need to mortgage our future for current high profits by all of the CEO's making hundreds of millions of dollars in bonus monies, and this included the epic center, Fannie Mae and Freddie Mac. This resulted in the wholesale off shoring of all our technologies and jobs for the sake of lower costs and higher earnings. This in turn took away entry level jobs from our college grads and the experience they needed to create that new product and mitigated our long term viability. Fannie and Freddie was just shear fraud and if in China, they would be behind bars now or worse, but due to their political ties, they collected 90 million dollars in bonuses and resigned. The US is still a major power and strong trading partner for the world for now and will recover but need to clean house. And no, we did not have a party and stuck the world with the bill as everyone involved was a willing participant and profited. I see the long postponed reccession as a good thing and something that we need to reset the economy and get back on the right track.

Dec 6, 2008 12:15

#12

GARYKINKADE
Points:
Join Date: Jan 8, 2008
Status: Offline

Paul Kennedy and Kevin Phillips allude to this type of problem in their books from the past.
There are currently numerous other authors and web sites that touch on the subject.
I've tried to keep abreast but have become so cynical in my thinking that becoming reasonable is almost impossible.
I hope you are correct in your optimism, but personally I wouldn't give it more than a 25% chance.
Too much greed, corruption, lying for personal gain and crowd (pseudo) control.
But I agree with you about China's method for extreme corruption, just hang the sob's and let the chips fall where they may.

Dec 7, 2008 12:08

#13

MARRIE
Points:
Join Date: Jan 7, 2008
Status: Offline

Corruption is everywhere, I should say west supervison system does much better than that in China. It's nation wide recoginized that Mr. Hu, Jing Tao (our president) and Mr. Wen, Jia Bao (prime minister) are good leader in every aspects including private life, but it cannot guarantee the qualities of leaders in provincial level and municipal levels because China is too huge geographically for central gov. power to reach.

The common formular for Chinese politicans' corruption is they act as both politicians and business men (a key element that cause corruption in socialist country); they abuse social pension funds, employment insurance funds and public infrastruction funds to make money which is eventually credited into their mistresses' accounts, which is the efficient tool of money laundry because those mistresses will manage to escape to foreign countries!

Dec 11, 2008 19:51	#14
JOSHIRV57 Points: Join Date: Oct 9, 2008 Status: Offline	hypocrite. Its a good thing you arent an American. You have to get a life. Americans are also your own relatives,who went to live in America.

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