Economic Crisis

i dun think it is at the worst yet and i see middle of next year as the worst. now i am in china and i can feel the impact. companies esp dealing in real estates are closing down daily. the biggest real estate agents company with about 500 chains countrywide had closed down more than half in the last 2 months alone and this can says a lot of property markets now. a lot developers are also facing the heat and slashing prices. For cars, now they are offering zero interest and zero downpayment which mean u just need to go to the showroom, buy a car insurance and pay for road tax and you can drive away a car. the market and demand is just very weak and there are few buyers at at the moment. i think every country is trying to protect its own interest and i doubt those conferences, meeting between countries would be of very much help

In the U.S. the whole thing started with politicians trying to get votes by saying anyone should own a home. This lead to the subprime mortgage housing bubble which could ot be sustained because loans where being made to peoplt who had no down payment, could barely make the enitial low payments of an adjutable mortgage for only a few months and definitly could not afford the higher payments when their rate went up. Some of these people did not even have jobs. So the foreclosures started when they could not make their payment and then the banks and financial companies were in trouble because mortgages they held the notes on where worthless. This all led to people not spending which made matters worse. Also, gas prices were high and, again in the U.S. the extreme environmentalists convinced Congress that ethanol made from corn would help with pollution, which it won't because it will make very little difference in air pollution but will greatly increase water pollution because of the fertilyzer runoff from growing all the additional corn. Corn got diverted into making ethanol and land got diverted from growing wheat for example into growing corn. This all drove food prices up rapidly, corn is in a lot of food products and is used as feed for most food animals, which hurt the economy. Something similar has happened in other countries and a bad U.S. economy effects most of the world. Also, other biomas sources in other countries have led to food shortages, for example countries that used to export rice are no longer doing it so that it can be used for both biomas and to feed their own people. Can the countries work together to solve the problems; maybe or maybe not. But eventually things will turn around like they have in the past during recessions but it will take some time.

Ithink the worst will be in 2009. I blame the greedy wealthy for most of the pain inflicted on the average person. the imbalance between the rich and poor will never improve as long as we have these in control. They make decisions, like most politicians, that are beneficial to them, and noy for society in general.

I am glad there is someone thinking about the global crisis. I am quite insulated from this and the drop in gasoline prices has helped me. Cheers!!