Finacial crisis

How and when the financial crisis will end depends largely on how it came about and if the cause(s) is/are being addressed appropriately. Honestly, I am at sea when it comes to understanding the cause(s) of the current global financial crisis. My own simple economic mind wanted to point in the direction of the persistent increases in the prices of crude oil, which led to escalating costs, rising product prices and then falling demands. With falling demand then arose a build-up of inventories, dwindling revenue and the eventual need to cut on labour ... then worldwide unemployment and recession. However, if my thinking were to be accurate, we should be on our way to a new turn of economic prosperity now that the prices of crude oil have significantly crashed. With the economic stimulus packages being applied here and there, it suggests that the crisis must have emanated from a more complex set of factors, which have combined to shatter consumers' confidence in both the products and the financial markets, on the one hand, and destroyed the producers' and suppliers' capacity to remain in business, on the other. Whatever these factors are, it is hoped that the stimulus packages will successfully address them. Concerning the fear expressed over the ability of the labour market to absorb the increasing number of job applicants in future, it should be borne in mind that "the sky is spacious enough for all birds" if economic policies are well marshalled and coordinated. The more people we have, the more production will need to take place to take care of their demand. More production implies more jobs, provided technological advancement does not dispense with labour too much.