Money
Stories
behind the Global Financial Crisis of 2008
2020 UPDATE - The last Financial Crisis of the 2008 took
approximately 10 years to be overcome. The US government spent $2.5 trillion to remedy the situation,
which only helped big banks and big companies. As usual ("ordinary", working) people
ended up paying for it via reduced standard of living.
Now with the Covid-19 pandemic, the
government is expected to spend about 5-6 times more (through FED stimulus packages), by printing more dollars.
This will only benefit the elite and the large banks and companies, while people will get crumbs only. As the old
saying goes, the more things change, the more they stay the same.
| Events in the aftermath of 2008
crisis |
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Alan Greenspan's Housing
Bubble
History will show that the Federal Reserve
Chairman Alan Greenspan played a key role in creating the US housing bubble and resulting U.S. real
estate crisis.
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America's Oversized Deficits
Investing in America's future is a tough sell,
given that America's oversized deficits are certain to persist and stay inflated in the long
run.
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April Job Losses the Lowest
Although
unemployment numbers are still raising, job losses in April are the lowest in six months, according
to the latest data.
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Bank of America Bonus Payments
Questions have been raised about Merrill Lynch
losses prior to its merger with BofA, at Bank of America bonus payments
investigation.
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Bank Stress Test Results
The U.S. Treasury Department bank stress test
results' report to be released to the public for 19 financial institutions.
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Banks Stress Tests Flawed
Government Bank Stress Test is a flawed
exercise that could only elevate the current economic stress, as some institutions might be hiding
toxic assets.
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Bank Stress Tests Questions
Validity of bank stress tests at Bank of
America and Citigroup is called into question, after the capital shortfall has been discovered at
the banks.
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Banks Financial Trickery
Is it a surprise that banks are up to their old
financial trickery, using "toxic debts" to puff up their profits, which got them into trouble at
first place.
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Canadian Oil Companies
Canadian oil companies offer you six ways to
play attractive Canada's oil sector, making Canadian oil and gas sector more attractive to
investments.
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Credit Card Issuers Meet Obama
Credit card issuers meet with President Obama
about new card fees and interest rates limits, as well as the new legislation titled Cardholders'
Bill of Rights.
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China is Detroit's Lifeline
Could China provide lifeline to Detroit and the
U.S. Auto Industry? Not only that they could, but the auto sector has already been bustling with
production deals.
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China Taiwan Investment
Accords
The first investment accord in 60 years has
been reached between the Mainland China and Taiwan. This will lead to good profit playes for
investors.
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China's Yuan Carry Trade
The new China's yuan carry trade will add to
the China's global muscle and possibly accelerate the US recovery.
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Ciena Corp Recommendation
Buying Ciena Corp. stock on Nasdaq could
help you profit from the global broadband arms race and growing cloud
computing.
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Credit Default Swaps Danger
How credit default swaps, a derivative
security, could reverse the economic recovery. Failure of regulators and Fannie and Freddie
insolvency.
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Elliott Wave Disciple Prechter
Robert Prechter - an Elliott Wave disciple -
sees a possible 2000 Dow Jones, as economy declines further, resembling British crisis of the
'70s.
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General Motors Savior China
How GM China, Shanghai GM, could be General
Motors (GM) savior, if the company capitalizes on the fastest growing market in the world.
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How to Buy Banks Without Risk
Private equity firms (the financial Barbarians)
have discovered how to buy banks and leave taxpayers with all the risks, using "regulatory
arbitrage".
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India's Slow Growth Concerns
Despite India's slow growth, it remains a good
long-term profit play. But don't expect any reforms, as Indian government is an increasing drag on
the economy.
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Japan's Lost Decade US Replay
Japan's Lost Decade appears to be replaying
itself in the US now, following financial crisis. The U.S. buuble is worse than what played out in
Japan.
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Long-Short Investing
Strategies
What are long-short investing strategies, newly
popular in the current bearish markets? They can help with your portfolio
diversification.
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Money Morning Bank Stress Test
Which are three strongest banks, according to
Money Morning bank stress test? Four secrets that separate winners from the losers in the US
banking system.
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Oil Prices Could Jump High
Oil prices could jump as much as 70%, based on
increased oil consumption vs declining oil production.
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Russia and China Energy Deals
Will new Russia and China energy deals relegate
America to spectator status? These two global players are destined to be global partners when it
comes to energy.
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Russian Economic Model
Does the Russian economic model have something
to teach us? Russia's Pravda newspaper accusses the U.S. of "descending into
Marxism".
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Small Caps Proven
Profitability
For a proven post-recession investing, small
caps usually beat blue chips as safe investment, especially when emerging from
recession.
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Solar Energy Comeback
Is solar energy on its way back? USA, Australia
and China are leading with their renewable energy plans.
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Sustained Economic Recovery
Latest housing market and consumer confidence
numbers may indicate a sustained economic recovery starting to happen.
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World's Reserve Currency
Recently China has went as far as suggest that
the world adopts a new international reserve currency, instead of the U.S.
dollar.
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The most recent economic and financial crisis started in 2007 and the financial
crash happened worldwide in late 2008, after the U.S. sub-prime housing and real estate collapse, which led to
subsequent banking crisis. The recovery has been very slow and it's still
too early to look back and conculde that the crisis is over - it's not. We're still going through the longest
recession since the Great Depression of 1929.
Years later it looks like those few sobering, non-mainstream economists and
financial analysts were right at the time when they estimated that the effects of the 2008 Global Financial Crisis might last 10 years or longer. According to the most
recent analysis in April 2013 by 400 economic analysts the global economy is still stagnating. Eurozone is still
having serious problems, while the US economy is showing signs of slight optimism. It seems that China is the only
force proping up global economy at the moment, although it too is showing signs of slowing down. True economic
revival seems to be still a long way off.
Using taxpayers money to cover
bank losses
The real culprits that caused these economic problems, the banks and financial
institutions, have of course tried to point the fingers of blame somewhere else. At the same time they filled
their half-empty coffers with "free" taxpayers money, to cover for their greedy financial escapades.
Only in 2013 EU is finally set to put limits on
banker's pay and cash bonuses. The City of London is opposed to those limits. It remains to be seen if this will
happen and whether those pay curbs will bring desired results. Somehow, we have our doubts.
For example, in late October 2014, 25 of Europe's 130 top banks failed 'stress
test'. These are now conducted regularly to determine if the banks are strong enough to withstand sudden pressures
on the bank's finances, such as higher loan defaults, higher unemployment, or other unexpected economic problems
that can 'test' the bank's ability to do normal business. Evidently, the crisis is still dragging its feet, or we
could be facing another one!?
A 2011 film Margin
Call (with Kevin Spacey, Jeremy Irons,
Zachary Quinto, Demi Moore) highlights how the financial crisis started at a large Wall Street investment
bank. It explores capitalism, greed and investment fraud. The New
Yorker magazine called it 'the best Wall Street movie ever
made'.
The Global Financial
Crisis articles
These articles on money and
investments shed some light on what was happening at the time, as governments tried to reign-in the
effects of 2008 global financial crisis. The effects are still around us, in what has become a
truly global economy, for better and worse.
Here are some of the stories that evolved at the time, as governments and
financial markets scrambled about to try and "plug the holes", while giving an impression that they're fixing the
problem. Time has shown us since that all they did is fix precious little, sweeping most of the problems "under the
carpet", which is why the crisis and its consequences still linger on.
While you're trying to get your hands on some money, it's
also
important to understand the bigger picture - what goes on
in the world at large and how the "big players" play their game
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