Jan 12, 2009

The Troubled Global Economy: "In Greed We Trust"


The year 2008 as many of us are aware, unless you are living in some remote timbuktu, that we are in a very serious global economic crisis. Banks failing and closing down, unprecedented job losses, and fear of uncertain future is slowly becoming a reality. Many says, it stemmed from too many bad loans from the housing and banking industry thus, the credit crunch. To add more insult to injury, Bernie Madof (once called an investment guru) has successfully built the largest Ponzie scheme probably in the entire history of humankind. He made people believe that their money was safe and growing but, wasn't really there.

Fifty billion dollars, all gone by just ONE man!

With this we asked ourselves, how can a very strong economy like the US, likened to titanic in pride, strength and might; be sinking in deep, cold and lonely waters of debt? Haven't they learned from their 1929 experience or do they just have a very short memory? Complex as their economy may be to balance their worksheet, their economy will even become more sour unless people start changing their mindset about themselves - that the world does not revolve around them!

The American economy is built on the capitalist principles of buying and wanting more. For them, the seed of economic growth is not providing the needs, but feeding every individual's urge of wanting more. You wake up everyday and you see endless ads and commercials on the roads, radio, TV, internet and virtually everywhere. Capitalism has successfully found and capitalized one resource that is virtually unlimited in supply, and that is GREED!

And also because of greed, the capitalists invented a tool to suffice their endless wants - credit. People started buying on credit more than what they can pay for and splurging to their hearts desire until more credit is needed. This went on for years until the bubble has finally bursts.

Such misfortune is very embarrassing to many Americans, it simply blows their PRIDE and cannot accept the fact that they are in deep, deep trouble. To save face, they are minting more money out than ever before in the hopes it will stimulate their economy once again. The sad reality is, they are just passing the buck to their children and their grand children so they don't have to worry about it now.

If I am to put a mathematical formula on how we all got into this mess, I would simply expound it into this very simple notation:

                          (Capitalism + Greed) * Pride = Trouble

From this point forward we ask ourselves, where will it stop and when will it end? Is Capitalism the culprit of all these? Is it all the fault of Allan Greenspan? I say, this is all a case of GREED and PRIDE. Since we are all in it together, I guess it is but prudent to "grab the bull by its horns" , accept the consequences and not pass the buck to their children.

This is where I leave my message for you to reflect and understand how we can fix the problem and prevent it in the future. There is no quick and easy fix to this. So we all better brace ourselves for the very rough road ahead and pray to God for forgiveness and comfort.

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