Friday, December 05, 2008

where did my money go?

Geert Wilders his movie Fitna still makes the world not save for him. Who cares?
The Dutch should because the threats against the nation are still there and those threats feel like a burden if you're sensitive for it.
A spokesman of his party was asked about Wilders' opinion. He referred to Wilders himself. He would not answer the question himself. According to a political satire it´s good not to express his opinion because to secure one man in today´s turmoil is expensive enough.
Maybe he's with Ayaan Hirshi Ali in the US. Nobody knows him in the US. ;-)

At work the question was raised where all the money went to due to the credit crisis.

Where did the money go to? If you take everything into consideration the international financial system lost 90 billion Euro.

My simplification:
Banks have had balance sheet values which didn't have the value after facing the sub prime loans affair. In the US banks collapsed directly due to this affair. Banks in Europe followed with serious financial problems.

Let's go back where it started. Let's suppose it started in the US, where people have dreams and where dreams can come true with hard work. Where people with small wages can buy a homes because of the sub prime loans.

Mortgage company lend money -> Real estate agents earn their fee -> People pimp their houses -> Stores earn money -> US have a trade surplus -> Exporting countries are doing well (Dutch export should rise too but the Euro became to expensive -> Flourishing labour market on US and Euro side of the Atlantic -> Bouncing industry and trade -> Citizen in US and Europe are doing well financially -> signs of weakness became obvious when the Internet bubble burst in 2000/2001 -> 7 years later, after excessive spending, the financial bubble burst.

Who has earned on these collapses? The people (= you & me) did in the past years.
Who is gonna pay for it? the people (you & me) will in the coming years.

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