Al Jazeera has been asking people for their thoughts on the global economic crisis and to tell us how it is affecting them.
Hero, Jeddah, Saudi Arabia
“As an economist, I’m sort of duty-bound to see the financial crisis strictly in its own terms. I agree with Alan Greenspan 100 per cent.
“Pumping money into failing financial institutions and bailing out companies that didn’t have the foresight to predict this mess shows a lack of sound economic wisdom within the banking sector.
“Perhaps they haven’t yet realised that slashing interest rates and easing liquidity will not save the global economy from certain downfall, considering that the golden age of consumer-induced growth is over.
“They must realise that basic economic theories largely prevail, and lower interest rates will not seduce investors at a time when they are worrying about losing their wealth. The only solution is to ride out the storm and certainly not bail out financial institutions.”
Hero commented via Your Views, where you too can join the debate.
Grandrobglobal, Kota Kinabalu, Malaysia
“Does capitalism work? Ask the US and the UK taxpayers who are now to pay for the greed of the capitalists in their respective countries!”
Grandrobglobal commented via Your Views, where you too can join the debate.
“Just wondering if there is only six billion people on the planet and they all had one billion pounds or dollars in debt, would it not be better to write off the debt of the house holders rather than bail out the stock market companies with $65bn debt.
“Who actually are we talking about that needs money and how will that help the ordinary people on the street.”
Mohan sent in his comments via email to firstname.lastname@example.org
Melvinder Singh Gill, 27, filmmaker in Malaysia
“Just to compare the devastation that we have faced globally, I am just using this as a benchmark, in the last month. In the last 20 days we have been blown away by nature: hurricanes, landslides, mudslides, rockslides, aeroplanes crashing.
“Okay, that was bad. Now we have been slotted by our global statistics and economy, our cash, our coins, our dollars our cents. In the last 10 days we have continued to spiral downwards. When will all of this end?
“The question is how can we fix it? What is the root cause?
“So there has to be a global economic fix forum between all the major bankers, bank governors and the trade and economics ministers of each and every country, that is the only remedy, a permanent fix.”
See Mel’s video submitted via Al Jazeera’s YouTube channel here:
Tina, Daly City, United States
“Hard-line conservatives blame Congress for passing a law barring financial institutions from refusing to offer loans in ‘red zones,’ those deemed to have high poverty and crime rates. This allowed some moderate income families to buy homes and bolster communities.”
“Deregulation by Congress (Phil Grahmm) for these markets allowed the abuses, ARM’s, negative-equity loans, inflating values on property, no credit, debt-to-income ratio, earnings checks, knowing borrowers would never be able to pay the ballooning payments. Brokers made commissions, charged fees, sold them to others, who bundled them, and passed them on as Triple-A, secured investments.”
“The crisis was predictable three years ago, and with foreclosures mounting, it spun out of control. The CEO’s of these firms didn’t want regulation, and despised government interference, but now expect taxpayers to bail their firms out, as they walk away with their parachutes. Those of us who still have homes have seen the equity plummet.”
Tina commented via Your Views, where you too can join the debate.
Gim, Aden, Yemen
“The American Dream is failing because the American Dream has become the world’s nightmare.”
Gim commented via Your Views, where you too can join the debate.
Hyphen, Christchurch, New Zealand (Aotearoa)
“The market has always been motivated by greed, fear and stupidity and that isn’t going to change. What is of great concern is that the American Federal Reserve is going to use Alan Greenspan’s fiat money to try and print its way out of this crisis. All that is going to do is delay the day of reckoning.
“Sadly, those responsible (Greenspan, Bush and Cheney) will walk away unscathed while muggins taxpayer bails out the manipulators. You doubtless will also find over time the secretary of the Bank of China (who owns most of US debt) has demanded Benanke use the US taxpayer to save the Chinese investment.”
Hyphen commented via our website in Your Views, where you too can join the debate.
“Some free market authorites are in control, always were.
“It is their doing that created this mess with the formation of Freddie and Fannie. Freddie and Fannie were identified as serious threats to financial stability and the issue raised by many people over the years while the authorities stood by and gawped.
“The ‘authorities’ will act as usual too late and we wait to bear the unintended consequences of their next action in preparation for government orchestrated collapse.”
Stratvic commented via Al Jazeera’s YouTube channel on the report Recession fears amid economic turmoil:
Lazarus1956, Des Moines, US
“Well, my retirement account has lost money the past couple of years & I may go more conservative in the allocation of my fund’s investments. I probably will invest less money in the stock markets and more invested in safer markets. Although, if you have money to risk (i.e. risk losing), this is good time to buy stock while prices are low.
“The housing market hurt those who made bad choices (got deep in debt) or lost their jobs and cannot afford mortgage payment. I’m not planning on selling our house anytime soon, so it won’t affect us.
“Fuel prices had been going down lately and gas was below $3.50 per gallon (ethanol blended gas even cheaper). Prices went up again after Hurricane Ike hit, but it’s only around $3.75 per gallon, so it’s not affecting us much either. I notice how economic problems in the US affect other markets and is probably true the other way around. The global economy seems so complicated that it’s going to require more attention to other countries economies and not just our own. “
Lazarus1956 commented via Your Views, where you too can join the debate.
Tjaya, Colombo, Sri Lanka
“Some years ago, the capitalist world preached that socialism is a devil and capitalism is the saviour. Socialism/communism was defeated in many countries and now we have a capitalist global economy. The economic experts who teach us in the third world how to manage our economies have failed to manage their own economies.
“Those economies that depended on USA, Europe and UK have let down the people in those countries and many others who depended on them. The USA is responsible for this situation. They waste their tax payers money in wars all over the world, maintaining countries like Israel with no returns. At the same time, the future leaders of the USA are going to be a bunch of jokers with no serious policies.
“Fortunately, Asian and Latin American countries are not affected to that extent. If the USA and its agents leave us alone, we can manage. They must not sabotage our economies, create wars, built up and finance terrorist groups such as Taliban, al-Qaeda and LTTE in Sri Lanka. Leave us alone.”
Tjaya commented via Your Views, where you too can join the debate.
“I love how they dance around the reality. Money or value does not just disappear. It’s just been redistributed, seemingly all a short period of time.
“The reality is that this has been in the works for almost a decade. Crooks stealing from the common man. When the rich and powerful steal your money, it’s a lot harder to see it happening. Common crooks have more morals than these people. “
Medhue commented via Al Jazeera’s YouTube channel to the report Another Dow downer:
Sa, Midlands, United Kingdom
“The capitalist system is inherently flawed, and will always produce booms and bust. After a big boom as seen in recent years, you will get a bust.
“This is a perpetual cycle of the capitalist system. The real question is, is the capitalist system suited for the 21st century?”
Sa commented via Your Views, where you too can join the debate.
Maria Costa, Governador Valadares, Brazil
“The Yankee financial crisis is the best news in more than five centuries for us here in Brasil. The New World Order, dominated by Brasil, Russia, India and China ( the so-called BRIC’s) is really taking hold, as the Old Order drowns in the cesspool of its un-payable debt.
“The ‘global squeeze’ is not global at all, it has not and will not affect us here, since we have not invested in worthless American paper assets. The tiny, and ever shrinking, portion of our economy which had been linked to the collapsed USA economy has been more than compensated by expanding trade with the new rising economies throughout the world.”
Maria Costa commented via our website in Your Views, where you too can join the debate.