Truth About Global Economic Crisis: Book Review

You want to read The Global Economic Crisis The Great Depression of the XXI Century, edited by Michel Chossudovsky and Andrew Gavin Marshall, if you meet these criteria: you welcome information and analysis about critically important issues that come from great thinkers outside the mainstream media and publishing world; you can handle brain pain from detailed and brutally honest revelations; you are willing and able to challenge your own biases and preconceptions to let in new explanations of how the world really functions.

If millions of Americans read this book, we would probably see a far stronger uprising against the political establishment that has refused to severely punish the countless guilty people in the financial, banking and mortgage sectors that brought down the US and global economic system.

This book ties together a large number of factors in twenty chapters that reveal just how corrupt the world has become because of the power of plutocratic, wealthy and corporate interests. From Wall Street corporate boardrooms to the Federal Reserve and other central banks to the US military and NATO, a multitude of threads get woven into a disturbing tapestry of crimes against society that still have not been prosecuted.

This book is truly an instrument of anti-brainwashing. If you are willing to spend serious time reading it, then you surely will become much angrier about the dismal state of the economy that is causing so much pain and suffering to ordinary people worldwide. If you personally have escaped the worst ravages of the economic meltdown, then you will have much more compassion for those severely affected.

In all honesty, if the current global economic crisis has made you angry, pessimistic, fearful, paranoid, despairing and worse, then this book will most likely exacerbate all such feelings. By revealing still more connections, implications and causes, this book will motivate you to do anything you can to fight the corporate, plutocratic forces devastating the lives of ordinary people. If you already have little confidence in government, it will only make things worse. Does all this mean you should avoid reading it? Absolutely not.

Here are a few statements from the book that resonated with me and that you can use to decide whether the general philosophic orientation of it is compatible with your views:

“Wall Street’s Ponzi scheme was used to manipulate the market and transfer billions of dollars into the pockets of banksters.”

“Government rescue packages around the world are corporatist in their very nature, as they save the capitalists at the expense of the people.”

“The global political economy is being transformed into a global government structure at the crossroads of a major financial crisis.”

Just gin up the courage to read it, get out several color markers to highlight passages and expand your knowledge to overcome all the propaganda constantly being hurled at you. We need more citizen unrest to energize more public protests to overthrow the powers that have corrupted and perverted our government. A key voice in the mainstream media that is in sync with the painful messages in this book is Dylan Ratigan who has a terrific daily show on MSNBC. He too should read this timely book.

Current Economic Crisis (Bailout Or Buyout)

Lately, it seems as if we are living through history every day. Not since the Great Depression has the United States seen such turmoil in the financial markets. What started in the subprime mortgage industry has now bled over into Wall Street.

When investment houses that have been around since the Civil War close their doors, it’s a sure sign that something’s gone terribly wrong. First Bear Stearns, then Lehman Brothers and then Merrill Lynch and Washington Mutual.

We all can’t help but be a little rattled by what’s going on. But while I and others have been pointing out that the markets are only going through a “correction”, you may be asking, “Denise, how much of a correction do we need to make?”

Obviously, a big one. Too much money lent to too many people who couldn’t afford to pay it back is a surefire recipe for disaster. Now it’s time to pay the price.

Some analysts are even comparing what’s going on now to the stock market crash of 1929. However, there is one major difference between then and now-we aren’t even close to being in the same economic hole our great grandparents fell into back then.

Case in point: The $700 billion bailout (or is it a buyout?) being debated by lawmakers as of this writing is a giant sum of money, the equivalent of which was not available in 1929.

Today, we are better prepared to handle such challenges as they arise-partly because we’ve learned from history. When the Great Depression began, there was no backup. The U.S. Government was in a much more “hands-off” position than today.

While some like to argue it’s a good thing for government to stay out of the free market, the new and upcoming legislation promises to bring at least some security back to the United States economy. The time for argument from political principle is over. Something has to be done-and thankfully our leaders are finally stepping up to actually do something about it. The question is will these leaders help the problem or add to it, only time will tell. As of this writing they still have not been able to get it together.

After four (or more) years of unsupervised lending, exotic loans, predatory practices, and the ensuing subprime mortgage meltdown, the government is finally taking measures to step in before it all spirals into oblivion.

Of course many are asking why Treasury Secretary Hank Paulson and Fed chair Ben Bernanke didn’t do something before this mess happened. While it’s true that nobody could predict how bad the fallout would be, it’s obvious that when banks start handing mortgages out like candy, something is amiss.

Two to three years ago, every time I heard a mortgage ad on the radio touting low numbers for adjustable rates, I winced. I wondered how long this could last. During the boom, it seemed like we could never run out. Now we’re suffering from a huge reality check.

So what does this mean for the average real estate agent? First of all, the media has it wrong. It’s not a bailout. It’s a buyout.

A bailout is when you give a corporation money while forgiving their debt. A buyout is when you come in to save the day-but there is an asset to be traded.

The latter is what the U.S. Government is proposing: supplying funds to take over the mortgages on real estate property. Real estate properties are assets. Therefore, by definition, this is a buyout.

Based on my own personal experience with the markets, I think the government could do quite well on this deal. Think about it. They step in, take over loans that are in trouble, and refinance them at a lower rate. It’s a win-win situation.

Ultimately, there is always money to be made in mortgages. Even if government restructures these mortgages, we all know that real estate is still the best long-term investment.

Which I believe will be the harbinger for the “great real estate appreciation of 2012”. Real estate will go back up again. It’s always rebounded. It always will. And all the major factors are pointing toward it going up anyway-population, immigration, migration, a senior community with buying power, higher divorce rates, and people living much longer than they used to.

Personally, I would like to see all of the corporate executives who led the failed companies down this horrific financial path be denied their bonuses. How can a CEO get a $22 million bonus when he’s bankrupted the company and left shareholders with the bag? To me, this is one of the most important parts of the mess to be cleaned up.

So only time will tell how long it takes for our leaders to get this right. What is for sure is that something has to be done!!!

And remember when the consumer gets nervous about Wall Street they tend to invest their money in real estate. So don’t jump to conclusions and believe that the real estate market is going down with Wall Street, it is the real estate market that will lead our economy back to where it should be

2011 Debt Crisis and the Economic Outlook in Europe

2011 in Germany, France and other euro-zone economy, driven by major countries, GDP growth will be close to 2%, a slight improvement over 2010. Spain does not need outside help currently, even if Spain needed help, the European Union, IMF and the European Central Bank will also aid as soon as possible to prevent the spread of the crisis. Therefore, the debt problems of the periphery of Europe will hit the market from time to time, but far from the negative impact of the debt crisis will not be as big of Greece.

Eurozone growth will be slightly improved

In 2011, the euro-zone economic growth will continue to divide countries, major economies and the edge of the national show economic situation.

Terms of the major countries, Germany and France to the good momentum of economic growth, including the following aspects: First, the pace of recovery between German and French manufacturing faster, PMI index showed a steady upward trend in overall; Second, German and French real estate market improved significantly, Germany has approved the corresponding value of residential construction rose in recent months were more than 5%, the French houses and apartments in the number of months available for sale fell to normal levels in history; the German job market is better than the United States, Germany’s unemployment rate from January 2010 to 8.1% to 7.5% in November.

However, by the debt-crisis countries, the euro zone’s fourth largest economy, Spain’s economic situation is good. Spain, some of the economic leading indicator, such as industrial new orders, consumer confidence index and business confidence compared to 2009 has shown a significant improvement. The economy of Portugal and Greece lack of endogenous growth momentum, coupled with financial constraints, these economies will remain sluggish in 2011, economic growth will be below zero.

Therefore, on the whole, Germany and France account for the total economy of the euro area and half, they will continue to play the “locomotive” role, while some marginal country’s economy still plagued by financial constraints, economic growth slower, such as Greece and Portugal. As Greece, Portugal and the economic aggregate of less than 5% share in the euro area, the drag on economic growth in the euro area as a whole is very small. 2011 in Germany, France and other euro-zone economy, driven by major countries, GDP growth will be close to 2%, a slight improvement over 2010.

The second round of the debt crisis may not be.

2011, the biggest risk to the global economy is that the debt crisis in Europe, if a second round of the crisis on the global economic recovery and trends in global capital markets have a tremendous impact. Furthermore, there is likely to set off the crisis in Portugal and Spain.

Portugal as the economy there is a structural problem, its economic foundation is weak, since the subprime crisis slow pace of deficit reduction, progress as Spain and other countries. Its financing needs in 2011 was 385 million euros in the euro area GDP, one of the highest level in a country, coupled with its market has been in increase in state financing costs, the financing of the Portuguese in 2011, the pressure can not be optimistic, and ultimately may seek EU and IMF assistance. We believe that in 2011, Portugal will make the market risk of financial whirlpool of emotions has increased over time, but because of its economic output is small, negative impact on the market similar or lower and Ireland.

Will happen in 2011 is similar to the first half of 2010 as severe debt crisis in Europe, we have to pay close attention to Spain. Spain is the euro zone’s fourth largest economy, the economies of scale are Greece, Ireland and Portugal, and three of the double. If Spain, a huge fiscal deficits in the future or a bank of large-scale collapse of the European Union, IMF and the ECB did not provide timely and effective assistance, then Europe will usher in the second round of the debt crisis, while a major impact on global financial markets.

We are from Spain’s government debt, the banking system and economic growth conditions to assess aspects of the possibility of its crisis. Spanish government debt situation is moving in the path of sound development. First of all, the Spanish GDP, government debt is currently just over 60% of the internationally recognized warning line, the edge over other European countries are low. Second, Spain’s fiscal revenue in good condition for years to lay the foundation for the implementation of fiscal consolidation plan. Third, Spain’s fiscal deficit in recent months has been in decline. Finally, the Spanish government debt held by foreign investors, a smaller proportion, to a certain extent, can inhibit the panic sell-off caused by irrational behavior.

Spanish banking system is not bad. Since 2009, the Spanish banking system’s capital adequacy ratio showed a trend of rapid recovery, has now returned to normal levels in history, in more than 8% of Basel II. Spanish banking system had better functional recovery of credit, its private sector lending growth in 2010 year on year there is growth, support enhanced economic growth.

From Spain to the current financial situation and the banking system and deeper economic growth data, the current Spanish does not need outside help. Even though the Spanish in case you need help, because of its economy in the euro area play an important role in systemic, although the high cost assistance, the EU, IMF and the European Central Bank will soon Shishi assistance to prevent spread of the Spanish crisis contagion effect caused.

Therefore, the debt problems of the periphery of Europe from time to time the market will be a slight increase in risk aversion, but its far from the negative impact of the debt crisis will not be as big of Greece.