How did the world fall into this financial crisis?

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  1. This is a serious hiccup of Globalization.
    Each country has to position itself in a way that it has a good chance of survival. Of course minor countries such as ours will suffer because we have little to offer to the world markets. When the U.S. began its outsourcing program to India, Mexico, Thailand etc., it began changing the economics of those countries. In turn they began to see they had a lot to market besides their cheap labour. As their markets expand, they become valuable trading partners to other countries in their region and as they acquire more wealth they begin to desire more of the material things.They find ways not only to export their assets but with their new found wealth they can better educate more of their population and diversify their ability to produce different goods that the rest of the world needs or desires. We saw this with Japan after W.W. 2.
    In the meantime, the U.S. has reduced the number of jobs available to their own people. Greed and necessity has played a leading role in the U.S. market place. The bottom line has been affected by the high cost of labour in the States, due mostly to unreasonable demands by unions, and the needs of executives in large businesses to secure higher wages and the perks that they demand by virtue of their positions.
    A lack of oversight by the shareholders and the government of these large manufacturing companies and financial institutions (possibly because so many elected officials have undeclared interest in one way or another in the profitability of these companies) leads to a feeling of entitlement that is detrimental to the country. Couple this with the belief of the preceived entitlement of the general population to all the material things that are available
    and an unwillingness to realize that we must live within our means (credit card mentality) we develope a real economic crisis. Power of nations rests upon their wealth relative to the other power seeking countries. Over history we have observed the rise and fall of nations. Whether we like it or not China and India are rising and the U.S. is struggling to stay on top. They have spread their wings too far and are doomed to repeat history. Unfortunately our little country is inexorably tied to that of our U.S. friends and we have to ride the wave of their economic woes and their eventual demise as the most powerful nation in the world.

  2. BREAKING NEWS>>>>>>
    Financial crisis: Hank Paulson warns that more banks and businesses will fail

    Hank Paulson, the US Treasury Secretary, has warned that more banks and businesses will fail amid the financial crisis despite America’s $700 billion bail-out plan.

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