I personally do not think that this could be a terrorist activity. They might not have reach enough to damage economy of world ! Even any single country I think cannot bring the economy down (It may be able to affect it to some level) 😉

Differential

I personally do not think that this could be a terrorist activity. They might not have reach enough to damage economy of world ! Even any single country I think cannot bring the economy down (It may be able to affect it to some level) 😉

No, its not single country. Its the people who are associated with terrorist groups who might have done it all. Think about it, people applying for loans and then being defaulters, on a mass level.

The_Big_K

No, its not single country. Its the people who are associated with terrorist groups who might have done it all. Think about it, people applying for loans and then being defaulters, on a mass level.

Can you check from where recession started... ?

Can you check the profile of CEO of Wachovia who got fired after 20+ yrs of service and a wrong decision ?

Can you blame will fargo for layoffs of CITI ...?

What about the oil price...?

Do you think money flow of GM and FORD stopped because of Terriost attack...?

These questions certainly do not allow me to think in this direction.

-Crazy 😁

Interesting discussion. It can be an activity by the under world. Look at soaring property prices in Mumbai. Most of the builders claim that they have already sold the flats where as most of the buildings are empty.

There was a time when the topic dominated the lunch hour discussions. The under world nexus, no short of big money were actually blocking the properties so that it could inflate the demand and soar the prices. Its called an artificial inflation. Think about it, it has happened in Mumbai. It could have happened in US too.

yeah..it is indirectly related to terrorism,starting from American war of Independence to the great depression....wars on afganisthan and iraq proved costly for them and their citizens!!!

The_Big_K

CEans,

May father & I have been discussing this topic over the tea now. Is it the new face of terrorism that directly affects the common man? Or is this a deliberate attempt to kick world's strongest financial systems?

Think about it, makes sense!

What's your take?

I do not think it makes sense, if your term of "terrorist" solely means the Islamic fundamentalists.

However, if you define "terrorists" as people who create malice for their own gain, regardless of their principles.. I'd think its possible. Just like the 1997 Asian crisis caused by rich speculators.

The great economic problems in this world are caused by those who abused the flawed economic system. The abusers are all sorts of people.

I'd wonder if engineers can help out the economists and others on creating a better economic system the benefits everyone. Huge feat, considering the great minds that have contributed to the existing one.

Ash - I think terrorism is being defined. I've been thinking where did all the money go? It could be that the money went into the pockets of people who fund terrorist groups and organizations [that's just my guessing].

I just think the whole recession has been systematically planned.

It's mostly because people were overspending. Like a gambler who gets into debt except in massive droves. The main problem was that people moved into homes they could not afford, but since they were anyways, the builders still made larger and more expensive homes. People, on top of this, kept on buying and buying stuff on their credit cards, but only paying the minimum interest on it, thus they were spending a whole lot more than they could ever pay off. Companies didn't care, and kept of flooding the market to meet demand, but when banks and companies didn't get paid for their products the whole system started to fall apart.

Banks lost huge sums of money on loans they thought were going to be paid back with interest, but never were. They seized the assets, but since nobody had the funds to actually buy the now bank owned homes them in the first place, as well as banks now panicking over loaning to anyone so they might buy a home, the assets were nearly useless. Now nobody has cash to buy anything, companies can't get loans to invest, let alone pay off short term expenses. So people are getting laid off to cut expenses, thus less people are able to buy things and the flow of money, as well as the economy, is now pretty much in a large pit of molasses... or some other sticky, thick substance.

If you are still confused, think of the economy as a boiler, and the coal heating it as spending. Basically, American consumers kept on shoveing coal into the fire pit, heating the boiler up to the point where it nearly exploded. Before it exploded however so much coal was in the boiler, that their was no oxygen to feed the fire so the fire chocked it's self, and no more coal was available to restart the fire since it was all used up.

Yeah, highly unlikely that a few terrorists made the national savings average negative. (Americans spent more than the made as a whole.) It's more like people got a little drunk on spending and pressed the self destruct button in a drunken haze.

It's a perfect example of never attributing malice to something that can equally be explained by stupidity.