What opinion can you give on the U.S. financial crisis?

Please give ur opinion on INTERNATIONAL BUSINESS CRISIS !!! ?

• I had heard that now a days the international markets are going in GREAT crisis ?? and i read in newspaper that TOYOTA (japan) is first time in crisis in his seventy years duration due to that international business crisis. and i am in dubai and i am really surprised to hear that all constructions in Dubai are stopped and the staff are getting fired bcoz companies can afford the expanses any more. and dubai government has announced that 5% of staff should be Dismissed in all large companies. and the amazing thing is that the FORD company has also temporarily closed. so please tell me how this crisis got in the INTERNATIONAL MARKETS and what u think about that and how it will affect the international market !! thanks for ur comments

• Answer:

  The governments are blaming the crisis on a few million USA homeowners that quit paying for their houses. The mortgage banks took those notes and sold them other companies worldwide as AAA rated securities. Many were not. BUT everyone is completely discounting the effect of Westernized companies offshoring huge percentages of their business away from USA workers (who are the world's biggest customer) and driving the common man's wage into the ground. Third world country workers are paid pennies compared to Europe, USA and even Dubai. They can't afford the products they now produce. Americans and Europeans were living on credit. Fueled by credit card debt we spent and spent. In 2005 the government changed the credit rules. This was the final nail in the coffin of the housing boom. Massive reductions in income for former manufacturing workers, and their suppliers, countrywide, followed by harsher credit rules with mandated increased payments AND tripled interest rates sent the US consumer into instant default. And neither can we. We WERE the world's best customers--but that power has been took away from us. So, for huge profits the mega-corporations, off shored their best customers. It wasn't a good game plan. This is going to be nasty, there are 4 or 5 situations worldwide that have converged to become the perfect storm of a massive removal of personal wealth and status of living. For many worldwide. Good luck to us all.