What is the cause of the current economic crisis?
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Answer:
Hi Linda. First we have to understand that the economic crisis goes deeper than money issues. The global crisis is general and ongoing. It not appears not only in the worlds economic realm but we also experience the crisis in education, drugs, depression, science, ecology, disease, breakdown of the family unit, threat of war, terror and so on. Many "leaders" of our countries, economists, bankers and officials in industry are already starting to say that we have a problem of mistrust and broken connections. Yet with their lack of general understanding and old egoistic habits they don't have a true solution. Being that we are in a global crisis, it requires a global solution. The cause behind our the current global crisis is caused by humanity's egoistic relation between one another. Man's egoism. Man is willing and ready to exploit everyone for the sake of his own personal gain. It is our egoism in humanity that brings us us all the troubles/suffering felt in our lives which includes the growing global crisis in the world today. It's being revealed more and more each day how much all of humanity is interconnected and dependent of one another like cells in a body. We learn from Nature that for a body or a unit to operate optimally it has to follow the law of Nature which is altruism. Reciprocal giving. This exists at all levels of nature except in the connections in humankind. This means all parts of a whole work for the benefit and well-being of the whole. That's how it maintains balance and stays healthy. Just like the way it works in the body you are in now. In our world the cells are individual people and humanity is the whole of the body. Imagine if the cells and the organs in your body behaved towards each other the way people behave in relation to one another caring only for themselves with no concern for others (society). Basically that's like cancer to a human body. We have reached a situation in the development of humanity where we are one global village. One global family. And in that one family everyone hates each other and attempts to hide it, so how can that family exist? Imagine yourself in a family where no one speaks to the other, everyone hates each other, everyone holds a knife behind their back and thinks about how to get everything and everyone thinks all the others can die as long as he or she is saved. This is the situation we are in today all over the world. People can't have the same egoistic connections we had in the past. The crisis will end when each person will begin to think about everyone else instead of himself. This is what has to happen or if not our global troubles will not pass and only grow in all areas of life. We will soon come to realize that our good future depends on the correct attitude between us. Whether we like it or not Nature is pushing us to this correct relation between one another. Once we change our egoistic connection to one of altruism we will see all our social systems excel and the world's abundance will be revealed. We have to learn how to live in the global integral world that is now being reveled to us in order for humanity to unite and use the crisis as a springboard to a better world. The law of Nature will continue to push us to the same goal of balance by the blows of life and the growing global crisis if we do not start to correct our connections in humanity. http://www.youtube.com/watch?v=yGf4fEFvsIQ http://www.youtube.com/watch?v=HhoTCiNrdW4 http://www.youtube.com/watch?v=MQJNaCcmAoA http://www.youtube.com/watch?v=2umf7LXLuyk
Linda_Br... at Yahoo! Answers Visit the source
Other answers
American bankers greed
Crowkit
bad mortgage loans, declining consumer confidence, very little regulation of the markets
$so fresh so clean$ (3 for 3)
People wanted to buy more things so they asked for more loans than they could afford to pay. The banks did their part too, they gave out loans without checking people's finances. This went on for years and years, everyone was happy. According to wikipedia it was banks who first stopped giving out new loans, then people stopped buying houses, which drove house prices down and now people had more debts than assets and eventually couldn't pay their loans anymore, which broke banks, which made it difficult for companies to finance themselves, which caused layoffs, which drove down consumer spending, and that's where we are i think. IMO it's all the advertisers fault. They make you want things you don't really need.
Artificial
Well as told my my lecturer this week. It was small gradual things that had a dominoes effect. Small demand in shops meant companies were making less profit which meant they had let workers go meaning those workers had less disposable income. This may seem small but is actually very big as without demand comes loss. The less people are spending the less cash flow companies have, and its global because the UK purchase goods overseas meaning international companies now are out of business as their is no demand as more people are being "layed off" Also another cause is the prices of oil. It is more expensive to ship goods from other countries so prices are increasing. And another reason is the whole loan system in America and england. Banks have been giving money out that people just cant afford to pay back. Which has lead to the economy being in recession which could soon turn into a depression and could stay like this for as long as 15 years!
TheRetroKid
Certain bad and unforeseeable financial events that caught the world and country by suprise.
Eddy T
put simply, GREED
Get Outta Here
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