Since currently the globe is undermining a sever economic termoil.. this recession hit all of a sudden.
would any body share what was the pre disposing factors for this recession and how it came all of a sudden??
A Reuters poll earlier this month showed Dubai house prices are likely to slump nearly 38% on average this year and are unlikely to recover before 2011.
Pleased to meet you too and glad to see you can engage in a healthy debate.
In answer to your question, yes there was false economic boom and recession all those years ago. It is cyclical. It is noted in history that before a recession there is economic boom.
That is why I asked the question, ‘false economic boom?’
My thoughts are my own, but I doubt my Mum would agree with some of them.
hey guys (generic, not for men only)...should have asked this at the very begining...are you all in middle-east affected by recession? even if, to what extent? can't be as harsh as in north america....oh man! just thank lady luck that the pay cheque is still coming.
The recession is not current nor came all on a sudden...it surfaced in 2007 and probably started long long before that.
Micro reason was bad credit & overspending but macro reason was wrong financial policies at Washington and getting several other economies entangled into it!
One major component in economy is the 'trust' of the people in their governments. We call our money 'fiat' money, because we trust in the government's ability to guarantee the value printed on the bank notes. That trust has been totally destroyed since more and more of the corruptive systems throughout all governments are revealed. Therefore I believe that governments have a lot of work ahead to persuade the people to trust them again.
Business cycles, QS, are a pretty theoretical thing in economics. And before the expansion there always comes the lowest point. Did we reach it already? I doubt it.
It actually has been for at least a year by now… it’s weird that you have just noticed it..
Also, since you are an engineer, I assume you should have learned the Economy basics…. you know, recessions happen once in a while… it is usually prerequisite for upcoming economic boom..
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“You become responsible forever for what you have tamed”. Antoine de Saint-Exupéry
The main problem are "default credits". However, people were urged all the time to "buy now and pay later". The banks themselves are responsible for the crisis.
* Doing business on just documents without any tangible goods.
* Mismanagement and unethics in the Bank lending ie without any proper mortgage.
* Over escalating the real estate and the oil prices.
* and utlimately the greed of the people in Wall Street
This crisis started in the US and it started spreading in almost all part of the world and intensity of this depends on how well you manage your Country's Finance.
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A Reuters poll earlier this month showed Dubai house prices are likely to slump nearly 38% on average this year and are unlikely to recover before 2011.
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=281588&version=1&template_id=37&parent_id=17
End in sight, QS?
Pleased to meet you too and glad to see you can engage in a healthy debate.
In answer to your question, yes there was false economic boom and recession all those years ago. It is cyclical. It is noted in history that before a recession there is economic boom.
That is why I asked the question, ‘false economic boom?’
My thoughts are my own, but I doubt my Mum would agree with some of them.
hey guys (generic, not for men only)...should have asked this at the very begining...are you all in middle-east affected by recession? even if, to what extent? can't be as harsh as in north america....oh man! just thank lady luck that the pay cheque is still coming.
Good girl, QS.
noo.. i never give up... :):)
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“You become responsible forever for what you have tamed”. Antoine de Saint-Exupéry
That's right, siddh. In a monarchy corruption is more obvious.
QS, lot depends on waht form of government you are talking of? there is a hell lot of difference between monarchy & democracy.....
Are you giving up, QS? I can't believe that.
MD.. like we have a choice?.. trust - don't trust.. Government is there.. that one or another.. kullo wahed!
*********************
“You become responsible forever for what you have tamed”. Antoine de Saint-Exupéry
The recession is not current nor came all on a sudden...it surfaced in 2007 and probably started long long before that.
Micro reason was bad credit & overspending but macro reason was wrong financial policies at Washington and getting several other economies entangled into it!
One major component in economy is the 'trust' of the people in their governments. We call our money 'fiat' money, because we trust in the government's ability to guarantee the value printed on the bank notes. That trust has been totally destroyed since more and more of the corruptive systems throughout all governments are revealed. Therefore I believe that governments have a lot of work ahead to persuade the people to trust them again.
MD, i don't think we have reached a bottom.. but i sincerely hope we are very close to it.. it's kinda has been enough...
*********************
“You become responsible forever for what you have tamed”. Antoine de Saint-Exupéry
PPS...well.. in this case all development of the economy during entire human history is FALSE ?...
i don't think so... we ARE developing somehow.. you cannot say we are at the same point as 100,000 years ago :)
btw, qatari is the owner of this site.. I am QS.. nice to meet you PPS.. :):)
*********************
“You become responsible forever for what you have tamed”. Antoine de Saint-Exupéry
Business cycles, QS, are a pretty theoretical thing in economics. And before the expansion there always comes the lowest point. Did we reach it already? I doubt it.
Did you mean a FALSE economic boom?
My thoughts are my own, but I doubt my Mum would agree with some of them.
It actually has been for at least a year by now… it’s weird that you have just noticed it..
Also, since you are an engineer, I assume you should have learned the Economy basics…. you know, recessions happen once in a while… it is usually prerequisite for upcoming economic boom..
*********************
“You become responsible forever for what you have tamed”. Antoine de Saint-Exupéry
Loved the first descriptive sentence lol
It is all down to greed.It was also predicted a few years back and nobody acted on it.
I think it will get worse before it gets better.
My thoughts are my own, but I doubt my Mum would agree with some of them.
One of the underline factor is interst based loans, Interst is disallowed in Islam
ALLAH HU AKBAR - GOD IS GREAT
The article is the best accurate picture of the crisis I read so far!
Many thanks for sharing useful and interesting blogs
*
Slim
This explains quite a lot (it is outrageous what was going on)
http://www.rollingstone.com/politics/story/26793903/the_big_takeover/1
It is a long article and there are some "bad" words scattered through it.
easiest way to xplain :
http://crisisofcredit.com/
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SECURITY AND EXCHANGE COMMISSION..OR IS IT SECURITY IN EXCHANGE OF COMMISSION?
GREED
WASTAGE OF NATURAL RESOURCES
Everyone in life has a honeymoon time. this century honey moon time is over. now tightenup ur belts and start working a fresh.
You are right MD. Also, the banks used structured securities to get more cash for their senseless lending.
The main problem are "default credits". However, people were urged all the time to "buy now and pay later". The banks themselves are responsible for the crisis.
* Doing business on just documents without any tangible goods.
* Mismanagement and unethics in the Bank lending ie without any proper mortgage.
* Over escalating the real estate and the oil prices.
* and utlimately the greed of the people in Wall Street
This crisis started in the US and it started spreading in almost all part of the world and intensity of this depends on how well you manage your Country's Finance.