If it is the viral effect, then where did it all start?? Whereas it's easy to detect the origin of this fiasco and symptoms of the disease, we need to go a step further and research the real causes of the diseas. It's easy to say it all started from the US and that US Financial system stressed due to Sub-Prime crisis led to the economic stagnation in the US and consequently the whole world.
Some people say that lack of due dilligence in the mortgage financing enabled those people to secure home loans who could never have afforded to buy a home and therefore the banks and other mortgage finance institutions themselves wrote the recipe of their own disaster. Some people have questioned the very notion of Laisseze Faire and have asked Governments to regulate the Financial and other economic sectors by introducing stringent controls through legislation. And such voices of control are, for strange reasons, are not coming from centrally planned economies but from the house of Capitalist System, i.e., US and Western Euorope. The question is why was there such a lack of due dilligence during last eight years? Are the systems and institutions becoming outdated to the current economic realities? Or it is the lack of will on part of those who are responsible for exercising such due dilligence?
There is a growing group of people who thinks that current US Administration, dominated by Big Business groups, is the cause of many a debacles where State Interests were compromised by pursuing the personal or group business interests. War in Iraq might have resulted in accumulated debts instead of source of supply of Oil for the State of America. However lucrative contracts for supplies and "Building Iraq" must have resulted in revenues and profits for such business groups beyond our (not their) imagination.
It's also argued that why is it so that never in the history of US so many Chapter 11 bankruptcies have happened as in the current US Administration. Following is a list of 10 top Bnakruptcies compiled by CNBC...
10. United AirlinesAssets: $25.2 billionDate Filed: Dec. 9, 2002
9. Pacific Gas and ElectricAssets: $29.8 billionDate Filed: April 6, 2001
8. Global CrossingAssets: $30.2 billionDate Filed: Jan. 28, 2002
7. RefcoAssets: $33.3 billionDate Filed: Oct. 17, 2005
6. Financial Corp. of AmericaAssets: $33.9 billionDate Filed: Sept. 9, 1988
5. TexacoAssets: $35.9 billionDate Filed: April 12, 1987
4. ConsecoAssets: $61.4 billionDate Filed: Dec. 18, 2002
3. EnronAssets: $63.4 billionDate Filed: Dec. 2, 2001
2. WorldcomAssets: $103.9 billionDate Filed: July 21, 2002
1. Lehman BrothersPre-Bankruptcy Assets: $639 billionDate Filed: Sept. 15, 2008
One can notice that 8 out of 10 of these bankruptcies happened in this Bush junior Administration and the other two under the Senior Bush!
And if you look at what happened to AIG and Merrill Lynch and the current state of affairs at Big 3 Auto companies, it makes one think that;
- Either Bush Administration(s) were inept to govern and run the economy of the country or
- There might have been greater designs behind such failures.
Next administration should at least look into the Financials of the the current administration's companies and personal accounts and point out the changes in their financial status after they came to power.
In this Global Village, If the USA has to keep its role as the world leader, it has to get rid of the 'Bush World Order' and focus to improve its economic situation first before it tries to assert its might to bring about political changes around the world.
I hope Obama Administration would abandon the false wars and would rather focus on improving US economy so that World Economy gets improved too in the process. Healthy US is in the interest of all including those who loath its political policies.
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