vinod s asked:


Do I understand this financial breakdown correctly?

The US consumers have been fueling the world economy by producing and consuming the most - enabling technological advances as financial backing seems feasible for marketing every need of the consumers. That is the good part.

In recent decades the producing part has dwindled due to China and may be lack of any major breakthrough in technological advances. However, the consumption still goes on.

The mortgage loans offered by the US banks (note - highest value consumption) were backed by banks all across Europe China and Japan. Now all these banks shall have to write off these loans - Total of Billions of Dollars !!!

If this is correct I wonder if there isn’t enough data and advanced mathematical methodology to predict and avoid this. We have super computers to monitor the workings of Nuclear Bombs - how about creating one to save these billions - a lot of good can be done with that kind of money. What do you say?

Emma

Softtouchmale asked:


It seems with credit being tightened so mightily so that the consumer can’t get a loan without having a nearly perfect credit score; and with wages not keeping pace with inflation; and with the price of necessities like food, shelter and fuel rising at extreme rates; is there anything we can do to stop this death spiral?

KAREEM

GMC asked:


When the Dow Jones average falls it seems to get everyone concerned. What is the connection between the stock market and the average consumer? I know its harder to get a bank loan, right? And how are we looked upon by other countries?

MYLES