CREDIT CRUNCH 2008-2010

In the 1990 the United States government repealed this act.This Act, prohibited commercial banks from dealing in investments, and prohibited investment banks from doing commercial banking activities.The Crunch: How Greed and Incompetence Sparked the Credit Crisis

This enabled the big Wall Street brokers to became banks, as well as brokers, and the big banks started trading and speculating. This was combined with an enormous increase in "leverage" - borrowed money - by all the banks. Leverage is the ratio of a bank's capital to its total assets.
This created a economic boom in the United States and also spread on a global basis has consumer demand increased.
Unfortunately, certain banks decided to enter more risky investments and an adverse global energy crisis also developed.Other negative elements also occurred. Some might argue that the American frivolous investment model of the past is now being reshaped and rethought and the direct result of the free market re-adjusting itself to more realistic values.So is our money safe in banks?
The Credit Crunch: How safe is your money? (Pocket Issue): How Safe Is Your Money? (Pocket Issue)

THE USA BAILOUT PLAN

The Secretary of the Treasury of the United States finally got approval from congress to use tax money to the scale of $700 billion to bailout Wall Street.
Unfortunately,this action has not stopped the turmoil in the markets.In fact all major world stock markets are moving in and out of critical stages.
The race to rescue, however, has spread far beyond the United States. Competitive bailouts are now a globalized game, with taxpayers and savers both set to keep paying.
However,this plan and the actions taken by world governments have failed to re-liquefy the money lending between banks.In fact we have found in the UK that the banks that the government has bailed out are offering more competitive rates to savers.The panic stricken public are now moving their money from their former banks to tax funded banks government backed, which are perceived has safer.The Crunch: The Scandal of Northern Rock and the Escalating Credit Crisis

CONSEQUENCIES OF THE BAILOUT

It would seem that we have a new stage in the development in the banking system.A new era of global government and regulation intervention.This new stage and control may time to implement and develop.2009 will unravel more of this new story and there will be more surprises for us all.No doubt this period of time will be looked back has a turning point in banking history and the re adjustment of peoples ambitions and goals.Public confidence has been severely damaged and consumer spending will fall on a global basis that will have devastating effect on the global economic system,this we will see 2009-2010.
United States is but one example of the problem.

The western governments only plan has for repairing the global economy is to grow its way out of this trench.

The U.S. is a major destination for Chinese goods. As consumers in the U.S. pull back on everything from TVs to automobiles to clothing to electronic gadgets, overseas manufacturers must adjust to the diminished demand. And just as the U.S. auto industry has no "Plan B" when sales dry up, nor does China.
The global financial crisis IS threatening to undermine the China's booming economy and that China could lose its competitive edge as trade growth slows.
China is under growing tension from its large population, limited resources and environmental problems, and needs faster reform of its economic growth pattern to achieve sustainable development.
There is a strong possibility of civil unrest in China.Without cheap goods, there is no world economy. Without Chinese manufacturing there are no cheap goods, or at least far fewer of them.

All of this is are indications that spending will slow even more than it has, which will in turn put even more pressure on large cities with millions of idle workers.

So,prepare for the worse,do not take for granted that if you have any money in the bank it is safe.Do not believe your governments pledge in offering compensation if your bank goes into bankruptcy.By the summer 2009,complete collapse in the UK of industrial,banking,financial,retail,housing sector.In the USA,it will be revealed the true state of the derivatives market.Trillions in debt,the USA government will attempt to save this market by printing vast amounts of money.This will have a long term devastating effect on the US economy by creating hyper inflation.The dollar will become worthless and the World economy will suffer even more.

The dollar and especially the English pound will be seriously devalued against other currencies.April 1 riots in UK,followed in the summer with more riots as the economy collapsesYour savings will become worhless and you will be unable to pay off your debts.Be prepared and look after your own interests.This present credit crunch crisis will lead to civil unrest in the western World 2009 and the instigation of a major war in the Middle East [2010] and further East in Asia[2009].Pakistan-Afghanistan War will be created.Turkey's military industrial capacity will be developed,that will enable huge arms sales to these Asian countries.Turkey military expenditure,2008-2030,unprecendented $150 billion in arms sales to Turkey from USA .
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This lens was created 24th April 2008.
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