I really don't understand well the mechanism on how to determine the economical index or even how to read it. I just take the fact from the newspapers and other medias that most of the wealthiest countries are going though serious financial crisis. My naive impression was that the global economy is a closed value in that if someone is losing the money, someone else is then receiving it. If the balance between the products and the needs are thoroughly maintained, then the total money will constantly move along in a cycle. Of course, the affluence of products and other fluctuations will affect this system but to what extent? So from my understanding to it, we can have local financial crisis, but the global financial crisis is not comprehensible to me. Are the money accumulating in private accounts? Then why so many banks are facing the wreckage? I think I am missing the most essential theory by which the financial system work.
The problem is that the mostly affected people due to this crisis will be the middle class who are not intentionally or directly involved to the share markets. My point is that the brokers, the investors, banks, and/or the companies usually play it safe, so this credit crisis will barely make a hole in their financial balance. The degree of their loss depends on various factors, for which mostly they are directly responsible. The poor people are completely indifferent to the rise and fall of share markets. Whereas the middle class people's pension money is usually used in Stock market by their employers and thus they will suffer a lot in several ways such as, their retirement may delay and/or the pension amount may cut-off. My pity is that these people are chiefly innocent to this crisis.
I have just picked one of the many consequences of the wreckage here.
The problem is that the mostly affected people due to this crisis will be the middle class who are not intentionally or directly involved to the share markets. My point is that the brokers, the investors, banks, and/or the companies usually play it safe, so this credit crisis will barely make a hole in their financial balance. The degree of their loss depends on various factors, for which mostly they are directly responsible. The poor people are completely indifferent to the rise and fall of share markets. Whereas the middle class people's pension money is usually used in Stock market by their employers and thus they will suffer a lot in several ways such as, their retirement may delay and/or the pension amount may cut-off. My pity is that these people are chiefly innocent to this crisis.
I have just picked one of the many consequences of the wreckage here.
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