Crash: Are we Ready for the Next Crisis

Crash: Are we Ready for the Next Crisis

2019, Economics  -   7 Comments
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Ratings: 7.92/10 from 13 users.

In 2008, the world was hit by a financial crisis, the worst since "The Great Depression" of the 1930s. Governments had to step in and bail banks out to prevent the collapse of the global financial system. Many around the world ended up unemployed, losing their homes and investments.

And what is more alarming is that there have been other shake-ups since 2008, including today's impending pandemic-led financial meltdown. Gone are the stress-free and fiscally confident days of 60 to 70 years ago when banking was stable and secure.

So what went wrong? The financial sector's original purpose was to finance a country's economy by supporting individuals and companies with financial difficulties. Today, there is a growing divide between the financial sector and the communities they serve. They no longer manage the savings account of regular people and loan it out to individual borrowers. Now, banks themselves are doing the actual investing, borrowing money from other banks and risking their customer's cash.

Money is now used to make more money. Bankers and finance experts are on the lookout for the next big thing to invest in - be it a scheme, industry, product etc. They take big risks and drive prices up. This constant, unchecked speculation is why the banking industry has become more unstable in recent years.

Today, the question "When will the next big financial crisis hit?" is on the back of everyone's minds. It almost seems like we are expecting yet another crash.

The 2008 collapse, and smaller but similar events in the last 20 to 25 years, has made people lose their confidence in financial institutions. We hear of governments stepping up and supporting these banks via trillions of dollars in bail money, yet nothing has changed for ordinary people.

There is now a growing awareness that the current global economic system needs fixing. So what can be done? The banking sector is ever-present in our lives, yet many are unaware of its impact. For things to improve, we need to demystify finance and not be intimidated by it. It is important to educate people to make their own financial decisions and not depend on so-called experts.

Hard-hitting banking reforms also need to be implemented globally. This is what happened after the 1929 stock market crash, which caused the Great Depression. US President Franklin Roosevelt reformed and worked with the financial sector to fix the crisis. What followed was 30 years of financial stability, from 1945 to 1975, free of significant financial upheavals. Countries worldwide followed Roosevelt's example of imposing regulatory measures on banks to ensure that speculative bubbles won't get out of hand.

We have two choices for the future of the world's financial health. The first is to keep things as they are and allow the gap between regular people and financial institutions to continue to widen. The second is to restore and revive the original purpose of finance, which is to help the economy survive.

But for that to take place we need bankers to do their part and be willing to be regulated and most importantly, we also have to get involved. So is the world ready to handle a new financial crisis right now? What do you think?

Directed by: Eve Minault

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7 Comments / User Reviews

Leave a Reply to Helena Tomé Cancel reply

  1. Greg

    video is no longer available

  2. Jean-Pierre Tardif

    Link the question of this lie that is climate change to economical questions is the most amazingly twisted idioty that I’ve ever seen... Poor humanity, you are damned if you belive this cause this is blatant brainwash scam...

    1. Dimitri De Breucker

      Climate change is a lie? Yeah, I stopped reading right there.

  3. Tom Pain

    Bill Clinton is largely responsible because as president he deregulated the banks to allow them to gamble with unchecked speculation. Nothing much has been done about it. Dubya, Obama and Trump did nothing and Biden won't do anything either. They are all in the exact same elitist "club" and you ain't.

    1. David

      The problem is, no one studies economics that is critical to understand. Clinton did that because the economy is a ponzi scheme that lurches from one crisis to the next, as competition continually erodes the rate of profit that forces employers to cut wages and claw back benefits as a result, that only makes things worse as consumers have less disposable income. In the seventies women were taken into the work force to boost sales and temporarily stabilize the economy...but it is only temporary.

      By the eighties the problem re emerged and economies around the world were deregulated as cheap labor was employed to re established the rate of profit, at the cost of millions of jobs and the loss of industry, as the formation of monopolies occurs as only the largest business survive. Western countries now subsided their domestic economies. that were now predominantly economies of consumption, and not production by borrowing heavily from overseas. As profits continued to fall, consumers now turned to credit in the nineties as average household debt went from 54% of total income in the early eighties to over 200% today. Americas external debt had exceeded its capacity to repay by the year 2000, and the war in the Middle East had already been decided upon in order to control the earths last large land based oil reserves.

      Its all in Brzezinski's The grand chessboard.

      The Grand Chessboard: American Primacy and Its Geostrategic Imperatives (1997) is one of the major works of Zbigniew Brzezinski. Brzezinski graduated with a PhD from Harvard University in 1953 and became Professor of American Foreign Policy at Johns Hopkins University. He was later the United States National Security Advisor from 1977 to 1981, under the administration of President Jimmy Carter.

      Regarding the landmass of Eurasia as the center of global power, Brzezinski sets out to formulate a Eurasian geostrategy for the United States. In particular, he writes that no Eurasian challenger should emerge that can dominate Eurasia and thus also challenge U.S. global pre-eminence.

      Much of Brzezinski's analysis is concerned with geostrategy in Central Asia, focusing on the exercise of power on the Eurasian landmass in a post-Soviet environment. In his chapter dedicated to what he refers to as the "Eurasian Balkans," he uses Halford J. Mackinder's Heartland Theory.

      Total collpase has been coming for years as we voted for one gang of crooks, war criminals and thugs after another and have never held the to account. We only have our selves to blame.....no one else.

  4. Helena Tomé

    You say nothing we don't know already. Worse than that lack of innovative ideas are the way you link climate changes and some women entering important positions in decision making. The crises is not really related to climate changes! Climate changes are another crisis, finance is not related to that alone. And women in corporations and government act like men in the same position. It is not clear that women acting like women are able to transform the situation that you so clearly assert: lack of regulation.

    1. lorraine st james

      I agree with your input here and yes regulation , as well as payments with interest for any form of government bailouts to industry and banks.