Thursday, January 8, 2009

Global Financial Crisis

Decide what you can do in your life to help our current economic situation. Listen to at least two BBC radio addresses, and lend your opinion as to whether you agree or disagree with the analysis given.

http://www.bbc.co.uk/worldservice/indepth/credt_crunch_cluster.shtml

23 comments:

  1. At this point I don't really think that anyone person or a group of persons can come together and solve this problem by changing what they do in their day to day lives. This problem requires the whole country to come together and come up with a solution to this problem. And making things transparent isn't going to help. What we need is a sort of debt release. When people don't have enough money to go and buy a house this hurts the economy, but when you pass a law that forces banks to approve GOOD loans would allow people to buy houses and still afford to commute to work everyday and go out to lunch during break. All these things puts money into the market. Which makes it possible for business to pay employees and would allow those who bought a house to pay off the loan they took out. Something like this would be useful, instead of having a government scandal before you are sworn into office.

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  2. I agree with Jake when he says that there is nothing anyone can do now. This economic situation is reaching is past it's critical point. The only thing I really can do is try to cut my costs to only essential items. This will help me in the long run but I don't think it will help the country much. If the entire country cuts down it's spending, it won't help the companies out because they will end up losing money. When you think about it there is no real solution to this, eventually the country will go bankrupt, the stock market will crash, and it will be another great depression. We already knew this was going to happen, banks were making out loans to people knowing that they probably could not have been payed back. Most of the country was wildly spending money, various costs were paid for the war, all of this accumulated until it gave us the giant load we have to bear with today.

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  3. For one person to change this economic crisis right now is absolutely impossible. The whole country has to come together. I totally agree with Jake on how we need banks to give out good loans. We need to do something because the government right now is totally lost especially Mr. George W. Bush. Bush just wants to get out of office as soon as he can. I listened to a radio address and they were asking people on how to fix this economic crisis and really people were lost. We are in such a deep hole. It has to be a nationwide thing not a single or a group thing. The only up side of this economic crisis is that gas is pretty cheap. We need demand to go lower and supplies to increase or at least supplies increasing so we can match the demand. I think Obama will change this economic crisis but with help. He wont completely fix it but at least make it better than it is now. Bush was a very lazy president when it came to the economy. He didn't do anything to improve it, he is just leaving it to Obama. We need to this nationally.

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  4. I feel that my family has done all we can to help the economy. Over the summer we purchased a new computer and television. I took on a part time job at the beginning of the holiday season and spent most of my paychecks on new clothes and Christmas presents. Also at the end of December the family car died and my mother was forced to purchased a new car earlier than expected (fortunately my mother has very good credit). Now that the New Year has started and I am now longer employed, I can’t afford to help the economy anymore. Everyone is now trying to conserve their money, because no one knows what will happen tomorrow. Stabilizing the market will be extremely difficult. We need new jobs, but with no one willing to take a risk in the market that would be impossible.

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  5. I myself can the economy by get a job which helps because the tax that is taken out of my paycheck goes to the economy. I agree with what Mike said, we need demand to go lower and supplies to increase. I agree that this isn't a single person or a group solution but a whole countries commitment to solve this problem together.

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  6. To help our economic crisis, we need to find alternative ways in making the same product, but for less money. For example, Toyota dealerships are doing way better than Ford dealerships because everyone wants a car that can save gas and doesn't cost much, the Prius. Ford on the other hand is known for selling great trucks, however, trucks are known for not saving gas. In fact trucks do the exact opposite of saving gas. This is a reason why car companies are slowly going into producing electric cars. Electric cars are environment friendly, it saves you money at the pump, and it's a cheaper car to buy. In conclusion, to help get back on track with our economy, producing gas saving cars that don't cost much is the way to go, because our country is known for having many big cars that eat up gas. This problem isn't something one person can solve, it's a national problem that needs to be fixed.

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  7. I believe that every one can start doing something! It’s just a matter people need to start spending there money. http://www.bbc.co.uk/worldservice/indepth/credt_crunch_cluster.shtml
    Says that everyone is holding on to there wallets/money. This is where a big part of our dilemma starts. If the general public starts spending there money then more jobs will be required, more jobs means more money for the people in the unemployment section, and our economy should slowly come back up as long as people spend there money.

    A different way to look at all this in a positive outlook is that with people having less money they are looking at things like other means of transportation. This is making gas prices go down and is much better for out ecosystem! Then the people who still have money go out and are able to buy hybrid cars that also help our ecosystem. It is like ying and yang everything has a positive to its negative.

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  8. To decrease the effects of our nations economic crisis, I would personally decrease my temperature on my water heater, limit credit card use, and shop at small businesses for the economic boost. We need our national banks to give out good loans like Jake said. Our national debt to China is out of this world and in the trillions. Shopping at small businesses in the U.S. will support production of goods here in the U.S. and start decreasing the need for Chinese products.

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  9. I agree with Mike on the fact that we have to come together as a country in order to fix the economic crisis. When we finally decide to put our heads together to fix the crisis, the road leading there is going to be long and bumpy. A couple of things that I can do to help our current economic crisis are to carpool and help conserve gas and conserve energy usage at home. Banks need to be smart about what they do with loans. Essentially, they need to make good decisions, just like Jake said. People that go into banks wanting loans for unimportant things during this stage of the economic crisis should get rejected. I believe that banks will play a huge part in helping the U.S. get out of the economic crisis. Another key player in helping our economic crisis is Mr. Obama. Our newly elected president should get this country on its feet and walking again after a little some time in office.

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  10. I believe that there are a lot of little things that can help out world in many different aspects. The only problem is that one person can't change the world. If suddenly our entire county, every single person, started to recycle for example, I don't know how much that would help our environment. Yes, it's doing a good thing for our world but one person can only go so far. People can spend more time saving money, or shower less, turn some lights off in their home, or take the bus to work. The point is that one person doing all this is good, but to see our society as a whole start to help fix our world and its problems would be amazing.

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  11. Although most people tend to believe they can’t shape anything in the world we live in, they are wrong. The economic situation is almost like voter apathy, people won’t vote, if they feel they don't have any influence. To rally people we need to show that every person can make a difference. With every little change, the world becomes a little better, because soon it will catch on to the rest of the population like the spread of technology. Who knows, one person could influence another, and we could come across a “Pay it Forward” situation; all we need to have is a little faith and hope. I, myself, am trying to get a job right now to help pay for my expenses so that the money that would have been given to me, can be used for more useful things. So far in the news, reporters have stated that consumers aren’t spending anymore, especially during the latest holiday season. I really don’t know how to help that situation, because at the moment people are saving instead of spending, because they fear the worst: a global economic meltdown. Houses being bought for $1, or tons of foreclosures aren’t helping our economy. Just by lowering the price it doesn’t cover what’s really there. Instead of just blaming the consumers for not buying, our government needs to buckle down and focus on bringing our economy up, and this doesn’t mean many more stimulus packages. I guess you can say everything is going down when the porn industry is asking for a bailout, but really the extreme amount of stimulus’s being handed out doesn’t help. I came across a cartoon today that pictured dynamite hanging for the ceiling and across it the word Stimulus. Below it read, “Grab us we can help!”, but really they can’t. All of stimulus’s are going to blow up in our faces when we are so far in debt that we can’t even recover those funds we used to stimulate our businesses. We need a global economy makeover, fast.

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  12. I believe that if everyone would cut down on the amount of credit cards they have it would help the economy. Because if you have all these credits cards floating around and you can't pay them off it is added to our debt and everyone has to pay for it eventually.

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  13. I can do several things to help out. Cut down on credit card use, turn off more lights, use less water,carpool and recycle. Some things are simple. Like everyone before me has already said, one person can not change our problem. But then again, you do not know how many other people are cutting down and taking the same actions. We now have a new president and should take a more optimistic view towards the economy. As a country we need to come together and fix our economic problems.

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  14. I disagree with Jake and Lupita and think that one person or group can make a difference. Everything has to start somewhere and it is usually due to one person's efforts. I personally can help the economic situation by not buying things that I don't really need, like clothes. I am trying to reduce the amnount of water that I use by cutting my showers short and even turning it off when I'm not really using it. I also try to recycle almost everything I can, from bottles to cans. Even though gas prices aren't that high, I try not to drive whenever I don't need to and carpool whenever possible. I think banks should only approve good loans because it will only allow the people who are financially able to buy a house to buy them. It will decrease the number of people in debt. This will also make the banks more trustworthy. People need to be more responsible for their actions too, it isn't just the banking system. People need to be frugal during these hard times.

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  15. Everyone here has very good point. Working together to help and try and save money. Some things I try and do is I cut down my credit card use, turn off the lights, when I brush my teeth I only turn on the water when it is necessary. I can tell that everyone is in a economic crisis and they should shop carefully and not only buy the brand-name things. Obama is trying to influence people that he can not do it alone, us as a country need to work together and save." Obama said the economic and financial crisis confronting the United States and the world demanded the "sound judgment and fresh thinking" his new team would bring to bear on problems as great as any since the Great Depression in the 1930s." As a employee i got laid off from my job because the could afford paying all the emplyees so they only kept the ones that were official there. If i am already loosing my job now at seventeen, i hope everything gets better.


    http://www.mlive.com/business/index.ssf/2008/11/obama_says_economic_worst_stil.html

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  16. To help out our current economic situation there are little things that I think everyone could do to make a difference. I just try to be more cautious of things that I would normally do without even thinking. Instead of turning up the heater, just get a blanket or jacket, take shorter showers, be more careful about driving all over the place and don't just drive to drive. When I go shopping I am also much more aware of what I buy. Instead of going to Trader Joes or Whole foods it would be smarter to go to Safeway or even Costco. I think in general everyone should just learn to conserve as well as be more aware of spending.

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  17. I agree with Jake also, no one person, or group of people can change where we are now. If they simply change their way of life, it won’t affect everyone else. The only way it will affect other people, is if someone who is high up in popularity or high up in the government said that we were all going to make a difference. No single person can change everyone’s mind. Some people may be swayed by what one celebrity may say, while others think that person is an idiot who has no idea what they are talking about.
    Then agreeing with Lupita, if we all cut down on what we buy to where we only get the essentials that would hurt the companies and not help the economy out a whole lot. The economy is based off of people buying and selling things to others.
    As just one person I could do less unnecessary things. I could drive only to places that are to far to walk to, walk to close places, buy less pointless stuff, ect.

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  18. I believe that all of us can make a difference in this economy if we tried. If we all conserved energy,we would make a huge difference. One little thing can make a big difference in my view. we just have to lessen our spending or be more cautious about it. what I do is that instead make sure the lights are closed if their not being used as well as conserving water whenever I can. I have my own recycling program at my house which I always follow

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  19. I agree with what everyone in the class has to say about this economic situation. We all need to work together as an economy and try and save money. An interesting fact I know is that going vegan is better for the economy rather than having a hybrid. Although that's just one fact that can help our economy there are many more things we can do to change and benefit our economy. Like Lupita said the only thing I really can do is try to cut my costs to only essential items. I personally can relate because, I got laid off my job because of the economy and It really disappointing. Therefore if we all work together we can make this a better place.

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  20. Everyone here has made very strong and important points on how to help our current economic crisis. We are near another depression, unless our economy is flipped 180 degrees and changes are made. Ways that my family and I are helping the economic crisis are by buying things with cash, not with credit, or buying things on credit with money we KNOW we have. That is one problem with today's consumers... they buy things on credit and the interest that the credit card companies impose is outrageous!! Also, we are trying to spend money on items that are actually needed, instead of luxury items that can waste our money.
    By being conscious of the resources that we use, water, electricity, oil, and consumer goods, we can all improve the economy together...

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  21. I think that we can keep are faith in the economy and continue to spend money and keep the economy moving. I think it is very important that Obama comes up with a stimulus plan for the economy, quickly. The government also has to do something to create more jobs. We will probably have to go to war with someone like Iran to get the economy started up again, and create war time jobs. Through out are history are economy is always stronger after we win a war.

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  22. Personally, there isn't much I can do to help the current economy. I don't use credit cards, I don't go through alot of gas, the only thing I can think of is to get a job to help out my parents. The problem isn't something that can be fixed by certain individuals, it's going to take the entire country to come together as well as our new President Obama to create a plan that will be successful in rebuilding our broken economy. I agree that it's necessary for the banks to give out good loans and help those who are stuck at the very bottom get back out. As a country we need to work on production but also we should work on cutting back on credit card use, excessive gas use and look to help those around us who are in need of it.

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  23. Besides continuing to put money in the economy as much as possible, I'm honestly not sure how I, or any one person for that matter, can help the economy alone right now. To deal with this economic crisis, it will take a lot more work. On the "BBC World Service - Global Financial Crisis" website, I listened to two radio addresses. They were called "Slowdown Stalks the Globe" and another one called "How did it all go wrong?" by Andrew Walker. Both addresses discussed how the economic crisis is hitting the United States and the rest of the world. Andrew Walker discussed when he first started to notice the severity of this crisis - in September with the whole Frannie Mac fiasco in the United States. Nobody thought the economic crisis would last as long as it has or be as severe as it has been.

    http://www.bbc.co.uk/worldservice/news/2008/10/081024_how_it_went_wrong.shtml

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