Thoughts on Financial Crisis

What I think about ongoing financial crisis in US is this:

Obviously the facts are that only few could predict the situation and almost nobody is able to explain to the public the history and the root of the problem so people could understand it 100%.

Therefore I think that 700 billion bailout plan or other similar plans are just attempts to solve the problem which people in charge are not able to understand or define correctly. So... If people in charge still are not able to define and explain the problem in details short term — no need to intervent the U.S. economy.

It's gone. Let all these failed banks die and CEOs responsible should go to jail. IMHO.

Related Posts:

• Off to Thailand
• Can Software Code be Converted into a Block of Energy ?
• Quitters, Inc - Company Vision and Strategy from Quitter's Perspective
• Riding a Bike to Work
• I Moved Finally to Dedicated Hosting
• MyBlogLog Unbanned ShoeMoney, Digg Unblocked x2line
• YouTube RSS Feeds are Broken
• Anna Nicole Smith 1967 - 2007
• Total Immersion at Demo 2007
• Wow, Scoble vs. Engadget

the same thing happened during the great depression - people borrowing money beyond their means to repay and reinvesting that money. The banks fault is that allowed the people to borrow that money. When real estate market crashed and interest rates rose people could not afford the mortgage/loans they borrowed and they could not sell their houses which now cost much less than what they bought them for.

If more and more banks fail there will be more and more people out of the job and out of income. will create a domino effect throughout the economy - people not buying goods, banks not giving loans for people to start businesses, etc.
Also the stock market is losing its value -most of americans have money invested in the stock market either through their retirement money or through their personal investments these people are losing money too.

Still can't get it how all of them surprisingly fail during one week :)

The following period will be painful of course, this is mostly due to the stock market sink.

On the other side people would avoid to buy expensive goods and spend money on unneccessary things should drop prices.