If an ounce of optimism exists in the market meltdown, it is this: Europe and the US have agreed to make the world safe again for capitalism by rethinking global rules for the financial system. One thing is for sure: The old rules, largely set in 1944, are as good as a rusted-out speed-limit sign.
Too much of the new world of international finance, such as hedge funds, derivatives, and mortgage securities, now operates in the shadows. US credit-rating agencies badly underestimated the real risks of subprime mortgages. Big banks have become too big to fail. And most of all, when Wall Street crumbles, the rocks ricochet from Shanghai to Stockholm.
Reining in the excesses of this complex, 24/7 business won't be easy – even within each country. But hope for reform is strong after recent joint action by Europe and the US to prop up banks and grease money flows. Read more..http://www.csmonitor.com/2008/1017/p08s01-comv.html
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I believe that the reason that we are having many of the serious financial problems that we are have today is simply because everyone decided years ago that the united states could have an economy based on financial services professionals like financial planners insurance agents CPA'S just take a look around the corner of the town you live in and you will find the insurance agents office the financial services company or a financial services company renting space inside a bank selling mutual funds and annuities. The only problem with this picture is its reversed saving creates financial services businesses What we have is an industry that makes its money off of money by charging money to manage money. Instead of creating real jobs that create real wealth we have quite the reverse. And what does everyone see when they think of their children graduating from college. Someone sitting at a desk in some bank in front of a computer.
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