5 Reasons Every Person Must Know Behind Recent Global Economic Crisis

About Recent Global Economic Crises:

It is actually an ongoing 2007-2012 global economic and financial crisis having multiple factors directly or indirectly involved. Economic, political and organizational interests have played a main role in giving rise to these global crises.
This global financial and economic crisis generally seems to have affected few areas only, but on a close look, you will find everyone becoming a victim of this crisis. It has large effects on a common man. Many workers of massive companies have been bankrupted and many have become unemployed. There is an overall decline in every business.

Photo Credit Walworth County Today

Some major reasons include:

1.Failure of Toxic Mortgages:

One major reason of this global economic crisis is the failure of toxic mortgages in US.

Some risky mortgages were actually packaged with few secure mortgages and were then sold as secure investment (Read More….)

Why There Are No Jobs

What a week.  On Tuesday the DOW finished the day at 13,279, its highest close since December 2007.  In terms of the stock market, we’ve crossed the great divide…December 2007, remember, was pre-financial crisis.

In fact, it was nearly a year before Lehman Brothers vanished from the face of the earth and black swans relentlessly descended upon the LIBOR like common ravens upon fresh Southern California road kill.  If you recall, when the sky was falling in late 2008, spread movements that were statistically not possible in a million years, somehow, happened every day.

Money market shares of the Reserve Primary Fund did the impossible…they broke the buck – falling to $0.97 cents a share.  Still, while the stock market may be back to where it was over four years ago, the world is dramatically different…

For one thing, back in December of 2007 you could buy a 10-year Treasury Note yielding 4.23 percent.  Today the 10-year Note Yields less than half that.  Of course, December 2007 was before TARP, CPFF, MMIFF, TAF, ZIRP, QE, QE2, Operation Twist, and all sorts of other harebrained schemes were put into (Read More….)

The Time Is Nigh To Walk Away From The Table

“Great things are not accomplished by those who yield to trends and fads and popular opinion,” once remarked Jack Kerouac.  Perhaps Kerouac had the stock market in mind when he made this observation…we don’t know.  But if he did, he would’ve likely perceived a stern warning from recent volatility index readings and investor complacency. The volatility index measures investor expectations of stock market volatility over the next 30 days.  Generally, a volatility index reading below 15 has been a good time to sell.  For example, in April 2011 the volatility index dropped below 15…presaging a swift 20 percent decline in the S&P 500. The first quarter of 2012 concluded last week.  If you can believe it, the stock market, as represented by the S&P 500, is off to its best start in 14 years.  Year-to-date it’s up 12 percent.

But while everyone was yielding to the popular opinion (Read More….)