The 2008 Financial Meltdown - An Unimagined Crisis

By
Real Estate Agent with Windermere Real Estate - Palm Springs CalBRE# 01339266

The euphemistically termed "meltdown" in the financial world is really a crisis of enormous proportions.

"The world's central banks launched a large coordinated attack against the widening global financial crisis, lowering short-term interest rates in unison. The emergency action, which involved the Fed, the European Central Bank, the Bank of England and others, is a sign that fears that the financial crisis could cripple the global economy are spreading rapidly" - Wall Street Journal

"Fed Can't Stop the Bleeding. Global Markets Remain Strained" - Fox News

"The US treasury secretary has warned some banks will still fail despite the $700bn government rescue package to shore up the financial system. The UK government has announced a package of measures aimed at rescuing the banking system that makes available £400bn ($692bn) of fresh money - BBC News

"Fed can't save stocks. Wall Street ends a volatile session with losses as investors welcome emergency rate cut but remain wary" - CNN News

"Market turmoil continues despite rates cut.  IMF says global economy faces a painful recovery"  - France 24 International News

"China cuts rates to ward off slowdown. IMF: World economy to slow sharply, led by US" - China Daily

"Economic Crisis will not be televised. Elite Nightclubs Empty as Crisis Hits Oligarchs" - The Moscow Times

"Blame bad rules, not capitalism" - The Jerusalem Post

These were the headlines splashed across the internet on October 8, 2008.

The harsh reality is that despite concerted and co-ordinated efforts by governments around the world to stabilize the situation, confidence in the global financial system has been smashed. I think it's time for everyone to take a step back from the clear panic in the stock markets, take cognisense that the credit markets do not respond overnight, and give the system a chance to respond to the drastic measures taken by governments around the world.

Remember: "This too shall pass."

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Topic:
ActiveRain Community
Location:
California Los Angeles County West Hollywood
Groups:
Blatant Politics
Investors
LA Connection
Politics And Real Estate
Realtors®
Tags:
finance
economy
mortgage crisis
interest rates
global economy

Comments 11 New Comment

Rainmaker
473,563
Palm Springs Realtor Stewart Penn
Windermere Real Estate - Associate Broker
Windermere Real Estate - Palm Springs

10/13/08 - The Dow Jones posted its biggest point gain in history today. It surged over 900 points on the day. The S&P and Nasdaq posted equally impressive gains.

Last week people were scared to be in the market, and this week people are scared to be out the market.

FEAR & GREED ...... Remember: "This too shall pass."

October 13, 2008 03:09 PM
Rainer
33,159
Jay Allen
MovieVoice
MovieVoice Production Co.

I can't wait to see what this does to oil prices.

October 13, 2008 04:21 PM
Rainmaker
1,235,790
Charles Stallions
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.
Charles Stallions Real Estate Services

I wonder where the slogan came that says THIS TOO SHALL PASS came from. What a motivational sentence.

October 13, 2008 05:30 PM
Rainmaker
473,563
Palm Springs Realtor Stewart Penn
Windermere Real Estate - Associate Broker
Windermere Real Estate - Palm Springs

Charles - Click on the saying in the post and there's a link to the history of these great words.

October 13, 2008 05:51 PM
Rainmaker
473,563
Palm Springs Realtor Stewart Penn
Windermere Real Estate - Associate Broker
Windermere Real Estate - Palm Springs

The Wall Street Journal has a great piece titled "Take a Deep Breath, Turn Off the TV, Calm Yourself" - about how to avoid panic selling and the "herd mentality".

So many people I talk to tell me how they're buying on the rebounds and selling in the dips, displaying the panic that this article refers to. It's worth reading.

October 18, 2008 09:50 AM
Rainmaker
473,563

Palm Springs Realtor Stewart Penn

Windermere Real Estate - Associate Broker
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