Meltdown - The Global Financial Crisis? pt 1of 4

http://www.peoplestandup.ca
by Terrence MdKenna's voice that this is from "DocZone," a CBC.ca
The credit crunch
The global financial crisis (GFC) or global economic crisis is commonly believed to have begun in July 2007 with the credit crunch, when a loss of confidence by US investors in the value of sub-prime mortgages caused a liquidity crisis. This, in turn, resulted in the US Federal Bank injecting a large amount of capital into financial markets. By September 2008, the crisis had worsened as stock markets around the globe crashed and became highly volatile. Consumer confidence hit rock bottom as everyone tightened their belts in fear of what could lie ahead.




The sub-prime crisis and housing bubble
The housing market in the United States suffered greatly as many home owners who had taken out sub-prime loans found they were unable to meet their mortgage repayments. As the value of homes plummeted, the borrowers found themselves with negative equity. With a large number of borrowers defaulting on loans, banks were faced with a situation where the repossessed house and land was worth less on today's market than the bank had loaned out originally. The banks had a liquidity crisis on their hands, and giving and obtaining loans became increasingly difficult as the fallout from the sub-prime lending bubble burst. This is commonly referred to as the credit crunch.

Although the housing collapse in the United States is commonly referred to as the trigger for the global financial crisis, some experts who have examined the events over the past few years, and indeed even politicians in the United States, may believe that the financial system was needed better regulation to discourage unscrupulous lending.



The global financial crisis enters a new phase
The collapse of Lehman Brothers on September 14, 2008 marked the beginning of a new phase in the global financial crisis. Governments around the world struggled to rescue giant financial institutions as the fallout from the housing and stock market collapse worsened. Many financial institutions continued to face serious liquidity issues. The Australian government announced the first of it's stimulus packages aimed to jump-start the slowing economy.

The U.S. government proposed a $700 billion rescue plan, which subsequently failed to pass because some members of US Congress objected to the use of such a massive amount of taxpayer money being spent to bail out Wall Street investment bankers who some people may have believed could be one of the causes of the global financial crisis.

By September and October of 2008, people began investing heavily in gold, bonds and US dollar or Euro currency as it was seen as a safer alternative to the ailing housing or stock market.

In January of 2009 US President Obama proposed federal spending of around $1 trillion in an attempt to improve the state of the financial crisis. The Australian government also proposed another stimulus package, pledging to give cash handouts to tax payers, and spend more money on longer-term infrastructure projects. Australia's response to the global financial crisis - the first stimulus package
Australian prime minister Kevin Rudd and Treasurer Wayne Swan delivered their first budget in response to the global financial crisis, with the main objective being to fight inflation - a major problem in the local economy at the time.
The global financial crisis enters a new phase
The collapse of Lehman Brothers on September 14, 2008 marked the beginning of a new phase in the global financial crisis. Governments around the world struggled to rescue giant financial institutions as the fallout from the housing and stock market collapse worsened. Many financial institutions continued to face serious liquidity issues. The Australian government announced the first of it's stimulus packages aimed to jump-start the slowing economy.

The U.S. government proposed a $700 billion rescue plan, which subsequently failed to pass because some members of US Congress objected to the use of such a massive amount of taxpayer money being spent to bail out Wall Street investment bankers who some people may have believed could be one of the causes of the global financial crisis.

By September and October of 2008, people began investing heavily in gold, bonds and US dollar or Euro currency as it was seen as a safer alternative to the ailing housing or stock market.

In January of 2009 US President Obama proposed federal spending of around $1 trillion in an attempt to improve the state of the financial crisis. The Australian government also proposed another stimulus package, pledging to give cash handouts to tax payers, and spend more money on longer-term infrastructure projects.

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[xtoprojects]

Now gimme my money!

[sunflowerofpeace]

@Rustpuke CBC documentaries to my knowledge have always been original, of course they use information which has been gathered from other sources as well. There is a new one coming soon , I hope our friend posts it :)

[manbijik]

like

[sinnieleeonUtube]

@TruthInjector I think that the housing buble burst and the economy downturn were done on purpose to drive the housing price back down. Then the rich, probably the same group on people then buy back all the real estates for pennies and then the cycle repeat again.

I don't think this is the first bank bailout. If I remember correctly, there was a "saving and loan" bailout in the father Bush admin. It was not ss bad as this one.

[TruthInjector]

Banks in the US and Europe are stealing money and cutting off loans to even established businesses and individuals.It is a scam to steal wealth and break the West. A scam designed to subvert and destroy Western democracy.Dominique Strauss Khan found out what was going on and tried to alert Obama-- then Congress- all he got was framed in return. They are trying to break democratic power also by removing the US dollar as the global currency and replacing it with a IMF bankster controlled currency.

[TruthInjector]

Instead of bailing out the bank criminals with tens of trillions all we needed to do was have loans revalued so that the bulk of the loan could be saved and made affordable to the owner of the property. Underwater loans should have been revalued to 90% or less debt over 10% or more equity. That would have kept people in their homes and cost a tiny fraction of the massive theft of Fed and US treasury resources. We do not have an economic downturn we have a massive uncontrolled coordinated heist.

[TruthInjector]

It had nothing to do with subprime-- the total was less than 1 trillion -- the total of credit default swaps- over 62 trillion. This video is misinfo loaded-- mixed with some good info. Most of the small subprime market was not going bad. What they did was tried to make loans on overpriced property that had been churned by investors(homes bought and resold repeatedly just to jack prices up) and they outright stole money from elderly with criminal mortgages that ballooned to ridiculous costs.

[BAZHE]

great info

[Rustpuke]

@sunflowerofpeace

Actually, ignore my earlier statements, it seems the CBC was the original maker of this after all. I got cofused a bit.

[Rustpuke]

@peoplestandupca

Hmm it seems you are right. I first saw it on the Al Jazeera English website last year and I assumed it was one of their free documentaries.