It is natural that when such kind of massive global crisis takes place, many of the views will be going in different direction than the general path of thinking as we all follow. It cannot be ignored completely that with such kind of financial crisis was on the making and developing, no one was noticing and all of a sudden we see that we are in mid of recession.

One has to wonder and ponder that with such immensely qualified policy makers and politician taking the seat and taking the responsibility of billions of people could not understand such he storm coming up. According to the Karl Marx way of thinking, it's all strategy of the policy makers who wanted increase in capital rather than just by paying loan and grabbing high rate of interest or whether it is by attracting people to use the official credit more than cash.

It's all planned and thought before and according to the human psychology people tends to do things more fluently and rapidly in which they are more comfortable rather than doing something which demands work and pain. Using credit was made easy by the bank which was anyways controlled by the big shots sitting in the hot seats. They made the housing loans most attractive by lowering the rate of interest and asking people to stay nicely and live healthy.

Well, yes many people did gained out of it but when the wheat is grinded to make flour, many stones do also get the opportunity to be grinded along. Now let this make it simpler for you. If you are an employer who have staffs working under you and now they demand a hike because they need more money to live life more comfortably and nicely. Would you prefer to increase their salary or ask them to take loan from you which they could repay at very nominal rate of interest later on?

Do you have an answer? Yes you have, you would prefer giving them loan which would be your fixed deposit and you won't mind getting low interest because you do not need money as such. You are getting interest from all your staff monthly because all of them have taken money from you and now you have had enough interest for all these years. Now, they are getting old and not able pay interest or principal so you ask them what you did with the loan.

They said I bought a very beautiful home and you said give it to me and since they had no option you took it off from them and sold out at fewer amounts which would be enough to cover up your principal with some benefit remaining along with the interest taken before as well. Thus, the property rate got decreased and the sub prime crisis started and hence the global financial crisis in larger picture.
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loan    rate    thinking    live    principal    nicely    prefer    kind

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