The advent of the current financial crisis has been due to the simple fact that those at the top didn't know what was going on down below.

Life is so fruitful...don't you think old boy?

The top 2% in this world are the ones with all the power and wealth, the 98% remainder struggle for every buck.  It is this 98% that the world economy relies upon and not the 2% at the top that the 98% keep there.

The major selling items in the world are houses, ie, mortgages.  ( The word 'mortgage' is from the French and means Death Pledge ) Mortgages are set by the controlling powers based on the earnings of the 98%.  But as stated, those at the top in their ivory towers haven't a clue of what's going on down below...In that the average working man hasn't enough money in his pocket as he doesn't earn a living wage.

This is not the entire cause of the Credit Crunch meltdown but it is certainly a big part of it and I hope that you will agree.

It was stated by ignoramus Government ministers that the average wage that was earned by the working man was around 40,000  per year, be it dollars, pounds or euros,  but in real terms its less than half that, 16,000 being a more realistic sum that is earned by the majority.  Of course there are the 30 upwards to 100 grand per annum and beyond earners but they are not the majority and its the majority that have brought about this credit crunch.

Mortgages were based on 3½ times a persons earnings or 140,000 for a basic house not including the greedy banks interest and the compound interest. ( trying to rake in revenue from people who hadn't got it in the first place ) This is all fine on paper except that the real figure for a new house should be 56,000.  The working 98% could not afford 140,000 and started to stop buying in the high street to save those much needed pennies.

As the meltdown persisted, the money lords were very slow to catch on...as always...and instead of reducing the interest rates, lowering prices etc they continued with their avaricious policies of take, take, take.  Artificial price hikes to rake in the revenues when it should have been a drastic lowering of prices.

The powerbrokers, the money lords and kingpins could not break out of their inbred "grabbit and leggit" attitudes, to fleece the nation, it was un-natural to them to think about lowering tax's and it grieved them.  The prospect of lowering interest rates was (and still is) totally unheard of, so they simply didn't do it and when they realised what was going on it was to late.

Aaaahhh....I'm melting.....melting....

Palpitating hearts fluctuated even more and panic begat panic and these powerbrokers, money lords and kingpins then abandoned all their "astute" business acumen and threw billions of dollars at the problem in vain hope of making things normal again...but alas even a trillion dollars would now be a drop in the ocean...but they still didn't lower any rates !

Some of the top financial people now know without a doubt that their rake in the revenue economic policies are floundering, floundering over the abyss and maybe the tragic story below is a clear illustration of how bad the situation is getting...

...Deborah Charles of Reuters News Agency reports that "the finance chief of troubled U.S. mortgage giant Freddie Mac, CFO Mr. David Kellermann, was found dead on Wednesday April 22nd 2009 after apparently committing suicide, a police source said.

Kellermann, promoted to acting chief financial officer last September after the government took control of the company, was found hanging in the basement of his home in an affluent Washington suburb."

I offer my condolences to his family and may he R.I.P

Hundreds of thousands of businesses both large and small in the USA, and Europe have gone into liquidation over the past 6 months and its still on the increase.  Of course house re-possessions are on the top of the list as millions now face the threat of losing their homes. 

There may not be any quick solution to this terrible mess, only for the credit crunch to trudge along its bleak trail until total global meltdown has eroded everything away.  Then maybe from the settings of the new dark ages we can rebuild again but this time exercising a new business acumen that will see the population being on better incomes for more affordable collateral.

This is the icing on the cake as it were, the China Syndrome adds more logs to the fire.  Here are the fundamentals of it and how it helps the recession bite even harder.

Hundreds and thousands of western companies have layed off all their staff and get their products made in China instead at a fraction of the cost as the Chinese will work for a few cents an hour.  Western companies now save hundreds of thousands of dollars on the wages and also maximize profits when they retail their products.

However, there is a slight drawback, quite simply who is now going to buy these products? the consumer has no job ! remember...he was laid off from the factory that initially made the products.

 When people were at work in the west's factories and getting paid their $$ an hour they were buying many products as they had the cash to do so.  Now we still have the products flooding the market but no cash to buy them, so it all falls apart.