We have already written couple of posts on Greek & European Crisis. It is a serious concern and global stock markets have been affected due to this concern.
To many who are not really into financial world may not understand the seriousness, and the following video explains just that with a touch of humor.
Although, this video is related to European crisis, this what is generally happening around the world with various economies. Over last couple of years, you have been hearing the word “bail-out” quite frequently – Now look at how the bail-out takes place.
World Economy Collapse explained in 3 minutes
Indian economy luckily is not too dependent of European Market as much as it on U.S Markets, but we are also seeing effects indirectly as we are dependent on economies that are dependent of European Economies…nuff said.
This is how the World Economy is going to collapse…period.
via skprasad
Very good! Will Hutton in the UK also has a great way of explaining in simple terms what happened in this current financial crisis.
Its stuff for management students. Though i read the same some time back I didnt remember as its very complex. But cut to the point. A very nice one. Thanks for the link.
Hey Altaf,
On a similar note you may like to read this particular article on Real Estate bubble..one of our commentators had left it on blog.
https://trak.in/tags/business/2008/10/17/pune-real-estate-bubble-story/
Ha ha ha, A Nice one.
It reminds me of a similar situation that was explained to us when USSR split up.
The newly democratized communist countries wanted free market economy and this is how free market economy worked in a village (this scene is hypothetical, so dont ask me how, why etc)
There were two villagers some where in Russia. One of them has a cow. Both villagers wanted to become rich by free market economy route.
The one with the cow sold the cow to the other for 10 roubles. The guy who bought hte cow sold it back to the first one for 15 roubles (making 5 rouble profit). The oterh guy sold it back to the same guy for 20 roubles (making a profit of 5 roubles). The selling game continued till night.
By then each was making millions of profit. Happily they went home feeling rich. Nobody knows (inlcuding those villagers) where are their millions.
They still are two villagers going back to the same house.
The cow is still there (in fact it did not even move an inch during all this transactions, its relaxing under the shade) You can compare the cow trade to F&O trades for commodities of free market economy.
However they felt they became millionaires overnight thanks to free market economy and cursed Communism for keeping them poor all these years.
When I saw the above interview, I felt the situation is not different.
Unless some funding comes “FROM OUTSIDE”, the paper wealth will not materialize (for both europeans as per the above clip and to those villagers in russia).