The Meltdown that Began Three Years Ago

[pennypinch]

The worldwide financial meltdown as we know it began a couple of years ago and we are almost upon the second anniversary of it. That doesn't mean anyone will be celebrating with champagne or anything lol. But it is a good time to look back and learn for the future!

What started it all was the meltdown of two Bear Stearns hedge funds speculating in mortgage-backed securities. When that announcement came on July 12 of 2007 everything started to unravel.

After that, Lehman Brothers, AIG, Bear and the Royal Bank of Scotland fell apart. Even though the meltdown began with "junk" (subprime mortgages), it quickly spread to nonjunk mortgages, credit cards, leveraged buyouts and so on.

Our financial system was a disaster in waiting. Back then, it wasn't clear how tightly the worlds markets are intertwined. Now we can see that though with the financial fall of so many other countries after ours began.

Hopefully, we have learned from our mistakes and we can keep this from happening again!

[carol b]

I don't believe that there is alot we can do about the countries financial issues. The governments answer to everything is to spend more and tax us for the revenue.

The best we can do is scrimp and save and hide as much as we can. We aren't going to be able to rely on the government for anything now or in the future.

We have to protect our own interests. Taxes suck and I too am sick of paying more and more and seeing little to nothing in return.

[ClassyLady]

I am with you all the way carol b!!!! I agree fully!!!