It has been 2 years and the Bank Bailout still issues controversies.
How helpful it was for the economy, it's hard to tell.
Some people, as the members of the Tea Party movement, have harshly criticized it, whereas some found it necessary for the salvation of the economy.
The crisis is not over yet and the consequences of the authorities' actions are still unfolding under our eyes.
History will tell, later on.
Some claim that if the banks hadn't been rescued and the liquidity crisis had gone on, the consequences would have been the worst.
The systematic failure of the state's significant institutions would have engendered huge fluctuations on the market, high unemployment rate and great poverty.
The worst scenarios envisioned even violence and civil unrest.
Maybe things wouldn't have got as dramatic as with the chaos brought about by the earthquake in the Haitian capital, but it wouldn't have been too far away either.
Thus the system goes on, relying on the same principles as before the crisis.
The only problem is that before the crisis, the economical boom and ever increasingly consumption relied on rotten basis and the failure was imminent.
Now the US tax payers are somehow relieved: with some banks already paying their debts to TARP, the costs citizens have to pay are not so high, as initially feared.
But the unemployment rate is still high and there are even rumors that the UK banks may need a new bailout in 2011.
This leads us to the issue of the problem: how many times need to be saved banks with an irresponsible, bad management, with no solid planning and no vision? Maybe by saving banks, the premises for a next financial crisis have already been created.
What engendered the 2008 crisis can bring about a next one.
A healthy market is a free market, where the strongest survive and the weakest fail.
It's the same thing as with natural selection, whereby only certain genes are further perpetuated, which has as result the evolution of species.
If some institutions are favored, it's impossible to have an evolved market.
As long as the bank system will rely on fiat currencies, automatically generated by the computer, virtual money which exists only as figures, the next liquidity crisis will always be a threat.
As long as gold standard existed, there couldn't be printed more money than a national bank's gold reserves.
Once this standard was no longer used, there were no barriers anymore to stop the uncontrollable money issue.
Because of the ongoing financial crisis, more and more people are already investing their savings in other commodities, such as gold.
China is known for encouraging nowadays its people into investing in gold.
If you are interested in such an investment, you can either buy gold bullion or gold sovereigns.
Because of their artistic and historical value, gold sovereigns are preferred both by investors and collectors.
They are a little bit more expensive than the gold bullion, but this premium is worth paying.
The gold sovereigns feature on the obverse the figure of Saint George and the dragon and on the reverse the portrait of the Queen Elisabeth II.
The gold sovereigns have a 22 carat purity, which is the gold standard, fixed by King Henry VII.
With the help of specialists, you'll be able to make a solid and profitable investment in gold sovereigns.
This way, the investments in true values and responsible behavior will be starting point for a stable and free market, where the rules are set by the competition, not by the governments' will.
How helpful it was for the economy, it's hard to tell.
Some people, as the members of the Tea Party movement, have harshly criticized it, whereas some found it necessary for the salvation of the economy.
The crisis is not over yet and the consequences of the authorities' actions are still unfolding under our eyes.
History will tell, later on.
Some claim that if the banks hadn't been rescued and the liquidity crisis had gone on, the consequences would have been the worst.
The systematic failure of the state's significant institutions would have engendered huge fluctuations on the market, high unemployment rate and great poverty.
The worst scenarios envisioned even violence and civil unrest.
Maybe things wouldn't have got as dramatic as with the chaos brought about by the earthquake in the Haitian capital, but it wouldn't have been too far away either.
Thus the system goes on, relying on the same principles as before the crisis.
The only problem is that before the crisis, the economical boom and ever increasingly consumption relied on rotten basis and the failure was imminent.
Now the US tax payers are somehow relieved: with some banks already paying their debts to TARP, the costs citizens have to pay are not so high, as initially feared.
But the unemployment rate is still high and there are even rumors that the UK banks may need a new bailout in 2011.
This leads us to the issue of the problem: how many times need to be saved banks with an irresponsible, bad management, with no solid planning and no vision? Maybe by saving banks, the premises for a next financial crisis have already been created.
What engendered the 2008 crisis can bring about a next one.
A healthy market is a free market, where the strongest survive and the weakest fail.
It's the same thing as with natural selection, whereby only certain genes are further perpetuated, which has as result the evolution of species.
If some institutions are favored, it's impossible to have an evolved market.
As long as the bank system will rely on fiat currencies, automatically generated by the computer, virtual money which exists only as figures, the next liquidity crisis will always be a threat.
As long as gold standard existed, there couldn't be printed more money than a national bank's gold reserves.
Once this standard was no longer used, there were no barriers anymore to stop the uncontrollable money issue.
Because of the ongoing financial crisis, more and more people are already investing their savings in other commodities, such as gold.
China is known for encouraging nowadays its people into investing in gold.
If you are interested in such an investment, you can either buy gold bullion or gold sovereigns.
Because of their artistic and historical value, gold sovereigns are preferred both by investors and collectors.
They are a little bit more expensive than the gold bullion, but this premium is worth paying.
The gold sovereigns feature on the obverse the figure of Saint George and the dragon and on the reverse the portrait of the Queen Elisabeth II.
The gold sovereigns have a 22 carat purity, which is the gold standard, fixed by King Henry VII.
With the help of specialists, you'll be able to make a solid and profitable investment in gold sovereigns.
This way, the investments in true values and responsible behavior will be starting point for a stable and free market, where the rules are set by the competition, not by the governments' will.
Source...