SADASHIVAN
Joined: Jan 26, 2004
Posts: 21
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Gender & Age: Male & 55
Country: India
Province/State: Delhi
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Bailout and economic crisis
November 26, 2008 - 12:34 PM
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Bailout is only temporary solutions to cover what lost by financial or other industrial sectors. Bailout money is public money used to please rich sectors. This adjustment to relieve them is may be by pruning necessary social projects or overburdening its citizens with direct or indirect taxes. More taxes mean lesser expenditure is best way to worsen economic growth. Bailout does not mean better future of these sectors due to low financial demand from loss making or reduced output of industries.
1. Growing competition in banking and housing sectors to attract more and more consumers without evaluating personal capacity and uncertain economic condition of consumers rendered heavy losses to lenders and builders. Cheaper interest rates enticed customers without realizing the consequences of economic depression.
2. Tough competition and soaring running unit cost or failure to achieve expected to meet target rendered axing work force as cost cutting measure.
3. Heavy bull and bear investments on escalated valued of stocks during boom time began busting during demand crisis led to heavy losses to both categories.
4. Tough economic conditions of families rendered by high fuel, food, day to day use, education and prices of others made more and more consumers defaulters.
5. Job losses and uncertain future is major factor to render demand crisis resulted to ax work force.
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