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Current Economic System of the World
2007/11/08,10:34

 

Today morning, my friend and I were talking about the sub prime crisis. Ever since I came to understand what it actually meant, I wondered on how all major banks bought into this 'idea' of money making. You can read about in wikipedia!

http://en.wikipedia.org/wiki/Subprime_mortgage_financial_crisis 

wall street

My friend explained to me that in certain countries, the situation is even bad where some of the salesmen who are so focused on selling the products of the bank, lie about very high interest loans in the name of 'personal loans'. Half of the loans given go 'default', but the rest half are obtained at the expense of the 'gullible' people who signed the loans without paying attention to the terribly high 'interest' rates that they accepted!

My friend went on adding his wonder about the financial industry. He said that he started reading about one financial product in wikipedia, followed the related link in the page that led to information about other financial product, then followed another link in the new page...Thus, he ended up reading about 50 products when he stopped. The related links did not stop; still many were left unread by him.

I started to wonder about the necessity to create that many variations in financial industry. It is true that man's creativity can and certainly has added variety to any field. When I thought about several products and the motive behind them, I started to suspect that  'greed' could also promote creativity in addition to 'need'!

So, the question is, on what does the current economic system of the world stand on and for?

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