The financial crisis as a tsunami: what can we do specifically?


Work better, information as desired! We give you the information you really need and are committed to a better and more ecological working environment. When Book Publisher Best of HR – Berufebilder.de® with Unique Book Concept and eCourses we offer over 20 years of experience in Corporate Publishing - with Clients like Samsung, Otto, Governmental Institutions. Publisher Simone Janson also heads the Institute Berufebilder Yourweb, which awards scholarships, among other things, and was one of the top 20 female German bloggers, referenced in ARD, ZEIT, WELT, Wikipedia .
Copyright:  Images created as part of a free cooperation with Shutterstock. . Image Location: Financial District, New York City, New York, United States.

It was particularly fascinating for me to see how the financial crisis spread in space and time and how events that appear to be detached from one another suddenly come together to form an overall picture.

Best of HR – Berufebilder.de®

Here writes for you:

 

Martin Theer 74Martin Theyer is the manager of Europe's largest PCB manufacturer, financial expert, book author and lecturer.

  Profile

From the author:

Read


The shaft starts driving

It started with the events around Bankers Trust and Andy Krieger in January 1988. An internal bank audit showed that option trader Andy Krieger creatively embellished his trading results. In order to avoid a public scandal, the events were concealed and the books manipulated with the help of the international auditing firm Ernst and Young.

Although only a few were affected and no one was harmed, it should prove a big mistake that the wave was not stopped here. Since the case was too complex for the prosecutor, there was no charge. This would send a clear signal to the capital market - the manipulation of books pays off! And the wave could take full swing.

The wave calls for their first victims

Not five years later, the wave caught its first innocent victims - in December 1994 had due to complex interest speculation Orange County, a district in the state of California, bankruptcy. Treasurer Robert L. Citron at the time speculated on interest rates for innovative bond products developed by Salomon Brothers and Credit Suisse First Boston.

Tip: Text as PDF (please read the instructions!) Download or for a little more Book on the topic with discount or eCourse book. Actions or news via Newsletter!

At the same time, he completely overlooked the risk that the interest rate landscape could change from one day to the next. As a result, Orange County had to file for bankruptcy and the citizens of Orange County had to accept substantial reductions in government services as well as higher taxes. For the first time the wave had picked up voters, who, although they were not involved in the speculations, were asked to pay

The wave threatens the USA

Now it shouldn't even be four years before the wave threatened to overturn the entire US financial system. What happened? - Long-Term Capital Management ”(LTCM) was a hedge fund founded in 1994 by John Meriwether (former vice president and head of bond trading at Salomon Brothers). In 1998 the Russian government suspended payment on bonds and massively devalued the ruble.

LTCM lost a fortune overnight and could only be rescued by the intervention of the US Federal Reserve, led by Alan Greenspan. In April 1999, President Bill Clinton had to publish a report on the financial crisis.

The US banking system from collapse?

For the first time, the entire banking system in the United States of America was on the brink of collapse and millions of citizens would have been saved for their savings.

It was only thanks to the rapid intervention of the central bank and the President of the USA that the worst could be prevented. But the wave was not stopped, but spread undisturbed.

Tip: Text as PDF (please read the instructions!) Download or for a little more Book on the topic with discount or eCourse book. Actions or news via Newsletter!

The wave unfolds its full destructive power

After the wave was not absorbed in the US, she was able to expand herself undisturbed and with full force to Europe. What we now call the beginning of the financial crisis in hindsight is, in reality, its continuation! Richard Fuld, the CEO of one of the largest investment banks in the Americas, made the big deal with the resale of real estate loans to European banks.

But what initially appeared to be a safe investment soon broke into smoke and sound. Due to the high losses and write-downs of the credit portfolio, Lehman Brothers had to take part in the 15. September 2008 filed for bankruptcy and thus initiated the most severe global economic crisis since the 20 years.

Desperate politicians

A nationalization wave begins, as a desperate attempt by the politicians to save the financial system and thus the real economy. However, in vain. More and more banks must be forced to state and taxpayments are being pumped out of the financial system.

Now all citizens of the old and new world are really affected. State budgets are reduced, millions of jobs are destroyed and social unrest is created. The wave has reached its climax and an end is not yet in sight

What to do? The wave draws ever larger circles

What we learn from these examples is that they are all interconnected, showing that the wave is ever-widening, capturing more and more people worldwide with their destructive power. Whereas at the beginning of the 90 years only a few were indirectly affected by the wave, nowadays we are all directly or indirectly exposed to the destructive forces of the wave!

Tip: Text as PDF (please read the instructions!) Download or for a little more Book on the topic with discount or eCourse book. Actions or news via Newsletter!

How can we all do something against the wave undertake? That is the question that arises here urgently. Or more precisely, what needs to be done in the future, what to do to avoid a renewed tsunami disaster? Can each one of us contribute to it?

Increase interest

The tsunami model shows very clearly that the previous procedure does not make sense. Instead of tackling the problem at the root and stopping the wave. More and more money is being added to the system, further expanding the wave.

The first and most important step would therefore be to take money out of the system and not to bring it new. This means that the interest has to be raised, so that the money becomes more expensive.

Detach us from the drug of cheap money

We all are currently dependent on the drug of cheap money. In theory, private consumption and investment in jobs are to be promoted. Unfortunately, the money is not used for jobs and long-term investments, but primarily to serve creditors.

In my opinion, we have to change this idea. We must turn to the interest rate and thus return to a healthy ratio of debt and consumption.

Tip: Text as PDF (please read the instructions!) Download or for a little more Book on the topic with discount or eCourse book. Actions or news via Newsletter!

Break with the idea of ​​"healthy saving"

Just as wrong as the idea with debts to combat the crisis is the second approach to saving itself healthy. To rehabilitate public budgets in the short term by reducing the expenditure side radically and bolstering the revenue side has never worked so far.

The state budget can only be sustained through innovation and growth. As we learn from history and now clearly visible through Greece, a compulsory eradication of the state expenditure leads to social unrest and is therefore not in any cost-benefit relation.

Invest in long-term, value-creating projects

Rather, it makes sense to change the distribution of resources and to invest in long-term value-creating projects and to stop wasting. However, this requires a great deal of visibility and behavior from the politicians and interest groups.

In a networked world, it is quite reasonable that every one of us assumes more responsibility and directly or indirectly influences the use of the control means.

We need more say

A fatal error, which currently affects all politicians and banks in Europe, is the thesis that it is necessary to support system-relevant banks so that the crisis does not spread further. This is clearly the wrong way.

Tip: Text as PDF (please read the instructions!) Download or for a little more Book on the topic with discount or eCourse book. Actions or news via Newsletter!

The fact that banks and financial service providers, who no longer have a healthy business model, will artificially keep billions of taxpayers' money keeps the crisis going.

To send banks into orderly bankruptcy

The politicians and regulators urgently need to create ways to send banks into orderly bankruptcy and stop giving in to our good money. The savings balances of the citizens are to be secured and the speculative debts of a bank are simply canceled.

Thus, those institutions and banks that have so far earned a great deal with the sale of structured products would now also have to stand up for the risk.

Citizens, fight back against taxpayer waste

As courageous citizens, we must finally refuse the wrong use of our tax money by demanding more say in the use of our taxpayers' money.

In the future, as proposed by the Minister of Finance in Austria, there should be specific levies that will strengthen competition and create new jobs in the medium term.

Tip: Text as PDF (please read the instructions!) Download or for a little more Book on the topic with discount or eCourse book. Actions or news via Newsletter!

Taxpayers who themselves decide on the use of their duties

Each taxpayer should have the right to decide on the use of part of his duties. This may sound utopian, but we have already discussed in detail in Austria and should be implemented in my opinion.

Only if we can change the financial system from scratch by putting a stop to greed and the negative sides of innovation, breaking with existing paradigms such as "indebtedness" and "saving health" and advocating sustainable use of tax resources, we will emerge stronger from this crisis. It is - also - in our hands!


More knowledge - PDF download, eCourse on demand or personal advice


Offline download: Download this text as PDF -  Read usage rights, Because we do not automatically submit the title of this text for privacy reasons: When buying in "interests" the title register if support is needed. After buying text exclusively Download at this URL (please save). Or for a little more directly an entire book or eCourse with this text buy, read on.

3,99 Book now


Read customer feedback and buy a book on this topic at a discount: Do you like this text and want to read more information about it? Buy the right book including this text, buy it here in two languages, as a member even with a 20 percent discount. Would you like to take a look at the book first? You can do this by previewing the book look at and then purchase on the book page.

German edition: ISBN 9783965962002

7,99  Buy directly

English version: ISBN 9783965962019 (Translation notice)

7,99  Buy directly


Your eCourse on Demand: Choose your personal eCourse on this or another desired topic, As a PDF download. Up to 30 lessons with each 4 learning task + final lesson. Please enter the title under "interests". Alternatively, we are happy to put together your course for you or offer you a personal regular eMailCourse including supervision and certificate - all further information!

19,99 Book now


Consultant packages: You want to increase your reach or address applicants as an employer? For these and other topics we offer special Consultant packages (overview) - For example, a personal phone call (price is per hour).

179,99 Book now



You want to comment here? Please the Debate Rules comply, contributions must be unlocked. Your eMailAddress remains secret. More information on the use of your data and how you can counter this can be found in our Privacy Policy.

  1. To follow debate on this post
  2. All debates follow
  1. Henry Kürzeder

    The #financial crisis as # Tsunami - already part 3 of the exciting series by author Martin #Theyer @mtconsult

  2. 5 stars experts

    The #financial crisis as # Tsunami - already part 3 of the exciting series by author Martin #Theyer @mtconsult

  3. Martin Theyer

    Third part of my series "The #financial crisis as #Tsunami - the #wave continues to spread.

  4. Lars Weber

    The financial crisis as a tsunami - Part 3: The wave spreads | Job photos by Simone Janson via @sharethis

  5. Martin Theyer

    Third part of my series "The #financial crisis as #Tsunami - The #wave continues to spread.

  6. Holger Froese

    The financial crisis as a tsunami - part 3: The wave spreads from #Business

  7. Liane Wolffgang

    The financial crisis as a tsunami - Part 3: The wave is spreading: It was particularly fascinating for me to be ...

  8. Simone Janson

    The financial crisis as tsunami - Part 3: The wave is spreading #g

Post a Comment

Your email address will not be published. Required fields are marked with * .

Ja, I would like to be informed about the latest promotions and offers via Newsletter be informed.

I hereby accept the Debate Rules and the Privacy policy with the possibility to contradict the use of my data at any time.