lol..jerald just called me crazy for saying that obama and mccain cant save the US economy..ok, maybe i was wrong to say that only a war would save the economy...but the fact remains that even if either candidate wants to rebuild the entire economy, it will take a long time given the many problems that are still hidden within the US economy, which will affect the world economy, as shown by the great depression and the recent crisis...the only problems that came out now from the US economy is that of the large mortgage debt that it has incurred from the borrowers of banks with low interest rates and less stringent checking than normal, given the good economy outlook in the past few years...this has led to many bad debts incurred by the banks and these debts are unrecoverable even with the mortgage of properties, given the low(?) house prices now...so, this has led to the collapse of fannie and freddie initially...then, we have big corporations like AIG, the lehmann brothers and merill lynch collapsing right after the collapse of these mortgage banks...you may ask, wad do these companies have to do with the falling property prices???well, they invest in property with the money that is given to them by the investors of bonds that were bought and when the property prices well, so do these organizations too...well, the rest is pretty much recent history, with the 700 billion bailout etc...wad i do firmly believe in is that this subprime mortgage crisis is just the tip of the iceberg, with the rest of the problems being exposed as we dig deeper and deeper...however, the main problem now is the entire structure of the global financial systems throughout the world...this is something that MUST be solved and is something that im afraid will take a long time to solve...the problem now is, are countries prepared to wait for such a long time to solve this problem? ok, you may ask why this solution takes a long time to implement...firstly, a whole new framework and structure must be conceived, and that could take quite a while...we must make sure that this framework is stable, can be regulated but yet, not nationalized...second, the implementation...the fun part of economics is that nothing can be confirmed in theory, as practical usually works differently from theory...so how do we make sure that this implementation will be smooth and be successful?we are starting from square ONE again, with no prior knowledge or experience on this new system...third part will be getting everyone to implement this system...no matter wad happens, the world must still have a global finanical framework and structure to work with...so it is crucial that everyone follows the new framework...yet, wad works for one country may not work for the other and some countries may just not adopt it altogether...so how do we change this framework? through war...its a last option no doubt, but it must be done if countries are unwilling to comply through diplomacy...only then can we start anew...this mortgage crisis is not the end of all problems, but simply the start of all problems...its unprudent to assume that all problems will be gone once and for all...maybe this crisis will be over in a few years with no bloodshed but the existing problems are still not solved yet, and this problems will resurface again to haunt us...you can argue that only the US needs to change its financial system, rebuild its economy and everything will be fine again...but wad this crisis has shown us is that once again, our global financial system is still too reliant on one superpower, such that when this fails, none of us are able to help it up again...yes, we have survived many crisises in the past, but there are no guarantees that the solutions to this crisises actually do solve the underlying problems in our economy...there are no guarantees that this crisises are the same as the one that we are facing right now...maintaining an economy is easy, but rebuilding one isnt...and right now, the whole world's economy has to be rebuilt, not just the US's...yes, if all goes smoothly, we dunt have to go to war, but, how do we assume that all will go smoothly?..and even if this crisis manages to be resolved, it will most likely be due to market forces, more than that of the policies of the president of the UNITED STATES...cuz this crisis has turned into a global one...and has affected many countries internally...even if the US manages to recover,other countries might not...
