Hivi kweli uchumi wa MArekani na dunia ilikuwa imechungulia kaburi?

[Susuviri]

Jamani nimepata ripoti hii ambapo mbunge wa Marekani anaeleza jinsi uchumi ulivyoyumba Septemba mwaka jana, kama ni kweli basi inatisha sana!

According to Rep. Paul Kanjorski (D) (PA-11), in mid-September of 2008, the United States of America came just three hours away from the collapse of the entire economy. In a span of 2 hours, $550 billion was drawn out of money market accounts in an electronic run on the banks.

Rep. Kanjorski: "It would have been the end of our economic system and our political system as we know it."

"I was there when the secretary and the chairman of the Federal Reserve came those days and talked to members of Congress about what was going on... Here's the facts. We don't even talk about these things.

On Thursday, at about 11 o'clock in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to a tune of $550 billion being drawn out in a matter of an hour or two.

The Treasury opened up its window to help. They pumped $105 billion into the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks.

They decided to close the operation, close down the money accounts, and announce a guarantee of $250,000 per account so there wouldn't be further panic and there. And that's what actually happened.

If they had not done that their estimation was that by two o'clock that afternoon, $5.5 trillion would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.

Now we talked at that time about what would have happened if that happened. It would have been the end of our economic system and our political system as we know it. "

But what were the dire warnings issued to members of Congress by Paulson and Bernanke behind closed doors on Thursday, September 18, 2008. As the debates lingered on over the week that followed, several members voiced their sense of shock over the severity of the warnings, while refusing to divulge the details to a public that deserves to know.

Representative Sherman later revealed that members were warned that Martial Law would result if the $700 bailout plan was not passed, and Iguadland10 posted another video ascribing that particular warning to Paulson.

The New York Times quoted Senator Dodd as jumping in when Charles Schumer described the meeting as 'somber': “Somber doesn’t begin to justify the words,” he said. “We have never heard language like this.” Also from NYT: Although Mr. Schumer, Mr. Dodd and other participants declined to repeat precisely what they were told by Mr. Bernanke and Mr. Paulson, they said the two men described the financial system as effectively bound in a knot that was being pulled tighter and tighter by the day.

He notes the only thing that has changed since the money market run in September is "that more money has been thrown at the problem, but the problems have continued to mount in the meantime. I hope financial disaster can be averted, but judging by what I've witnessed so far that hope is muted at best."

The final word goes to Rep. Kanjorski though:

"Ya know, we're not any geniuses in economics or finances... We're representatives of people. We ought to take our time, but let the people know this is a very difficult struggle.

Somebody threw us into the middle of the Atlantic Ocean without a life raft and we're trying to determine what's the closest shore and whether there's any chance in the world to swim that far. We. Don't. Know. "

Food for thought. Let the debate begin.....

 

[BAK]

Kwa maoni yangu, hali bado ni mbaya hasa ukichukulia kwamba Marekani ambayo ni engine ya uchumi wa dunia sasa hivi ina deni la nje la $10.4 Trillioni (wakati Kichaka anaingia madarakani deni hili lilikuwa ni $5 Trillioni) na budget deficit ya $700 Billioni (wakati kichaka anaingia madarakani kulikuwa na budget surplus.) Hii stimulus package ya $800 billioni labda inaweza kusaidia kupunguza watu kuachishwa kazi na pia kuwawezesha makampuni makubwa,madogo na individuals kupata mikopo ili kuiongeza tena demand ya bidhaa (consumer goods) mbali mbali ambayo sasa hivi imeanguka vibaya sana.

Wataalamu wa uchumi wanadai kwamba kama stimulus package ya Obama haitaongeza economic activities basi recession inaweza kuwa hata ya miaka 4 au zaidi na hivyo kumfanya Obama awe Rais wa awamu moja tu. Kusema kweli hali inatisha.

 

[Nyani Ngabu]

mimi sidhani hivyo....

 

[Kaa la Moto]

mimi sidhani hivyo....

Hudhani nini? fafanua Nyani. Je bado humuamini Obama?

 

[Susuviri]

Kwa maoni yangu, hali bado ni mbaya hasa ukichukulia kwamba Marekani ambayo ni engine ya uchumi wa dunia sasa hivi ina deni la nje la $10.4 Trillioni (wakati Kichaka anaingia madarakani deni hili lilikuwa ni $5 Trillioni) na budget deficit ya $700 Billioni (wakati kichaka anaingia madarakani kulikuwa na budget surplus.) Hii stimulus package ya $800 billioni labda inaweza kusaidia kupunguza watu kuachishwa kazi na pia kuwawezesha makampuni makubwa,madogo na individuals kupata mikopo ili kuiongeza tena demand ya bidhaa (consumer goods) mbali mbali ambayo sasa hivi imeanguka vibaya sana.

Wataalamu wa uchumi wanadai kwamba kama stimulus package ya Obama haitaongeza economic activities basi recession inaweza kuwa hata ya miaka 4 au zaidi na hivyo kumfanya Obama awe Rais wa awamu moja tu. Kusema kweli hali inatisha.

Ni kweli Bubu, inaweza kuwa kweli lakini pia kuna kajielement cha panic na everybody ana-panic, I think that is the lesson we can draw from this report. When too many people panic and believe that the sky is falling, they might really create a situation that will have dire consequences.
I think also the banking sector has to restrucutre itself and become creative ditto for the entire financial sector.
Stimulus package ya Obama itasaidia kwa kiasi lakini sidhani kama itatatua matatizo on the short term. Hii ingeweza kuwa nzuri kama pia kuna will on the part of financiers to reform themselves, but they want the same old tired ways. In fact kuna article moja nzuri sana nilisoma katika Economist, where they explained that hii subprime mortgage is not a very new invention na walishawahi ku-experiment but banks were more cautious in the 80s (I think). Sijui kama article hiyo ipo online lakini nikiipata nitaibandika hapa.
But what I digress: I wanted to say that the problem with the credit crunch is that it is creating ripples in all the sectors, and right now, some of the lay offs are not because of current dire economic situations but it is employers fear of the future. Which is their right but there is a level of panic. And it hits the people very hard. Unemployment is a huge threat for the US, just like everywhere else.