It’s not often that profit making, with little regard to long lasting effects, can effect the entire world. But that is what the International Monetary Fund is saying today. The disarray in global credit markets will slow down economic growth around the world next year, the International Monetary Fund said on Wednesday, warning that the crisis has clouded near-term prospects. Look for international banks to tune up as they start singing the mortgage blues.
China now leads the world with expansion, while subprime issues are causing problems in the United States, Canada, Mexico, and some of Asia. The Dow Jones has been down for three days in a row as we write this. Some analysts say the market has been propped up for two months. Rhetoric that sounds good for a day or two is often proven untrue. Earnings forecasts and statements about ‘enough liquidity’ are now viewed with distrust by some. One question remains to be answered – what is the economic social responsibility of key players in the subprime market? If the world is looking for cause and effect it is not hard to pinpoint those who exacerbated the problem to begin with.
The United States has given in to agitators and speculators such as those controlling the price of oil. These days there is little relationship between the price at the gas pump and the price of a barrel of oil. America is becoming a society lead by those who can stimulate excitement to make a profit, and that is exactly what happened when the subprime market ran away with itself.