World Wide Recession

All of you are aware of WWW but here is new term coined by me  WWR (World Wide Recession) ....

 

For several decades WWR will be remembered by you and your children... When you become very old, people will ask your , were you alive at WWR time ?

 

Each and every history and economics book will have chapters on WWR, People will compare markets and business against WWR ...

 

Is there any relation between WWW & WWR ?

Some people say Yes, WWW changed the world and brought WWR....

 

Some points put forward are :

 

-  WWW lead to complete world to come closer and learn how others make money, Specially hoe USA work, How people live and earn money in USA, specially how USA markets and exonomy work. All this helped countries worldwide to implement similar systems. Most companies tiedup with USA companies to get technology and operational knowhow...

 

- In turn companies and individuals started investing in USA markets or in international markets thru USA. All international companies come to USA to get financed, and so does all investors. It was easy and simple single point location. i remember when my bank were to transfer money from Mumbai to Singapore, it use to transfer it first to usa and then a usa bank use to route it to singapore 9even when singapore was one of the major financial center of asia)

 

- WWW has a major role in doing this. USA companies were happy to see such a large amount of cash flow , actually the amount of cash available was less then the amount of investment opportunities availabe. Also the type of investment options were limited. This is when financial institutions came out with many ideas to use this cash flow with risky mortages, derivatives, hedge funds and more..

 

- The rapid growth of USA and some countries where investments were routed did quite well. Financial institutes assumed that things will continue as it is and became more and more greedy.  Housing Market crisis in USA was related to this..

 

 

- Oil .. It is believed that when some Fund managers identified that if the world were to grow like think the oil will become short, they shifted large amount of money form their hedge funds to investment in Oil, which spiked Oil to such a high price that it became risk for the growing economies...