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Abstract Capital Including Stocks and Investments May Cause Countries to Collapse

Written By David D'Angelo on Wednesday, October 8, 2008 | 10/08/2008

It started with the closing of several key players in the United States Economic Market including the seemingly stable Lehman Brothers and then the admission of no other than President George W. Bush that the economy is in the brink of a recession. A $700 Billion was passed but it was not enough as the shock wave of financial turmoil reached Europe and countries within the European Union start shielding their economies. And now, the latest victim is Iceland which is now on the brink of national bankruptcy.

But what made the collapse? How come rich countries could suddenly be the victims of a worldwide financial crisis. The crisis started because of the high speculation on investments which is composed mostly of stocks traded in the stock markets. Stock has no real value in actual money since they defend on how well a company performs in its business and dealings.

Banks which had offered loans and then when that loans will no longer be paid because of bankruptcy or because of inability of the debtor to repay the loans create the risk of bank to become bankrupt. Investment and money market is a high risk and high yield business venture but what if they get overblown? What if speculation gets too high? The result would be a windfall of losses of money and capital and if they are large enough they could cause hazardous financial collapse of global proportions.

These problems were not new as some economists did warn of things to happen way back 2008. Here are some materials for further reading:

Wild Card? -Collapse of the US banking system in 2008?
A Final Step Toward US Dollar Collapse & Preemptive Nuclear Strike


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