Global Financial Crisis

The Global Financial Crisis has finally hit me in a personal way.  I was ordering my daily large hazelnut cappucino when I realised I did not have enough cash.  So,  all I could afford was a small cappucino, no hazelnut.  It was tragic.

Right now, we are being assaulted by terms (de-leveraging and sub-prime mortgages) and concepts that we would have never heard of five years ago.  We are hearing of companies and banks (Freddy Mac and Fannie Mae - who thinks of these names anyways) that would not have mattered to us in the past. We are taking an interesting in other nations economies more than ever.  Japan have announed that they are in a recession with 0% interest rate.  Iceland is bankrupt.  The mighty United States of America is announcing a one trillion bailout. 

But let me go a step further.  In a third world country, some suffer a global financial crisis DAILY and yet there is not bailout plan available .  First and foremost, they spend money (they physically have) to eat to face another day.  Instead, we (from a first world economy) can purchase (almost) whatever we like whenever we like, based on credit (money we don't have).

It can be argued that first and third world countries have different economies and cannot be compared.    But, lets face it, borrowing money you don't have (this is called credit) and having companies lend money they don't have is not ideal.  Basically, a greater awareness is necessary of how every cent spent affects the almighty dollar or is it yen or is it peso?!

So, the entire world is united in this global financial crisis.  A financial crisis has accomplished what no other summit or political leader or treaty has.

Meanwhile, I sip contentedly on my large hazelnut cappucino, which I bought on credit.