The financial crisis

The financial crisis is affecting everybody around us; the global economy is the most important thing moreover than the global warming and the terrorism among other things. It is said that a lot of countries are under the stock market crash with a sudden dramatic decline of stock prices and a significant recession in economic activity. Due to a credit crunch (which means a sudden reduction in the availabity of loans from banks) it is increased. For that not many people can get a mortgage because is a great risk for the banks to recover the money lend with the sub-prime mortgage. Banks don’t want to get toxic debts which are debts that are very unlikely to be recovered from borrowers. (I suppose that the money market which is the global financial market for giving short-term loans cut the permission to the banks to give loans)That is making an economic slowdown which is having a huge effect on house prices Some population has debts which can seriously affect theirs financial situation because the unemployment index is increasing considerably and they can’t face their debts moreover than the assets of many corporations have been frozen due to the economic crisis. It is said that some important banks had been injected to reduce theirs debts and the government will spend a lot of millions in the bailout plan and the governments have had to bail out many investment banks. Not a lot of people have the guarantee their money is save in their personal banks accounts. It is said too that the Inflation is download at the moment because the general level of prices of goods and services are download. (it is that true?) I think that the financial crisis it is the consequence of the cheap labour and the high commodity prices. The shareholders are expecting a high payout to send their stocks and shares I fear that their profits are going to down on last years. People wish the mortgages profit warning gives them a refund of a bit of money with their income tax return.