London Summit 2009: Sofia’s thoughts

Sadly, the economic problem is just a reflection of people’s mentality. In fact, I’m kind of surprised that world leaders are alarmed by its occurrence. Here is why:

1930’s Great Depression: buying on margins; people borrowing money to invest in stocks
-bubble bursts, Black Tuesday, stock market crash of the century
-effect: protectionist policies

Enron Disaster: financial scandal; Jeff Skilling and Andy Fastow => the dynamic duo no doubt
WorldCom Crash and the fall of tech sector: brilliant, once again
Now: subprime mortgage crisis

What you have here is a series of incidents which all point to the disaster we face today, the topic that is widely discussed at the WEF and by leaders around the world. Globalization, like the double-edged sword it is, took a swipe and doubled the agony. What started as a U.S. problem alone is now affecting every industry on the planet. EVERYONE is impacted in some shape or form. All other world issues are, in effect, bumped down the priority list.

As youths of today and leaders of tomorrow, it is our responsibility to prevent another such dilemma from occurring.
I definitely have a problem with newspapers nowaday. Does anyone get the feeling that the business or economy section is almost incomprehensible in content? Every second word and you’re faced with a jargon like CDO.

How many youths OR adults know what a subprime mortgage is?

What we have here is an impasse. People don’t know why this is happening, the root of the problem, which means we are doomed to repeat history’s lesson.

Any thoughts?

Sofia Hou
Canada