Big Picture – Small Picture
What is happening in the world. ahhhhh Don’t Panic !!

• Financial crisis, the current crisis is nothing new a crisis occurs every 20 years or so where some event occurs to cause a correction in the markets and widespread panic to investors. The recent Credit Crisis is different only in the fact that the pullback was so rapid and volatile. The SP-500 has pulled back to the 2003 lows in 3 months. When the tech bubble burst in 2000, it took 3 years for that pull back to happen.
• Banking system : massive failures in the banking systems and a lack of regulation has largely been attributed as the main cause, of the domino effect
• Demand downturn : this has occurred because of the financial crisis, people are already in debt, and cannot finance new debt, therefore they are reducing their spending.
• Increase in unemployment : as demand reduces, so we need less jobs to make the products that nobody wants anymore.
• Developed world Debt : the developed world is taking on too much debt, the developed world lead by the US is taking on a lot of debt to create a stimulus package, to kick start the economy, and create jobs.
• Market Volatility : Stocks and shares have become very volatile (this happens when people get too emotional), and have nosedived, to below the 2003 crash.
• Continued Political unrest in the usual hotspots.
  — Middle East (affecting Oil Prices)
  — Terrorism (affecting Oil Prices)
  — Africa / North Korea / Iran 

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