I have little understanding of the economics. I have just figures which I pick up from business reports but I can’t deal with them as economists do. But the things I can share with them is that there is little that can be done by the bright economists or the economy illiterate like me when things go disastrously wrong. What settles the matters is the flow of cash from the consumers and investors. Without this the economists have just to make plans which can’t work.
One of the drawbacks of the economy or banking systems is speculations and interdependency. So if a major sector sneezes, the other sectors linked to it catch cold. The prospect of (big) profits is based on investments which can turn wrong. The core of the problem in the financial market is the fall of house sale which made it difficult for banks to retrieve their money by selling the houses on mortgage at higher prices in case the borrowers fail to pay their instalments. This has caused a chain of events affecting the operations of other banks as well as shareholders.
So while house sale is a major cause of financial difficulties in many Western banks, banks in