Hello from Newshour. It’s been a rotten week for the financial markets – above all in the US and the UK. It began with the US investment bank Bear Stearns getting itself into such trouble that it was sold for a song to JP Morgan Chase.
Then the jitters spread to London and another big bank – HBOS – found itself at risk after rogue traders are alleged to have spread rumours that it was failing and then did some speculative buying and selling. That’s prompted calls for the Bank of England to provide banks in trouble with emergency funding.
This Saturday, at 1230 GMT, Newshour will be looking at exactly what’s happened over the past week and what it means for the financial markets and the wider, global economy. Has this economic downturn started to hurt you? Are you worried? We’d like to hear from you.
What’s behind this current crisis – have bankers had it too easy for too long without ever having to pay for their mistakes?
Financial analysts seem at a loss to say whether the impact of the credit crunch will get worse before it gets better. And that’s one of the problems. How do you plan for the unknown?
And what lessons have been learnt? We’ll be discussing whether reform is needed to the banking systems – more regulation perhaps? Many people think there’s too much already. And should central banks intervene or not?
We’d like to know your views on this. Post a comment here or email us.
RSS feed
BBC World Have Your Say 
Hi,
The world economy is already in its worse shape ever, so it is already “worse” therefore it can only get better.
Not only here in Jamaica but all over the world people are suffering because of increased in food and energy prices, healthcare and education not to mention security. When people start to complain with such level of intensity about the staff of life: food, raiment and shelter, you know the world is in crisis.
Those of us who still believe the Bible is relevant are not surprised by what is happening in the world economy this was predicted (see Matt. 24). What is happening is stage settting for the most glorious event in human history the- second coming of our Lord and Saviour Jesus Christ! It is He who will make it better.
No amout of central bank intervention, tightening or loosening of liquidity, inflation or deflation, Fed rate cut or increase will substantially change the direct of the world economy which is going down hill, these intervention will only slow the pace of destructive acceleration because the fundamental problem is not one of a financial nature but spiritual. There are unseen forces (spiritual wickedness in high places) that are bent on destroying humanity and what better way to do that than cause world impoverishment?
The only lasting solutiion is a return to love for God (unselfishness) and love for man (neighbourliness/kindness) if we continue to ignore these, things will only get much worse before Jesus intervenes and make things better forever.
Carlos, Kingston-Jamaica.
Ah, so the UK is just printing money now too. The thing is, your 1 pound piece is a coin, not paper, you cannot burn it for energy like we can with the $1. enjoy the winter!
perspective: europe is usually about 18 months behind the usa in terms of economic realities, so europe has not reached the downward level the usa has experienced. what many in europe do not understand is that high monetary values in relation to the dollar will have a huge impact on european economies, and how deeply european economics are tied to the usa. i am amazed when i hear the support that europeans have for barrack obama. if one analyzes his economic positions, you will realize that he will do more harm to the american economy than the current banking crisis, which will further drive down the economic situation over the pond. the uk has many of the same problems the usa has: over inflated housing which have people in mortgages that they will not be able to pay, which will lead to even greater banking problems. germany’s two largest markets are the usa and the uk, so they will feel a big hit from declining exports, and they also have banking problems. spain, which has an economy that is 1/6th the size of the usa, has 1,000,000 unsold new housing units. for perspective the usa has 500,000. amazingly this housing situation is even worse in the small northern european countries. france has an aging population and a huge public sector economic drain. the price of oil is not going down due to pressures from india, china, se asia and africa. food will continue to cost more because of the cost of fuel. ignorant policies like the eu mandates requiring the use of biofuels, are causing farmers to plant fuel crops, not food crops. the pressures for food stuffs from around the world with less food production will continue to expand. european consumers will also be paying new carbon taxes due to eu hysteria over global warming. did anyone in europe notice the recently released nasa photo showing that polar ice cap on mars is melting? There are no martians so it proves the sun causes planetary warming. america is dealing with our economic situation. our dollar is valued at a point where we will be recovering due to expanded exports. Our farms are growing food. europe, you better tighten up your belts because the economic downturn that is coming your way will be much worse than what we experienced here
Yes it will get worse.
The bottom line is greed criminalized the financial institutions.
Quick profits with high yield knowingly destroyed our economy.
These were not just the scum bags of Enron and their buddies (Cronies if you will),
the biggest names in banking joined in knowing exactly what they were doing.
The same people who have created this fully plan to be bailed out at the tax payers expense.
Thank you Republicans.
It has been a grand ride.
Now the Fed is dumping 200 billion, that is with a “B” into the market to fend off a crash,
spiraling inflation, as the dollar free falls (controlled fall for the moment).
Hang on to your hats boys, it is going to get rough.
Will it get worse before it gets better?
To whom, may I ask ???
‘What goes up must come down’!
The force is the factor.
The (dictatorial) artificial forces of capitalisation. /export/import/ devaluation of currency.
The victims will be (little people) on the GRAND_STANDE.
It is bad to become a statistic, isn’t it?
bjay connotation with accent.
Thatchers policies working well in the US we see.
They may understand why so many in Britain disliked her so much, even to this day.
Will the US recover, yes – but it will need some serious looking at, and Mr Obama, if true to his word, will look at Wall St with a critical eye – that we will have to wait and see if it happens, Wall St is more powerful than the NRA.
The credit crunch was caused by unbridled greed by those at the top, how the US deals with them is up to their government – the administration you have now doesn’t have a clue so it’s a wait until January 09.
Canada has a pretty good economy at the moment – Canada has plenty of oil to sell. 😉
IT WILL GET WORSE BEFORE IT WILL GET
BETTER…..
Dennis from Madrid, U.S.A.
America sucks! that’s all there is to it! Don’t emigrate to America or you will be sorry!!!!!!