What Really Has Cooked the World Economy and Layoffs?
Major portion of the world live in poverty. Unequal distribution of economic growth led to limiting purchasing power to limited people in the world. Whereas number of industries grew created heavy competition to attract consumers.
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(VoxEU.org) How financial stress spreads – A first comprehensive look at the current crisis - For defaulters of credit card or mortgage, yoga or other spiritual practices may not be useful. Patience and mental strength may help to think for future. In order to get relief from stress need fund to pay back. Cut existing expenses and needs, spend only on essentials. This is a lesson so start saving too for such stressful circumstances.

Food price rises and Crisis!!!! :- Food is the first priority for each consumer, expensive food would prune consumption of other product’s and services. Food and water has to cheapest of all commodities in order to promote materialistic world order. Urban related economic growth thrusts agricultural land conversion to cities and to accommodate urban population and industries.

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Anup Shah, Global Financial Crisis, GlobalIssues.org, Last updated: Saturday, July 25, 2009

Why Economists Failed to Predict the Financial Crisis - But what about economists? Of all the experts, weren't they the best equipped to see around the corners and warn of impending disaster?

Brain quirk could help explain financial crisis (newscientist.com) - "Most average people have this tendency to turn off their own capacity for making judgments when an expert comes into the picture," says Gregory Berns, a neuroeconomist at Emory University in Atlanta.

Economic crisis (oecdobserver.org): The long term starts now - Lower global inflation and more affordable energy and food prices offer some relief, but with the economy still in intensive care and public anxiety spreading, the situation could worsen. Restoring growth, stability and confidence must remain the policy priority for months to come.

The influence of global financial criris on financial markets - Massive reduction and liquid problems of credit raiting in banks (for the first time in (Northern Rock) in April and May 2007 and since 2005, the range of problems such as the results of slump in real estate, influence on devaluation bank assets and manifestation of bankruptive effect on a number of banks have reached crisis point by September 2008.

"Stress"

economic stress

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In a situation; failing to find way out to overcome existing economic crisis is called economic stress. Stressful situation is; when excessive pressure is built solve economic crisis. People who undergo economic crisis may suffer: Restlessness, develop violent behavior, extreme anxiety, attempt suicide, insomnia, indigestion, gastric and acidity, heartburn, high blood pressure, memory failure, heart attack, mental disorder and so on.

Global economic crisis is an outcome of collective individuals’ family financial crisis due to escalating cost of essential commodities or lack of financial support due to reduced income or lack of income. Each country depends on trade with each other that helps generating employment. When one major developed country fails, entire world shatters. Financial stress is when expenditure exceeds more than the income. Stress is how to reduce expenses and mange with existing income of the family. Rising food, fuel, services, home and security costs are the major causes for families to undergo stressful situation.
Economic stress reflects through women as they are involved directly in consumption of household products and services. Men’s role is to hand over what earned during the day, week, or month to partner. Her responsibility begins to manage home with that money. Managing home for low and middle income group is not less tensed; this situation escalates further when price of essential commodity soars, cutting essential needs is tough job. Reducing milk, juice, fuel, food, clothes and other adjustments, defaulting debit or credit card payment and what? Reducing any of them would affect the home life. This situation is stressful for both responsible members of the family.

First priority of a family is to focus on essential needs. Shortfall of funds meeting essential needs is first step for both economical and emotional crisis at home. Undergoing pressure to meet up essential needs leads to stress. Certain essentials are unavoidable, so in order to meet these needs they begin defaulting insurance, security or home mortgage bills. Blaming game or each member of the family further escalates to deteriorate family peace. This economic stress shoves stressful family life.
Population and rise in living cost. Major population in this world lives in poverty living with below 1$. 60% of world population lives in distressing condition starve to meet even essential needs and in some countries if get one time food they are fortunate. In such condition overgrowth of industrialization for meager percentage of population can only create unhealthy competition to catch limited customers. Unfortunately, one of the reasons of recent economic crisis was originated from defaulting individuals who were unable to make payment due to soaring prices of food, fuel or other essential commodities and services. Consequence of failing banks and layoffs only deepened crisis to loose more jobs and salary cuts. This crisis finally affects individual’s family and relationship. Without money survival is impossible, home demands money and failing to meet is foundation to family skirmish. Both go mad yelling and blaming each other upsetting relationship. Can also extend to suicidal and murder. Recession and unemployed youth crisis is also helping hand to shoot up crimes.
Many investors (with help of financial or banking sectors) invested in essential commodities and property markets (without realizing the unseen dark future) to fetch fast bucks. Fast buck making idea, initiated more and more investors to come forward that escalated situation. Investments soared prices to many folds of food, fuel, housing and other day to day needs resulted to high inflation to go beyond reach of actual needy to plummet demand. Individuals in stressful situation had to shift their life pattern to live what they earned, restricted use of fuel, non essential commodities and services led to investor failure, financial sector collapse, bankruptcies, and layoffs and so on.

World economy did not collapse in one day; capitalists began poisoning economy slowly and slowly by investing in essential commodity and service sectors. Lack of demand from needy finally failed them. Losses in investments shattered investors, directly affecting investment banks and other lending institutions. Failing entire economy of country that dominated the world trade led to failing trade connected countries. Many countries economy failed as population of importing countries trimmed consumption due to inflation, job losses and layoffs. Countries which exported and relied on export of essential and non essential commodities too collapsed as employment down and layoffs up.

Non essential commodity manufactures had to taste bitterness of recession. Especially manufacturers of electronics, cars, luxury travel transport, and others had to loose to recession. Tough market condition was already hammering them through economical products of overseas competitors. Many small and large industries failed because they did not foresee any such critical slump.

Many industries faced tough labor conditions and high cost of production and services resulting uncompetitive. In order to cut cost they chose to shift to developing countries or import from them resulting own people sitting idle. WTO and its free trade law liberalized import and export internationally. Complication of free trade is, most developed countries had scientific and engineering products for export which consumed least recruits as were manufactured in auto plants. Other products were not competitive enough to export or the products manufactured were not suitable to populated and developing countries, so in order to market their brands they setup factories in countries that helped massive profit and soaring index indicator in share market but did not help increasing standard of life or generating employment to origin country.

Soaring GDP or stock market, or falling inflation index may not be helpful to individual families of any country. Their concerns are suitable jobs, suitable earning, affordable price of essential commodities and services, security and medication. As long as country population meets these, the country is in right track and has right growth index. There are countries which have comfortable GDP indices, controlled inflation, rising stock market and yet major percentage of population lives under poverty. This indicates only a little percentage of population controls and plays with economy. Whereas major percentage of population starves in hunger, suffers in poverty, insecurity and medication. This pattern of capitalism becomes hazardous when benefit does not reach to the population. Economic failure is stressful environment to the country and the population. This stressful situation is an invitation to disorder and uprising. Socialism too has failed in most countries due to corruption, lack of knowledge to plan for rural and urban population together, dictatorial practices to benefit own party to generate wave of socialism. An uprising would one day introduce a new system to world order when each citizen’s participation is counted in the country growth. Proprietor, workforce and capitalist work together would be called “Socio-Capitalism”.

For defaulters of credit card or mortgage, yoga or other spiritual practices may not be useful. Patience and mental strength may help to think for future. In order to get relief from stress need fund to pay back. Cut existing expenses and needs, spend only on essentials. This is a lesson so start saving too for such stressful circumstances.

Most sufferers are the rural population where benefit of growth does not reach. Allotted fund to rural growth goes in the pockets or Swiss bank accounts of politicians or bureaucrats. Corruption all over the world is major hindrance to economic growth, as eats away major percentage of populations’ contribution to country as direct – indirect taxes. Present practice of these banks encourages corruption activities and obstacle to smooth running economy. IMF or other bodies need to discourage Swiss and its banks for such practices and made mandatory to disclose identity of foreign the account holder to concerned country.

Is India poor, who says? Ask Swiss banks (Merinews) - With personal account deposit bank of $1500 billion in foreign reserve which have been misappropriated, an amount 13 times larger than the country's foreign debt, one needs to rethink if India is a poor country?.