Climbing out of recession in Asia

Every country has been trying to wiggle it way out of the recession. Amazedly most of the Asia countries have pulled out of the deepest recession since the Asian financial crisis. The top countries pulling out of the recession is: South Korea, Japan, Singapore, Hong Kong, and China. While country like Thailand been trying so hard to get back on its feet, it experiences the worst recession in 11 years in the second quarter. Surrounding country try to help each other which benefit both sides in diplomatic and social gain. Countries like Russia has not been as fast as the other Asia country, but have put recession to the past with a third quarter growth.

Brain washed to every American business men

From the first day an American become a business man. They were taught one simple rule, always borrow. No matter how much money you have, still borrow more to gain more money. Most of them know they are trying boil a cold egg in an extremely hot water, to gamble how long it will take before it crack, letting the egg white spill all over the pot. For example if a business contract offers that they will buy 1000 inventory for $500 each and will buy more if you got any. An American is taught to use the inventory at hand to satisfy the request then borrow as much as they can to gain even more money. Many people may think that why take that kind of gamble? The truth is when the egg is drop into the hot water it will not crack instantly. People know as long as everyone else is also fuelling the fire, there will be nothing to fear. They will loan and mortgage as much as possible hoping they will gain as much money before the egg cracks polluting all the water around it.

Squandered Wealth

Lending support to the argument that these huge bailouts are being squandered by the companies that receive them is news that those companies still give their officers huge bonuses and golden parachutes; the people responsible for driving their companies into the ground are receiving what amounts to ill-gotten gains. A serious lack of ethics is shown by seeking out additional funds directly from the people and using them to fatten their own wallets instead of using them to prop up their companies.

Partisanship in Recession

This crisis has given the political parties of the US just as much of a platform to differentiate themselves from their opponents, as well as denigrate them. Obama was elected on a platform of change, and change is very much against the conservative mindset; they tend to favour the status quo. This mires any debate about financial policy in a bitter, combative tone, rendering the process into a shouting match about who is right and who is wrong with little regard to the facts of the matter. One Republican even considers the most recent proposals to health care reform to be more worrying than terrorism http://www.poetv.com/video.php?vid=69663.

Magnitude of the Problem

Last year over $700 billion was approved by Congress to bail out financial institutions. In 6 weeks $216 billion was already spent, leaving many to wonder just how badly things were going to end up. That amount covered only 67 of 1800 such institutions which were expected to apply for government assistance. The new administration can expect to spend as much as $23 trillion by the time the crisis is done; that is close to double the $14 trillion GDP of the entire nation, leaving many to wonder just how much the government can do to fend off a financial collapse.

Bankruptcy Woes

It seems that much of the concern about the Obama Administration's plan to prop up the ailing banking sector are well founded. CIT Group has just filed for Chapter 11 bankruptcy protection and will be wiping out current holders of its common and preferred stock. This will most likely mean that the $2.3 billion which was pumped into it last year by the government will be lost. Anyone can see the negativity that this is generating; many are hailing this as the coming of "Round 2" of the recession that has gripped the world.

Conservatives Denounce Spending

It would seem that the conservative viewpoint is that Keynesian economic policies that are being practiced by the Obama Administration are short-sighted and will, in the long run, hurt the economy. They are arguing that the inflationary fallout will result in the continuation of the boom-bust cycle. Almost ignored are the efforts of those individuals who perpetrated the whole situation; many of those responsible in corporations like Lehman Brothers Holdings Inc. show little to no true repentance.