This is a typically human strategy , because before investing , a person analyzes the situation , and needs to feel that this investment is worth it , that the money that person is going to spend , will produce benefits.

But also we have to take into consideration the fact that , if we don’t take the opportunity , we may never change the situation we’re living in .

This is why i really think that instead of taking this economic crisis as a time to freeze your money , you should invest in some fields that sooner or later will regain their previous value ,like what Warren Buffet said , a quote that you really should take into consideration :

Be Greedy When Others Are Fearful.

So the question is ,in these circumstances what are the best fields to invest in ?

Housing

As we all know the economic crisis has terribly affected real estate , a situation that made house prices so low, that their owners want to get rid of at any price ,so in case you have some saved money ,why don’t you take the opportunity and buy 4 our 5 houses, all Specialists in the economic field affirm that soon the houses will regain the value they used to have before the economic crisis.

Start your company

Yes,it’s one of the things that you really should think about, in these circumstances, you’ll have to pay less taxes ,unemployment is everywhere, so you can get high qualified workers for nothing .
also as you have for sure noticed that big monopolizing companies like general motors are losing their supremacy , and this may be an occasion for new companies and other starting enterprises to share the market and have new opportunities to sell their products .

I nnovation

Since always , the united states has built its fortune from innovation , discoveries , and research, so if you have something new, original , that you think may create wealth , it’s a golden opportunity that you have here.all the market is yours ,the world needs something new , and the new thing can be your product , so instead of just sitting there waiting for the economic crisis to end , take advantages from this situation

What can i say about 2008 , it’s a year not like the others , you may ask me why ??? the answer is simple ,A BIG change has come in 2008

Throughout this post I’ll try to talk about some of  the main events that happened in 2008

The US election :

After 8 years of a catastrophic governance , the US felt the need to change the way things were going , and this by electing the first black president of it’s history , making the dream of martin Luther king alive

I have to admit , that not only the US will be affected by this election , but the whole world, especially because the united states is the most powerful economy and military power in the world .
Why is this election so important ?? it’s mainly because after 8 years of bush’s and  condoleezza’s governance , the world has simply changed it’s way of judging the  USA , the war in Afghanistan and Iraq lead by bush , has been the main factor that has made the US no longer being seen as peace keeper , but seen as war maker
But all this is now a part from the past and the whole world hopes that after the election of Barack Obama , things are going to change

The economic crisis :

The second main event of 2008 is for sure, the economic crisis , the explosion of the sub-prime mortgage bubble has been the main reason behind this terrific crisis that has affected all the countries around the world , and lead thousands of companies and banks to bankruptcy ,and millions of people to joblessness , you can read more about the economic crisis here .

For sure we will see the results of this crisis in 2009 and if countries from all around the world do not  gather their power to find a solution to this crisis,the world will be directly going to hit the wall at 407 km/h and no one knows what will be the consequences of this

The raise and fall of the oil barrel’s price :

maybe this is one the main consequences of the economic crisis, the barrel’s price has during 2008 reached a top of 150 $ and then decreased to reach 40 $ which means that the economic crisis has pushed countries to decrease their  consummation of oil , and this is for sure not beneficial for oil producing countries, like KSA .

And a lot of other events that for sure have affected us in a bad or a good way .

you know , i don’t give a damn about stuff related to business , finance or economy ,because i find it simply boring

when i watch the financial news on my TV set and see a whole lot of people in wall street  screaming and fighting like if they were struggling for their life , i simply change the channel

i mean , that what i used to do before , till recently heard about the economic crisis

and due to the fact that a lot of my blog visitor are directly affected with this crisis , i decided to write about it and try to explain how it happened :

so from what i understood , the economic crisis is a logical consequence of the housing bubble , a bubble is something that can happen with any market !!!

but the problem is that the main reason for this bubble is the subprime mortgage bubble ,((subprime what ???)  i explain

because after the 9/11 , In order to get the Economy going again , the FED decided to reduce the interest rates , to make cheap money available, so people can buy cars and houses again like prior to that period .

but because there were no regulations ,Banks could  sell on mortgages in large quantities  . and the problem is that the banks  could issue a mortgage and sell it without  checking whether the debtor can afford to buy it !!!

So lot of mortgages were sold to people who couldn’t afford to buy them . sometimes the debtors didn’t even know about the mortgage they obtained in order to sell more mortgages.

but the main reason of this crisis can be summed into :

People couldn’t buy mortgages anymore. Those who had bought the mortgage  for millions of dollars found that were worth nothing. and so once they needed money  pulled the mortgage from the stock market, and so everyone lost there.

therefore Banks did not have the possibility to  sell more mortgages and themselves had bought bundles that are worth nothing now . So they lost too.
and as a consequence they couldn’t lend money anymore and so people had no other choice than to stop buying.

it’s really a vicious circle, and the whole world economy is now affected by what happened in the US , but will Obama’s team find a solution to that ? and will the American economy become as strong as it used to be, before  9/11 ???

only time Will Be able to answer  This question