Originally posted by yo its meStarValley has a reasonable answer.
Thanks for all your answers. You're sounding agreed that China won't do well out of it. So I was wondering, if you don't mind answering- If no one get's rich out of this then where dose the money go? Or dosen't it work like that?
Or was it only money in theory in the first place, like credit?
To add another element in answering your question, many people did profit enormously (people financial industry). However, note that they did not "receive" all of the money that is causing the crisis. They merely got a lot of profit in the process of selling the highly risky financial product. The actual debt that has been created is very complicated.
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Originally posted by SquelchbelchWEll we haven't heard how the middle east is effected, but I heard that America made sure it suffered more in the 9.11 crash (don't know if that's true) and so the middle east made sure it's money was safe should such a crash happen again from the states-
Since it's being referred to as a "global economic catastrophe" or the "worldwide recession" I assume that countries outside of these areas are almost certainly probably possibly ok.
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http://globalnation.inquirer.net/news/breakingnews/view/20081020-167438/Middle-East-will-be-OFW-shock-absorber
"The problem is credit, which we don't have here"
Originally posted by yo its me"It is a tense time for everyone at [Lee Der toy factory in Guangdong]. The company's boss, Zhang Shu Heng, committed suicide in one of the factory buildings, he was so ashamed by the scandal.
You'd be right, it seams;
http://news.bbc.co.uk/1/hi/world/asia-pacific/7670351.stm
China has closed over half of it's toy factories.
His last act before he took his own life: to ensure his workers got their last pay packet."
http://news.bbc.co.uk/2/hi/business/6948274.stm
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Originally posted by Bosse de NageTerribly sad. What was in the paint?
"It is a tense time for everyone at [Lee Der toy factory in Guangdong]. The company's boss, Zhang Shu Heng, committed suicide in one of the factory buildings, he was so ashamed by the scandal.
His last act before he took his own life: to ensure his workers got their last pay packet."
http://news.bbc.co.uk/2/hi/business/6948274.stm
Edit, lead apparently and a worry of loose magnets;
http://www.abc.net.au/news/stories/2007/08/15/2006267.htm
Originally posted by yo its meIt's possible that it says more about the competition within China than the troubles of the Chinese toy industry as a whole.
You'd be right, it seams;
http://news.bbc.co.uk/1/hi/world/asia-pacific/7670351.stm
China has closed over half of it's toy factories.
In the first seven months of 2008, China exported 35.3bn yuan ($5.17bn) worth of toys, up 1.3% from the same period in 2007.
Originally posted by yo its meAs money circulates, it gains value because it causes things to happen; farms are run, houses built, etc. Therefore the money itself may not go anywhere, but the value of the money will change. That's my take on it.
Thanks for all your answers. You're sounding agreed that China won't do well out of it. So I was wondering, if you don't mind answering- If no one get's rich out of this then where dose the money go? Or dosen't it work like that?
Or was it only money in theory in the first place, like credit?
Originally posted by Scotty70Not a "Fed" no but as the various European governments are investing nearly 2 trillion dollars into trying to get the credit rolling again, it´s not like Europe is not doing anything.
[bThe situation is even worse with numerous central banks failing in Europe, as thay dont have a Fed to back them up.
[/b]
I don´t think any European central banks have failed yet. Not that they wouldn´t have if they weren´t being propped up.