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Timeline of Worldwide Financial Crisis

The recent worldwide financial depression may be one of the most highly abstracted chain of parallel events to ever take down a global financial system.

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Update: Theres a much better financial crisis timeline project over at How come no one has done the same for global crisis survival tips yet?

The truth is, even though a lot of people have thought out localized microsystems overall, no one ever thought to plan for a worldwide, global economic marketplace. And technology, interlinked currency markets, and communication interlinks have all but made the arrival of the global village occur a lot sooner than people thought. If anything, it seems to primarily indicate the extent to which people are like physical objects in terms of perspective: a perspective in motion tends to remain in its motion until interrupted. And people were thinking old school while the new school had already arrived. (although it may be different in europe.) An excellent exposition is in Harold Bloom’s nytimes OpEd on Financial Panic and Ralph Waldo Emerson, although a bit wordy. Eh? Why? I thought Id try to put together a timeline of the current global financial disaster for my own apocalyptic scrapbooking benefit, but its just a start. If you disagree with positions, please let me know, as I am not hard-and-fast on changing anything at all. Getting what just happened correct is also important for figuring out the best strategies to survive a worldwide financial depression, as I previously posted about. Of course, the entire effort at a timeline, as we shall perhaps see, is Doomed to Failure, like the World Economy: So without further ado, here goes another useless attempt at understanding in retrospect:

Timeline of Global Financial Crisis (no refunds)

  1. first, new and highly abstracted meta financial derivatives were created. this was the result of, primarily, deregulation of the investment industry.
  2. this deregulation was designed with the long-term goal of moving money out of government-backed programs dealing with retirement, healthcare and medical, student loans, and other safety-net programs, including medicare and medicaid, and into the private market.
  3. deregulation also put the burden on the states, and not on the federal government, for responsibility of these programs.
  4. federal taxes were cut, although primarily for private-market entities. this had the effect of making these safety-net programs lucrative for private industry management.
  5. states saw drops in federal taxroll funds for support, and thus have had to raise taxes on the state and local levels. but the unpopularity of this, buoyed in part by the fear of taxes campaign ideology and strategy behind professional political campaign managers, also led many local governing bodies to have to find private market involvement to raise their own missing capital.
  6. the net effect of all these moves was to make every level of government, except the federal, dependent on the private market investment sector for funding their safety net programs, including schools.
  7. this exposed every level of safety-net and livelyhood programs to private-market risk.
    next step: highly abstracted financial derivatives, in their extreme complexity, were never questioned in this deregulatory atmosphere. As long as they worked, no one cared about looking, and those who did were subjected to highly unpopular naysayer positions, extremely politically unpopular.
  8. As housing markets continued to climb, and people placed retirement funds into bets on flipping properties, and private, deregulated credit lending companies like banks and mortgage brokers used these mortages to drive even newer and unknown highly abstracted financial derivative products upwards, this unquestioned means of logrythmically increasing profits became a poster child for the positive benefits of private-market, unregulated wealth creation and investment.
  9. Relatively, federally funded safety-net programs paled in comparison with their profitability. If you could put you money into medicare and get the 4% gain till you were 65, why not put it in the private sector instead, and make all those gains within a couple of years?
  10. The problem began when housing prices began to decline. Or did it? The leveraged world now depended on the stock markets to determine valuation through these complicated derivatives and credit default swaps.
  11. Jobless rates began to increase as the flow of credit between banks and business became threatened.
  12. … to be continued.

Financial Crisis Reading List

  1. Crash Proof: How to Profit From the Coming Economic Collapse – good breakdown, if you believe there will be an “after”.
  2. Financial Armageddon: Protecting against Catastrophe – indepth look at hardening your finances in the face of a meltdown.
  3. Financial Shock: The Subprime Mortgage Implosion – an important look at how the depression – recession hit, in order to better understand how to pull yourself out.
  4. Deep Survival: Who Lives, and Who Dies – national geographic explorer looks at the personality traits of those who survive over those who dont. fascinating.
  5. Shock Doctrine: The Rise of Disaster Capitalism
  6. The best DVD series to review about living out a disaster: includes the economic systems getting rebuilt, and a lot more. Jericho is really the best out there in terms of examining the daily life of a small Kansas town that has to rebuild everything, primarily for the discussion of how they rebuild their economy, and associated issues.

    Jericho, Kansas: Surviving and rebuilding a small town infrastructure, economy, and society after a modern day disaster.

Other Timelines from around the Nooocracy (again, no refunds!)

  1. At the Beeb [visit]
  2. Stock Apocalypse’s Global Financial Crisis Timeline Project
  3. … more to come.

  4. October 12, 2008
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