Thursday, 1 January 2009

Understanding The Financial Crisis?

Cary G Dean.

By Matthias Chang

Thinking & Common Sense

God gave us a brain to think, to think naturally and in simple terms, and not in a complicated way.

When we think naturally and use common sense to address problems we will be able to arrive at simple solutions.

But our Education system's tortures us mentally and forces us to think in complicated ways.

Our teachers, economists, politicians and so-called experts in God and religion make mountains out of mole-hills, turning simple truths to complex arguments and.

“Scientific Theories and Equations”.

These experts need to make things look difficult to survive and to make sure that we have to rely upon them for solutions.

It is often said that.

“In the land of the blind, The man with one eye is the King”

Thinking used to be a pleasure and so very invigorating.

But now experts have ensured that thinking is difficult and tiring, so burdensome, that we don’t think at all.

The result is that common sense is thrown out of the window, and we have been conditioned to rely on our mental crutch, the so-called experts to think for us.

How sad.

Why is it So Difficult To Understand The Financial Crisis?

Many have expressed to me that they are overwhelmed by the complexity of the global financial tsunami and are absolutely confused as to how to prepare and survive the crisis.

When I explained in simple terms, they refused to accept the explanations as to them.

“It was TOO!! Simple"

It must be more complicated as otherwise how can the crisis become a global fiasco?

Consider the following and my simple explanation:

Financial engineering: new ways of gambling

Investors: gamblers

Stock & Futures Markets: casinos

Financial Analysts: casinos’ salesmen / women

Bonds: I.O.Us.

Banks: Dishonest Money-lenders (actual money-lenders licensed not as banks, but as money-lenders, cannot create “money out of thin air”. They have to use their own capital – 100% to lend)

Currencies / fiat money toilet papers.

Derivative markets: ponzi scheme

So many people have difficulty accepting my explanations as the simple reality.

This is even after the recent exposé of the US$50 Billion fraud by Bernard Madoff, the former chairman of NASDAQ.

He declared to the FBI, that his scheme was essentially a Ponzi scheme.

(i.e. using one set of “investors’ money” to pay off an earlier set of “investors”).

Banks worldwide have collapsed!

Common sense tells us that we should not get into debts unnecessarily and not to borrow to purchase things that are not within our income and our ability to repay.

Common sense tells us that we should not commit fraud and or be a party to a fraud.

Common sense tells us more importantly, not to be greedy and lust for material wealth.

Common sense tells us that we should be angry, very angry with the so-called.

“Sophisticated and up-right people”

Who commit fraud and the regulatory authorities and political leaders who cover-up their crimes.

Finally, common sense tells us that we should take action to put a stop to these crimes and scandals.

Please use common sense and do something before it is too late!

About the Author:

Matthias Chang is a prominent barrister and author based in Malaysia.
His website is


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