What effect does credit have on the global financial crisis?

Although I am sure there is a proper financial explanation to your question, there is a deeper reason for the crisis here.

Humanity reached a state of total interconnection, we live now as a single living organism.

Despite that we still behave in a selfish manner, trying to use the others.

If we use the example of the human body we behave like cancer cells.

All the crisis we see, is just a symptom of this deeper problem.

So while we need to find solution for the acute financial problems, we also have to solve the deeper, main problem, otherwise we run into even deeper crisis. First of all we have to understand how interdependent we are.

Here is a fantastic article analyzing the crisis, its root causes, and possible solutions:

http://www.laitman.com/2008/10/analysis-鈥?/a>

All the best.What effect does credit have on the global financial crisis?The exact same issues that are affecting the north americas.

When credit/money become a rarity then inflation, depression, recession starts to rear based upon the interest rates which dominate lending or rather the lack thereof. When part of the cycle stops (ie lending) it throws a wrench in everything. Then enter market slow down, job layoffs, financial hardship and this will happen globally not just locally. We all trade from one country to the next so we all get hit.