The end of Wall Street as we know it is an article written by Dave Kansas a financial writer. The article reflects economic turmoil experienced by different countries all over the world. Kansas in his article tries to evaluate the impact of economic crunch in U.S and other countries in the world. He tries to provide certain appropriate measures necessary to correct such situation in future and how individuals should survive. The economic crunch is one of the worst situations ever experienced by individuals, governments and business entities.
Stock market is one of the major sectors in the economy that was affected by economic turmoil. Dave Kansas was touched by the effects linked to such economic turmoil and decided to come up with article on how individuals are supposed to survive economic hardships. It is a practical and comprehensive book that highlights the effects of the economic crisis on individual financial life and appropriate steps necessary to protect individuals. The book tries to deliver various financial concepts about credit crunch, sub prime crisis and market meltdown.
The article is an analysis of new world order in respect to banking sector and its responsibility, and the role of government in controlling the crunch. In this aspect the book tries to reveal how the economic crunch affects Main Street. Safeguarding the welfare of investors and customers is another major theme of the book. Dave Kansas tried to come up with certain investments that have been protected and how funding of such investments has changed the lives of many investors. One major area of concern in this book is the issue of individual investor strategies. Individuals are provided with good investment strategies in stocks, real estate and bonds in this book.
Dave Kansas gained his popularity as the author to End of Wall Street as we know it wall street journal. He talks of various issues that are related to the just concluded economic crunch and related investment proposals. Being a financial analysis, Kansas portrays his ability to analyze different economic situations and provides appropriate measures necessary to survive such economic hard time. Dave argues that the just concluded economic turmoil has resulted to changes in psychology of money and the capacity of an individual to safe. People during this period experienced economic hardships and were forced to change their way of life.
As per provisions of Kansas, the industry sector experienced a lot of hardships and had no alternative other than to cut down costs. One particular way of minimizing costs was to lay down workers and streamline the use of their resources. This meant that laid down workers had to live within their means which according to Kansas is an appropriate measure. To this end, Dave advices individuals to pay down expensive credit card debts as soon as possible before focusing on how to invest. Kansas sees stocks as one of the best investment opportunity in future. He believes that investing in stocks requires investors to be patient since it is a long-term investment portfolio. Kansas in his book advises individuals to invest in stock market because they have better returns than investing in bonds.
Accordingly, Kansas tries to compare the past economic situation in U.S and global financial markets in the current situation. He shows the various changes that occurred as a result of economic crunch. Large banks such as Wall Streets investment banks became extinct and borrowing terms were affected. This made it hard for companies and individuals to access loans for their own use. It is an economic situation that made it hard for investors to expand business because they could not access loans from financial banks. The book underlines particular measures taken by government to boost collapsed economy and save financial system. Kansas reveals how the government extended more than $7trillion in loans and guarantees to save the economy. The amount of money spend on this project is about half the total annual economic output in U.S.
Kansas in his book revealed how National Bureau of Economic Research declared the fall of U.S economy into recession in 2007. The recession had several implications on the lives of many United States citizens. Millions of people lost their jobs, domestic companies collapsed and investment withered making life to be complicated. According to Kansas, the economic crunch was a threat to economy and solution to such problems will take time before its effectiveness is felt by investors and individuals.
Insolvency of nations such as Iceland is another concept revealed in this book. Another impact of the economic crunch as is highlighted in this book is about the fall of stock markets. Investment in stock markets around the world declined taking by surprise many investors who had projected better returns. Investors had considered investing in stocks while at job so as to enjoy the returns once they retire and manage to pay schools fees for their children. The crunch made life for such investors to be more complicated and also it affected the lives of many children who dropped out of school for lack of fees.
Shares dropped in prices forcing retirees to seek for reemployment and those who were almost reaching retirement considered to extend their years of work. Every person in U.S experienced tough time and companies were no safe in their production capacity. People were frustrated by fall of stock prices and collapse of many companies that offered employment opportunities. Families tried all means to meet the ends through strenuous means and fear engulfed individuals for loss of job through out the entire country.
The financial crisis was a time of anxiety accompanied with moments of panic ever seen since the time of Great Depression. These were provisions made by the financial writer in his wall street journal guide. Many economists and financial analysts speculated for massive establishment of shantytowns around major cities but this was not the case in U.S. Unemployment rate created by the crunch was very high as compared to what happened during the great depression. Dave Kansas witnessed other financial panics such as the Asian financial crisis of 1997, Russian crisis of 1998, stock bubble of 2000-2001 but they lack comprehensive nature as compared to financial crisis of 2007-2008.
Kansas has written various articles about economic crisis in good and bad times and this show that he has enough experience to give advice about future economic crunch. He argues that the best way to prepare about any future economic crisis is by looking at what has happened in the past. This will help investors, government and individuals to seek guidelines on how to cope with the aftermath of economic crisis.
Kansas Dave, The end of Wall Street as we know it.