Influences and consequences of world financial crisis

Throughout already considerable period, partly on a work sort, partly has absolutely casually learnt a lot of the analytical information,
So, to an involuntary conclusion, at a stage of present crisis when manufacturers of the goods and services have paid essential attention, to structure of the expenses when the most powerful corporations regretfully reduce highly skilled experts and so on, the question arises what to do further?

I ask to express the thoughts in this occasion.

I agree. We have been acting as if a service economy is a real economy. If you go outside right now and ask the first person that crosses your path for a business card you would have no idea what they do. They are not machinists, or carpenters they are sustainability directors and such.

People don’t create anymore they find ways to make money instead of things. To bring it to real estate, we have this horrible foreclosure problem that has brought down many of our largest banks. The reason is that we have decoupled loans from the underlying real estate. It used to be that when you took out a mortgage and payments went to amortize the loan and the bank made money by taking payments. That way if you stopped paying on the loans there was a property with intrinsic value there to off set the mortgage or minimize the loss. But now a mortgage gets dissected like a turkey in Sara Palin’s back yard. The payments get aggregated into mortgage backed securities and the mortgage goes to a servicing company that takes the payments. Once the mortgages payments go into the security it is like a bucket of water in the ocean. There is no way to get it out again. That way if you stop paying on the loan the security stops performing and there is no way to mitigate the loss. The bank that originated the mortgage got paid when they sold it. The securities salesman made his commission by selling the mortgage backed security. But the party that bought the mortgage backed security got caught high and dry with no money nor real estate after the loan stopped performing.

America is very innovative, but we spent our efforts innovating how to make money instead of innovating how to make something.