The financial crisis is spreading around the globe like a wildfire, the TimesOnline reports of recent events in Seoul, South Korea. “Economists told local media that… the country was vulnerable to economy-led trauma, adding that a significant drop in GDP growth would “invite a surge in suicides and divorces”.
One thing is for sure; the crisis which emerged in the US earlier this year holds no favouritism towards any country. It is spreading faster than anyone could ever imagine and countries as far and remote as South Korea are being hit too. Regardless of any upbeat statements by government officials, the facts speak for themselves: “the country’s banking system is beginning to look increasingly fragile, its credit bubble is at risk of deflating uncomfortably fast, the reserves are shrinking quickly and economists have started to downgrade South Korea’s growth prospects”.
Unfortunately, the pattern is the same in most countries, at first officials and government argue about terminology, about what defines a recession or a depression. Then cautious notices start erupting and next thing you know chaos has broken out and all measures (such as huge bailout packages) cannot even begin to fill any holes.
Image by tylerdurden under CreativeCommons
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