Page 79 - Heavenly Signs III by Mel Gable

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forced to acknowledge their bad debt. This resulted in huge write downs and write offs on these products. These
write downs found several institutions at the brink of insolvency with many being forced to raise capital or to go
bankrupt without additional financing.

The Financial Crisis of 2008 was also known as the global financial crisis and it was considered by many
economists to be the worst financial crisis since the Great Depression of the 1930s. It resulted in the threat of
total collapse of large financial institutions, the bailout of banks by national governments, and downturns in
stock markets around the world. In many areas, the housing market also suffered, resulting in evictions,
foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses,
declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to
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the 2008–2012 global recession and contributing to the European sovereign-debt crisis.

GDP Real Growth Rate in 2009 (CCASA)

Remember, both of the top two nations in the number of aborted babies per year are Russia and the United
States. Russia’s entry into a recession occurred early in 1998. The U.S. started into a deep recession in 2008 and is
still slow to recover from the Financial Crisis. Russia is still in a deep recession more than ten years later. These
two nations were considered at one time the strongest military forces and countries on the earth. Could this be a
sign of God’s hand at work? All the countries in brown were in a recession in 2009. To a great extent the
European effect was caused by the United States. It was through the marketing abroad of its complex derivatives
investment products. These products were considered by investment adviser as being highly secured investment
vehicles rated AAA. However, God was to provide proof that this was not true through these circumstances.
God controls wealth. Many in this country believe God wouldn’t judge this nation, since we are living in the
dispensation of grace. But, this is contrary to God’s attributes, and He must judge greed and unrighteousness.

The immediate cause or trigger of the crisis was the bursting of the United States housing bubble which peaked
in approximately 2006. Already rising default rates on sub-prime and adjustable-rate mortgages (ARM) began to
increase quickly. As banks began to give out more loans to potential home owners, housing prices began to rise.
This resulted in artificial stimulation of the real estate market, which created increase in pricing. Easy availability
of credit in the U.S. was fueled by large inflows of foreign funds. This occurred after the Russian debt crisis and
Asian financial crisis of 1997-1998. This led to a housing construction boom and facilitated debt financed
consumer spending. Loose lending standards and rising real estate prices also contributed to the real estate
bubble. Loans of various types including mortgage, credit card and auto loans were easy to obtain and consumers
assumed an unprecedented debt load. It is amazing to see how easy it is for a college student to get credit cards.

124 Haidar, Jamal Ibrahim, 2012. "Sovereign Credit Risk in the Eurozone," World Economics, vol. 13(1), pages 123-136, March