Elvis and the global economy
Here's a few words from Anu, who is at the Southbank Centre for today's show...
One for the money....
So today's World Have Your Say comes from outside the National Film Theatre on the south bank of the river Thames here in London, where a major retrospective of Elvis Presley films are being shown tonight!
Why on earth is Elvis still the top grossing (ok, dead) music star?? Why are there Pakistani, Chinese and Romanian men willing to don tight sequined flares and a silly black wig to look and sound like the King? And the biggest question of all, where did you last see Elvis?
All shook up....
Do you trust the people who handle your money? If you're scratching your head wondering why on earth global markets are dropping like the mercurty because of a few bad US loans, you're not alone. My colleague Paul 'moneybags' Colletti wants to know why he should care, or indeed, why anyone else out there should?
Here are the basics: Some US banks lent millions of dollars in mortgages to people with poor or non-existent credit histories and low incomes. These 'Ninja' mortgages didn't even require proof that the borrower had a job. The logic was that house prices would carry on going up, so even if people defaulted, the banks would make money by selling off the repossessed homes. Well, sadly, that turned out to be a pipe dream. The US housing market has collapsed and the banks find themselves saddled with a lot of bad debts.
The result is billions being wiped off the stock markets, not just in America, but around the world. London's FTSE closed below 6,000. Japan's Nikkei index lost 2%, with shares down 3.7% in Hong Kong. France's Cac-40 index was 3.1% lower while Germany's Dax-30 was down 2.6%. In the US, the Dow ended below 13,000 for the first time since 24 April this year.
And the cost of borrowing is already going up in London, Frankfurt and New York.
Whether you understand the numbers or not... it all adds up to the same thing: Is it right for banks and lenders to give money to people who might not be able to pay it back? Or are all things fair in love and capitalism?
Do you have savings tied to the markets? Are you worried about the cost of borrowing? What's your opinion on the banks, brokers and managers who handle your money? Are they doing the best job they can?
(Paul, are you paying attention?)
A little (more) conversation...
You can still join the discussion about who best represents the Islamic world. If Catholics have the Pope, Tibetan Buddhists the Dalai Lama, and Anglicans look to the Archbishop of Canterbury..... what about Muslims? Hizb-ut-Tahrir, a fringe group whose strength has mainly been concentrated in Europe and the Middle East, has suggested a return to a Caliphate. The last Caliph was abolished by Turkey's secular leader, Mustafa Kemal Ataturk, in 1924. Supporters say it's the best way to unite the Muslim world and would also be a way to circumvent corrupt leaders in Middle Eastern countries. What do you think? We still want to have a crack at this, so if you want to contribute, let us know.
Speak to you soon,
Anu
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