The Global Crisis Effect to the Businessmen
Some businessmen start their own businesses with the initial capital that they got from the banks. They got some loans from the banks to be used to start their business. After the global crisis happening, off course some of them collapsed. There are so many factors that could bring them down. One of the most important factors is the bank interests. When the global crisis was starting, the banks start to increase their interest rate based on the opinion that if they didn’t increase their interest, the banks might be collapsed. If the banks collapsed, the whole business would collapse as well.
What happen truly different with the banks’ predictions? Right after the banks decided to increase the interest rate, some businessmen are start closing down their business because they cannot afford the monthly interest payment to the banks. According to their calculation, it the banks don’t reduce the interest rate, they might lost the whole assets plus the still have some debts.
So, they decided to close the business, sell the assets to pay the banks. But the effects are not that simple. When the company is closing, too many people must quit the jobs. The closure of some companies starts to impact another sectors. The material suppliers start to lose their buyers. The chain effect continues, and in the end, the global crisis moves on until today.
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