At the rate things are going right now, I think the credit crisis will be a constant threat over the long term in the sense that stock markets around the world is still cautious about the current stability of the world economy, as analysts have claimed. Lately, I have observed that the DOW Industrial Index has been stuck between the 10,000 to 11,000 level for a quiet long period of time because of either good or bad market indicators, which in certain terms reflect the overall sentiments of investors.

I believed that the credit crisis will only be resolved if governments around the world, especially the United States will rein in budget deficits, that runs about trillions of dollars that is financed by bonds. If things turns out bad, only time will tell the economy will not be able to pay their massive debt incurred and the U.S. economy will eventually collapse and affect the whole world.

In layman's term, nations must live according and not beyond their means.

This reminds me of the question I recently asked on this subject.

I have spoken to a lot of different people about this, including bank staff and nobody seems to have a clue. If the politicians know, they don't seem to be saying much either and they are the ones who helped create this mess.

What I do know is, it's the same old story, the rich getting richer and the poor getting poorer. Here in Spain we have unemployment running at 20% and escalating prices.

I have a Spanish friend who works in the local unemployment office. She tells me there are virtually no jobs for anyone to apply for, except waiting at table in seasonal bars.

This used to be a fairly basic job that didn't require anything much in terms of qualifications, (this is not silver service, just beachside bars) However the employers are now looking for health and hygiene training, (for waiting at tables, not food preparation) several years experience and the ability to speak multiple languages fluently! The traveling is quite a lot as well.

All this for a hourly rate below the minimum! They assume tips will top up the wages!

The point I am making is that it is an ill wind that blows nobody any good and unscrupulous people such as these will benefit from the economic crisis, it puts them very much in control. Everyone is too scared of losing their jobs to make waves.

I may be cynical, but if this is happening in quite a lot of industries worldwide, there is not much incentive for some of the uncaring wealthier employers, to want the economy to pick up. It is not them that are suffering, well at least not to the same degree as the ordinary folk trying to put food on the table.

In short, I don't see much prospect of an improvement anytime soon.

I think the spending behavior consumers will dictate how long the credit crisis will continue to exist. While credit is more readily available than in past generations, we still have to decide how and when to use that credit and how to use it responsibly. In my opinion, that is where the credit crisis began once we began taking on more loan amounts than we could possibly afford to pay back.

When we take on more debt than we can handle, we wind up either taking several years to pay back our creditors or file bankruptcy because of not being able to keep up with the payments. Neither choice is really a great one because the years you take to pay back the creditors could be used to put into savings or retirement accounts and if you do have to file bankruptcy, that information remains on your credit report for at least seven years.

So all in all, I think the credit crisis will get better once began spending more fiscally instead of impulsively.

It is impossible to give a time untill it is over. However, I can give you an event that will signal the end of the crisis. When all of the excess debt is eliminated from the system the crisis is nearly over. Currently we have more debt than ever and it is still rising. The reason for the crisis is the inability to service the interest on the debt. The massive interest payments cannot be serviced unless the economy grows. The economy cannot grow while people and companies spend all of their extra profits servicing debt. It's as simple as that. The debt tower must collapse to a sustainable level. Watch charts that look like this:

When you see these type of charts show a massive drop, the end is at hand.

I believe there will always be a financial crisis as long as the capitalistic governments can rule the way they want to. Fast profit will always be a capitalist's best friend, and _he_ wouldn't trade it for nothing.
If we want the financial crisis to end, we would have to find a better ideology to replace it. In my opinion, that's the only way.