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The subprime crisis is only the tip of the iceberg for an Economic Meltdown?

Is the subprime crisis part of the cyclical boom-bust system or is it a major economic meltdown or both? 1987 - 30% market crash investors lost 10% of 1987 GDP, set off by the 1985 Plaza Accord to push up the Japanese yen with an aim of reducing the growing US trade deficit with Japan. 1997 - Asian Financial Crisis all Asian economies going broke. The DJIA dropped 7.2% and the NY Stock Exchange had to suspend trading briefly to break the free fall. 2007 - a Debt Driven Financial crisis threatens to put an end to the decade-long liquidity boom. Should we salvage our money by relocating overseas? I dont think overseas markets are tainted with subprime debt. http://www.nytimes.com/2007/07/25/opinion/25rosner.html?_r=1&oref=slogin New York Times Article http://www.youtube.com/watch?v=qC3YOFKTsTg Very Shocking Video about the Subprime Crisis. Help! I Need your reply. Thank You.

Public Comments

1. Overseas markets are totally tainted by US debt. After all, the US borrows huge volumes of money from other countries. The 'mortgage problem' has also spead to multiple countries because foreign banks bought CDOs (subprime debts wrapped up to look like AAA assets) for a long time without full appreciating the risk. Northern Rock (UK), and IKB (Germany) are only the first of what will be a significant number of banks/lending institutions that will appear in the finance headlines next year.