Kazakhstan and the "Global" Crisis....

Kazakhstan is also having trouble with their economy. The government claims it's due to the global crisis, but I doubt their government could even define the global crisis since it doesn't seem like any country can. Every country that is having financial issues is blaming it on this "global crisis" that is only actually hurting half of the world. The Kazakh government claims it's the global crisis and a party within the country claims it's the government. Another tag game that may be interesting to keep track of.

I'm going to say that this has nothing to do with the "global crisis."
A: Because no one really knows what exactly the global crisis is
B: Private debt came from within the country, NOT without
C: Kazakhstan's economy is run exactly like the US - a predatory free market

Their people are out of homes. A lot of middle-class, maybe even upper-middle-class, socialites attempted to buy houses before they were built, and now the houses aren't being built at all and the bank is still demanding they pay their monthly mortgages. How did this happen? Terrible TERRIBLE planning and strategizing on the part of the construction sector.

Construction companies were having a problem funding the construction of their current jobs. So what do they do? They sell houses that haven't been built yet.... I know that when you contract someone to build a house, you pay a deposit, then make periodic payments until the house is finished, then you pay the balance in full (As per the Mill-House Design Center). Yes, we're talking about Kazakhistan, but unfortunately most of the Middle-East and Europe has decided to model our economy and I'm sure they run the same way we do, just read the article I've linked. So...... for some reason... all the new houses they sold didn't cover their expenses for their old houses? So they tried to get loans, but of course the bank knows they can't pay them back because they can't finish the houses they're building now, nevermind the houses they just sold that haven't even been started yet. So they don't get any loans. On top of that, the banks also owe about $45 billion of the $100 billion the government owes. So... the government is going to give them money??? Am I the only one that sees the flaws in this? You can't pay a credit card with another credit card.

Their original plan should have worked. I don't understand why it didn't. They sell new houses, they get the money to finish the ones they're working on now and receive the rest of the payments from all of their clients. They then use that money to finish the other houses and collect the payments from the new clients and make profit. How did they mess that up? What happened? Why didn't that work? Did they not sell enough? Well the article says that the banks stopped lending and started demanding that their loans be paid. So.. does that mean the construction companies weren't paying their loans to begin with? If that's the case... why did they take out more? You see... this is what free market does. Not because it's free market, but because it's free market executed with human control and that's not the way it works. You do it that way and suddenly, you run into issues... and you crash and burn.

As you can see this is not because of the "global" crisis. This is because of bad decisions made by domestic businesses when dealing with domestic banks. It's basically the same thing we ended up running into just by a different means. And we don't blame our economy on the "global" crisis do we? No. Why not? Because ours happened BEFORE the "global" crisis was even termed as a part of our vocabulary so we can't blame it... but we still do.

http://www.businessweek.com/globalbiz/content/nov2008/gb20081121_173740_page_2.htm