[NPC Event] Market Crash

[Alanston]

The signs were clear to those who were watching for them, instability in the markets, less investments than normal, and rapid runs on cash. Unfortunately no one was watching closely, and events spiraled out of control quicker than anyone could have anticipated. After all, the banks were "too big to fail". It started with the West-Indisch Bank collapsing, which in turn led to the bankruptcy of several states, including Iceland, Chad, Djibouti, Tomsk, Omsk, Krasnoyarsk, and Yamalo-Nenets. But the West-Indisch Bank wasn't alone, they had been strongly interconnected to the Swiss Banks, which went under mere days after the West-Indisch Bank. This led to a domino effect, with runs on cash throughout Europe, and then the Americas, leading to the collapse of several more banks. This, in turn, led to several more states declaring bankruptcy, including the Caribbean Federation, Guyana, Suriname, Guiana, Dakota, and Montana-Wyoming. Several other states are on the brink of bankruptcy throughout the world. All throughout the world citizens are making runs on their banks, desperate to withdraw their savings before they can't anymore. Stocks are being sold off so people won't lose their savings, and everywhere, people are purchasing less. Fear mongering by international media organizations have exasperated this situation. So far the crisis has not yet struck Asia, but experts predict that it's only a matter of time.

Several countries, especially those already prone to authoritarianism, have instituted severe controls over their currencies and local stock markets, as well as beginning to censor the press (more than they were already) to prevent word of this crisis reaching their people.

[Deleted User 284]

Official statement on the emerging global economic crisis to the people of the Co-operative Republic of Agartha

"As it’s well known ever since we declared our independence, Agartha has not been heavily involved in foreign affairs and our banking is no exception. Our firm and disciplined control over our financial market that the crisis has hardly made a blip.

Agartha’s National Bank has had little or no exposure to international lenders, and likewise another factor to consider our bank does not contain any kind of subprime assets. Therefore, any economic slowdown we may feel will only be a secondary result of global patterns, which due to our relative isolation should be enough to limp through this financial crisis relatively unscathed.

Fellow Countrymen, we live in a land that is generous in resources, and although we still cannot take advantage of the vast majority of them, the iron ore deposits in the Transantarctic Mountains should keep our economy greased enough to offset any losses. After all, iron ore is more integral to the global economy than any other commodity, except perhaps oil, which we hope to soon be able to start extracting.

Our people are no strangers to hunger and hardship, after all since the founding of the nation and thus the total disregard for the ancient Antarctic treaty, another horrible remnant of colonialism towards our homeland, various sanctions have continuously hit our nation, yet we endure."

Frederick Seba. Press Minister.

[English Channel Union]

Noticing a trend amongst international economies, the Atomic Alliance will attempt to brace for any uncertainty in its markets by decreasing interest rates and encouraging citizens to obtain more funding and stimulate the economy, accounts will not be frozen nor the market unless serious signs of a run begin to show.

Primarily, the Atomic Alliance will begin a propaganda campaign reassuring all citizens of the stability of the Atomic Dollar and their banking institutions, the Government will not allow the core of these services to stop operating at any cost.

[Alanston]

the iron ore deposits in the Transantarctic Mountains should keep our economy greased enough to offset any losses. After all, iron ore is more integral to the global economy than any other commodity, except perhaps oil, which we hope to soon be able to start extracting.

Although Agartha is a relatively isolated state, their geographic isolation and lack of fertile land for farming would result in them seeing exponentially higher prices for food imports, due to the ongoing financial crisis. Similarly, with the high price of shipping goods from Antarctica, many foreign markets would turn to cheaper alternatives for iron during this crisis, which would further put a strain on the Agarthan economy.

Primarily, the Atomic Alliance will begin a propaganda campaign reassuring all citizens of the stability of the Atomic Dollar and their banking institutions, the Government will not allow the core of these services to stop operating at any cost.

The Atomic Alliance would find that their propaganda campaign would pay off, although in some areas, especially Toronto and south western Ontario, it would be too late. Due to the higher population levels of the region, and their importance as centres of financial trade and banking, the Alliance would see an rise in runs on the banks. It is likely that banks in smaller communities, especially more conservative areas where the people are skeptical of the government, would find themselves facing cash shortages. A few protests would also break out in the region, especially in Toronto, with many people feeling that the government is not doing enough to help them.

---

Meanwhile, elsewhere in the world, the crisis is spreading unmitigated in some states, with most of South America declaring bankruptcy. Although hard hit, the Nahuatl Empire would manage to weather the crisis without collapsing. The Caribbean Commonwealth would also face bankruptcy, but would not collapse. However due to their weakened financial position, @San Romolo would find themselves facing an increase in illegal immigrants seeking to escape the poor conditions in the Caribbean Commonwealth.

The Bantu Federation, a nation that was already showing some strains due to its size, has officially announced that it will be breaking apart into several smaller states. Elections will be held in the near future for the states of: the Congo, North East Bantuland, The Central Bantu Republic, and the South East Bantu Alliance. @South Africa would also likely feel the burdens of this economic crisis, especially as their largest neighbour breaks apart due to the financial strains.

In the steppes of Eurasia, as the various Siberian states slowly collapse, the Russian Federation would step in to pick up the pieces, slowly absorbing the smaller states as they expand eastwards, virtually unchallenged.

Estonia would find themselves facing severe economic hardship, and would reach out to their neighbours to discuss financial bailouts. @PLC

The rest of Europe would be plagued by protests and runs on the banks.

The terrorist groups in Sinai would take advantage of the unrest caused by this situation, with plans being made to send suicide bombers to both Port Said and Eilat. @Republic of Italy @Sabmadi Federation

Nations in East Asia would still be relatively unscathed by the situation, with many of their people viewing the problem as a 'western problem'. That said, there would be a decline in trade, due to the worldwide economic crisis, and most Asian nations would see fewer foreign tourists and travelers. However there not be any runs on banks or large protests in these countries.

The Uluru Confederation and the State of Capricornia in Australia have both declared bankruptcy, and are facing increased protests, due to the financial crisis. Other nations in Australia are also facing higher costs of living due to rising trade costs. @Australian Republic

► Show Spoiler

Congo - DRC (joined by Republic of the Congo) - Kinshasa and Brazzaville
North East Bantuland - Kenya, Uganda, Rwanda, Burundi, Tanzania
Central Bantu Republic - Angola, Zambia
South East Bantu Alliance - Malawi, Mozambique, Zimbabwe

[Grand Serene Republic]

The Sanromolese Government would take a collective sigh of relief, despite the Economic slowdown the Republic avoided a repeat of the dreaded 85 Crash the worst crisis in Sanromolese history.

However not all was well given the mass of migrants that were reaching the shores of San Romolo , especially those of the Fiorita Peninsula. Already the more right-wing parties were calling for tightening immigration and to grant more extensive powers to the Coast Guard, the most vocal of these being the Fratellanza Imperiale Patriottica a far right monarchist organisation.

The government had a difficult task in front of it....


(I will make a separate Topic in which San Romolo shall handle to Immigration Crisis)

[NCR]

The financial and banking sectors are among the most regulated in the NCR, and as such the government isn't worried about internal quakes.

Despite this, as prophylaxis dictates, a joint press conference is held by the President of the NCCB (the New California Republic's Central Bank) and the Minister for the Economy and Development.
The former reassures the public that the NCCB always keeps a close look on the NCR banks, and that none seem to be in a dangerous position; he also reminds that the NCCB has ample capacity and liquidity to act as a lender of last resort.
The latter boast various relevant data which demonstrate the stability of the banking sector in the NCR; he also announce the public that, for the peace of every NCR citizen's mind, a special committee lead by the Ministry itself will assess once again all the assets of the banks. Lastly, he sternly reminds that the NCR is one of the democratic nations which punishes white collar crimes and corruption more severely, thus making the nation particularly resiliant to such crimes.
Meanwhile the stock market remains stable, and seems to respond positively to the conference.

However, while the government is sure about the solidity of the national economy, it also fears the collapse of other markets in which some NCR companies export into.
As such, the government secretly prepares two emergency funds:
one intended for the acquisition of some of the companies most reliant on exports, should they be in great need and should no other company want to buy them, and/or to increase internal demand;
the other one intended to be a targeted stimulus package, should the need arise.

[Republic of Siam]

Due to the situation remaining mostly unimportant in East Asia, the Siamese government have decided it is best if this whole fiasco is left to blow over. The Chancellor of the Exchequer, Tiwat Ekaluck, made a speech to the Siamese people on Saturday, promising that the economic crisis in the West is, "Quite frankly, a problem for the rest of the world. Siam is unaffected by this, and life will go on as normal. You will not need to worry about your businesses or the future of this country."

However, weathly businesspeople have spoken out against the government, claiming to have lost 1000s of dollars worth of income as the stock market comes to a grinding halt. People in the West are selling off stocks fast, desperate to make money, affecting the prices worldwide. Small businesses and market stalls claim to have seen a drop in income following the recent absence of tourists from the streets of Bangkok and Chiang Mai, and historical sites are struggling to keep their doors open without the income supplemented by tourist activity.

Despite what the government has said, the financial situation is affecting Siam, albeit in ways that people don't notice. Life goes on as normal, but still, there is a fear that the scenes on the news could become a reality for them too.

[PLC]

The Polish-Lithuanian Commonwealth is ready to start talks with Estonia and talk about financial aid, but secretly hopes that this market crash will help Estonia to join the Commonwealth now more than ever

[Alanston]

The financial and banking sectors are among the most regulated in the NCR, and as such the government isn't worried about internal quakes.

Despite this, as prophylaxis dictates, a joint press conference is held by the President of the NCCB (the New California Republic's Central Bank) and the Minister for the Economy and Development.
The former reassures the public that the NCCB always keeps a close look on the NCR banks, and that none seem to be in a dangerous position; he also reminds that the NCCB has ample capacity and liquidity to act as a lender of last resort.
The latter boast various relevant data which demonstrate the stability of the banking sector in the NCR; he also announce the public that, for the peace of every NCR citizen's mind, a special committee lead by the Ministry itself will assess once again all the assets of the banks. Lastly, he sternly reminds that the NCR is one of the democratic nations which punishes white collar crimes and corruption more severely, thus making the nation particularly resiliant to such crimes.
Meanwhile the stock market remains stable, and seems to respond positively to the conference.

However, while the government is sure about the solidity of the national economy, it also fears the collapse of other markets in which some NCR companies export into.
As such, the government secretly prepares two emergency funds:
one intended for the acquisition of some of the companies most reliant on exports, should they be in great need and should no other company want to buy them, and/or to increase internal demand;
the other one intended to be a targeted stimulus package, should the need arise.

The statement by the President of the NCCB helps to alleviate some fears in California, which eases pressure on their banking system. However they would still notice that public spending is at an all time low, due to fears about the economy. Foreign tourism and spending on Californian exports would also be significantly down, with many holding off on luxury goods (electronics, vacation getaways, etc). Californian food exports, however, would not see any significant decrease.

---

Due to the situation remaining mostly unimportant in East Asia, the Siamese government have decided it is best if this whole fiasco is left to blow over. The Chancellor of the Exchequer, Tiwat Ekaluck, made a speech to the Siamese people on Saturday, promising that the economic crisis in the West is, "Quite frankly, a problem for the rest of the world. Siam is unaffected by this, and life will go on as normal. You will not need to worry about your businesses or the future of this country."

However, weathly businesspeople have spoken out against the government, claiming to have lost 1000s of dollars worth of income as the stock market comes to a grinding halt. People in the West are selling off stocks fast, desperate to make money, affecting the prices worldwide. Small businesses and market stalls claim to have seen a drop in income following the recent absence of tourists from the streets of Bangkok and Chiang Mai, and historical sites are struggling to keep their doors open without the income supplemented by tourist activity.

Despite what the government has said, the financial situation is affecting Siam, albeit in ways that people don't notice. Life goes on as normal, but still, there is a fear that the scenes on the news could become a reality for them too.

Siam would see a small increase in Asian tourists, especially from surrounding states and China, as their people take advantage of the lower prices and absence of larger tourist groups. Several Chinese businesses would make moves to purchase controlling stakes in Siamese businesses and tourist sites.

---

The Polish-Lithuanian Commonwealth is ready to start talks with Estonia and talk about financial aid, but secretly hopes that this market crash will help Estonia to join the Commonwealth now more than ever

The PLC, like many other European nations, would see significant slowdown in their economy as well, with several banks going bankrupt. It is likely that their monarch would also see significant declines in his wealth, due to decreases in global stock markets.

---

In the steppes, the Russian Federation would reach the borders of Mongolia, and continue around them, absorbing all the smaller states up to the People's Republic of the Far East, where they would halt, for now. Meanwhile, they would use their influence to cause an economic collapse in Mongolia. The Mongolians would reach out to their allies in China, asking for economic support and aid against the Russians. However, facing some economic challenges themselves, the Feng Empire would refuse, causing the Mongolians to break off their alliance with China, and to turn instead to the Russians. The Russians would be quick to jump on the opportunity, and would sign an alliance with the Mongolians, with plans in the works to take over their foreign affairs, officially making Mongolia a subject of the Russian Empire.

Meanwhile, in the Feng Empire unconfirmed reports of famine in Hubei would emerge, whilst other unconfirmed reports would talk of a violently suppressed revolt in Sichuan. However, the Emperor would deny these reports, and state that all is well within the Empire. Several military parades and actions would also occur, with the Empire showing off its might. The Empire would also increase its activities in the South China Sea, expanding their hold on the Paracel Islands.

The protests and runs on banks in Europe would gradually die down, as the people begin to adapt to their new ways of life.

[NCR]

The statement by the President of the NCCB helps to alleviate some fears in California, which eases pressure on their banking system. However they would still notice that public spending is at an all time low, due to fears about the economy. Foreign tourism and spending on Californian exports would also be significantly down, with many holding off on luxury goods (electronics, vacation getaways, etc). Californian food exports, however, would not see any significant decrease.

To quicken up the recovery in some of the hit sectors (the one which are deemed more startegic, like electronics) and ease up the public concerns, the government announces a mini-stimulus package. Each tax-paying Californian citizen will be awarded 300 NC$ to spend freely in the designated sectors.

It will work in this way:
from the day after the implementation of the stimulus, a citizen could buy whatever (approved-type) item they want, and collect the appropriate receipt; then they will have to upload the receipt into the appropriate web-portal, and after a few days for processing and verifications a reimbursement will be awarded to that citizen, up to a max of 300 NC$.
The deadline to collect the stimulus will be after exactly 365 days after the implementation (and as such, obviously only receipts emitted during these 365 days are valid).

Other than that, the government look to a quick recovery, and growth, with optimism.

[Alanston]

The statement by the President of the NCCB helps to alleviate some fears in California, which eases pressure on their banking system. However they would still notice that public spending is at an all time low, due to fears about the economy. Foreign tourism and spending on Californian exports would also be significantly down, with many holding off on luxury goods (electronics, vacation getaways, etc). Californian food exports, however, would not see any significant decrease.

To quicken up the recovery in some of the hit sectors (the one which are deemed more startegic, like electronics) and ease up the public concerns, the government announces a mini-stimulus package. Each tax-paying Californian citizen will be awarded 300 NC$ to spend freely in the designated sectors.

It will work in this way:
from the day after the implementation of the stimulus, a citizen could buy whatever (approved-type) item they want, and collect the appropriate receipt; then they will have to upload the receipt into the appropriate web-portal, and after a few days for processing and verifications a reimbursement will be awarded to that citizen, up to a max of 300 NC$.
The deadline to collect the stimulus will be after exactly 365 days after the implementation (and as such, obviously only receipts emitted during these 365 days are valid).

Other than that, the government look to a quick recovery, and growth, with optimism.

With the mini-stimulus package in place, California would slowly begin to find that the worst was behind them, as things start to settle in their region. Slowly the markets would begin to stabilize, albeit at a much lower level than before the crises. Growth would still be a ways off, but when it does begin it would be at a much slower pace than before.

---

Elsewhere the financial crash has slowed, and even stopped, and all throughout the world there are signs of stabilization as governments get a handle on things and people stop their mad rushes to the banks. The world has been drastically changed by this crisis, with spending at an all time low, and tourism almost nonexistant. Not to mention the collapse of several states in South America, Europe, and Africa. But despite all of this the world has emerged from the crisis and there are signs that the worst is in the past.

[This marks the end of this event, if you still have any ongoing Event Branches they will continue, but aside from that no further ones can be initiated. No one will be hit with any more stability issues or events due to the crisis. Feel free to make one final post in response to the end of the crisis, but be aware that financial growth will still be a ways off if you are in Europe or the Americas.]