Chaos Theory: From California To Cyprus There is little to the point in my title to the average Joe/Jane but you should read some more to really get what the heck am I talking about. Back in 2007 the Californian real estate bubble bursted causing major problems in the banks leading to the credit crunch in 2008. The latter has been the root of all evil for the better half of this past decade and would not finish until a full decade of recession is wasted in the economic history. But wait history has a funny way of repeating itself and oh boy (or gal) it does! A lot of people know about the Big #depression in the 1930s due to....a crash in....1928! There is an ironic 80 year gap between two great recessions in the western world. However its not all about America! What do I mean? Even in the previous recession the effects were global. Surprisingly 80 years ago Greece defaulted on its sovereign debt as well due to not just the recession but also politics. The situation then was quite different than now and Greece now has not defaulted in the normal sense of the word. But any how the similarities and time differences are quite ironic. Well how did Greece came to this position? The answer is simple, "Its California's fault". Yes and no. The credit crunch badly affected Ireland and Iceland first with their huge banking sectors reliant on western capital. This along with the UK the import/export ally of the US in Europe has brought the crisis to the Continent. A weak Eurozone which worked fine during the boom years, is near collapse. The weaker economies of Greece, Portugal and Spain with quite bad political and economical structures have been holding back growth locally and globally for the past three years now, just like a bad infection. What is Cyprus? Well its not food or an app or anything like that, its a country, my country. An island state in the eastern Med between Turkey and Egypt. This little country with its own big problems caused by an ongoing part occupation by Turkey, has been badly infected with the recession and serious banking troubles due to Greece mainly. So who cares? Well I do and I am sure a lot of other younger generation people like myself care as well. Those of us who are at the beginning of their careers it is probably the worst period in our #lifetimes! I feel quite depressed when my career is just standing still and there is no going forward no matter how hard I might work. There is no doubt that we are in another Great #depression like the 1930s, just slightly different this time around. There is another interesting fact about the aforementioned 80year old crisis. It happened between the two great wars. Officially the recession in the US at that time had stopped with their entry in the second world war, another interesting fact. Given also that before the crisis we had the "war on terror" and all the other similarities mentioned earlier, I cannot help myself from asking the question...."Is another war coming soon?". Given the tensions with Iran and North Korea....I cannot help but thinking that indeed there may be another greater war coming just around the corner. My only hope is that I am wrong! After all this story I have not mentioned the word chaos yet. In maths there is a great theory called "Chaos Theory". Have u ever had a look at 14 day forecasts? Most of the times they are just....wrong. Well the reason is the use of mathematical models to estimate the forecast and these models have chaotic behavior. Chaos is simply "small changes made initially can cause large changes later on". You may have also heard about the Butterfly Effect, that is "a butterfly moving its wings in one side of the world can cause a catastrophic storm on the other side of the world". Blame the butterflies East coast Its in fact chaos that has transformed the asset bubble burs in California, a large shock but relatively mild on what it is still causing on the other side of the world, that is Greece and Cyprus and Spain and Portugal. After all this miserable talk I have to add that there is always hope! In Cyprus for example we have recently discovered a huge for our standards gas and possibly oil reserve in our nearby subsea terrain. Even after any possible great war coming after this recession, God forbid, there is always the hope that better times are coming ahead. The only lessons we can learn from this crisis is to save up for the rainy day, be innovative and live a modest #life, you don't need to buy everything and most importantly don't borrow up to your neck!!! Keep safe and hold on, the ride is not over just yet