2008 Financial Crisis Essay Examples

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2008 Financial Crisis Essay

Financial Crisis of 2008 Essay

2303 words - 9 pages The Financial Crisis of 2008 was the worst financial crisis since the Great Depression, however a lot of American’s want tougher law of be enforced against executives and companies they think started the mess (Jost/Misconduct). Civil charges have been brought up against major banks for misleading investors, but a federal judge rejected a proposed settlement saying it was too lenient (Jost/Misconduct). The flood of subprime mortgages roiling the housing market in the U.S. is also causing the worldwide credit crisis (Jost/Crisis). Investment banks everywhere are taking billion-dollar losses, forcing them to revalue their belongings (Jost/crisis). This crisis started under the surface for VIEW DOCUMENT
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2008 Financial Crisis Essay

The 2008 Financial Crisis Essay

2403 words - 10 pages The 2008 financial crisis witnessed how fragile financial institutions and the whole financial system could be. In the U.S., lots of banks touched the edge of failure, requiring extensive assistance from the government. Some received bailouts in forms of capital injection or loss sharing agreement, while others entered shotgun marriage with healthier financial institutions arranged by Federal Deposit Insurance Corporation (FDIC). Among banks that received the latter treatment was Wachovia, the fourth largest U.S. bank holding company by assets back in September 20081. The eventual sale of Wachovia to Wells Fargo, like other deals in crisis time, proceeded from an extremely complicated VIEW DOCUMENT
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2008 Financial Crisis Essay

The 2008 Financial Crisis Essay

1529 words - 6 pages introduction The 2008 financial crisis led to a sharp increase in mortgage foreclosures primarily subprime leading to a collapse in several mortgage lenders. Recurrent foreclosures and the harms of subprime mortgages were caused by loose lending practices, housing bubble, low interest rates and extreme risk taking (Zandi, 2008). Additionally, expert analysis on the 2008 financial crisis assert that the cause was also due to erroneous monetary policy moves and poor housing policies. The federal government encouraged the expansion of risky mortgages to under-qualified borrowers. Congress pushed for the support of affordable housing through extended procurement of non-prime loans for VIEW DOCUMENT
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2008 Financial Crisis Essay

2008 financial crisis Essay

2981 words - 12 pages Burak Çetin MSc International Business IBS, Budapest 8 November , 2014 2008 Financial Crisis Bank failures, billions of dollars soared, global growth lowered, impotent governments. Financial capitalism is in crisis.Media loop line numbers of the crisis, the stock market falls, the huge losses of some banks without necessarily really explain What is happening in simple terms. But what are the reasons of the global financial crisis? . And could it prevent ? The main cause of the crisis is the collapse of the US VIEW DOCUMENT
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2008 Financial Crisis Essay

The never-ending financial crisis of 2008

729 words - 3 pages Since it began in 2008, the US has faced what is being called the “great recession.” It is 2013, and it is clear apparent that it is a “recession” longing to be cured. Through the works of Putnam, Sum et. al., Wisman, and Colander, we can better understand this crisis and look for the best way to get out of it. To begin, Robert Putnam describes what has occurred in the U.S. over the past several decades. He states that over the past several decades the U.S. has been subject to “[an] economic and cultural [entanglement] a mixture of government, private sector, community and personal failings” (Putnam 2013, III). Putnam believes that this financial crisis occurred as a result of layoffs VIEW DOCUMENT
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2008 Financial Crisis Essay

Causes of the 2008 Financial Crisis

951 words - 4 pages Financial crisis The financial crisis occurred in 2008, where the world economy experienced the most dangerous crisis ever since the Great Depression of the 1930s. It started in 2007 when the home prices in the U.S. Dropped significantly, spreading very quickly, initially to the financial sector of the U.S. and subsequently to the financial markets in other countries. The victims in the United States were: the largest commercial banks, the whole investment banking industry, the major savings and loans, the largest insurance company, and the two enterprises licensed by the government to smoothen the progress of mortgage lending. The monetary policies that caused the financial crisis VIEW DOCUMENT
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Essay on 2008 Financial Crisis

2008 Financial Crisis: Iceland’s Then & Now

2373 words - 9 pages I) Causes of the Crisis On September 15, 2008, the American bank Lehman Brothers, with holdings over 600 billion USD, filed bankruptcy. This was by far the biggest bankruptcy in U.S history and it marked the beginning and the largest financial crisis ever. How can one of the biggest banks in the world fail? How can a bankruptcy in US make someone on the other side of the world unemployed? The answer is Collateralized Debt Obligations (CDOs) and it all started by new innovations in the financial sector combined with deregulations on the financial market. Many mathematicians and physicists started to work in the financial market and created new financial products called derivatives after VIEW DOCUMENT
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Essay on 2008 Financial Crisis

Chinese Administration response to 2008 financial crisis

975 words - 4 pages International Coordination in Policy Response to the 2008Financial Crisis." SSRN Working Paper, 2011.16Yu, Yongding, "China's Policy Responses to the Global Financial Crisis." Richard SnapeLecture Series 7, 2009.17Zhang, Ming, "The Impact of the Global Crisis on China and its Reaction (ARI)," RealInstituto Elcano - Asia Pacific, Vol. 62, (2009), 1-7.18Zhang, Xiaojing, Tang, Duoduo and Lin, Yueqin, "Global Imbalances, the Financial Crisisand China's Economic Recovery," China Economist, Forthcoming.19Zhang, Zhichao, Li,Wei and Shi, Nan, "Handling the Global Financial Crisis: ChineseStrategy and Policy Response." SSRN Working Paper, 2009.20Zheng, Yongnian and Chen, Minjia, "How Effective will China's Four Trillion YuanStimulus Plan Be?," China Policy Institute Briefing Series Issue 49, 2009. VIEW DOCUMENT
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Essay on 2008 Financial Crisis

Awareness of Risk and 2008 Financial Crisis

2254 words - 9 pages to illustrate the hidden effects of human behaviours on awareness of risk during 2008 financial crisis. This catastrophe emphasizes again that though objective analysis and technical refinements could have led improvements beforehand, it is behavioural and psychological factors that worth greater attention to. The 2008 Financial Crisis seemed to come out of blue and shocked the whole world in the first place but was soon concluded by experts as the consequence of systemic risk. (Federal Reserve Bank of Atlanta, 2009) Characterizing such a risk are three viewpoints, first, universal losses triggered by a single event (IBS, 2001), second, revelation of hidden correlations among financial VIEW DOCUMENT
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Essay on 2008 Financial Crisis

How the 2008 Financial Crisis Affected the Economy

861 words - 3 pages Some issues that arise from the 2008 financial crisis that directly affected the economy on a national scale as well as on a international scale were all interlinked which could have been attributed to things such as the housing market bubble burst which securities that may have been tied to this sector leveled out in 2006 and had a sharp decline in 2007. In the year of 2006 interest rates took a less aggressive approach and they were lowered from 2000 – 2003 due to the fear of deflation as a result of the dot com bubble and the September 2001 terrorist attacks. Higher than expected United States account deficit would peak around the same time as the housing bubble which burst more VIEW DOCUMENT
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2008 Financial Crisis Research Paper

Factors That Influenced the Global Financial Crisis of 2008

630 words - 3 pages Since the years of the great depression in the 1930s, the global financial crisis of 2008 is arguably the worst to have hit the world. The crisis began with the escalation of prices in the property market creating a liquidity crisis. It had massive consequences in varying sectors of the economy. The financial, property and mortgage sectors were hit hard by the crisis. Large financial institutions collapsed while stock markets experienced downturns. The period was characterized by government bailout stimulus packages to collapsed institutions and the financially ailing sectors of the economy. Various arguments have been mooted as the causes that led to the escalation of the crisis that VIEW DOCUMENT
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2008 Financial Crisis Research Paper

Awareness of Risk during the 2008 Financial Crisis

2165 words - 9 pages , obstacles underlying such a process still include subjective judgements. Therefore, whilst on surface amendments are arguably achievable, in reality they can be highly limited. The rest of the passage will try to illustrate the hidden effects of human behaviours on awareness of risk during 2008 financial crisis. Admittedly, however, plausibility still exists in partial improvements beforehand. 2008 Financial Crisis seemed to come out of blue and shocked the whole world in the first place but was soon concluded by experts as a consequence of systemic risk. (Federal Reserve Bank of Atlanta, 2009) Characterizing such a risk are three consequences, including universal losses triggered by a single VIEW DOCUMENT
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Islamic Finance Industry

993 words - 4 pages is normal, considering the cyclical nature of the economic system in economic production, inflation rate, the level of GDP, trade, and other factors. Yet it does not occur in each cycle, or downturn, that so many factors coexist in one time that shakes the global economic system as much as it happened in the latest crisis starting in 2007-2008. (Renata JankaToth). The financial crisis of 2007-2008 also known as the Global Financial Crisis is considered the worst financial crisis. It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. The crisis played a significant role in the VIEW DOCUMENT
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Overview of the Recent Financial Crisis in the US

1705 words - 7 pages complicated. On 15 November 2008, (Leaders of G20, 2008) declared that the financial crisis was caused by: • Market participants seeking higher yields without an adequate appreciation of the risks and failing to exercise proper due diligence. • Weak underwriting standards, unsound risk management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in the system. • Policy-makers, regulators and supervisors, in some advanced countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account the systemic ramifications of domestic VIEW DOCUMENT
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Fair Value and Historical Costing

612 words - 2 pages Laux and Leuz’s view that lack of transparency under Historical Cost Accounting could make matters worse during financial crises, and could be evaluated using accounting theories focusing on the Global Financial Crisis (GFC). The discussion below looks at the measurement issues faced in a crisis and in particular, the Fair Value (FV) and the Historical Costing (HC) while focusing on the 2008 financial crisis. In the discussion, there will be comparison on which of the two makes the crises worse. Fair value is the price received on sale of an item or transfer of a liability between the two willing parties at the measurement date. The three levels in which FV values its items include; Level VIEW DOCUMENT
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The IMF’s Role in Financial Crisis

2606 words - 10 pages ). Latvia’s financial crisis in 2008 Latvia is a typical financial crisis example that with the IMF’s help and international supports then goes back to international capital markets in 2011 (IMF, 2012). Latvia was one of the first countries to experience the serious destruction from the global economic crisis, which GDP decreased by 25 per cent, unemployment rate shot up to more than 20 per cent (Aslund and Dombrovskis, 2011). The IMF and the European Union (EU) decided to support Latvia in December 2008. Without the helps from the IMF and the EU, Latvia could not return to the track of recovery and development as soon as possible. The financial crisis would destroy government financial gradually VIEW DOCUMENT
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Financial Crisis: Theoretical and Historical Perspective an Article by Güven Delice

1943 words - 8 pages Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi. 2. 1 – 22 - Celasun, O. (1998) The 1994 Currency Crisis in Turkey. http://www-wds.worldbank.org/ - Yentürk, N. (2008) Körlerin Yürüyüşü: Türkiye Ekonomisi ve 1990 Sonrası Krizler. Osmanlı Bankası Arşiv Ve Araştırma Merkezi - Yılmaz, Ö. , Kızıltan, A. , Kaya, V. (2005) İktisadi Kriz Kuramları, Finansal Küreselleşme ve Para Krizleri. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi. 24. 77 – 96. - Turgut, A. Türleri, Nedenleri ve Göstergeleriyle Finansal Krizler. TÜHİS İş Hukuku ve İktisat Dergisi. 20. 35 – 46. - Chan, K. S., Dang, Q. T. (2012) 1997 Asian Currency Crisis, Financial Linkages, and the Monetary Policy of Japan VIEW DOCUMENT
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sovereign debt crisis

1473 words - 6 pages Since 2007 to mid-2009, global financial markets and systems have been in the grip of the worst financial crisis since the Depression era of the late 1920s. The international financial crisis of 2008 hit the Greek economy at its Achilles heel. The Greek fiscal situation has drawn worldwide attention or at least in the euro area since 2009. What is Sovereign Debt Crisis? Sovereign debt crisis is a period of time in which several European countries faced the collapse of financial institutions, high government debt and rapidly rising bond yield spreads in government securities. The table below provides a brief introduction of what happened throughout Europe from 2009 to 2010 related to VIEW DOCUMENT
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Transforming Your Paper into a Presentation

1360 words - 5 pages Transforming Your Paper Into A Presentation Fill in the following speech outline by using your paper as a guide or source of text for this worksheet. Some items will be completed by filling them in word-for-word directly from your paper. Other items will need to be reworded so that they are appropriate for an oral presentation. Name: Yibin Su COM 217 Section: 7:30 Presentation Title: Financial Crisis Specific Purpose: Let the novice understand what was happening in 2008 financial crisis Thesis Statement: In this presentation, I’m going to explain how the key roles worked together to create the 2008 financial crisis. INTRODUCTION I. Attention Getter: I guess most of you’ve heard the VIEW DOCUMENT
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GM: Better Off Bankrupt?

967 words - 4 pages U.S. housing bubble triggered the disaster in the banking system. Because of the financial crisis, the ability of bank credit greatly reduced which directly limited the car mortgages. Moreover people held pessimistic attitude to the job market and surely decrease the consumption of cars. So since September of 2008, the car sales in North America declined by 26%. GM was one victim of this economic crisis and obviously suffered a huge loss. Furthermore, according to the financial experts, this economic crisis would continue in 2009. The adverse economy would still impact on GM in the future. So the economic crisis accelerated the auditors’ decision to issue going-concern uncertainties VIEW DOCUMENT
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The Effect of Recent Financial Crisis and Regulatory Implications in Asia

1914 words - 8 pages crisis is the most important step each Asian country should consider reviewing. References Asian Development Bank (2010), Global Economic and Financial Crisis: Impact on Developing Asia and Immediate Policy Implications, Report on the ADB Regional Forum, Manila, Philippines, January. Bebchuk, L. A., Cohen, A. and Spamann, H. (2009), The Wages of Failure: Executive Compensation, Bear Stearns and Lehman 2000-2008: Harvard Law School - mimeo. Counterparty Risk Management Policy Group (August 6, 2008), Containing Systemic Risk: The Road to Reform, Section IV: Risk Monitoring and Risk Management, pages 70-101. Crockett, Andrew (2003), “Principles of financial regulation”, speech at the VIEW DOCUMENT
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“The Global Economic Situation and Prospects for 2010 and Beyond: Policy Options”.

1725 words - 7 pages ;http://business.rediff.com/column/2010/apr/29/guest-the-crisis-in-economics.htm>."Financial Crisis, Interconnectedness and Regulatory Capital." FinReg21|Reforming Financial Services Regulation in the 21st Century. Web. 22 May 2010. <http://www.finreg21.com/lombard-street/financial-crisis-interconnectedness-and-regulatory-capital>.Image source:"Global Economic Crisis » Sovereign Debt Crisis Now Threatens the U.S. Economy." Global Economic Crisis, World Financial Crisis, Economic Turmoil. Web. 22 May 2010. <http://www.globaleconomiccrisis.com/blog/archives/1051>.http://mentalfloss.cachefly.net/wp-content/uploads/2008/10/financial-crisis.jpghttp://socyberty.com/economics/stock-market-crashes-of-the-last-100-years-the-world-survived-them-all/http://www.ilfoglio.it/media/uploads/lehman3.jpghttp://fersht.typepad.com/photos/uncategorized/2008/04/11/subprime.jpg VIEW DOCUMENT
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IMPACT OF FINANCIAL CRISIS ON GULF AREA

1088 words - 4 pages cent to stand at four percent from the previous figure of six percent in 2008. The decline in economic growth was fuelled by reduced lending by the commercial banks (Mayes, 2009). This affected the ability of individuals to start small business due to lack of capital. This negative economic growth was also occasioned by reduced revenues from sale of oil due to the decrease in global oil prices. The global crisis discouraged investors from America as well as European nations from investing in the GCC countries. This in effect hindered economic growth of these countries. Effects of Financial Crisis on Qatar Of all the GCC countries, Qatar and Dubai were most affected as compared to other VIEW DOCUMENT
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Islamic Banks in Malaysia

1149 words - 5 pages 67.63 6 Bahrain 46.16 7 Qatar 27.52 8 United Kingdom 19.41 9 Turkey 17.83 10 Bangladesh 7.45 Source: The Banker (November, 2009) In Malaysia which implemented the dual banking system which comprise of conventional banking system or mainly the commercial banks and Islamic banks, assets growth for the Islamic banks rose by 1,274.27% in 2008, to RM192.81 billion from RM14.03 billion in 2000. Figure 1.1 describes total assets for Islamic banks and commercial bank between 2000 and 2008. Amid intense growth and competition with some challenges from the global financial crisis, yet the Islamic financial system particularly Islamic banks either in Malaysia or globally have avoided much of VIEW DOCUMENT
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Financial Crisis of the 1980s

1094 words - 4 pages The financial crisis of 2008 and 2009 is considered by others as the worst financial crisis since the Great depression of 1930. However there were other financial crisis which had happened after the Great depression which were equally disastrous. The one that comes in mind was the financial crisis of the 1980s and early 1990s. It is always overlook by others because of the 2008 credit crunch which happens to be the recent one. It became known as Savings and Loans crisis which basically let to substantial public-funded rescue of an industry that had crumpled and on it knees begging for help. The Savings and Loans crisis is smaller in nature compare to the banking crisis of 1920s and the VIEW DOCUMENT
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Financial crisis

3325 words - 13 pages "Financial institution failures are a fact of life and little can be done to stop them": an evaluation of the recent proposals for reform of financial market regulation in the United States and Europe***Table of Contents1. Introduction p. 12. The current financial crisis: origin and development p. 33. Proposals for reform of financial markets regulation: the United States p. 44. Proposals for reform of VIEW DOCUMENT
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Banking and the Acquisition of Toxic Assets by the US Government

1680 words - 7 pages nothing, and hopefully after the election, we can repair the very many mistakes in it. — Joseph Stiglitz, Nobel Laureate Joseph Stiglitz: Bail Out Wall Street Now, Change Terms Later, Democracy Now!, October 2, 2008 Deregulation In September Merrill Lynch had just been taken over and The Federal Reserve Instructed Morgan Stanley and Goldman Sachs to convert themselves o bank holding companies subject to its supervision and gain access to the discount window.pg. 69 Howard the financial crisis) Since the 1960s attempts were made to get around Glass -Stiegel act prohibiting banks from underwriting securities ; but in 1987 restriction were eased and in 1999 VIEW DOCUMENT
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The global financial crisis has provided opportunities for BRIC countries .Discuss with reference to two BRIC countries.

1099 words - 4 pages Introduction In 2007 to 2008, many developed countries entrapped an enormous critical state of global financial crisis and forced numerous countries into recession because the economic imbalances resulting from inefficient and unequal income distribution have not been properly addressed(IILS, 2008; Rajan, 2010)Nevertheless, the BRIC countries were feasible to withstand. The aim of this paper is to analyze China and Russia, which were able to take chances during the period, by looking into foreign direct investment (FDI) and an exportation in order to come up with the possibilities for both countries take crisis as opportunities (the global crisis, 2011). China Introduction. China leaders VIEW DOCUMENT
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The Current Financial Crisis

856 words - 3 pages Frederic Mishkin makes the point in the text, The Economics of Money Banking, and Financial Markets (2010) that “Banks and other financial institutions are what make financial markets work. Without them, financial markets would not be able to move funds from people who save to people who have productive investment opportunities.” (p.7). The movement of funds between savers and those with productive investment opportunities is the means of creating growth. When people lose confidence in the economy this activity freezes or weakens, consequently, asset prices decline, unemployment rises and companies default as was the case of Lehman Brothers in 2008. The freezing of the flow of money is a VIEW DOCUMENT
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Solving the Foreclosure Crisis

1877 words - 8 pages I. Introduction The current financial crisis was triggered by subprime mortgage in the United States. This lead not only to a large amount of mortgage default but also other problem suc as, credit card and store loans. The result was huge losses in financial institution in the United States Europe and Asia, because of financial liberalization had enabled the transnational transaction of “bad” assets. Some people argue that this crisis was aggravated by Fair Value Accounting because it prices an asset based on its current value. Which means, the financial institution show the current prices of their asset in financial statement. In this crisis, almost all of assets values are decreased VIEW DOCUMENT
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Outcome of the 2007 Financial Crisis : Inflation or Deflation?

3398 words - 14 pages Outcome of the Financial Crisis of 2007-2008:Inflation or Deflation?Roman Speakman-PoonMoney & Banking�Table of Contents3Abstract �3Introduction �4Background of the Financial Crisis �5Government Bailouts �6The Case For Inflation �7The Case For Deflation �9Comparison to History �11Investor Sentiment �11China's Resource Demand VIEW DOCUMENT
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IMPACT OF FINANCIAL CRISIS ON GULF AREA

936 words - 4 pages Background The global financial crisis that was experienced in 2007/2008 affected many nations of the world. Some countries such as America and most European countries were hard hit since they were directly affected by the crisis. Other countries especially those in Asia and Africa were not adversely affected as they were not directly hit by the crisis. This crisis started in the United States after the housing bubble busted. Although the bursting of the housing bubble was the main cause of the crisis, there were a series of events that preceded it. One event that indirectly contributed to this crisis was the Russian debt crisis as well as the Asian financial crisis that took place in VIEW DOCUMENT
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banking risk

978 words - 4 pages Submitted to :Farzana AkterLecturerDept. of business administrationEast west universitySubmitted by:Md. Shafayat Ullah BhuiyaId # 2010-2-10-151Date of submission: September 23rd, 2013Global financial crisis -2008 and onward:In 2008, the United States of America experienced a huge financial crisis which led to the most serious recession since the Second World War. Both the financial crisis and the downturn in the U.S. economy spread to many foreign nations, resulting in a global economic crisis. The VIEW DOCUMENT
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The cause of the finanicla crisis

1093 words - 4 pages Introduction The current financial crisis which spread in 2008 had influenced the global economy in different aspects such as the GDP, labour markets, government policy(Read 2009 ). Considering the causes of the financial crisis, Greenberger, who was the director of the Division of the trading and Marketing of CFTC demonstrated that lack of information transparency was the main cause of the financial crisis. This essay would identify the lack of transparency in the securities markets led to the moral hazard which finally result in the illiquidity and disaster in the financial market. According to the report of The Transparency International ,by transparency, institutions are VIEW DOCUMENT
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The World Economic Crisis: A Marxist Analysis

3354 words - 13 pages A financial crisis developed with an amazing speed starting from the late summer and early autumn of 2008 and it still affects the world today. This crisis has damaged many of the largest financial institutions firstly in the US and the whole world then followed, but the worst damage was that a large part of the world's financial system had almost collapse. A lot of researches tried to explain the reasons of the current global crises and try to figure out ways of changing or helping the system. This paper argues about explain the current global economic crises with new Marxists analysts and that the current crisis should be seen as a systemic crisis of capitalism because of bad structure VIEW DOCUMENT
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Critical Analysis: “What We’ve Learned from the Financial Crisis”

920 words - 4 pages As the subject of this critical analysis paper I have chosen the November 2013 online article “What We’ve Learned from the Financial Crisis” from the Harvard Business Review at http://hbr.org/2013/11/what-weve-learned-from-the-financial-crisis/ar/1 by executive editor Justin Fox. I. Summary The financial crisis in 2008 was not the first that we have faced. The financial crisis from 1929 to 1939 referred to as The Great Depression is considered by many as the deepest economic downturn in recent history. These two events were the result of weak policies and bad decision making by governments and central banks a crisis quickly turned into an international disaster. The difference is in how VIEW DOCUMENT
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The World Needs International Accounting Standards

769 words - 3 pages Financial reporting has a responsibility to communicate the economic condition and functioning of an enterprise. This has to be accurate, reliable and comply by the accounting standards. Effective financial reporting is essential in maintaining confidence in an economy and encouraging investors to invest. Towards the end of 2008, the financial sector across the world was becoming increasingly unstable. Lehman Brothers had been declared bankrupt, Various allegations towards accounting standards have been made in relation to the financial crisis. A lot of banks worldwide valued most of their financial assets at historic cost, the cost at which the assets were initially bought at VIEW DOCUMENT
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American Recovery and Reinvestment Act 2009

1187 words - 5 pages The financial crisis of 2008 was estimated to be the most dangerous since the Great Depression of the 1930’s (The financial crisis, 2009). The catalyst was the 2007 bubble burst of the housing market. This issue spread quickly to the US financial sector and then across other domestic and global businesses. The American auto industry was devastated by this crisis. Detroit’s big 3 companies Ford, Chrysler and GM’s debt problems were exposed as a result of this crisis. These 3 automotive giants were experiencing financial woes they had never previously encountered. This forced them to seek solutions that would allow them to remain a viable entity in the coming years. For GM the bills VIEW DOCUMENT
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The causes and solutions to the European sovereign debt crisis

963 words - 4 pages productivity improved, while easy borrowing encouraged major deficit in expenditure. The bubble ineluctably burst after the financial crisis in 2008, and tax revenues from the properties sector dropped significantly, especially income taxes from brokers and builders, which in turn resulted in the inability for those countries to pay their debts. The third and most serious reason is the escalating trade imbalances in Europe due to uneven growth performance among different members, which is strongly connected to the second reason. Greece, Portugal and Spain suffered trade deficits from 1993 to 2007, while Germany kept its trade surpluses increasing from 2003 to 2011, as Table (a) shown. The debt of VIEW DOCUMENT
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The Role of Shinsei Bank in Financial System

1001 words - 4 pages “Explain the role of Shinsei bank in the financial system. Access its exposures and performance during the financial crisis of 2007-2011. Did it do well or badly?” Bank description Shinsei bank has had a chequered history as its predecessor was called Long Term Credit Bank of Japan (LTCB), which declared bankruptcy during the financial crisis in Asia in 1998. Until 2000, New York-based Ripplewood’ Holdings made an acquisition, took over the bank and renamed it to ‘Shinsei’ which represented ‘renaissance’ . Shinsei now is a leading commercial bank providing a large range of financial products and services to both institutional and individual customers. The bank is aimed to become the best VIEW DOCUMENT
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The Global Financial Crisis

1000 words - 4 pages The global financial crisis has brought wide-ranging changes to consumer spending behaviour and consumption patterns throughout the world with the economic downturn impacting on the spending and purchasing power of people. The findings of a study conducted by Booz and Company in 2008 on consumer spending behaviour revealed that, firstly, the unprecedented confluence of the dramatic rise in oil prices, the substantial deterioration of housing values and the credit crisis, affected the overall economy and significantly changed consumer behaviour. Secondly, many consumers had already made significant cuts in their expenses and were projecting to make deeper trade-offs given the pessimistic VIEW DOCUMENT
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The Global Economic Crisis and Recovery: Lessons to be learned

1146 words - 5 pages level of regulation which would be mostly effective and, at the same time, cost-efficient.Reference:1.Bhagwati , Jagdish N., Lessons from the East Asian Experience, http://www.bos.frb.org/economic/conf/conf44/cf44_2.pdf2.Burns, Greg, Recession may be over, but jobless figures hint at 'double dip' scenario, Oct30, 2009, www.chicagotribune.com/business3.Kuroda , Haruhiko, "Asia's Recovery from the Global Financial Crisis , 22 June 2009,4.Mishra and Shra, MACRO ECONOMICS, www.investopedia.com5.Parkin, Michael, Economics: International edition, Mancheter: Manchester University Press, 1999 5th edition. P436.Robinson, Joan , The Generalization of the General Theory, London: Macmillan, 1952, p. 86.7.http://web.worldbank.org8.U.S. Treasury, "Blueprint for a Modernized Financial Regulatory Structure", March 2008.9.Reuters News, Timeline-the world out of recession, Oct 27, 2009, http://www.forexyard.com/en/reuters VIEW DOCUMENT
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European sovereign debt crisis

1509 words - 6 pages A Sovereign Debt Crisis refers to the financial issue, when the country’s government faces high level of public debt and unable to pay back these debts. The breakdown of the Iceland’s banking system in 2008 is the sign of the European Sovereign Debt Crisis. During the 2009, the Greece, Ireland and Portugal were mainly affected by the crisis. The European Sovereign Debt Crisis broke out with the disclosure of Greece’s budget deficit in 2009. On 5th November 2009, Greece indicated that its budget deficit was 12.7% of GDP, which put the Greece and European economy in a dangerous situation. A lot of European businesses were effected since the crisis started, so what cause the European VIEW DOCUMENT
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The Global Financial Crisis and Its Impact

2217 words - 9 pages 1.0 The Global Financial Crisis and Its Impact The recent Global Financial Crisis (GFC) initially began with the collapse of credits and financial markets, which caused by the sub-prime mortgage crisis in the US in 2007. The sub-prime mortgages were given to high-risk lenders (with bad credit history) who were in danger of defaulting, which eventually caused a global credit crunch, where the banks were unwilling to lend to each other. In October 2008, the collapse of the major financial institutions and the crash of stock markets marked the peak of this global economic slowdown (Euromonitor International, 2008). Although the origin of the GFC might have been the housing and financial VIEW DOCUMENT
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Fiscal Policy to retaliate against financial crisis in Europe

742 words - 3 pages During September 2008, a worldwide financial crisis erupted and was succeeded by the most severe global economic recession for decades. Governments in the euro area intervened with a extensive mixture of emergency acts to stabilise the financial sector and to soften the effect of the consequences for their economies. This paper examines the start of the Great Recession, EU governments’ general response to the economic crisis and their ultimate effects. This paper aims to draw a conclusion on whether or not fiscal policy, implemented in many European countries during the Great Recession of in 2008-9, was the best choice. Fiscal policy involves changes being made in government expenditure VIEW DOCUMENT
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The Global Economic Crisis

788 words - 3 pages researchers have pointed out that the global imbalances are the root of the recent financial crisis. Portes claims that “the underlying problem in international finance over the past decade has been global imbalances, not greed, poor incentive structures, or weak financial regulation, however egregious and important these may be.” (2). According to him, the global imbalances lead to “the increasing in dispersion of current account”, which “puts a burden on financial systems to intermediate.” In 1996, the US current account and emerging market plus developing country current account were each about zero. In 2008, US current account was in deficit by $ 600 bn, the emerging market/developing country VIEW DOCUMENT
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Hey there Maapi

1124 words - 4 pages The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.On the one hand many people are concerned that those responsible for the financial problems are the ones being bailed out, while on the other hand, a global financial meltdown will affect the livelihoods of almost everyone in an increasingly inter-connected world. The problem could have been avoided, if ideologues supporting the current VIEW DOCUMENT
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Bank CEO Incentives and the Global Financial Crisis

3331 words - 13 pages higher risk taking incentives did indeed lead to higher volatility. The only result that maybe surprising at first glance is that of Fahlenbrach and Stulz (2011).Rudiger Fahlenbrach and Rene Stulz (2009) test these implications by studying the CEOs of almost one hundred large financial institutions from 2006 to 2008. They start in 2006 because that is a good candidate for the poit at which financial firms took on the risky positions that led to the crisis. In 2006 the mean CEO took home $3.6 million in cash compensation, which represented less than half of total compensation. The larger share of pay was in restricted stock and options. In other words, the CEO took home $3.6 million in cash, on VIEW DOCUMENT
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Economic Crisis

808 words - 3 pages Starting from the problems of failure to pay housing loans (subprime mortgage defaults) in the United States (U.S.), then bubbled damaging crisis banking system not only in America but expanded to Europe and to Asia. Successive causes a domino effect of the solvency and liquidity of financial institutions in these countries, which among others led to the bankruptcy of hundreds of banks, securities firms, mutual funds, pension funds and insurance. The crisis then spread to parts of Asia, especially countries such as Japan, Korea, China, Singapore, Hong Kong, Malaysia, Thailand, including Indonesia, which happens to have long had precious letters these companies. Of the various criticisms VIEW DOCUMENT
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Reexamining Crisis Management Philosophy

2058 words - 8 pages individual or self glorification. Works Cited Aldewereld, H., Tranier, J., Dignum, F., & Dignum, V. (2011). Agent-based crisis management. In Collaborative Agents-Research and Development (pp. 31-43). Springer Berlin Heidelberg. Doi: 10.1007/978-3-642-22427-0_3 Cao, Y., & Nijholt, A. (2008, April). Modality planning for preventing tunnel vision in crisis management. In Symposium on multimodal output generation (MOG 2008) at the AISB (pp. 6-9). Chen, Y, Ganesan, S., & Liu, Y. (2009). Does a firm’s product-recall strategy affect its financial value? An examination of strategic alternatives during product-harm crises. Journal of Marketing, 73(6), 214–226. Lei, J., Dawar, N VIEW DOCUMENT