This website uses cookies to ensure you have the best experience. Learn more

Economic Crisi Essay

2812 words - 12 pages

| |
|Economic Crisis And policies to deal with it |
| |
| |

|[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the |
|abstract of the document here. The abstract is ...view middle of the document...

I would say that the economic crisis is a very big topic to speak about it in some few paper but because I really interested in it and I am up to date with it news I choose it I may not speak about every thing in this topic but I tried to get the important side for me for this topic may some of point copied from some copied but it s a fact I can’t write it as I want

YousseF Salo

Brief about the Crisis :

Following the burst of the ‘dotcom’ bubble in 2000 and the 2001 terror attacks on the United States, the US and most other advanced economies embarked on a period of Sustained expansionary economic policies to ward off recession. The Federal Reserve, for instance, lowered its discount rate no less than 27 times between 2001 and 2003.

Low interest rates, facilitated by the huge trade surpluses which China and other countries used to purchase US Treasury Bonds, stimulated rapid growth in credit.

Accompanying rises in house prices further fuelled credit growth, especially through mortgage lending. In the US, subprime market mortgage lending, to households without the essential means to repay loans, took on huge proportions. About US $1.3 trillion was lent in subprime mortgages. US mortgage lenders, most Infamously the institutions known as Fanny Mae and Freddie Mac, securitized these subprime loans, which were then sold throughout the financial system as assets. They were able to issue and securitize these bad loans due to a combination of inadequate regulation and financial innovation. The latter made it difficult for other institutions to assess the risks of these securitized mortagages and led to increased subprime mortgages.

Thus in spite of their underlying risk, they were taken up by financial institutions. They were promoted as ways to spread risk, making investment safer. What they did instead—aside from making their creators a lot of money, which they didn’t have to repay when it all went bust-was to spread confusion, luring investors into taking on more risk than they realized.

Two factors in particular have encouraged asset managers to throw caution to the wind:

the growing global economy and their pay incentives. Risk-management tools now seem to have been inadequate in properly assessing risk during the upswing in the global economy. Rating agencies in particular seem to have been awarding high ratings much more easier under favorable growth conditions.

Wall Street has been the top tier of the corporate pay range, with executives earning eight-figure salaries. Its bonus system, which rewards short-term trading profits, has been singled out as an incentive for Wall Street executives to expand their highly profitable business in exotic securities and ignore the risks.

By the summer of 2007 increasing defaults on mortgages and growing numbers of foreclosures in the US signalled that the subprime market was in crisis. House prices and financial stock prices started to plummet. This reduced the value...

Other Papers Like Economic Crisi

Holidays In Albania Essay

1636 words - 7 pages the geographic, economic, and political center of Albania. The Skanderbeg monument and the pyramid are two symbols of Tirana’s architecture. Louise Levathes considers the “Skanderbeg square area” as the most significant place in Tirana, “where national museums and cultural buildings are clustered.” If you want to know more about Albanian history, do not hesitate to visit The National History Museum located in the center of Tirana. The museum

A Heart Of Darkness Essay

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages not have health insurance they lack the necessary means for treatment. Even those with health insurance do no always have a provider that covers the cost of certain procedures. Due to the economic downfall and decline in employment many are left without jobs and insurance benefits. Even if everyone were to have access to insurance, another dilemma arises. In Canada, health insurance is a universal good, in which everyone has access. The

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages , Cengage Learning Mankiw, G. and Taylor, M. (2006), Microeconomics, Cengage Learning EMEA Raff, D. and Summers, L. (1987), ‘Did Henry Ford pay efficiency wages?’, Journal of Labour Economics, Vol. 5, No. 4, Pt. 2, pp. S57-S86 (October) Shapiro, C. and Stiglitz, J. (1984), ‘Equilibrium unemployment as a worker discipline device’, The American Economic Review, Vol. 74, No. 3 (Jun.), pp. 433-444

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

US Freight System

1273 words - 6 pages barrier for new entrants, but this is hitting the League that, without enough members, it is being threatened to go out of the market due to the lack of economic resources to sustain the organization. The switching cost is another significant threat for the League; it happened a couple years ago, during the last economic recession, where some large NITL members decided to cut this investment or to decide to be members of only one association. If the

Democratic Peace Theory

1852 words - 8 pages Intro: US Presidents have made it a goal during their term(s) in office to establish a good relationship with foreign countries and even try to improve upon existing connections with our allies. Some believe it is to prevent conflicts between the countries while others dispute that it is a threat assessment by the United States to pick and choose their friends and enemies. Preventing conflict between two democracies or countries that practice

Booker T. Washington

1621 words - 7 pages , southern politics, appointing Black Americans to federal jobs, and granting funds to Black institutions.” Washington formed loyal supporters African Americans and Whites as well. Booker T. Washington and W.E.B Du Bois are similar to each other but disagree on plans for African Americans social and economic progress. “Booker T. Washington, educator, reformer and the most inflectional black leader of his time (1856-1915) preached a philosophy of self

Related Essays

Globalization: The Most Powerful Force In The World

1988 words - 8 pages International Governance Innovation. Retrieved on March 16th, 2011 from .pp. 8 Erlanger, S. (2008) “Sarkozy Stresses Global Financial Overhaul“ The New York Times September 25th, 2008. Retrieved on April 15th, 2011 from http://www.nytimes.com/2008/09/26/business/worldbusiness/26 france.html>. Oppenheimer 1 Oppenheimer 7-8

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are