Nobody downloaded yet

An Examination of the Current Global Financial Crises: the Causes, Consequences and Government Responses in United Kingdom and C - Essay Example

Comments (0) Cite this document
An examination of the current global financial crises: the causes, consequences and government responses in the United Kingdom and China Module: Economic Environment of Business Student ID: 12019017 Group Number: 2 Lecturer’s name: Vivien Ojadi & Helen Stamps Global financial crisis refers to the time of economic difficulty witnessed by consumers and markets…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.3% of users find it useful
An Examination of the Current Global Financial Crises: the Causes, Consequences and Government Responses in United Kingdom and C
Read TextPreview

Extract of sample "An Examination of the Current Global Financial Crises: the Causes, Consequences and Government Responses in United Kingdom and C"

Download file to see previous pages The Financial Guardians in the US and Europe established policies that encouraged adverse credit allocation, and a lot of risk taking by their financial institutions. They still stood by the same policies even after learning of the impending financial problems. Financial Guardians in the United States have at many times chose and maintained policies that have always led to the crisis. This counter reacted to the crisis by adding other rules and establishing newer regulatory boards with more powers granted by the Congress. Anderson and Timmons (2007), give an example evident where the regulators never reacted to the extra ordinary increase in the financial institutions advantage. This could not react to the movement of assets worth trillions of dollars from banks balance sheet. This shows how the regulators did not do their work. Increasing the regulators power without checking the problem and trying to regulate it helps in solving nothing. The aim of this essay to examine the causes, consequences, and the government responses of the current world financial crisis faced in the United Kingdom and China. ...
This was because of the thriving real economy that was strong on export growth and substantial financial position of businesses and households. However, according to Anderson and Timmons (2007), this changed in late 2008, following the rescue of Fannie Mae and Freddy Mac, the subsequent bankruptcy of the Lehman brothers and the growing fear of the Insurance power house, American International Group (AIG) dragging down leading financial institutions in United Kingdom and the United States of America in its wake. Market valuations of financial institutions disappeared; panic emerged in stock markets as investors ran for the sovereign bonds. The financial crisis was now a reality. Banks became forced to restrain credit allocation. Asset markets fell rapidly in UK. With the trade credit getting expensive, firms saw their sales fall and stockpile up. The huge exposure of United Kingdom to America’s subprime problem was soon evident in 2007 when BNP Paribas froze the resurrection of three investment funds, claiming inability to correctly value the structured products. Because of this, the risks between financial institutions grew drastically as shown by the high interest rates charged by the bank amongst themselves for short term loans. Still at this point, the observers were still not alert that the systematic changes will create a problem. According to Adrian & Shin (2008), in 2008 with the fall of America’s Bear Steams and Northern Rock Bank and Landes Bank in UK things took a turn. When Lehman Brothers filed for bankruptcy in 2008, Ted spreads leaped to unprecedented high. Investors became more wary of the risks involved in bank portfolios, and it became extremely difficult for banks to increase capital through shares ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“An Examination of the Current Global Financial Crises: the Causes, Essay”, n.d.)
Retrieved from
(An Examination of the Current Global Financial Crises: The Causes, Essay)
“An Examination of the Current Global Financial Crises: The Causes, Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF An Examination of the Current Global Financial Crises: the Causes, Consequences and Government Responses in United Kingdom and C

Pollution: Types, causes, consequences

...?POLLUTION: TYPES, CAUSES, CONSEQUENCES AND RECOMMENDATIONS POLLUTION: TYPES, CAUSES, CONSEQUENCES AND RECOMMENDATIONS [Institute’s name] POLLUTION: TYPES, CAUSES, CONSEQUENCES AND RECOMMENDATIONS Abstract Since pollution is such a devastating problem, there has been widespread awareness and steps to mitigate this global problem. The essay attempts to uncover the causes and consequences, surrounding different types of pollution, which broadly include water pollution, land pollution and air pollution. There is a mention of individual steps that can be taken to tackle this problem...
10 Pages(2500 words)Research Paper

Stress: Causes and Consequences

...?Stress: Causes and Consequences Introduction Stress has been shown to have a potent effect on physical and mental health. The following discussion will consider the issue of stress with reference to the patterns of changing health across the developed world. Initially, the term stress will be defined and illustrated. Then the potential health impacts of stress will be outlined. Subsequently, the prevalence of stress and stress related health problems (both physical and mental) will be examined. Finally, ways to deal with stress and mitigate its negative health effects will be explored Stress Defined Walter Cannon, working in the 1930s, was one of the first scientists to identify stress...
8 Pages(2000 words)Essay

The 2008 Financial Crisis: Causes and Consequences

...developed countries (Mohan, “Global financial crisis - causes, impact, policy responses and lessons”; Dietz, “Recession keeps hold on Eugene”). 9 The countries with good economic policies and effective governance also could not preserve their economies from the global crisis. For instance, the African nations suffered the crisis primarily from direct channels. The direct channels signify the financial sectors i.e., the stock markets faced the fluctuations at a recurring nature and many stock exchange participants lost huge wealth due to the financial crisis during the year 2008. Such similar losses were...
7 Pages(1750 words)Research Paper

Global Financial Crises: Differences, Impacts and Implications

...?Global Financial Crises: Differences, Impacts and Implications The 2007/2008 credit crunch and the subsequent Euro zone crisis have similarities with the 1930 great depression such as the downturn of the economic market. However, the major difference between these crises is evident from their causes. The 1930 great depression was caused by isolated events such as weather, government policies and events such as the black Tuesday (Chossudovsky and Marshall, 2010). The black Tuesday was in October 29, 1929. On this day, the stock market collapsed and two months after the collapse stakeholders in the market had lost over $40...
4 Pages(1000 words)Essay

Close examination of global financial systems

.... Bongini, P., Chiarlone, S., and Ferri, G. 2009. Emerging Banking Systems. London: Palgrave Macmillan. Das, D. K. 2004. Financial Globalization and the Emerging Market Economy. London: Routledge. Evanoff, D. D., Kaufman, G. G., and Labrosse, J. R. 2008. International Financial Instability. New York: World Scientific Publishing Company. Griffith-Jones, S. and Bhattacharya, A. 2001. Developing Countries and the Global Financial System. New York: Commonwealth Secretariat. Haggard, S. and Lee, C. H. 1995. Financial Systems and Economic Policy in Developing Countries. New York: Cornell University Press. International Monetary...
6 Pages(1500 words)Essay

The 2008 Financial Crisis: causes and consequences

...up to this connotation, it has been observed that the construction of large currency reserves by the Asian alongside oil rich exporting governments were a major factor in the global imbalances together with the rapid asset price increase in the west. Particularly, these countries include china, having extreme trade surpluses in developed nations as well as, having accumulated close to over $1 trillion among its foreign reserves. It has also been established that western nations had a hand in deficiency within the current accounts through their lax macroeconomic policies. Indeed, it is has been pointed out that, the United States monetary policy could have...
5 Pages(1250 words)Essay

Global Financial Crisis: Causes, Consequences, and Responses in US and Saudi Arabia

...affected by the economic recession, the consequences and ways of coping the problems are different. This paper aims to discuss the causes and consequences of financial crisis in the U.S. and Saudi Arabia, as well as the actions taken to recover the economy. Causes and Consequences of Financial Crisis in the US The economic system of the United States is capitalism. This allows private ownership to stimulate production of products and services with low interference from the government. Since this system has been utilised by US, all the people are affected during the...
5 Pages(1250 words)Research Paper

Financial Crises in the United States

...term and short term implications of the financial bailout package which would severely impact the business of several organizations. Part 6. Understanding of financial Crisis My understanding of the financial crisis before the exercise merely consisted of news that major financial institutions of the United States of America had collapsed or acquired by other companies. I did not have the real reasons for the cause of the financial crisis. I also knew about the seven hundred billion dollar bailout package which was passed by the American government. However I did not have details about the package....
14 Pages(3500 words)Essay

The Reasons Surrounding the Global Financial Crises

...the world. The financial crisis triggered off because of the subprime crisis, subprime refers to excessive borrowing and the inability to pay back the debt. “Several times recently, Treasury Secretary Paulson (and many others) have claimed that the "root cause" of the current financial crisis is "the housing correction." (Root Cause of the Financial Crisis) The people in the US took loans from banks and other major financial institutions and invested that money into the housing sector but the prices of their houses declined sharply and they were unable to pay their loans back. Institutions like Lehmann Brothers and...
2 Pages(500 words)Essay

Financial Crises Presentation

...argue that both decision of defaulting and devaluation are voluntarily taken the by the government, other perceive it to be involuntary changes in economic conditions due to changes in investor sentiments leading to sudden halt in capital infusion thereby causing panic in the market and creating financial crises. In the year 1992-93, several currencies in United Kingdom were forced to withdraw or devalue their existing exchange rate policies and adopt European Exchange Rate Mechanism. Another such similar crisis took place in Asia during the year 1997 and 1998. Many countries in Latin America also defaulted on their sovereign debt in the...
10 Pages(2500 words)PowerPoint Presentation
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic An Examination of the Current Global Financial Crises: the Causes, Consequences and Government Responses in United Kingdom and C for FREE!

Contact Us