Summary of the Videos - Essay Example

SUMMARY OF THE VIDEOS Summary and Overview Watching and reading about “Inside the Meltdown” and “The Warning”, it could best be said that these are stories that are based on facts and stories that try to address specific issues of financial management history on a global scale. This assertion is made against the backdrop that they try to spell out some of the clear causes of the global economic meltdown that was experienced from the year 2007. According to portrays from the two stories, the whole world went melting down because some key players in the finance market refused to play their roles well and that their decisions were ill-motivated.

Mention is made of key personalities like Federal Reserve Chairman Ben Bernake and Secretary of Treasury Henry Paulson (Kirk, 2009). Later, the stories try to scrutinize how global financial giants can be held accountable for their decisions and how these decisions affect the larger international financial markets. The writers also wonder if any lessons had been learned for the approaching future. Relevant pieces from international financial marketsFrom the perspective of international financial markets, the writers make some very strong points when it comes to aspects of lessons learnt.

For example, they try to quiz the merits in allowing only a few entities and companies to control the international financial market. This was done in a manner that the writers constantly portrayed the fact that some few entities like Washington and Wall Street; and companies like Bear Stearns and JP Morgan were given so much power to determine the temperature of the world finance markets (McClain, 2002). As students of finance and accounting, what becomes relevant in questioning is the need to ensuring that for the sake of globalization and for the fact that the performance of any single country goes a long way to affect the international financial market at large, it is important that policies directed giving the global financial market some levels of restoration and hope would be done from a decentralized perspective (Investopedia, 2012).

This is mean that input and contribution of every country and every sector of the economy should count as relevant in relieving the world of future crisis. After all, a country like the United States of America would continue to do international business with other nations and so should have the welfare and progressive growth of those nations at heart. Again, overdependence on the mortgage industry has somehow proved to the country that getting support from other sectors would relieve it of some pressure and ensure steady growth.

The Preventive Roles The two stories in their central themes try to give out some solutions for preventing future risks of global meltdowns. They perhaps do this best by criticizing how policy makers and financial institutions were causative in the worse economic crisis that hit this generation. Market interactions were for example neglected and so it would be expected that the means by which markets interact would be given careful consideration by policy makers in the future. For example there has been a clear indication that stronger market forces and agencies are always dependent on each other.

Therefore, it is virtually impossible to expect that as a pro-influence interaction takes place; one aspect of the market would be performing poorly when other sectors will be expecting to boom (McClain, 2002). To industry players therefore, the trick for moving forward would be to adapt the principle of putting their eggs in more baskets. At least if they loss one of the baskets, they can have hope of some other eggs that will be safe in other baskets. In fact, after the mortgages proved unreliable, there needed to be other sources for players to depend on for the growth of the financial market but this is was woefully lacking.

In conclusion, the larger population would be called to task to see themselves as key players in deciding whether or not the world will experience another meltdown in the nearest future. This time round, their roles as players will be played as they cast their ballots in the impending elections to elect leaders who have showed good course for securing the fortunes of the country’s economic growth; in respect of the larger international financial market.CITED WORKSInvestopedia. What is Monetary Policy? 2012. Web.

March 22, 2012 Kirk, Michale. Frontline: Inside the Meltdown. 2009. Web. October 17, 2012 McClain, Thomas. Macroeconomic Indicators and Economic Performance. New York: Wiley Press Limited. 2002. Print