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.

Financial Markets Under Different Economic Situations - Essay Example

Free
A move dubbed ‘compounding of the market’s worries’ equally triggered various reactions from different financial leaders and institutions with some pulling out of the impending market hitches. One example of such players is the Chinese government that decided to close the lending by various banks, a move that saw the People’s Bank of China improve due to increased yields and capital retention. In a surprise rejoinder, Sir Mervyn elucidated on the market trends and the future prospects of the financial institutions by claiming that there was no guarantee that the soaring interest rates would come back to normalcy in the near future. This clearly demonstrated the turbulent nature of the financial markets that have a tendency and a possibility to choose any financial trajectory whereby it would be almost impossible to predict the future of the stock markets. The Federal Reserve had committed itself to easing the market crisis, it was skeptical about the possibility of the market to stabilize without further fluctuations, as these significantly depended on the prevailing economic conditions. Although virtually all financial institutions and corporates were eager to see a drastic change in the market conditions, there can never be any tangible results unless there is a change in the market environments. This simply means that if sustainable economic recovery were to be realized, then the markets ought to have enacted policies that would see a reduction in the interest

Check these samples - they also fit your topic

Financial Markets and the Real Economy
Conclusive decision on the correlation between financial markets and the real economy have not been reached in previous economic studies. As shown in the essay, various aspects of real economy affect financial markets either positively or negatively. In addition, it is made clear that financial markets impact on real economy.
16 pages (4000 words)Essay
The Global Financial Crisis: Impact on Property Markets in the UK
......... 2 1.0 Introduction …........................................................................................................................ 7 1.1 Hypothesis ………………………………………………………………...…......…..
38 pages (9500 words)Essay
Finance and Financial Markets
Aggregately, the Dow Jones Industrial Average reduced 508.32 points (22.6 percent). This loss of billions of dollars in a single day raises some questions about the efficacy of the efficient capital market theory. A close scrutiny of economic and financial facts and figures before, during or after the market crash of 1987 leaves more questions than the answers about this theory!
8 pages (2000 words)Essay
BME0006 Emerging and Alternative Financial Markets
A successful market is that which provides for the needs of the consumers and the citizens in general (Consumer Focus, 2010, p.2). Various regulatory procedures then needs to be instituted that advocates for these public needs. A desired regulatory mechanism has certain valued characteristics.
10 pages (2500 words)Essay
Critical evaluation of financial markets
This has been done with the view of providing the indigenous economies with improved financial depth. By way of this the government aims at providing the necessary financial resources to the nascent domestic firms for the purpose of diversification and expansion, to render absorptive capacity with the aim of privatising or deregulating the state-controlled infrastructure or telecommunications or to bring about an improvement in the corporate governance policies of the developing private sector.
19 pages (4750 words)Essay
Importance of institutional investors for financial markets
Institutional investment is an investment related to organized institutions. Such institutions are caretakers of others’ equities and private holding investments. The role of institutions is deliberate as they set a system of organizing, developing and managing respective funds.
8 pages (2000 words)Essay
Financial Markets
Therefore, any modeling of financial assets is directed towards the reduction of the uncertainties & risks involved with the value of an asset or the pricing agreements that govern the variation of the determinants of financial assets' evaluation. Therefore, any such evaluation is performed so s to strike a perfect balance between the non-risky assets and the non-risky assets.
4 pages (1000 words)Essay
Financial markets
In early November 2009, Australian government raised the interest rate for second time to tighten the monetary policy. This is expected
6 pages (1500 words)Essay
International Financial institution and markets
It also deals with whether the Euro could substitute the US dollar as the major currency in the global market. The report seeks to deal with the factors such as whether it is advantageous for the UK to enter into a currency union with the Euro
9 pages (2250 words)Essay
Financial markets
Remarkably, the financial markets facilitate the connection between the well-developed financial institutions and the borrowers who want to invest more than they earn, which suits the needs of the savers and borrows; hence,
3 pages (750 words)Essay
rates and subsequently housing bonds....
Although virtually all financial institutions and corporates were eager to see a drastic change in the market conditions, there can never be any tangible results unless there is a change in the market environments. This simply means that if sustainable economic recovery were to be realized, then the markets ought to have enacted policies that would see a reduction in the interest rates and subsequently housing bonds. This would have had tremendous economic implications particularly on the financial institutions such as commercial banks whose performance index heavily depend on the nature and level of interest rates charged. In acknowledging the fact that ‘markets tend to test and change things’, the president of the Federal reserve categorically stated that large amounts of money do not have the capability to reorganize but instead follow any weak points in the financial markets, an attribute directly related to the credit crunch that was at its peak at that particular time. Indeed, it is the duty and responsibility of the financial institutions and the relevant bodies to institute policies that regulate the interest rates so that the rates do not rates do not exceed the projected figures. In order to ease the fixed liquidity situation and the fluctuations of the interest rates, it is imperative to exclude emotional and seasonal factors, as clearly stated in the statement issued by the Chinese Central bank. This is especially so because when dealing with the stock exchange market where there is constant fluctuations in various economic factors. Although many financial leaders made many promises about destabilizing the market, the anxious financial institutions had to adopt a wait and see attitude as the unpredictability of the market seemed

Summary

An essay "Financial Markets Under Different Economic Situations" specializes that most of the financial institutions had the fear factor because this imminent danger had not occurred in two consecutive years and the stock market had just begun to regain its vigor…
Financial Markets Under Different Economic Situations
Read TextPreview
Comments (1)
Click to create a comment or rate a document
ta
taliarippin added comment 4 months ago
Student rated this paper as
At first, I thought 3 of pages is too much for such a question. But now I see it could not be done smarter. As the author starts you see the difficulty of the question. I’ve read all at once. Terrific essay
Let us find you another Essay on topic Financial Markets Under Different Economic Situations for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us