Capital Market and Financial Crisis - Coursework Example

Taking into consideration the provisions of the Situational Crisis Communication Theory, the financial crisis that rocked the globe in the mid 2010 was a victim cluster.... Coomb's Situation Crises Communication Taking into consideration the provisions of the Situational Crisis Communication Theory, the financial crisis that rocked the globe in the mid 2010 was a victim cluster.... Investors in the banking industry understand the risks involved in the industry, in cases of crises such as the global financial crisis in 2010, it was expected that there had to be losses experienced by the investors....

Over the past few years, the persistent economic crisis in Asia has called into question much of the received wisdom that liberalization has enhanced the economic contribution of international capital markets.... The Asian crisis is but the most recent example of other similar episodes: the financial crises in Latin America in the early 1980s, the European exchange rate crises of 1992, and the Mexican bond crisis of 1994.... They have established and enforced laws and regulations that have financial markets more stable and increased competition in all sectors....

He cited the attempt of Eichengreen and Portes (1985) define a financial crisis as a disturbance that leads to widespread distress among financial institutions and market participants, disrupts the market's capacity to allocate financial resources efficiently, and has repercussions for the nonfinancial economy.... Hence he said that international financial crisis, according to their definition, is one where these disturbances and their effects spill over national borders....

These policies should address the inflation rates, fiscal crisis, capital market and come up with strategies to prevent reoccurrence of the crisis.... Following the collapse of the sub-prime mortgage company, the value of land and Global financial crisis in the USA The Global financial crisis resulted from a credit crisis when the US investors withdrewtheir investments from the mortgage industry resulting in a liquidity crisis (James, 2010.... The Global financial crisis significantly affected the USA economy resulting in slow growth of the economy....

nbsp;… According to the paper a combination of several factors led to the current US financial crisis including imprudent mortgage lending, deregulatory legislation, and rating agencies among many others.... nbsp; As the discussion declares there are similarities in the regulatory responses that have been given by different nations to the current financial crisis.... Some of the factors that may contribute to financial crisis include application of similar operational strategies by players in the market, changes in the banking business, excessive leverage, changes in regulations and corporate governance, and failure of government policies on the financial sector....

Critics have claimed that fair-value accounting had a hand in the 2008 financial crisis.... During the financial crisis, there was a fall in the prices of mortgage and related securities.... This is the main reason, critics of fair value accounting claim that it had a hand in the financial crisis that occurred.... Most critics have distinguished mark- to-market accounting a mechanism through which fair accounting can contribute to the financial crisis....

The paper draws attention to the systemic financial crisis, indicating its potential causes, using theoretical and empirical approaches.... Towards the end of each concept, an attempt to identify the ways to gauge investments in a way that those do not lead to the systemic financial crisis are made … Today, the globalization of markets and greater than before unpredictability in intraday prices have all created complexity in analyzing investments....

The financial crisis which began in 2007-2008 originating in the housing market is the most severe since the 1930s.... This paper “financial Market Crises in the 20th Century” casts light upon the Great Depression and the stock market crash of 1929, the banking crises of the early 1930s and recent financial failures.... The author discusses the critical role of anticipation of financial crises and their regulation....