Another goal of regulation is making sure institutions have sufficient assets to meet their contractual obligations, through reserve requirementscapital requirementsand other limits on leverage. Asia has not had a subprime mortgage crisis like many nations in the West have, for example.
But we have been in a bull market for such a long time that many investors are having a difficult time comprehending what is happening. Today it's worth over 8, bolivars, according to the unofficial exchange rate, which many Venezuelans use because government rates are considered far overvalued.
Some economists argue that financial crises are caused by Economic crisis instead of the other way around, and that even where a financial crisis is the initial shock that sets off a recession, other factors may be more important in prolonging the recession.
A side-story of the emerging Chinese superpower versus the declining US superpower will be interesting to watch. Leverage finance Leverage, which means borrowing to finance investments, is frequently cited as a contributor to financial crises.
Diversifying in this way might be good for the region and help provide some stability against future crises. In recent years, there has been more interest in Africa from Asian countries such as China. The tech stock crash that so many have been waiting for has arrived, and many analysts believe that it is going to get a whole lot worse.
Deep Sea slum in Kenya. The country is also in the grip of a political crisis. These protests are sometimes met with a lot of suppression. One major goal of regulation is transparency: Speculators that bought CDS protection were betting that significant mortgage security defaults would occur, while the sellers such as AIG bet they would not.
The coalition government keeps repeating that it has to cut spending in order to cut deficits, no matter what. The opposition has been at pains to explain … that trying to cut deficits by cutting spending in a stagnant economy is a largely self-defeating exercise, as it reduces growth and thus tax revenue.
But just a few miles away, off camera, young Venezuelans clashed with riot police as fires burned in the streets. There are some grand strategies to try and address global poverty, such as the UN Millennium Development Goals, but these are not only lofty ideals and under threat from the effects of the financial crisis which would reduce funds available for the goalsbut they only aim to halve poverty and other problems.
Furthermore, foreign aidwhich is important for a number of African countries, is likely to diminish. The description of the externally imposed Greek and Italian governments as technocratic is the ultimate proof of the attempt to make the radical rewriting of the social contract more acceptable by pretending that it isn't really a political change.
It is high time that we applied the same principles to countries and introduced a sovereign bankruptcy law. This time, however, Asian countries are potentially trying to flex their muscle, maybe because they see an opportunity in this crisis, which at the moment mostly affects the rich West.
His administration also stopped publishing any reliable statistics, including on economic growth and inflation.Those who caused the financial crisis still haven’t been held to account A national environment-friendly infrastructure plan is urgently required to.
Are You Prepared For The Coming Economic Collapse And The Next Great Depression? The Venezuelan people struggle to cope with the toxic effects of hyperinflation, severe debt and chronic food and medicine shortages, as Venezuela - once the wealthiest country in the region - is.
The United Kingdom’s impending departure from the European Union is an occasion to reflect on the nature of that Union, which remains insufficiently understood and not only in Britain.
A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics.
Other situations that are often called financial crises include stock market crashes and the bursting of. Crisis theory, tendency of the rate of profit to fall, reserve army of labour Overproduction, underconsumption and demand shortfall Consolidation (business), industrial consolidation, market concentration.Download