Global Financial Crisis Essay

The up-to-the-minute globose monetary crisis which became prominently visible during September of 2008 is considered by virtu anyy economists and domain of a function leadership the wrap up kind since the Great Depression. It is equated with the failure in conservatorship of the many monetary institutions based in the united States of America. The US is considered the intimately mesomorphic and the wealthiest e relegate or demesne in the whole terra firma that e truly kind that occurs brush aside affect the received shape of different countries.The failures committed by the US monetary firms feed evolved into globose crisis affecting the financial stableness of different continents ex s give wayable Europe and Asia. In Europe, cant failures and filiation in various stock indexes atomic physical body 18 experienced. Also a large simplification in market values of equities and commodities in the orb market occurred. Around the world, the United States of America is genuinely important and is the to the highest degree prominent uncouth in the world. genius proof of this is the currently destroyed presidential election of 2008.Each and all(prenominal) terra firma in the world had their bets on who is departure to attain success between the two views running for office. The whole world is not taking their eyes of on who go a mode win between John McCain, a white candidate and Barrack Obama, a black candidate. Not only the bulk of the US ar excited in the incoming moderates only each person, for the near part world leaders, ar anticipating on the victory of the republican and the one who is craving for change.McCain is the presidential candidate that each person sees as someone who go forthing continue the counseling current president George Bush rules the body politic while Obama, the early(a) presidential candidate who claims of carrying change in the style the US should be regularizeed. Every participa tion supporting both presidential candidates becomes very vocal on who to put into office. plainly now, the oddment of every fight comes and the black company and the rest of the United States hurl verbalize putting someone who is craving for change in the position making Obama the counterbalance black president of the most influential nation worldwide.Obama attaining victory has inspired a lot of people, making it viable for every person to gain what they by and large cherished and in this moment, change is ease possible or change can even-tempered be perceived. What is the connection between the current planetary financial crisis which is considered the major(ip) crisis subsequently Great Depression and the just finished presidential elections? Well, the effect of every step that the bucolic is taking affects separate countries stance. On how the new president depart govern the country and how he give strait help to an some other(prenominal) countries is what every nation is expecting from the most prominent nation in the world.While, the current global financial crisis cede started in the failure of the United States which is at one age affecting the whole world is as well very influential only when in a very negative way for some other countries. Global financial crisis is mostly equated, or can be treated as sparingal crisis because the causes and the effectuate of the said crisis argon mainly sparing and mostly on the financial stability and the economic state of the country. Economic and financial stabilities can be the changes in prices of commodities, bank failures or unemployment. near of the causes which lead to the global financial crisis are the following (1) eminent commodity prices, (2) trade, (3) inflation, (4) unemployment, (5) return of volatility, and (6) economic judicature. higher(prenominal) commodity prices can be mostly seen in the purchase of aliment and oil. sustenance is very first in the tilt be cause it is the main requisite of every person. The family should live with enough food to eat every day to maintain the health of every person. Food is the topic one need of every person in evidence to live.Oil follows food in the describe since it is the most exported and imported commodity in the world since most nations are not capable of producing oil while other nations are experiencing a surplus of oil. But the price of oil in the world market withdraw reached $147 which led to the adjoin of oil prices in every country importing oil and the arise in other prime commodities has followed. Inflation is as well present referable to excess specie supply nigh the world, speculation in commodities, agricultural failure, rise in the exist of imports and the rise in the demand for food and commodities. Unemployment is similarly considered one of the causes.The number of graduates or those people looking for jobs is growing for the most part each year while the number of jobs available does not increase as fast as the number of baseless people. It can be perceived that in the coming year, there will be 20 million people losing their jobs receivable to the financial crisis. These people who will unload jobs are mostly from the construction, real estate, financial services and auto areas and industry. Economic governance is also important since it dictates how the economy of the country should be managed not only in time when the economy is stable but also when economic instability becomes unstoppable.How world leaders and economic advisors handle the situation is very important especially in the US because whatever decision they scram will not only be perceived by the nation but also of different and other nations around the world that are mostly mutually beneficial on the US economic state. The global financial crisis can pass on to recession, rise in unemployment rate and liquid state crisis. bonny after the 2008 US presidential election , leaders of the United States admitted that the country is in recession. This delegacy that the economy is not stable as well as the financial cogency of the country.This is the mop up that can happen to the most influential country in the world since most of the countries in the world are depending on the economic changes that will be happening in the US for economic changes in their countries to also occur. other worst effect that can be pass judgment if the crisis will not be halt is the rise in the unemployment rate all over the world. Major companies will be experiencing problems in their balance sheets that may essence to the company closing scratch off or laying off a number of gainers. The global financial crisis may result in the economy slowing down and jobs will surely be affected.In what way? Investors aptitude be experiencing emotions in the presence of paper based losses and there will be a visible decline in wealth. The state of the investment can experien ce a bad state that will mint in to either close down or be interpreted over y competitors. Major companies can also result in selling their shares of stock because of the liquidity crisis. In this moment, banks will not be willing to lend money to other banks to protect the money and assets that their investors and depositors have indisputable them. It will be a lifesize risk for banks to lend money to other banks since some banks are already experiencing bankruptcy.Another thing is that importing and exporting products from other countries will be costly that the export and importation rates can be slowed down. In the exporting country, the commodity prices will be experiencing a decline. The exportation solve slowing down, there will be lower prices for goods and services. The presence of the major global financial crisis has forced policymakers to concentrate on on the problem well and come up with reforms that will address the problem encountered due to the crisis. Some policymakers had come up with reforming the global financial system in dress to address the problem.World leaders and economic advisors have already conducted meetings regarding the global financial crisis talking about possible go to address the problem itself and the problems that rooted to from the major crisis. The global financial crisis may have dangerous consequences mainly to the urban and sylvan poor, the labor sector and women and other marginalized sector of the society. These sectors are the most vulnerable to the changes that will be brought by the crisis so the country must(prenominal) first focus on these sectors. Policies focusing and protecting these sectors must be implemented to avoid involuntary yearning and unemployment rate.Since these are expected to be the most affected by the crisis, the state should be able to implement policies regarding social aegis of these sectors. Companies who are mostly managing and holding these sectors must consider the state of the workers onwards decision making to lay-off workers. The most possible way is to wish lower salary for the workers if some of them will not agree to being withdraw from the job. The lower the salary, the greater the possibility for the owners to pay all the workers and there will be no problems regarding formation of unions because of the removal of employees.The companies just need to talk it over to their employees before making a move because the laborers will be the most affected sector. Investors and depositors are starting to save money on their own than putting them on the banks since there are a number of banks experiencing difficulties in maintaining their balance sheets which can result to bankruptcy. around of these investors and depositors are afraid to trust the banks to take care of their money due to the accompaniment that when the crisis ill become bigger, they will have no money to spend on their basic needs.In this way, the state can talk to the centra l bank in lending money to banks that need most of the supplies of money to adhere to the customers needs and wants. Investors and depositors still have the rights to their investments. The state should also allot bud jack off for basic services. Long bourne plans are not possible at this very moment of crisis since as time passes by the number of people who might be experiencing difficulties due to the crisis is rising. The state should not focus on what can be done for the future but focus more on what can be done today to address the current issues brought about by the global financial crisis. terse-term goals are more conscious right now since there is a need for a quick retrieval for other people especially the ones belong to the lower-income groups, they are the most affected anyway. oversea workers have been laid-off because some companies are securing jobs for their own country men. Overseas workers should not just be removed from their work even though they are not from the country they should be given the corresponding right as every worker in the country has.Protection of these workers should also be implemented since most of them are taking jobs that the citizens of the country cannot take to get as jobs since most of them see the jobs very low. The global financial crisis might bring something unexpected to the country. As some economists have already perceived the rise in unemployment rate, liquidity crisis and recession might occur. Some may say that this is uncontrollable yet certain measures must be taken to address the problem at the present. Short time goals are the most informed at this moment. s