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What are the causes and effects of the global financial and economic crisis on the global economy and the possible solutions?

The effects of this economic meltdown are:1. Banks have incurred huge losses. Their earnings came down.2. Financial institutions have gone bust or have been taken over by bigger organizations3. The housing prices have plummeted4. The liquidity in the financial system has come down5. High unemploymentetc.what is global economic crisis?The Sub prime Mortgage Crisis is an ongoing economic problem that has become more apparent in 2008 and has resulted in reduced liquidity in the global credit market and also the banking & financial systems. This crisis has exposed the weakness in the global financial system and also the regulatory framework that is overlooking them.Some of the reasons for this crisis are:1. The US Real estate market crash2. High default rates on Sub prime loans &3. Sub prime Mortgage backed securitiesA Sub prime loan is a loan that is granted to a borrower who does not qualify for loans owing to a variety of risk factors like low income level, bad credit history etc.In general, banks giving home loans to people who couldn't afford homes. That's what started it. Lots and lots of things happened afterward.There are many factors that cause global economic crisis. If one believes in free markets then, it is said that institutional polices that attempt to exploit the market can cause serious fluctuations on the global scale. According to most "free market" theorists, the market is an exchange between two constituents, who agree on a price without of need of an "arbitrary agent". This creates a natural supply and demand defined by their agreed price. The situation that occurs is that this model is affected by economic events such as weather, availability of resources, institutional policies and technology, which all can be either positive or negative. For the case in point, let's say that there is an arbitrary agent who decides to charge a fee for conducting an exchange for six individuals (this example could be substituted for any of the mentioned economic events uniquely affecting the price). Each of the three pairs would have a supplier and consumer. Let us also suppose that 2 out of the 3 pairs can afford to do business but one of them cannot due to this fee. This would thus create an inefficient market. On a global context, if we were to have this model to represent the sum of all markets, the 2 pairs that can afford to do business would be all functioning markets and the one that cannot would be the market failures influenced by the arbitrary agent which can be viewed as all ineffective economic policies. In a sense, a global economic crisis is the occurrence of market inefficiencies due to economic events. I hope this answers your question.There is no cause of the global crisis there's only a effect and that's your mom


Which type of committee would be formed to investigate possible causes of the financial crisis in 2008?

A congressional oversight committee, often referred to as a special investigative committee, would be formed to investigate the possible causes of the 2008 financial crisis. This type of committee would conduct hearings, gather testimonies from key financial institutions, regulators, and other stakeholders, and analyze regulatory failures, lending practices, and the role of mortgage-backed securities. The goal would be to identify systemic issues and recommend reforms to prevent future crises.


How do you write a good conclusion for US history?

There is no "good" conclusion of U.S. history. Any such conclusion would be tragic. A conclusion would, however, include any Republican being elected president.


Future of Indian sensex?

The Sensex would remain volatile until the global economic crisis subsides. People are very cautious about investing in the share market hence the ups and down in the index would continue for a few more weeks Once the global situation improves we can expect the sensex too to rebound and reach its Jan 2008 highs...


What was president Hoovers first response to the worsening financial crisis during the great depression?

President Herbert Hoover's first response to the worsening financial crisis during the Great Depression was to promote voluntary measures and encourage businesses to maintain wages and employment levels. He believed that the economy would recover through self-regulation and that direct government intervention would undermine individual initiative. Hoover also established the Reconstruction Finance Corporation in 1932 to provide financial support to banks and businesses, but his actions were often viewed as insufficient in addressing the scale of the crisis. Overall, his reliance on voluntary cooperation and limited government intervention was met with criticism as the economic situation continued to deteriorate.

Related Questions

Do you need war to solve global financial crisis?

You need a renewable source of fuel so the economy would stabilize.


Which committee would be formed to investigate possible causes of the financial crisis of 2008?

A committee similar to the Financial Crisis Inquiry Commission (FCIC) would be formed to investigate the possible causes of the financial crisis of 2008. The FCIC was a bipartisan commission created by Congress to examine the factors that led to the crisis and to provide recommendations to prevent similar events in the future.


How would you use deregulation in a sentence?

The process of deregulation caused the 2008 financial crisis.


How can you solve the global energy crisis and dependancy on fossil fuel?

If I could I think I would be extreemly rich!


Was Mexican bailout was considered the first financial crisis of the 21ST century?

Nope, in fact, it wasn't even in the 21st century. A US-Mexico bailout was last done in 1995. The first financial crisis of the 21st century would probably Turkey's financial crash in 2000. The second would be the US' "Dot Com Slide" on the Dow Jones.


Did people of Jewish descent cause the financial crisis?

There are certainly Jews in banking, but it would be preposterous to say that "Jews" caused the financial crisis. The banks in aggregate caused the financial crisis and Jewish bankers and non-Jewish bankers are equally culpable for creating this fiasco in proper proportion to their activities concerning the creation of subprime mortgages, mortgage-backed securities, and fraudulent practices.


Are you satisfied to the measures taken by the government to fight global crisis?

Yes. They are doing their best to fight the global crisis. If it were a small problem the steps could have yielded results by now but since it is a global phenomenon it would take some time to heal and show results. So this delay is only interim and we would see the fruits of the measures taken in the next few months.


How many did the crisis sold the first week?

To provide an accurate answer, I would need more context about which specific crisis you are referring to, as there have been many events and releases termed "crisis" in various fields, including video games, movies, or financial crises. If you can specify the context or the item in question, I would be happy to help!


Which best explains an increase in the number of hybrid's sold?

The best explanation for for the increase in the number of hybrids sold would be the increase in fuel prices. As gas and oil prices began to rise during the global financial crisis, many people decided to buy cars which were more fuel efficient.


What are the causes and effects of the global financial and economic crisis on the global economy and the possible solutions?

The effects of this economic meltdown are:1. Banks have incurred huge losses. Their earnings came down.2. Financial institutions have gone bust or have been taken over by bigger organizations3. The housing prices have plummeted4. The liquidity in the financial system has come down5. High unemploymentetc.what is global economic crisis?The Sub prime Mortgage Crisis is an ongoing economic problem that has become more apparent in 2008 and has resulted in reduced liquidity in the global credit market and also the banking & financial systems. This crisis has exposed the weakness in the global financial system and also the regulatory framework that is overlooking them.Some of the reasons for this crisis are:1. The US Real estate market crash2. High default rates on Sub prime loans &3. Sub prime Mortgage backed securitiesA Sub prime loan is a loan that is granted to a borrower who does not qualify for loans owing to a variety of risk factors like low income level, bad credit history etc.In general, banks giving home loans to people who couldn't afford homes. That's what started it. Lots and lots of things happened afterward.There are many factors that cause global economic crisis. If one believes in free markets then, it is said that institutional polices that attempt to exploit the market can cause serious fluctuations on the global scale. According to most "free market" theorists, the market is an exchange between two constituents, who agree on a price without of need of an "arbitrary agent". This creates a natural supply and demand defined by their agreed price. The situation that occurs is that this model is affected by economic events such as weather, availability of resources, institutional policies and technology, which all can be either positive or negative. For the case in point, let's say that there is an arbitrary agent who decides to charge a fee for conducting an exchange for six individuals (this example could be substituted for any of the mentioned economic events uniquely affecting the price). Each of the three pairs would have a supplier and consumer. Let us also suppose that 2 out of the 3 pairs can afford to do business but one of them cannot due to this fee. This would thus create an inefficient market. On a global context, if we were to have this model to represent the sum of all markets, the 2 pairs that can afford to do business would be all functioning markets and the one that cannot would be the market failures influenced by the arbitrary agent which can be viewed as all ineffective economic policies. In a sense, a global economic crisis is the occurrence of market inefficiencies due to economic events. I hope this answers your question.There is no cause of the global crisis there's only a effect and that's your mom


Which type of committee would be formed to investigate possible causes of the financial crisis in 2008?

A congressional oversight committee, often referred to as a special investigative committee, would be formed to investigate the possible causes of the 2008 financial crisis. This type of committee would conduct hearings, gather testimonies from key financial institutions, regulators, and other stakeholders, and analyze regulatory failures, lending practices, and the role of mortgage-backed securities. The goal would be to identify systemic issues and recommend reforms to prevent future crises.


When did Hambayashi retire?

Hambayashi spoke of the financial-sector reform that would be necessary to overcome economic crisis and sustain growth. Hambayashi retired in June 2004.