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2008 Economic Crisis

A sub-category dedicated to the economic crisis that has affected us all

810 Questions

What is a collective bargaining agent?

A collective bargaining agent is an organization that negotiates with employers on behalf of employees. This is what is commonly known as a trade union.

How do you solve four economics problems?

Please tell me about how to solve these problems? 1 what to produce and how much to produce 2 how to produce 3 for whom to produce 4 how to accelerate economic growth

Meaning of as much as possible?

The meaning of 'as much as possible' means to have/do (or any other verb) a maximum amount of something.

Who owns Lehman brothers?

On September 22, 2008, Nomura Holdings announced that it had agreed to acquire Lehman Brothers' franchise in the Asia Pacific region, including Japan, Hong Kong and Australia.[12] The following day, Nomura announced its intention to acquire Lehman Brothers' investment banking and equities businesses in Europe and the Middle East. The deal became effective on Monday, 13 October.[13] In 2007, non-U.S. subsidiaries of Lehman Brothers were responsible for over 50% of global revenue produced.[14]

In October 2008 Japanese financial services company Nomura Holdings stepped in and acquired three Mumbai, India based divisions of Lehman Brothers that provided back office and IT operations. Nomura also acquired the Asia Pacific division of Lehman Brothers as the US banking giant was carved up by rivals. [15]

Lehman Brothers' Investment Management business, including Neuberger Berman, was sold to its management on December 3, 2008. Creditors of Lehman Brothers Holdings Inc. retain a 49% common equity interest in the firm, now known as Neuberger Investment Management.[

From: http://www.sourcewatch.org/index.php?title=Lehman_Brothers

What is deep level diversity?

Deep level diversity is wherein individuals feel they diverge from members of a work group. This is the degree to which individuals differ in personality, values or attitudes.

What does it mean to collectively bargain?

Collective bargaining is when workers come together to negotiate with management. This is a union's purpose. The may be negotiating for higher wages, higher safety standards, more/less hours, etc etc, but the point is that the workers do it as one entity (hence collective).

Examples of economic problems?

The examples of economic problems include poor infrastructure, corruption, insecurity and so much more. These are the things that affect the economy directly or indirectly.

What are the factors affecting recession?

Factors that affect recession are complex and vary between each incident. What most recessions seem to have in common is an over speculation in stocks, real estate, commodities or some combination precedes the recession. They are usually marked by a loss in confidence by the public which can affect the length/depth of the recession.

What contributing factors led to the financial crisis of 2008?

in US there was more supply of goods(product ) and less supply of money,due to shortage of money the value of product gose down and it cause less productation and unemployment.

What savings contribute to economic growth and prosperity?

Savings contribute to economic growth and prosperity by providing the capital necessary for investment in businesses and infrastructure. When individuals and institutions save, these funds can be channeled into productive investments, leading to increased productivity and innovation. Additionally, higher savings rates can stabilize economies by providing a cushion during downturns, fostering sustainable growth over time. Overall, savings enable the accumulation of resources that drive economic development and improve living standards.

Why would removing a trade restriction such as a tariff lead to more rapid economic growth?

Removing a trade restriction like a tariff can stimulate economic growth by enhancing competition and lowering prices for consumers. This opens up markets for exporters, encouraging domestic industries to innovate and increase efficiency. Additionally, increased trade can lead to greater access to a variety of goods and services, fostering consumer choice and improving overall economic welfare. Ultimately, this can result in higher productivity and job creation as businesses expand to meet new demand.

Why financial crisis happened every 10 years?

Financial crises often occur roughly every decade due to a combination of factors, including cyclical economic fluctuations, excessive risk-taking, and regulatory failures. As markets expand, optimism can lead to asset bubbles, while subsequent downturns reveal vulnerabilities in financial systems. Additionally, the interconnectedness of global economies means that shocks can quickly spread, amplifying crises. Finally, lessons from past crises may be forgotten over time, leading to repeated mistakes.

Consider a nation in which the volume of goods and services is growing by 5 percent per year What is the likely impact of this high rate of growth on the power and influence of its government relativ?

A nation experiencing a 5 percent annual growth in goods and services is likely to see an increase in government power and influence due to enhanced economic resources and revenue. This growth can enable the government to invest in infrastructure, social programs, and public services, thereby improving overall quality of life and fostering public support. Additionally, a robust economy may increase the government's ability to assert itself on the international stage, attracting foreign investment and strengthening its geopolitical position. However, if growth leads to income inequality or environmental degradation, it could also provoke social unrest, challenging the government's influence.

What is the remedies for financial crisis of 2008?

The financial crisis has been one of liquidity. This refers to the ability of an asset to be converted to cash. It is important for banks because if there was a sudden decline in deposits, they need to have cash on hand to cover their reserves. They acquire this cash by selling assets such as investments, securities, or now most famously, collateralised debt obligations (CDOs). CDOs are where the trouble began. Many CDOs were secured (collateralised) by mortgages. When, due to the plunge in housing values, those CDOs became totally worthless (most investors were totally unwilling to buy them), a lot of banks were stuck with them. The value of these assets continued to drop and banks started needed cash to cover it. Had these bad debts been easily liquidated, we wouldn't be in this situation. Now we need to get liquidity back into the markets. Banks are still strapped for cash and we are starting to witness a decline in lending. This causes businesses to have to cut back. This is why we are now seeing an increasing unemployment rate.

Realizing that does not directly the question, we have to ask ourselves "How do we get liquidity back into the market?". That is not as easy as some suggest it to be. Economists refer constantly to the "pushing on a string" analogy when it comes to government policy effects on the economy. It is very very easy for government to pull back on the economy and slow it down or even stop it (pulling on a string) but it is extremely difficult for government to push the economy forward (pushing on a string). Governemnt policies cannot grow the economy very easily. Nor can they solve this crisis easily.

Revoke the charter of the Fed and set up a new national banking system that is constitutional and reflects a sound money policy. Texas Rep. Ron Paul has been trying to get congress to face up to this issue for years.

There are many things that drive an economy, but one certainly is consumer confidence. If people have a belief in future success they will invest their time, energy and capital in ways that will restore the economy to a growth path. Confidence has been undermined in many ways over the last two decades. One of the greatest problems has been the lack of investment in manufacturing in this country. The result has been a loss of what the politicians term "good jobs". A series of articles discusses the problem and things to be considered in a long term solution. Please see the related links below.

Tax cuts! Further reduce individual and corporate tax rates across the board and announce that there will be no tax increases for at least two years. Do this at both the Federal and state levels. This will increase the confidence of individuals and businesses, will increase trade, investment, business growth, and hiring. As businesses and individuals all become more successful, even low tax rates applied to a higher volume of trade will actually bring in more income to governments, not less. When the capital gains task rate was recently lowered, revenue to the government increased!

The crisis is a lack of trust among banks. We still don't know the sleeping dogs. The first step would have to be a total transparency of large interbank loans, similar to stocks. Since banks don't like this, only government can order disclosure of essential loan data. Pouring money into the system does not solve the problem. There is enough liquidity, it is just not being used.