2008 Economic Crisis

Of course it doesyer mom lol jokin. The world economy is interconnected on many levels. For instance, you may have noticed the huge jump in gas prices for a time during 2008. While there were many factors involved in this, one major one was that oil is traded in US Dollars. As the value of the USD falls, the amount of oil that $1 purchases decreases (thus increasing the price of oil). While most easily noted in countries that trade goods in the USD, the price of oil is a huge factor in the cost of moving goods around the world. If it costs more to move goods, naturally the goods cost more when they arrive.

This is a meager example of one minor facet of world economy at work. There is, without a doubt, a nearly infinite number of other examples that could be given, but I will let wiser economists than I try to give you a better explanation. However, the direct answer to your question is yes, a failing economy in the US (or any major trade nation) has a ripple effect throughout the world.

2012

The governments world wide have been taking frantic steps to control the effects of this recession. The US government has sanctioned billions of dollars to help the economy. Similarly nations like UK, India etc are also taking steps to tide over the problem.

Currently the economic situation around the world seems to be improving and we can expect things to stabilize and become normal by the end of the year 2009.Still we have to fight.

(i) Through trade liberalization and free market economy, globalization has stimulated much utilization of natural resources, there are many companies which are investing in national resources like mining ,fishing ,etc ,these companies enables Tanzania to utilize her resources for development of her people

(ii) Globalization has made production and transportation of goods easier and faster than ever before. Therefore it enable Tanzania to get different varieties of goods of various quality and quantity from any part of the world

(iii) In some instances, globalization creates employment opportunities to many people. For examples different companies such as vodacom, tigo, mining companies etc employ many Tanzanians.

(iv) Through globalization of social services, there is wide spread of private schools ,hospitals, dispensaries which contribute much in providing services to the people ,hence improving their well being

There was no one willing to buy Lehman Brothers as there were for other banks, example JP Morgan bought Bear Stearns, and when Richard Fuld, CEO for Lehman Brothers is making 60 million a year for 8 years straight (480 million to be exact) it makes the government think twice. Long story short, the government didn't have much invested in Lehman Brothers.

When the 1973 Oil Crisis hit the developed world, Mexican Presidents Luis Echeverria and Jose Lopez Portillo began to rely heavily on oil exports to support the financial needs of the country, taking advantage of the high oil prices. When the market eventually stabilized, the little diversification of exports resulted in an economic slump and a devaluation of the Peso by 500%. This is often called the Lost Decade or Decada Perdida (1973-1982). Three years later, the Mexico City Earthquake (1985) further deteriorated the Mexican economy, as Mexico City, which agglomerates 20-25% of the country's national income, was heavily hit by such natural disaster.

eliminates other options

A Few causes are

1. Uncontrolled Lending to customers with poor credit history

2. Too much leverage provided by complex derivative products

3. The Real estate market crash

and most importantly

GREED.

The U.S. has the most influential economy because the dollar is the standard of international exchange. A sudden contraction of the money supply ( the Federal Reserve is the only institution capable of doing this ) caused an economic crisis in the U.S. and there was a ripple effect throughout the world because so many other countries are holding U.S. dollars in their reserve.

To be quite honest without a doubt the crash of the housing market was the biggest cause.Low interest rates played a big part in dragging people in with a poor credit history who really in the eyes of the banks couldn't pay their loans off but were still given them.Also too much deregulation and the banks and business' being able to do pretty well whatver they wanted even playing with future predicted earnings on the stock market that never actually came in, also contributed in a large way to the financial collapse when companies could not afford to pay their workers and the debts that they owned to the banks and to other companies causing them to go into negative liquidity and since the banks themselves weren't lending money anymore,in many respects because they didn't have it anymore caused more and more companies and people to forfeit on their payments and debts causing a large downward spiral!

The question markets or governments are answering when they make decisions about how to efficiently convert resources in to goods and services is How to Produce? This is part of a planned economy which tries to improve productivity.

* change in population * government policies * income change * future expectations

The Subprime 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 crash 2. High default rates on Subprime loans & 3. Subprime Mortgage backed securities The US Real estate market crash triggered the recession...

How did the GNP change in 2008?tHIS IS A QUESTION THAT IS BEING ASK IN MY ECONOMICS CLASS

Technology and engineering translate scientific knowledge into action. At the same time, technological innovations often require further research into materials, devices, and processes. NIFA programs support engineering research and new technology development, as well as academic training and technology transfer.

It is a popular English proverb. Attributed to Joseph Kennedy (father of the US President) and to an American football player Knute Rockne. Also used in a Billy Ocean single released 15th November 1985

The reverse repo rate is the rate at which banks park their short-term excess liquidity with the Central Bank, while the repo rate is the rate at which the Central Bank pumps in short-term liquidity into the system.

Bad. GDP went down for the US government. The public added $3 trillion in debt.

Tens of thousands were getting foreclosures.

House sales plummeted. People were often having issues paying off loans.

If you have anything more specific you would like to know let me know.

~Braydengerr

Well the difference between Muslim community of Muhammad and the society of Arab is because the Muslim's concerns about God while the Arab believes in God and his oneness

Some impacts are:

1. The general public is cautious about saving their money in private banks. This has brought down the corpus of private banks like ICICI, HDFC etc

2. Banks which had exposure to derivative product exposure in the US have had to incur losses which they are trying to cope up with

3. Banks have become cautious in lending loans. They are not ready to grant loans to people who do not have a strong credit profile

4. The profit margins for the banks are coming down hence they are adopting stringent policies with respect to its employees

etc...

Not unless the root causes of the crisis are addressed. These are explained very well by U.S. Congressman Ron Paul. You find a lot of clips on YouTube concerning these issues if you search on his name. In a nutshell, the problem is that the system of banking in the U.S. has been unconstitutional since 1913. This has allowed a redistribution of wealth that has eroded both the economy and the democratic processes in this country. Every patriot should learn about these issues and demand a change. The impetus for change in this country has to come from the people, and those who think that a President or any other governmental body is going to make a difference are in for a rude awakening.

3. HUBUNGAN HUKUM PAJAK DENGAN HUKUM PERDATA

Prof. Mr. W.F. Prins, mantan guru besar Ilmu Hukum Pajak di UI dalam bukunya "Het Belanstingrecht van Indonesia" mengatakan bahwa hubungan erat ini sabgat mungkin timbul karena banyak dipergunakannya istilah2 hukum perdata dalam perundang-undangan pajak.

Sebaliknya pengaruh hukum pajak terhadap hukum perdata, sebagai akibat ketentuan bahwa "lex specialis derogate lex generalis"(peraturan yang khusus mengalahkan peraturan yang umum). Maka dalam setiap PENAFSIRANNYA pertama-tama dianut peraturan yang khusus ini.

4. HUBUNGAN HUKUM PAJAK DENGAN HUKUM PIDANA

Ketentuan-ketentuan pidana yang diatur dalam KUHP banyak dipergunakan dalam Hukum Pajak.

LIHAT :

UU No.6 tahun 1983 tentang "Ketentuan Umum dan Tata Cara Perpajakan" pasal 38 dan 39 yang kemudian DIUBAH dengan UU No.16 Tahun 2000: JELAS sekali menyebutkan adanya SANKSI PIDANA (berupa KEALPAAN dan KESENGAJAAN) terhadap wajib pajak yang melanggar ketentuan di bidang perpajakan.

Bahkan, ANCAMAN2 pidana dalam hukum pajak selalu MENGACU pada ketentuan hukum pidana.Misal: è thd wajib pajak yang MEMINDAHTANGANKAN atau

MEMINDAHKAN hak atau merusak barang yang telah disita karena tidak melunasi utang pajaknya akan DIANCAM pasal 231 KUHP

the effect of tourism in the philippines:

1. many tourist from different countries to visit

2. income

3. to appreciate the beauty of the philippines

4. to be well know in different countries the beautiful places,people, the foods

It's a public limited company. Anyone can buy shares in the company - share ownership is not limited to employees.

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Current (April 2008) instability in the U.S. and to some degree international financial markets is not limited to sub-prime mortgages, although rising interest rates resulting in foreclosure have brought the issue to the public's attention. The current financial market uncertainty can be traced to the increasing use by financial institutions of asset-backed securities, in particular asset-backed commercial paper. Asset-backed securities are a way that companies borrow money. They are similar to bonds, which are basically loans to companies (or countries) that can be bought and sold in a relatively liquid bond market. Bonds are backed by a company's credit; the company is obligated to repay the bonds, or else face consequences such as bankruptcy. Asset-backed commercial paper is a fundamentally different way to borrow money. What "asset-backed" means is that the "interest" income the bondholder receives is based on a stream of payments from the underlying asset. The most common type of asset we are hearing about right now is home mortgages. So basically what happens is that a bank or other financial institution (the involvement of "other financial institutions" is a significant contributor to the growth in this market) makes loans such as home mortgages, or in other cases car loans, credit card payments, etc. So instead of a bank receiving mortgage payments and using them to pay back loans, foreclosing if necessary, banks are more or less an intermediary. They make loans, and then re-sell them in the commercial paper market. What people who own these securities get is essentially a bundle of home mortgage obligations. When people are paying back their home mortgages, everything works well. However, when people stop paying their mortgages, the owners of the commercial securities see the value of their investments plummet. Since the package of securities is relatively concentrated and homogeneous (rather than diverse, like a bank that makes loans to business, homeowners, car loans, credit cards, etc.), the risk of these securities is substantially higher than an investment in a large corporate stock or bond, or even regular commercial paper backed by the credit of a particular institution. One of the problems has been that it has been difficult to assess the risk and value of asset-backed securities. Home mortgage loans are divided into murky "troches," and the value of your security relates to which "troche" may underly your particular security. There is also a substantial opportunity for abuse and misrepresentation. Most notably, in 2003-2004 a company sold asset-backed securities supposedly based on rental income from various properties in India. As it turned out, the only "property" the corporation had was a rented office in a building off a dusty, isolated road. Essentially, all people needed was a Post Office box, and people were rushing to lend them money. So these securities were risky. But risk itself is not a problem, as long as investors are properly compensated for the risk with higher interest rates, for example. However, investors substantially underestimated the risk involved in these securities; as a result, banks and financial institutions were borrowing at relatively low interest rates. In addition, since non-bank institutions do not have the same reserve requirements as banks, they were able to create money much more efficiently. The end result was a substantial increase in the overall money supply, which will be discussed later. Part of the issue is that multiple components of the financial markets were involved in this business. Banks held some of this commercial paper, as did some money market funds. Also, payment of these bonds was frequently insured. So loss of faith in asset-backed securities could topple not only banks, but also large insurance companies and re-insurers, the companies that insure the insurance companies. Everyone more or less panicked and became much less willing to buy asset-backed securities. As stated above, the availability of asset-backed securities considerably increased the overall money supply. Recent economic theories suggest that interest rates, not money supply, directly impact the economy. This financial crisis may prove them wrong. The asset-backed commercial paper market resulted in a substantial increase in the money supply while interest rates remained low. Inflation appeared to be low partly because of low energy costs (because Saddam Hussein was secretly selling massive amounts of oil above and beyond his OPEC quota). In addition, inflation was concentrated in the housing sector -- not surprising, since that's where the majority of asset-backed security money was available. Availability of money through bonds and bank lending is the oil that allows the engine of the financial markets to keep working. Basically, people finally figured out that the engine has been leaking oil (perhaps literally) for many years. The financial engine finally seized up. Not only are they worried about banks, but also insurance companies, etc. That's why the Fed has stepped in to re-lubricate the engine by increasing the money supply (which will only serve to increase inflation, but that's another story). JP Morgan Chase stepped in to save America, just as good old JP Morgan did around the turn of the century. This "crisis" bears striking resemblance to the savings and loan crisis of the 1980s. A significant contributor in both cases is deregulation. The savings and loan crisis was caused because of substantial changes in federal regulations governing loan policies for S&Ls. In that situation as well, investors significantly underestimated the risk of the underlying assets. The parallel to savings and loans is the non-bank mortgage brokerages and other financial institutions that got into the home mortgage business. For example, Ditech looks like it is in the home loan business, but is actually a unit of GMAC -- that's right, auto-maker GM's financing arm. This is another connection that spells trouble. The only reasonably profitable business of U.S. automakers has been financing -- they don't make money on cars, they make money on selling loans to people who buy cars. This makes the already-troubled U.S. automakers dependent on a supply of income that has suddenly dried up. GM has an overall negative capitalization (has lost more money than it has ever made). Combined with changes in the car market toward smaller, more efficient vehicles as opposed to the SUVs that are U.S. car companies' bread and butter, it does not look good if you are an employee or retiree of the U.S. auto industry. So those people stop buying stuff, and people they stopped buying stuff from stop buying stuff, and so on. And the economy shuts down, known politely as a "recession." If this description sounds hauntingly like the second half of the 1970s and the first half of the 1980s, yes, there is reason to be afraid. The above dynamics are reminiscent of that period. Add to that concern over an emerging Asian economic power (then Japan, now China), skyrocketing oil prices, Middle East terrorism (Iran hostage crisis, anyone?) and significant concerns about American foreign policy and our ability to sustain our military and other commitments, and the feeling of deja vu is overwhelming.