Global Financial Crisis Coursework Example | Topics and Well Written Essays - 2000 words

Global Financial Crisis - Coursework Example The intention of this study is a financial crisis as a situation where economic markets are interrupted because of controlled credit to businesses and households and the real markets of services and goods are unfavourably affected. There are immense causes or roots available for a financial crisis irrespective of any nation. Basically, the structural factors like confusion arising between the free and the continuous deregulation of markets, a remarkable rise in the role of investment markets prevailing in both banking and non-banking economic organisations, rapid use of new global monetary mechanisms, declining transparency of the free markets, increasingly spreading out high business risks, inequality in a particular businesses origination and distribution factors among others are a few of the major causes or roots of a financial crisis. Also the general factors like regular conflicts regarding the market interests among the free and capital market contributors, deviation between in dividual bank interest rates with central bank’s policy rates, extremely minimum risk-free interest rates in major economies like the US and Japan among others, growing gap between maximum capital profits and low cost of capital, spreading out unfavourable low credit difficulty across all mechanisms also constitute a few of the crucial roots of a financial crisis that are prevailing in a particular organisation or in a particular nation. (Alliance of Liberals and Democrats for Europe, 2008). In the paper, the regulatory failures that especially the western industrialised countries faced and which led to the universal economic crisis in the year 2008-09, is examined along with the findings about the causes or roots of the arising financial crisis along with certain immediate tasks that should be followed in order to cope up with the financial crisis has also been discussed. Evolution of the Financial Crisis The international financial crisis was originated with the ‘sub- prime mortgage’ crisis and was eventually faced especially by the western industrialised countries during 2008-09. With the result of increase in rate of interests along with decline in home prices, there was a sharp jump in non-payment and foreclosures. In that particular period, there arose certain doubts regarding the liquidity of those assets and eventually became tough to fetch adequate price (Rangarajan, 2009). As a result of raising this crucial doubt, it gradually started to affect the prevailing institutions for their enormous investments made in their respective products. Thus, the entire financial system of the western industrialised countries was recognised to be in an acute crisis. There was a mutual distrust among the financial institutions in the western countries which led to freezing up of several markets including the inter-bank market. This crisis in a financial system had moved to affect the real sectors in various significant methodologies (Rangarajan, 20 09). Due to the evolution of financial crisis during 2008-2009 in the western industrialised countries, the emerging market risks, the bank lending flows, the foreign direct investment (FDI) flows and the export volumes among others had turned negative. The economic activities were contracted rapidly and particularly the western industrialised countries experienced large decline in their respective industrial production which weakened their credit growth (Berglof, 2010). Causes of the Financial Crisis in Western Industrialised Countries The financial crisis has been brought about by a combination of unsuitable monetary policies, extreme risk taking of certain financial organisations and

The Jewish state in Palestine Assignment Example | Topics and Well Written Essays - 500 words

The Jewish state in Palestine - Assignment Example As it stands today, in my opinion, there will not be a peaceful solution to this issue. The Balfour Declaration created in 1917 stated that Britain, which at the time ruled Palestine, was in favor of creating a Jewish homeland. The term â€Å"Palestinian† is a misnomer. The land of Palestine was under the rule of foreign power since Biblical times. The Arabs living in Palestine never had a ruling government. Britain and the UN, after World War II, set aside part of Palestine to create the new State of Israel. Another misconception is Jewish families came and threw Arab families off their land. The Jewish immigration since Herzl’s time had Jews coming to Palestine and buying land from local Arabs. After the Israel declared their independence, Iran, Egypt, Iraq, Syria, Jordon, and Lebanon immediately attacked the new nation. The newly formed IDF (Israel Defense Forces) beat back the attacking forces and after a year won what is today Israel, excluding the West Bank, Gaza Strip, and Golan Heights. The Six Day War and Yom Kippur War gave Israel the Sinai, Gaza Strip, West Bank, and Gaza Strip. Through negotiations the Sinai was returned to Egypt. The others are known as the Occupied Territories. When Israel formed their government, Jewish interests were placed first. The Holocaust had brought the cry â€Å"Never Again† to the lips of every Israel. The Arabs or â€Å"Palestinians† felt ostracized in their own country. The new language was Hebrew first, then Arab, and the English. Jews from all over the world flooded the tiny country, which is no bigger than New Jersey. The refugees of the wars, instead of leaving for an Arab country, were placed in refugees camps. Refugee camps in the Occupied Territory are cramped apartments where hunger and poverty run wild. The Palestinians started fighting against Israel through terror attacks on civilian targets. The Mahlot School