In the present day there is no more popular theme, than financial crisis. It is discussed by everyone, from the politicians who absolutely do not have even basic economic knowledge, and to experts. Financial crisis is still making headlines nowadays. More and more people have lost their jobs. For example, the American economy lost 467,000 more jobs in June, and the unemployment rate edged up to 9.5 percent. Government spent all their money to restore the banks. Why is it happening? Who has the responsibility?
The term of financial crisis is really difficult to explain. It's have a lot of definitions, but clearly one and the main one I wrote below.
"The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign default" [1]
Reasons.
What is the real reason for Financial crisis? This video tries to convey all important information about reasons of Financial crisis.
The crisis visualized from Jonathan Jarvis on Vimeo.
Video highlights that the main reason is that, bank lend their money too easy.
Then the broker traded the mortgage to mortgage lender. After this, the investment banker borrowed a great deal of money to buy a host of mortgages in the Collateralized Debt Obligation (CDO) and separated into three.
Financial crisis, what influence it convey for all of us.
"Since the start of October, thousands of jobs cuts have been announced across all sectors of the UK economy" according to an article in the Telegraph online.
So why it happened? Why many companies left their money? It's really difficult to conduct this information to people who don't no anything about Finance. The following video illustrates what "Financial crisis" is.
Financial crisis is really difficult phenomenon and issue nowadays. Only because of FC (financial crisis) people lost their jobs. For example jobless rise highest for 17 years. The rise took the jobless total to 1.79 million and the rate to 5.7%, up from 5.2% in the previous quarter.
The Office for National Statistics figures also highlights the number of people claiming Jobseeker's Allowance rose by 31,800 to 939,900 in September. The government made an extra £100m available to re-train workers who lose their jobs because of FC. The Following graph show us how dramatically increase the unemployment rate and this rate will only rise, until we find solutions.
Nowadays is the main problem for students as well, because people who graduate from universities what find a good and well paid job, but now it's really difficult and the reason is FC.
Future.
Any expert can't today exactly predict, how will look marvellous new financial world on termination of the first depression of the XXI-st century. However in a prize, certainly, there will be those financial structures which already will feel today the general orientation of the future market transformations and on this basis will choose a vector of the intermediate term development. I maybe wrong, but the situation now isn't good and in the nearest future it won't change, even maybe it will be much worse. Everyday people lose their job. In addition this is the big problem for graduates, they don't have big percentages to find a good and well-paid job. Also, nowadays is problem to start your own business, you must have a big amount of money to start your deal.
Solutions.
Conclusion.
To sum up, I say that FC is the main vermin in life of businessmen. Is the main originator nowadays and politic leaders tried to relieve us from this problem.
Quotes:
1) www.youtube.com
2) Times100.com
3) Times newspapers
4) TV programmes
