GLOBAL ISSUES

 

"Global Financial Crisis"

(http://www.globalissues.org/article/768/global-financial-crisis by Anup Shah)

The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.

On the one hand many people are concerned that those responsible for the financial problems are the ones being bailed out, while on the other hand, a global financial meltdown will affect the livelihoods of almost everyone in an increasingly inter-connected world. The problem could have been avoided, if ideologues supporting the current economics models weren’t so vocal, influential and inconsiderate of others’ viewpoints and concerns.

A collapse of the US sub-prime mortgage market and the reversal of the housing boom in other industrialized economies have had a ripple effect around the world. Furthermore, other weaknesses in the global financial system have surfaced. Some financial products and instruments have become so complex and twisted, that as things start to unravel, trust in the whole system started to fail.

-->

How I look at it…

-->

A collapse in th US market would mean World Crisis. The Philippines though already independent after 300 years of bondage, have grown to be dependent to USA. Dollars being the currency of US became a very powerful form of money. So, Philippines aim to a achieve high dollars entry by the OFW’s and etc.

We can safely say that our country has been a too dependent with the big body of USA making them the biggest investor in the country. But, a crisis so severe is eating up the resources of USA thus affecting the World Financial System.

When people start to see problems, confidence fall to a low level. Because of this, additional problems started to stem. Banks, even with large capitals run out of reserves so they turn to the Federal Reserve to bail them out.

In essence, if the economy of the US falls at all time low, our country might suffer worse. We have been very dependent to them making us a lot more vulnerable when they experince financial crisis.

The government must find a way and develop remedies on our own because one must learn to stand on their own means. We must exercise our being a free country by living with what our resources permit.

-->Henry David once said, “It is desirable that a man live in all respects so simply and preparedly that if an enemy take the town... he can walk out the gate empty-handed and without anxiety.”

Entry for ECON 211

Lowell Yap Pueying