Financial Crisis College Essays Samples For Students

Discussion Question

- Financial Analysis is one of the most important concepts come under the ambit of finance (Eisen, p.12). The applicability and effectiveness of financial analysis could not be derailed from any aspect. John, who just completed his finance course, should take the course of business analysis after completing his course in Finance. Financial Analysis would certainly add value in his educational portfolio, if he really wishes to make his career in the capital markets. Financial analysis would enable John to assess the financial competitiveness of the companies and analyze the investment procedure effectively.

- Economic or financial crisis ...

Perhaps any of us has experienced and gone through tough times in their lives, when money is gone and you feel at the edge of the world. Most of us may never know ahead of an emergency, otherwise we could have prepared to save ourselves and our worth. Sensible financial strategists suggest that we create a strategy to suit us in cases when things go wrong. A strategy for a financial emergency sounds fine, but I would tend think that no formula has been invented to satisfy each and every occasion.

As ordinary people, we are open to vulnerabilities that ...

There are some aspects that cannot be left behind when discussing issues surrounding economics. “Economics, history, political science and power are not separable. That is; politics has a hand in the control of the economy. Similarly, the power-history of different nations also determines the economic status.” This is one of the facts that are not debatable.
Most of the countries that have a strong political background are also deemed to have a stabilized economic system. A stable political environment creates a platform for successful economic negotiations. In the recent times, there are some issues that have cropped up. The issues are related ...

The financial crisis of 2008 had one of the most devastating impacts on the world economies. The American economy may have been the source of the crisis but the impacts affected almost every country in the world. There are several global implications that resulted from the crisis. This includes the developed economies in Europe and the developing economies in the rest of the world such as Latin America and Africa. The global impacts can be divided into two; the consequences of the crisis on developing nations and on developed nations.

The developing world suffered a great deal during the financial ...

There have been a lot of crises throughout the history: South Sea Bubble (1720), Cuban missile crisis in 1960s, OPEC oil price shock in 1990s, Asian financial crisis of 1997, Economic crisis in Mexico (1994) and many others.
However, the financial crisis of the 2007-2008 is said to be the worst crisis since the Great Depression of the 1930s. First victims were the countries, which are the biggest financial centers in the world. Later, in a year or half, the rest of the developing countries started to suffer from the financial crisis that became global.
The term of the ...

1.2 RELEVANCE OF THE STUDY TO KUWAIT
Making responsible decisions in real estate lending is a concern that is largely relevant to the economic setup of Kuwait. The economy of Kuwait, firmly founded on industries related to oil and gas, business and commercial services, and real estate, largely rests on its strong banking system. Kuwaiti banks are known for high capitalization and derive strength from government support via policies and intervention via the Central Bank of Kuwait. However, it is noteworthy to emphasize that the real estate and investment sectors of Kuwait have been exposed to the economically hazardous effects ...

Introduction

The great recession is believed to have started toward the end of 2007, and affected most economies. This was dubbed the great recession in the literature since it was mainly deep and prolonged, and therefore was regarded to be the worst recession since the great depression of 1930s. For years, the economists have not agreed on the causes of the great recession nor have they agreed on the correct policy response to the subsequent recession. This made several governments introduce significant stimulus programs in an attempt to reduce the economic impact of the recession. Similarly, the increase in government ...

Q.1. Discuss the conceptual and operational definitions of the natural rate of unemployment, and the meaning of the terms structural and frictional unemployment.

Natural rate of unemployment refers to the condition that comes into existence when the economy of a country is at full employment; meaning that the quantity of resources demanded is equal to the quantity of resources supplied. Full employment also means that the labor and resource markets are in equilibrium.
Even when the economy is healthy, some employees are working and some are not working because they are in search of a better job, and until they ...

Central Financial Protection Bureau: Roles and Functions

Central Financial Protection Bureau is one of the new federal agency created during 2011 after its concept was included as part of Dodd-Frank Wall Street and Consumer Protection Act. In the wake of financial crisis of 2007-08, where many investors were left bankrupt after they invested in risky products without even understanding the nature of the investment, it was important for the federal government to establish an agency that could regulate financial products and also have supervisory powers to protect the consumers. CFPB has the responsibility to oversee financial products and services being offered to the consumers. Infact, CFPB ...

Since the beginning of The Great Recession it is difficult to imagine an area of life that the economic crisis as not impact. It has thinned the wallets and bank accounts of many and even turned our attention away from once pressing matters such as the climate. Countless articles have been written about this topic in an attempt to make sense of this catastrophe and explain what is going on to the public at large. Two articles in particular make an attempt to explain very opposite ends of this chaotic financial spectrum. One attempts to shed light on household ...

The recession of the past few years has the many people searching for employment today to worry about finding a job appropriate for their skill level and education as well as job security. Because of this, our team has located two employers whose businesses are increasing in profitability, Hooters and Twin Peaks restaurants, that offer jobs at a variety of skill and educational levels. We are enthusiastic that our proposal outline will offer excellent options to you as a potential employee in a recession-resilient aspect of the entertainment market.

Background and Goals

We have recently completed an investigation of a profitable sector of the food and entertainment ...

Introduction

Lender of Last Resort (LLR) refers to an institution, commonly a country’s central bank, which offers loans to the banks and other financial institutions experiencing financial difficulties during the financial crises. As the lender of last resort, the central banks provide loans to the banks and other financial institutions to mitigate and prevent the financial crises. According to Kindleberger, the goal of the lender of last resort is essentially to prevent the financial panics as well as bank- runs that spread from one bank to another due to a lack of liquidity. The lender of last resort convinces individuals that ...

According to Irwin, the pace of economic growth of the United States is uncertain in this year, due to the massive investment in the healthcare by the President Obama administration. The investment in the health care is about one-sixth of the total budget of the economy. The reforms aim at providing access to healthcare to millions of American who don’t have healthcare insurance and improve the efficiency of the health care by making it cost effective.
As a result, the spending on the health care drops by a big margin. Hence, due to this none spending on the health ...

Introduction

Considered to be the worst financial crisis after the Great Depression of the 1930s, the financial crisis of 2007-2008 hit hard the global economy, threatening the total collapse of the big financial institutions, which, although was prevented by the bailout actions of the national governments, kept the global stock markets at its all-time low. The crisis played a crucial role in the failure of many businesses, decrease in the consumer wealth and a slow economic activity, creating the European sovereign-debt crisis. The impact of the global recession hit the common people by giving rise to unemployment problems, loss of jobs, decreased ...

Introduction

Financial crises are generally protracted affairs. In most cases, the periods after a severe financial crisis have three similar characteristics. The first characteristic is that there is a deep and prolonged collapse of asset market. This means that the real prices of housing declines at an average of 35 percent. This decline is stretched over a period of more than six years. The price of equity also collapses at an average of 55 percent for over a period of three years. Secondly, there is a decline in the country’s output and employment. In this case, unemployment rate rises at a rate of 7 percent ...

America has progressed well in the past few years and many citizens consider that the country is out of recession and will progress well with a good economy in the coming years. I believe that America has emerged from the Great recession and its economic condition has improved since the last six years. The GDP has grown by 4.6% in the last quarter, and national unemployment rate has fallen by 5.9% in September 2014 which is a sign of prosperity . In modern America the gas prices are down and the stocks markets have seen a marginal increase making people’s pockets substantially ...

Financial crisis of 2007- 2008 is considered as one of the worst financial crisis that affected almost whole world in a way or the other. Various leading financial institutions and banks crumbled in this financial crisis and economy of several countries. Financial crisis of 2007-2008 made economists helpless and they could not do anything except seeing it happening. Different theories came on the causes and consequences of financial crisis. Many authors expressed their views in forms of articles and books. ‘In Fed We Trust’ is one of several books that describes the financial crisis in a new perspective. This paper intends ...

Business Cycles

Economic or business cycles are fluctuations in economic activity (economic conditions), consist of repeated compression (economic recession, recession, depression), and expansion of the economy (economic recovery). Cycles are periodic, but usually irregular. Usually (in the framework of the neoclassical synthesis) are interpreted as fluctuations around the long-term trend of economic development.
Cyclicity in the development of a market economy is explained, first of all, by the influence of internal factors inherent in the system itself. The mechanism of the "invisible hand" of the market on the basis of economic laws (laws of supply and demand, competition, capital accumulation) is ...

Is Economic Recovery Possible?

Introduction
The world economy started developing rapidly after the industrial revolution. The Western countries could produce mass amounts of products over their citizens’ needs, and market the unneeded amount of the products to the other countries. The developing technology has enabled the merchants to reach the farthest points on the world to sell their products. These developments have brought the term of globalization. The technological advancements and the developing capitalism have led the humankind to an economic development path. Some of the Western economies could manage to get the big shares in the world economic development while the ...

The United States of America aviation industry is the largest in the world. The increasing demand for air travel has made the industry to continue to manufacture many aircrafts to meet the demand. Aviation industry aims at providing aircrafts for various airlines to allow air travel. United States aviation industry has undergone various transformations over time. Currently the United States aviation industry is the largest in the world providing aircrafts for general aviation. General aviation includes all the private and commercial civil flying. It includes private aviation, air ambulance, flight training, air charter, forest fire fighting, and traffic reporting ...

Introduction

Inevitably, the topic of economics is the most astounding and effective one for the economies, as the main crux of an economy and economic factors are always be effective for their future growth and effectiveness. Economics is a core subject that associated with almost every walk of life, and it can be used for different purpose all over the world. Economics is a subject that specifically associated with the earning and consuming the money accordingly and effectively at the same time. The two broad types of economics, on which the entire broad definition and outlook would be depending, are effective for ...

World War-I

The United States' entrance into First World War happened in April 1917. However President Woodrow Wilson was putting efforts to maintain the United States neutral throughout World for more than two and a half years since the war started. It should be noted that beginning of war happened at the end period of the massive Recession of 1913–1914 in the United States of America. As the recession ended, Loans were offered in large volume from American monetary institutions to the members of the Allied powers mainly in the European scenario. Industrial productivity rate drastically increased by 32% and this ...

The high unemployment in USA is attributed mostly to cyclical causes rather than structural causes. The natural rate of unemployment is defined as the level of unemployment at which the inflation rate is constant. From the early years up to the year 1969, it was believed that the increase or decrease in the rate of unemployment affected the rate of inflation at all times. Under the Philip’s Curve, an increase in the rate of unemployment resulted in the decrease of the inflation rate. On the other hand, a decrease in the rate of unemployment resulted in the increase of ...

In all economies, policy makers have a significant role in the regulation of activities relating to macroeconomics with a general aim of maintaining and sustaining economic stability (Blanchflower, 2008). A stable economy is, therefore, the primary goal for all economic policy makers. This is essential in enhancing the growth as well as social welfare of the economy. The US economy is currently facing a number of tribulations (Karanassou & Sala, 2010). This has further been augmented by the fact that this economy is yet to heal fully from the recently concluded global financial crisis in 2009 (Daugeliene, 2012). The crisis adversely affected all ...

Homelessness is one of the many problems that prevail in many nations. During the period of recession, many people became unemployed. They ran out of sources to pay for their bills and even send their children to school. Many people did not have the money to pay for their mortgage. Hence, a lot of them stayed anywhere – on the streets, at the communities where they can set up their camp, and even under the bridge. People believe that homelessness also trigger people to commit crimes. On the other hand, economists believe that giving homeless a place to stay will help the ...

Austerity

a). The current deficit panic and the debt, which are associated with recession has created an alarming situation in most of the countries, and threatened the economies of countries. They are however, a staple of the politics of several countries. In order to cope with the problem of fiscal deficit, and debt, the governments of many countries are adopting austerity measures. The republicans are demanding cuts and the Democrats are demanding cuts, and an increase in the tax. But, as a matter of fact, the budget cuts are not the right thing to do at such moments. In this regard, if the ...

Microeconomics deals with the economics decisions made at a micro, level. It is the analysis of decisions made by individuals or a group of individuals. Microeconomics also analyses the factors that affect the decisions made by the individuals. Cost and benefit considerations are taken into account while making the decisions. Costs can be either financial or opportunity costs, which is the next best alternative to an action. Microeconomics is the efficient apportionment of scarce resources between alternative uses. It also involves price determination through to gain maximum utility and maximum profit. The perspective of microeconomics is the competitive demand price as ...

Recession affects every aspect of the country’s economic growth. Sometimes its effect is limited to one or more countries but sometimes recession affects the world economy. The World has faced various small and large recessions in the past. Various efforts have taken in order to overcome the recession and its effects. This paper intends to discuss the recession along with discussing who decides that recession has started and other related aspects of the area under discussion.
There is not any fixed definition of recession. The term, ‘Recession’ indicates towards a substantial decline in all economic activities of one ...

Financial Crisis of 2008

The economics professionals during the global financial crisis underestimate the dimensions of the issue once it unfolded. Gerald (2010, p. 120) traces the deep roots of the failure in the lack of understanding and the misallocation of research in economic efforts. Bondt (2010, p. 140) claim that the economists in this period disregard the construction models that can drive an effective result in the world-markets. The economic profession fails to communicate the shortcomings and the limitations of the preferred models to the public to depict transparency. Prior to the financial crisis, economists largely rely on the construction models that ...

For many years, financial crises have been believed to be the preserve of the developing countries which are believed to be more vulnerable than the developed country as explained in the video “The Financial Crisis & Public Debts Explained in Detail”. However, this notion was overturned in the year 2007 – 2008 financial crises that hit the ‘great’ countries in the world. From this experience, it is evident that all countries are at risk of experiencing financial crisis regardless of the policies in place. Nevertheless, the approach towards the arrest of the crisis is what defers. In developing countries, the effect ...

Managers are accountable for the performance of any given company. They are the overseers of the capital of the shareholders. They have been given the mandate to invest this capital at satisfactory rates of return so as to increase the value of the shareholders. The recent past global financial crisis put to test managers in various companies with regard to the responsibility of maximizing the value of the shareholders. General Motors managers are a perfect example in this particular case. The managers of the Company failed to fulfilled their responsibility of maximizing the value of the shareholders.
It can ...

Introduction

The term financial crisis has been used broadly to several situations whereby some financial institutions or assets face a sudden loss in a huge part of their value. The 19th and 20th centuries have encountered bank panics and recessions (Kindleberger & Aliber, 2005). Other situations related to financial crises include stock market crashes as earlier witnessed in the United States and bursting of financial bubbles, sovereign defaults and currency crises. What has been considered as the global financial crisis began in the United Kingdom and the United States of America following a significant standstill in the global credit market in July 2007. However, ...

Objective of the paper: The paper seeks to establish what impact have been seen in the different countries, both developed as well as developing, of the global recession and economic turmoil which has been in place for over two years now. In general, the paper seeks to analyze the situation from the point of view of producers, consumers, employment, debt and the steps that the countries have been taking to pump money back into the economy and bring it out of recession. Since each economy is different from the others, it would be interesting to see different measures that ...

Before the global financial crisis that rocked the entire globe, Japan had put in place a very robust financial system that according to economic experts was to insulate Japan from the pangs of global financial collapse. However, despite this, Japan was hardly hit by the global financial crisis significantly shrinking its economy (Zheng, 46). In the year 2007 before the peak of the economic recession lead economists pointed out that Japan was immune, the impacts of the US subprime loan problem, owing to the fact that Japan had limited exposure to “toxic” assets. In fact, the Japanese banking sector was ...

Although, the economy of the US considers the world’s largest economy yet it does not escape from financial crisis, which occurred in 2008 so that it may currently facing economic recession. Overall, the U.S economy is facing low GDP rates, high unemployment rates, high inflation rates, and lowers consumer-buying powers. Moreover, the companies are cutting their investments as well as consumers are decreasing their spending because of recession in the U.S economy. However, in the first quarter of 2013, the GDP (Gross Domestic Product) gone negative up to -0.8%. On the other hand, the GDP improved in the ...

The economic growth of a country is affected by many factors that determine the demand and supply of goods and services. The first factor is the rate of interest that banks charge for lending out money. The second factor is the rate at which businesses create opportunities of employment. Businesses should also retain those employees for there to be sustained economic growth. The last factor is the rate of exchange of money in business activities that are commonly referred to as liquidity. For there to be good economic growth, money should be exchanged at a high rate for it to earn a ...

How did 2008 financial made policy makers change their principle of free market with no government interference

The financial crisis of 2008 exposed the economy to a market environment for which it was wholly unprepared and which seriously affected policy makers' decisions. This made policy makers to change their principle of free market with no government interference to a principle where government intervention was the only solution. The financial crisis led to severe economy wide falls of about 20 percent in output and employment. For instance, unemployment and inflation have increased gradually since the financial crisis. It is vivid that the countries that experienced this economic recession have experienced severe short-term challenges and long-term constraints on their economic ...

After the economic recession which started in 2007-2008, attempts have been made to recover from that crisis by various players both in the public and private sector. However, this recovery process has not been very successful, and there remain major economic challenges facing the global economy today.

Energy

The global cost of energy has been rising steadily since 2005, and the global economic crisis has not helped matters. The high cost of energy has been blamed for stagflation which continues to afflict many of the major world economies. With some economies like China and India showing a considerable thirst for oil, ...

Economics is a subject which has its recognition and importance in almost every walk of life. There are certain concepts which specifically come and counts under the ambit of economics and among them; the name of unemployment is one of them, one of the most dominating topics of macroeconomics (Hobson, p.160). Both of the kinds of economics are extremely important to measure as it gives numerous things in total. Natural Rate of Unemployment means the rate which observed that how much people of a country are unemployed and it is an important economic indicator in order to assess the financial health ...

The rate of unemployment levels is known to move in a cyclical manner, largely being influenced by the current business cycles. Nonetheless, other factors such as demographics developments and labour market policies may influence both the short and long-term unemployment evolution as well. According to the article on Labour markets: Did the natural rate of unemployment rise? By Mary Daly SAhim and Robert Valleta, the sharp increase in the United States rate of unemployment associated with the 2007-2009 recession is greatly unprecedented during the era after the World War 2. However, unlike the post world war rapid market recoveries, the ...

The issue that I have settled on is the financial crisis that seems to be a threat globally. Financial crisis is a situation in the economic market which threatens the norm of all the policies and the government situation generally. The shilling seems to lose its value, assets and even people lose their businesses with huge losses which are not easily curbed by the economy generally. The debt is spiraling in high estimates and the taxpayers seem to be paying more.
Financial crisis is an issue that basically makes economy worser and undergoes very many losses. This has been of ...

According to Mary and Daly, (2012) natural rate of unemployment refers to an economic concept that represents for the hypothetical rate of unemployment inconsistent with the long term levels of aggregate production. Rate of unemployment increased after the financial crisis and has persisted even after the crisis. According to the statistic it is higher than before the crisis due to the mismatch between the employer and the available skill of the laborers.
Frictional unemployment refers to the rate of unemployment due to the change of locality of the demographic factors. In other term it’s the state of ...

Following the American Psychological Association’s Guidelines

Recessions and Recovery Strategies
Economies are alive organizations which sometimes gets problems similar to our bodies. As we grow up and develop, we catch some sicknesses and similar to us, economies also grows up and sometimes they face some crisis and recessions. During recessions, consumption level and income level of people decreases and economy slows down. In a slow economy, investors do not prefer to make new investments and even during a severe recession, they might stop their all investments in the economy. As we know, economies have a cycle and when it slows down all parts in the economy slows ...

Conservatives and the liberals differ in a wide range of issues both socio-economically and their understanding about the role of government. In the light of this this essay seeks to compare and contrast the views of the conservatives and the liberals on economic affairs and the role of government. In addition this paper will look at how both divides acted in response to the financial crisis of 2008. First of all, conservatives are strong believers in the free market. They believe that the market should be competitive and should provide opportunities for all. In order to maintain this free system, conservatives ...

Introduction

During the Great depression of the 1930s, American workers demonstrated, picketed, rioted, and struck due to poor application of both economic and government policies in solving the problem. The policies applied were not very effective in solving the economic problem due to the economic imbalance in different sectors of the economy. It therefore contributed to the great depression taking a very long period because various economic forces led to its recurrence in various aspects of the economy. During the Great Recession of 2007-9, the workers quietly accepted massive layoffs and pay cuts because the economy status was relatively adaptive to ...

Affiliated School

Why do you think auto sales generally peak well before a recession, then recover near the end of a recession? How might auto sales relate to monetary policy and interest rates?
Generally before a recession the economy is usually doing very well. This means that the consumers have enough money to purchase consumer durables. It is a period when the employment rate is high and this means people can easily afford to be extravagant. However, when the recession kicks in and unemployment increases, aggregate demand decreases and the sales automatically decrease (O’Sullivan, 2003). During a recession aggregate supply decreases as well due ...

Distinctions between GDP and GNP

Both GDP and GNP indicate the national income account and output of an economy used in forecasting. However, they differ in definition, formula and application. GDP indicates the strength of a nation's local economy. It measures the total worth of an economy’s production and services by nationals and foreigners within a calendar year. Arguably, GNP indicates how citizens in a country fair in economic terms. It estimates the total worth of goods and services produced by citizens of a country at home and abroad within a calendar year. GNP = GDP + net income inflow from abroad – net payment outflow of foreign assets

What agency reports GDP, turning point of the business cycle and how is economic recession or recovery determined?

The national ...

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Section A
Answer One Question from this section.
- "Critically discuss the role played by income and wealth inequality inthe financial crisis of 2007-8". (25 marks)
The financial crisis of 2007-08 also known as ...

Writing Assignment #3:

EconS 102
Thee Downward Rigidity of wages
This paper answers the following questions prtaining to the downward rigidity of wages: (1) If prices are broadly flexible, wages are flexible upward, but wages are sticky downward, what are the implications for how long it takes the economy to return to full-employment equilibrium when there is a recessionary gap versus how long it takes to close an expansionary gap?; and (2) Suppose the government sets tax rates and transfer payment eligibility requirements so that the budget is balanced when the economy is at full employment, in surplus when inflationary gaps ...

Wealth, Status, and Opportunity in America

The article by Lewis helps the fortunate and unfortunate people to live through the most recent financial crisis and gain and understanding of occurrences that transpired. From the article, Lewin provides an in depth analysis of the factors and conditions, which led to the financial crisis. The most recent financial crisis is considered as the worst financial crises that ever affected the globe. This is because it was characterised by the collapse of leading companies, banks and other financial institutions. This financial crisis also brought about the collapse of the mortgage market mainly in the United States and also ...

Summary of the Argument

Stiglitz was significantly influenced by Great Recession and its impacts in coming up with this article. In this article, Stiglitz argues on the impacts and crises of Great Recession. In his perception, the author blames flawed government policies as well as personal and corporate financial behaviors that were unscrupulous. Amazingly, Stiglitz believes that the Great Recession started in the United States thereby spreading to other parts of the global economy. Stiglitz focuses on how to prevent a re-occurrence of the Great Recession.
In addition, Stiglitz argues on the contribution of America’s broken system towards Great Recession. The author ...

Introduction

Labour force participation rate is an important concept in economics and it is defined as the number of labours that are participating in the economic activities from the total number of labour available in the economy . The higher the labour participation rate of the economy, there are more chances that the economy would be stable and in a better situation.
As labour participation rate is an important and one of the most discussed topics in economics, this report discusses about the same concept. The report first defines the labour force participation rate and then highlights the importance of labour ...

Introduction

Ever since the end of World War II in 1948, there have been eleven recessions in the United States. Although the unemployment rate in the U.S. fell to the lowest 4.6% in November 1997, but ever since then, there have been secular increases in the country’s unemployment rates. Over the years, a variety of methods have been employed by the federal government, such as federal spending and tax cuts, to raise the employment rate and turn around recessions. Since the beginning of the U.S. economic structure, unemployment has been a problem throughout the country, even though the United States is ...

Introduction

A depression is a severe economic downturn that lasts for several years. It is characterized by falling Gross Domestic Product (GDP) and high unemployment rates.What started as a financial crisis in the United States has quickly unfolded into an economic crisis. The very first impact of this crisis was felt through rapidly declining equity markets. In some cases coupled with massive outward capital flows. This was an indication of massive retraction of investment from the market. Recession causes a downfall in macroeconomic indicators, such as investment, employment, household income, profits etc. This leads to a rise in unemployment rate and bankruptcies. The economists ...

Article Summary

The article by Lowrey “The Low Politics of Low Growth” seeks to create the relationship between politics and economic growth in Washington. As such, the article argues that politics are highly influenced by the prevailing economic conditions. Much of the impact is felt from the additional tax revenue and deficit reductions. Both republicans and democrats express different perspectives with regard to economic crisis. This is because economic crisis affects the income level of individuals significantly. However, it is complex to increase growth while at the same time reducing deficits, but each of these actions has its own implications. The ...

HONEST AND INDEPENDENT AUDITORS

The first decade of the 21st century was marred with financial scandals. These scandals led to a worldwide financial crisis and the collapse of some economies. The events brought into focus the importance of the external auditors and their independence. After all, it is upon auditors’ recommendations that financial decisions are made. As can be seen in recent economic events, the recommendations of the external auditors would have profound impact not only on investors or stockholders but also on entire economies. The importance of auditor independence cannot be underestimated. Unfortunately, it is being brought to light precisely because of its ...

One of the most limiting resources in the American economy is money (wealth) because the growth of the economy heavily depends on the people’s ability to spend their earnings. Tax breaks given to millions of households in the lower middleclass increase their disposable income which is spent on consumables. Raising the taxes for the American households in this group greatly reduces their spending power which could cause recession. Another scarce resource is the small and medium-sized businesses that provide employment to millions of American people (fifteen percent of the workforce). As a result, imposing high taxes on these businesses ...

Introduction and the Current State of the U.S.A.’s economy
The United States of America, otherwise known as the U.S., the States or simply America, is the most powerful country in the world in terms of military capabilities and diplomatic influence. The U.S. is a confederation of 50 states, including Hawaii in the Pacific and Alaskan state located on the northwestern portion of the North American continent. Canada lies next to the country’s northern boundary and Mexico on the south.
Having a total area of approximately 9,826,675 square kilometers inclusive of the total land area of ...

Proposal for the Analysis of “Global Financial Crisis-2007”

During our lifetime we have seen many small and big recessions in different financial markets across the globe. The biggest of them all in last eighty years is definitely the Global Financial Crisis of 2007 which is also known as Subprime Financial Crisis. It being by far the most discussed economic topic of our times, lots of things have been said about why it happened and how it could have been averted. Still we are struggling to get out of the deep rooted impact it left upon the global economy.

The Global Financial Crisis did not just happen overnight. ...

Financial crisis is a situation in the economy of a country where the supply of money to the economy is over powered by the demand of money (Cali & Kennan, 2010). This situation causes deficits to the providers of money like banks where they are forced to sell their securities to get money and allow it to flow in the economy. The world has faced a financial crisis in the recent past, which was triggered by several factors. In this essay, we are going to look at this recent financial crisis and its aftermath. We will also look at what triggered it and ...