The 2008 Financial Crisis and its Impact on Vietnam's Economy

The 2008 Financial Crisis Essay
Introduction
In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many
economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis
expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish
individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman
Brother and AIG. These collapses not only influence own countries but also international area. Hence, the intervention of governments by changing and
...show more content...
The economy is known as a new emerging economy especially after entering WTO in 2007. The Foreign Direct Investment (FDI) has increase
considerably and the GDP is over 8% in the period of three years (2005–2007). Nonetheless, it is clear that the economic instability occurs after WTO
accession of Vietnam 1 year. Consequently, the economy has suffered surginginflation as well as trade and fiscal deficit. (Figure 1) GDPCPI
20058.48.3
20068.27.5
20078.58.3
20086.223
20095.36.9
Figure 1 : GDP and CPI 2005–2009 (% change per year)
Source: Asian Development Bank and Vietnam
B. Inflation
Inflation doubled in 2007 and reached a peak at 28% in 2008.The fiscal make up 4–5% GDP and the trade deficit accounted for 20% GDP in which
approximately $US17.5 billion dollars. The influence of high fuel combine with food prices and high domestic demand lead to high inflation. The high
price of fuel in Vietnam illustrates global fuel prices and the high domestic demand of country importing fuel. Furthermore, the increase in global food
prices affect detrimental to the high inflation in Vietnam.(Figure 2) Figure 2 : Fiscal Deficit and Trade Deficit (2003–2008)
Source : IMF, General Statistics Office of Vietnam
C.Impact on Trade
The global financial crisis has affected severely on Vietnamese exports. After joining the WTO, Vietnam's trade has become depend on global

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Venezuela Crisis Essay
The oil–rich Bolivarian Republic of Venezuela, located on the northern coast of South America, was for many decades considered among the
wealthiest nations in the entire continent. While having the largest proven oil reserves in the world has often proved a tremendous boon for
Venezuela, the very black gold that has been the cause of its success has also proven to repeatedly be its kryptonite. Over half of the nation's Gross
Domestic Product stems from petroleum exports – which equates to approximately 95% of total exports. It is really not too hard to imagine what
drastic consequences shifts in global oil prices could have on the economy. With the huge glut in old prices that began in 2014/15, the Venezuelan
economy took a complete nosedive....show more content...
He had established Mercals, or people's markets, where various basic goods were distributed by the state at highly subsidized prices. A few years into
power, in 2006, just short of 16,000 stores across the country was offering subsidized goods at approximately 30 percent less than market prices
(Weisbrot and Adndoval 2007, 2). This led to over 9 million people purchasing their food at Mercals by

Economic Crisis
Stabilization in the Wake of Economic Crisis Perhaps the most significant reason Pittsburgh was able to recover from the collapse of steel was the
decision, made early on by city officials and local developers, to seek out new industries rather than cling to the vestiges of the old. Beginning in 1981,
the Allegheny Conference (ACC), a non–profit coalition of local business and political leaders, made economic diversification their primary goal. The
conference established a committee whose sole task was to promote new industries. The committee's chairman said, at the outset, "we must
diversify...this time we must build new industries, new jobs." Over the next decade, the ACC helped secure financing for development projects
throughout the...show more content...
Symbolic of the success of that initiative, in 1990, Pittsburgh succeeded in capturing a $370 M investment in from the Sony Corporation to build their
two newest television manufacturing plants. Overall, these measures to stabilize Pittsburgh's economy were remarkably successful. Between 1982 and
1990, Pittsburgh's employment rate dropped 12.6% (from 17% to 4.6%). For the remainder of the decade, the unemployment rate hovered В±0.5%
compared to the national average. Thus, the successes of the late 1980s gave Pittsburgh had the breathing room to pursue longer–lasting, economically
sustainable reform. New Pittsburgh (1986–Present) Much of the success of the mid/late–1980s were the result of massive economic stimulation
measures rather than organic growth. Therefore, after the city recovered from the collapse of the early 1980s, city officials and local developers
continued their plans for further economic development. City officials used the successes of the late 1980s as a springboard to create the highly
diversified economy necessary for sustained economic growth. Since 1990, the focus of economic growth in Pittsburgh has been in three largely
codependent sectors: education, healthcare, and high–technology. Higher Education Since 1990, Pittsburgh's institutions of higher education have
largely driven its economic

American Bankruptcy Case Study
Starting from the problems of failure to pay housing loans (subprime mortgage defaults) in the United States (U.S.), then bubbled damaging crisis
banking system not only in America but expanded to Europe and to Asia. Successive causes a domino effect of the solvency and liquidity of financial
institutions in these countries, which among others led to the bankruptcy of hundreds of banks, securities firms, mutual funds, pension funds and
insurance. The crisis then spread to parts of Asia, especially countries such as Japan, Korea, China, Singapore, Hong Kong, Malaysia, Thailand,
including Indonesia, which happens to have long had precious letters these companies.
Of the various criticisms of the experts, that the problem was triggered...show more content...
Lehman Brothers announced a gradual loss before bankruptcy. On June 16, 2008, the company announced losses worth 2.8 billion U.S. dollars for
the second half of 2008. Followed by a loss of 3.9 billion dollars in the third half of 2008 (September 10) and resulted in bankruptcy announcement on
September 15, 2008. A similar shock is almost the same experienced by Merryl Linch, Citigroup, AIG and various other large financial institutions.
This reflects the weakening of the real sector with the bankruptcy of major U.S. companies like General Motors, Ford, and Chrysler that threaten
thousands of its employees work. Sure enough, the U.S. unemployment rate reaches 6.7% increase in line with the increase in pessimism among
consumers and investors during the period September to November 2008. It is the job separation rate (FLE) in the 34 largest last year. Recorded
533,000 employees laid off and reached a total of 1.91 million in 2008. (source: the U.S. labor department). Along with that, on November 30, 2008,
the U.S. government also announced a reduction in the value of real GDP for the part–III of 2008 by 0.3%.
Similarly also in Europe, the banking crisis in Europe was marked by problems at a small bank in the UK, the Bank Northen Rock, in mid–2007.
Northern Rock is a true small–scale private bank in the UK. However, when there Gonjang–ganjing crisis in August 2007 and the bank became the
spotlight. Withdrawal of major funding by the client

The Greek Financial Crisis Essay examples
The Greek Financial Crisis
Ever since the end of 2009, Greece has been involved in a financial and economic crisis that has been record breaking and shattered world records in
terms of its severity and worldwide effects. The Greek government, since the beginning of the crisis, has attempted to take several governmental
measures to try and "stop the bleeding," including economy policy changes, dramatic government spending and budget cuts and the implementation of
new taxes for citizens. In addition to this, the government has tried to alter the perceptions of Greek government and economy by the rest of the
world in an effort to appear both more liberal and more democratic. Greece has also been working to privatize many previous...show more content...
As far as Greece's role in creating this crisis in the first place, it can be said that Greece is at fault for a variety of reasons. The media has been
focusing on the corrupt political system and infrastructure, the lack of competition in the private sector, the wastefulness and inefficiency of the public
sector and a flawed tax system as causation for this mess. When the public sector was expanded in the 1980's, Andreas Papandreou was given various
agricultural subsidies and grants to do with what he pleased. This enabled the funding of certain post–World War II groups to heal political wounds and
fund unions and other special interest groups to aid his political capital and strength. The policies enacted in this decade allowed for the increase in
power and funding of the middle class by creating a vast amount of inefficient public sector government jobs for citizens. This resulted in an increase in
the levels of inefficiency, bureaucracy, corruption and wasteful spending coupled with the increase in wages, pensions and benefits. This proceeded to
drain through government money and resources, and did not breed a culture of highly motivated, efficient and effective government employees. A high
amount of debts accumulated as the nation continued to proceed in this way, using state money to subsidize failing businesses

Essay about U.S. Economy
The United States economy is currently not looking very good. Over the past couple of months the economy has taken a turn for the worst and we
could be headed into a recession in the coming months or years. The biggest problems are in the real estate and mortgage markets. In 1999, housing
prices rose at huge rates and lenders began offering riskier mortgages, which caused homeowners to keep piling up huge debts. People were taking out
loans and balloon mortgage payments that they really could not afford. The problem began in late 2007, when housing prices began to fall and the
system fell apart causing huge numbers of defaults on home loans and foreclosures. Currently, 5.6% of mortgages are delinquent, the highest rate in 21
years, and...show more content...
The housing crisis that I mentioned earlier and resulting backlash through the entire economy has been building for awhile now but it has just came
into the forefront in the past couple of weeks. We really haven't faced a downturn like this since the Depression. Last Tuesday, January 22, the Dow
Jones industrial average fell almost 600 points and was already down 9% in 2008 (Gross 1). Immediately the Federal Reserve took action and cut the
interest rates three–quarters of a percentage point, the biggest cut in 24 years. Today, not even a week later, the Fed again cut interest rates, this time
by a half–point (Aversa 1). This move is an effort to keep the economy out of a recession by getting money back into the banks and encouraging
them to keep lending credit to turn the economy upward. Whether or not it will work remains to be seen in the coming months. The government
also announced another move to a couple weeks ago to help get the economy going again and avoid or slow down a recession. President Bush and
the House are currently developing a $145 billion stimulus plan that would give tax relief to citizens by sending them individual checks for $300 and
up. The plan would put over $100 billion into the hands of consumers and the government hopes that money would be spent and put back into the
economy (Wolf 1). While all these things are good news for the struggling economy, most economic experts believe that a recession of some kind may
be impossible to avoid

Economic Problem Essay
Along with the development of the earth is a series of social events need to be addressed, such as population growth, food shortages and water
shortages in many parts of the world. Specifically, people in Australia are facing with the threat of water shortage in the future. This problem has
created an economic problem and urged the Australian government to find the solutions for this problem. This essay will explain the economic problem
and answer the question how do markets attempt to solve the problem of water scarcity in Australia, focusing on the economic problem, water scarcity
in Australia, the role of markets and water market in Australia.
The economic problem can be known as the competition between unlimited wants and scarce...show more content...
In order to solve the economic problem, we must choose how to use our scarce resources efficiently. If the choices are made, sources can be used
efficiently. For instance, the Australian Governments is restoring the Balance in the Murray–Darling Basin to keep the water in this basin and protect
the environment. They are making decision since the water is scarce. Australian Governments (2010) showed that water which available in
Murray–Darling Basin declines, so this basin is likely to become worse. The problem is water in Australia is not unlimited. We therefore have to
make choices. The choice can be known as opportunity cost. Since we never have enough resources at our disposal, we have to give up something in
order to get another thing we want. For example, Morton and Shippen have to make the decision between selling water to the government or keeping
the water for their using and their agriculture. If they decide to keep the water, the money from selling water is forgone and vice–versa. So, scarcity
forces making choice.
The role of market can help solving the economic problem. A market can be known as an actual place where buyers and sellers interact to trade goods,
services for money. They interact in the market to determine the price.
The diagram shows the way market finds the price for water. At point E, quantity demanded equals quantity supplied and the price of goods that
customers are willing and able to buy equals the price of goods

Essay on Russia Ukraine Crisis
Why Russia–Ukraine crisis was caused by Russia's attempt to protect its economy and sovereignty.
The topic of international relations has been gaining significance in the modern world following the increase in the popularity of globalization and the
need for peaceful coexistence between nations. The high rate of advancement of communication technology, complex global economy, faster means of
transport and an increase in value for cooperative relationships are vital to the global society (Almoni 1). A positive relationship between countries,
especially the neighboring ones is expected to facilitate the formulation of effective trade agreements. In addition, the issue of immigration or
movement of people from one country to another cannot...show more content...
However, Russia refused to acknowledge the new leadership stating that it came into power through unconstitutional means and armed insurrection.
This was cited as the major excuse for Russia to deploy troops in Crimea to protect the majority Russian residents from extreme right forces.
The two countries, Russia and Ukraine, had different reactions towards the armed violence and impeachment of the Ukrainian president. Although the
majority of the Ukrainians opposed Viktor's decision to procrastinate the signing the EU–Ukraine integration agreement, all the ex–presidents accused
for its interference with the affairs of Crimean. The former presidents of Ukraine, including Leonid Kravchuk and Leonid Kuchma described the
present crisis as Russia's political interventions designed to interfere with the internal affairs of Ukraine and its relationship with the European Union
(Hanschke 1). The people of Crimea have not been seeking for secession from Ukraine, but their interest is to have extended autonomy and rights to
govern the Crimean affairs with minimum involvement of the government of Ukraine. Russia, on the other hand, have dismissed the accusation and
stated that it is pursuing the interest of the people of Crimea to join the Federation of Russia. Russia holds that the people of Crimea have the power
to decide the future of their territory and Russia will be ready to respect their decision. Study shows that about 90

The 2008 Financial Crisis and its Impact on Vietnam's Economy

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The 2008 Financial Crisis and its Impact on Vietnam's Economy