Asian Financial Crisis Essay American Bankruptcy Case Study Economic Crisis U.S. Economic Crisis Essay The Greek Financial Crisis Essay examples

1. Asian Financial Crisis Essay
In the summer of 1997, an economic and currency crisis rocked the Asian markets. One by one,
Southeast Asian countries such as Thailand, Indonesia, Korea and Japan saw their economies crash
in the wake of heavy foreign investment. An economic boom had made the region an attractive
investment opportunity for much of the 1990s. By 1997, however, domestic production and
development had stalled, and foreign investors grew nervous. A divestment run on the Thai baht
triggered the crash. Large corporations, extremely dependent upon the confidence of foreign
investors failed to meet debt obligations and began to fail throughout Southeast Asia. Currencies
throughout the region faltered and nosedived from their mid–1990s positions of stability. The...show
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at the time, the largest finance company in the country ? alone. (Pesenti et al.,1998). This support of
the highly leveraged private sector by the Thai government lent the appearance of stability to an
unstable system and attracted more foreign loans (to shore up the Thai economy) to Thai financial
institutions.
In February of 1997, the Thai company Somprasong was unable to make maintenance payments on
its high level of foreign debt. This was the first large default in Southeast Asia?s economic crash.
By mid–May of 1997, investor confidence in Thailand was so shaky that Singapore and Thailand
had to step in to prop up the baht in the face of ?speculators who decided Thailand?s slowing
economy and political instability meant it was time to sell.? (Chronology?). In the face of such
instability, Finance One (the largest finance company in Thailand) failed at the end of May. Most of
the company?s lending was made up of risky loans for real estate and stock market margin
investments. Political instability resulted from the resignation of the Thai finance minister, which
further shook foreign investor confidence. ?The strong speculative attack on the baht that followed
forced Thailand to let the currency float on July 2, a key date in the chronology of the Asiancrisis.?
(Pesenti et al., 1998). Once the government was no longer
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2. 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
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3. 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
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4. U.S. Economic Crisis Essay
The United States is currently experiencing the biggest financial crisis after the Great
Depression, in this paper we will discuss what caused the current economic crisis and why? Two
What is the relationship between mortgages, the housing crisis and Wall Street? Third, how has this
crisis affected fiscal policy and what are some of the drawbacks of government intervention. Four,
what is the recession doing to GDP, economic growth and inflation and how are other countries
faring. Five, discuss the different types of unemployment and why is underemployment becoming an
economic issue and lastly, what should be done to get the economy back into expansion mode. One
main factor that caused the current economic crisis...show more content...
These loans were result of large acquisitions or lack of due diligence on loan purchases by these
large firms according to Muolo, P (2007). Fiscal policy is the government expenditure and
revenue collection to influence the economy before the current economic crisis the government
policy was increasing home ownership. This crisis has affected fiscal policy and the government
has intervened by providing simultaneous packets to companies that have been affected by the
economic crisis. In February 2008 President Bush signed into law a $168 Billion economic
stimulus packet, which was intended for the consumer to simply spend their rebates to cover
higher food and fuel prices. Then in February 2009 President Obama signed the American
Recovery and reinvestment act of 2009, a $787 billion stimulus package that was allocated to help
struggling homeowners. Some other programs the U.S Government passed was the Emergency
Economic Stabilization Act of 2008 or Bailouts of Major financial institutions. There were some
drawbacks by government intervening pose risks to price, financial, and fiscal stability. According
to the economy of United States are the worlds largest it's normal GDP was estimated to be $14.2
trillion in 2009. The total U.S Federal debt was $10.62 trillion, while the U.S public debt is the
world's largest in absolute size. This debt as a
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5. 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
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