Global Financial and Economic Crisis and its Causes
Global Financial Meltdown and the Demise of Neoliberalism by Prof. Akbar E. Torbat of the College of Business Administration and Public Policy, California State University/ October 13, 2008
Presents what happened in the few weeks of September and October 2008 that have signalled the financial crisis in the UNited States and around the world. Several financial institutions in the US, UK, and other countries have either declared bankruptcy or have been sold to larger institutions. Torbat traces the financial meltdown from the September 11, 2001 terrorist attack. To prevent the negative impact of the event in the US Financial market, the federal fund was reduced to stimulate demand. The lower interest rates increased demands for housing adn big items and people who borrow from banks also increased. The decline in prices of real estate and other big items created a domino effect and weakened the US Financial market.
Global Financial Crisis 2008 by Anup Shah/ February 2, 2009
Aside from discussing teh causes of the financial crisis that started in the United States and its impact on other nations, the crisis was also put into the context of humanity. How some half of the human population or more suffer financial, social, and emotional crisis of poverty. It poses questions on rethinking the International Financial Syatem, reforming International Banking and Finance, International Trade and the WTO, IMF and the World Bank and the over-all concept of economics.
Antecedents of the Global Financial Crisis-a multifactorial phenomenon by Mr. Armando M. Tetangco, Governor of the Central Bank of the Philippines/ February 2, 2009
States that the reasons for the crisis hahave two layers, the "superstructure" or the physical and the "microstructure" or the Psychology. The superstructure is what is happening and visible while the microstructure is what is underlying those that can be seen. In the superstructure, tetangco traced the root to the policies implemented by the US to recover from teh September 11 terrorist attack like the Federal Reserve cut. In the microstructure, he said that the casues are greed, ignorance, Herd mentality, disregard for or misuse of information, exhuberance, and irrationality. He said that the Philippines was not immune to this but our financial system remains stable despite all the challenges brought about by the crisis.
Corruption and the Global Financial Crisis by Daniel Kaufmann/ January 27, 2009
States that corruption is present not only in developing countries but also in developed ones and it played a great role in the unfolding of the global financial crisis. Corruption was so prevalent that it lead to the weakening if not total lost of the trust of citizens, entrepreneurs, and bankers in the financial system.
Impact on the Philippines
Philippines Vulnerable to Global Financial Crisis published on September 18, 2008
States that it was the government's economic strategies that have made the country vulnerable to the global financial crisis. These economic strategies include dependence of exports, foreign investments, and foreign-aid. Drops in US consumption will result to loses in our export sector. Even the local Information Technology industry will be affected because of its dependence on the US market. OFW deployments will be restrained which will mean decreased flow of remittances in the country. To lesses the impact of the crisis, IBON pushes for the removal of the RVAT on oil and asuspension of debt payment.
Impact of the Global Financial and Economic Crisis on the Philippines by Prof. Josef T. Yap, President, Philippine Institute for Development Studies (PIDS)
Assesses the actual and potential impact of the global financial and economic crisis on the PHilippines. On asset markets, the immediate impact of the liquidity sneeze in international capital markets were rise in the price of risk, a drop in equity prices, and exchange rate volatility. Slowdowns in the transoort and communications sector also occured along with the manufacturing sector. Remittances which served as the life of the economy decreases. An assessment of government responses were also made and these were found timely and comprehensive. However, time will only tell whether the measures are effective.
Additional
Coverage of Global Financial Crisis from the Financial Times
Offers interesting features regarding the global financial crisis such as the shrink in salaries of highest earning chief executives in the US because of Obama's pay cap and the world's largest banks in the middle of a financial crisis. It also has articles about the financial situation of several countries and big financial institutions.
