The global financial crisis of 2008-2009IntroductionFinacial crisis is a situation in which supply of money is outpaced by its demand. This means that liquidity is quickly evaporated because all the available money is withdrawn from the banks and not enough in the circulation. Thus the banks experiences shortage of finances to support their operations hence they opt to sell other investments to make up for the shortfall. These crisis have negative effects across the world and is a threat to the longterm objectives of some projects especially those that requires financial support like the Millennium Development Goals.
Most of the financial markets have collapsed leading to decline in investments and lending opportunities are reduced and the exports are falling as their demands decreases. The developing nations are the most affected because of experiencing high prices of the basic needs like food and energy hence are not in a position to prevent their financial institutions like banks from running bankrupt (Books, LLC, 2010). The study below discusses how the global financial crisis of 2008-2009 has been blamed on corporate greed, and inadequate regulation and oversight in the United States of America by analysing some of its negative effects on the financial projects. How corporate greed contributed to Global financial crisis of 2008-2009The financial crisis experienced in 2008-2009 can be considered as the worst financial downturn since the began of the great depression.
According to the United Nations conference on the World and Economic crisis and its effects on the development was attended by various world leaders to evaluate the global economic crisis. There are many factors which are accountable for the occurence of the finacial crisis (Nanto, 2010). During the 2008-2009 finacial crisis, the economic status of the United States of America was collapsing because the liquidity is quickly evaporated as all the available money is withdrawn from the banks and not enough in the circulation.
There was little money in circulation hence people were withdrawing all what they had saved to at least have enough to meet their needs or reduce the effects the situation was likely to cause. These impacts included increase in the prices of the commodities or decline in the value of currency.
In America the collapsing economy is based on barn building and on individual or corporate self interest because everyone was struggling for individual benefit without minding what it would cost the others or the economy of the whole area. The owners of the private organizations like companies and other businesses incraesed the prices of their commodities in the name of making more profits hence increase their income or revenues. This is to the disadvantages of the consumers because they are charged more than they can afford hence they end up spending all what they have on enriching the producers (Barros, 2010). Sharma, (2010) argues that since the occurence of the historical economic crisis of 2008-2009, there has been an increase in the corporate greed which is portrayed by the scandalous division between the salaries of the individual memebers of general mamagement of the organization.
The CEO’s and workers in most of the American companies and other privitized organizations have left the real market to wolves. The workers in the highest job ranks are paid more compared to those of the others because of their personal interests.
The Banks have been persued reckless policies which ensures that they benefit only themselves, the individuals rea owned by their credit cards, debts such as loans which they are charged high interest rates. All the concern of the environment have been sacrificed for the sake of benefiting the individuals and the private owned organizations (Nanto, 2010).