been affected by and dealt with the Global Financial Crisis. I was able to complete this report on schedule and meet all my proposed objectives within the allocated word limit of approximately 2500 words. In this report you will find background information involving the roles of banks and why they are vital in our day-to-day lives. The report will then follow on to briefly explain the financial issue of 2008‚ the Global Financial Crisis‚ and how banks from both Australia and international
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There is not one specific reason for the financial crisis‚ but rather a combination of many events that caused the unusual market collapse of 2008. One explanation can be traced back to 1995 when the Clinton administration attempted to improve the Community Reinvestment Act‚ which required banks to distribute more loans in lower income areas. If the banks failed to abide by this new law‚ they would face harsh penalties‚ such as receiving limits on approvals for mergers and could even be hit with
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Cuba was situated only 90 miles from Florida in southern USA. Americans owned most of the businesses‚ banks‚ sugar and tobacco plantations‚ as well as a large naval base. The USA maintained good relations with the pro-American dictator Batista. Batista was overthrown in 1959. 95% of Cuba’s trade was with the USA so the Cuban economy was heavily dependent on the USA. The new leader‚ Fidel Castro wished to reduce USA influence. He nationalised industries and banks and introduced land reforms. This
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Leverage is borrowing money to amplify the outcome of a deal. The financial crisis includes sub-prime mortgages‚ collateralized debt obligations‚ frozen credit markets‚ and credit default swaps. The way that leverage works in a normal deal is that someone can buy merchandise for 20‚000 and sell it to someone else for 11‚000 and they gain 1‚000 in profit. However‚ using leverage if the same person with 10‚000 goes to borrow 990‚000 it will give him 1‚000‚000. He will then go buy 100 boxes with his
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The economic crisis began when the U.S. government subsidized mortgages for families and individuals who could not afford to buy homes. By doing so‚ the demand for housing skyrocketed‚ resulting in increased home values. Meanwhile‚ mortgage companies and banks celebrated their financial incentive to provide loans to anyone‚ regardless of credit history. The combination of falsely inflated home prices and “generous” bank loans burst the artificial bubble of prosperity Americans were enjoying. As home
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The Cuban Missile Crisis of October 1962 was a time of consistent danger‚ stress‚ and constant conflicts between the United States and the Soviet Union. This was a moment when the two states came closest to nuclear war. After the United States failed to dethrone the Castro regime using the Bay of Pigs invasion‚ the Soviet premier Nikita Khrushchev made a secret agreement with the Cuban premier Fidel Castro. The plan was to place Soviet nuclear missiles in Cuba to prevent any attempted invasions.
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THE ZALADA CRISIS During the first part of Zalada crisis role play‚ Zalada’s pre-negotiation planning was influenced by contextual factors related to bilateral negotiations (structure) and team dynamics. Zalada’s team anticipated a low context interaction with equal stakes from both sides to formulate a collaborative negotiation strategy to resolve the dispute without further escalation. There were two role identities for each member of the team viz. individual role and collective team identity
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A MINSKY-KINDLEBERGER PERSPECTIVE ON THE FINANCIAL CRISIS J. Barkley Rosser‚ Jr. (contact) Professor of Economics‚ James Madison University Tel: 540-568-3212‚ email: rosserjb@jmu.edu Marina V. Rosser‚ Professor of Economics James Madison University Tel: 540-568-3094‚ email: rossermv@jmu.edu Mauro Gallegati‚ Professor of Economics Università Politecnica delle Marche‚ Ancona‚ Italy Email: Mauro.gallegati@gmail.com January‚ 2012 Abstract: Hyman Minsky and Charles Kindleberger discussed
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solutions to the destruction it has caused. Regardless of what residents thought about switching their water supply from the Detroit river to the Flint River before‚ it is something that affects everyone now. The tragedy of the Flint Michigan Water Crisis represents failure to recognize the severity of our environmental impact. Now the people of the city are left to live through it and eventually correct the problem. Flint was having severe problems far before it was brought into the spotlight with
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enacted legislation limiting the size of financial institutions‚ but instead we recovered and quickly forgot the past‚ only to have the same thing happen half a century later‚ worse than before‚ if we do not change our economic policies‚ this pattern of crisis and temporary recovery will
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