The questions below are of a generic nature Essay

The questions below are of a generic nature - Essay Example However, according to many experts the situation is not yet under control. The world is still passing through the worst economic and financial times. Stock markets are showing sluggish movements and recently there have been sharp decline in the international stock markets. Large financial institutions have collapsed which has been the biggest shock to the financial world. Rescue of these banks have involved huge amounts of money for bail outs. The government of the respective countries have provided lump sum amount of money (that have run upto many trillion dollars in the United States alone) to these failed banks for rescuing them. In the United States the Federal Government has followed the Keynesian theory of economics. As recession set in, policymakers have not left the economy to the forces of the market that might autocorrect the market and improve the condition of low aggregate demand. They have intervened with fiscal and monetary policy changes, so as to augment economic acti vities in the country. Interest rates were reduced as an immediate response to the crisis (Velde, 2008). This paper looks at the causes of the GFC and the responses of the government to this crisis. The main aim of this article is to research the protectionist activities of the governments in reflex to the harm caused to these economies by recessionary pressure. In this light the preventive measures of the governments have been studied to understand the course of action adopted by the global economy to prevent the recurrence of a situation similar to the Great Depression of the 1930s. Causes of the GFC The causes of the GFC are manifold and analysts have not come to any particular agreement about the actual reasons that have eventually led to the financial crisis of such a huge dimension. Yet it is commonly agreed that GFC has occur due to the combined effect of the shocks faced by the real estate market in the United States and the European countries on one hand, and the increasing risk premia for the corporate firms and the investment banks on the other (Stoeckel, 2009). The shocks in the global financial market have potentially created strong contractions in international trade. The root to the financial crisis can be traced to the collapse of a number of large and influential financial institutions in the United Sates and the Europe. Among them, the most notable mortgage bank failures are Lehman Brothers, Northern Rock and Bear Sterns. As these banks filed for bankruptcy, a wave of apprehension ran through the most established financial markets of the western world. In this situation, banks curtailed their lending facilities to other banks which increased the risk premium on interbank borrowing. This rate increased steadily from near 0 to 5 per cent. On corporate bonds this risk increased to more than 6 per cent. In spite of efforts by the government to increase liquidity levels in the market, the financial markets crashed inevitably. The economic slowdown started with the shelving of big corporate projects. Therefore, the primary borrowers in the economy (i.e., the large corporate firms) stopped lending money from the banks. On other side of the coin, obtaining credit for commercial purposes became difficult. This causes the great financial crisis. Since credit facilities dried up, corporate firms had to revise their investment decisions. They faced a

Colonization of Asia and Africa from the 19th Century into the 20th Essay

Colonization of Asia and Africa from the 19th Century into the 20th - Essay Example Colonialism was thus a very important element during the late centuries and in which different nations had been colonized. Having been colonized, there were great chances of having a change of nationalism, and hence it was upon the people of such countries to manage to over the colonialists through their nationalism. In this paper, we will examine how and Western European nations began colonizing Asia and Africa from the 19th century into the 20th. This is achieved through responding to various questions on the subject. There are several steps that Europeans took in order to keep colonized people under control in Africa. History has been able to give a number of developments which have been able to give the steps that Europeans used to keep colonized people under control. From a literal perspective, it is clear that colonialism in the past years was known to take a varied number of forms. These forms included the political aspect, the legal approaches, the cultural structures, the ec onomics, and even the social structures (Pouwels & Adler, 2007).This saw a number of people being influenced by their colonizers. This resulted in a number of issues and differences which saw a great change. The Europeans employed different strategies and policies to maintain colonized people under their control. For instance, the policy of assimilation guaranteed that the colonies were obedient to their masters, thus being able to put them under control. Moreover, the divide and rule strategy ensured that all colonized people remained with no unity, and therefore promoting easy control by the Europeans. Following the Treaty of Versailles, England and France made various claims about colonized people and had a certain plan for eventually giving colonized people their independence. With reference research, the Treaty of Versailles was coiled to create peace between the five countries; that is, the U.S, Germany, France, Australia, and Britain after WWI (Pouwels & Adler, 2007). Buildin g on research, it is clear that France and England made various claims about colonized people. Such claims were that the colonized people deserved acquiring their freedom and restoring their lost glory and resources. Based on the fact that France and England did not focus on obtaining resources from the colonized nations, they decided that giving the colonized people their independence was the most beneficial thing that would define their development. Despite the above point of view, France and England had ideological differences with other colonizers. Such ideological differences defined their stand to fight for freedom for all people regardless of their color, race, and ethnicity. Undeniably, there was an effort that the European made between WWI and WWI to start moving colonies toward eventual independence. The continued oppression and slowly engraving of understanding that their resources and freedom were being compromised saw the great need of coming with movements through whic h they would safeguard their sovereignty and be able to achieve a great deal of freedom which had been greatly suppressed by the colonialist powers (Pouwels & Adler, 2007). In most of the countries that were being colonized, it has been shown that there was a great connection when it came to colonial attributes and the need of fending for the people’s nationalism. In order to be able to restore their once glory and become free once again, majority of the colonists decided to employ diverse means of engagement which would play a big role towards maintaining their freedom and nationalism. However, it is worth noting that all the above was founded on the efforts of the Europeans. The Arabs