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When the U.S economy was rising,all the other countries economy were also growing, at the same time when their economy went down it affected almost all the other importing and exporting countries in the world because of the recent crises which was named as “GLOBAL FINANCIAL CRISIS”. This was meant to be the biggest crises after “THE GREAT DEPRESSION 1930” (Cambridge Journal of Economics, 2009). The crises have already recorded loss of over $150 billion and large number of banking institutions have declared bankruptcy or being sold.(Kregel, 2008) One among the banks filed for bankruptcy was Lehman Brothers, which was Fourth largest investment bank in U.S. (BBC, 2009). https://www.51lunwen.org/mgjingji/ Therefore it is important to identify causes of current financial crises and resolution measures. Secondly, UK government should take effective steps in order to reduce danger of further crises (Turner, 2009)

During later part of the 19th century that is 1973 Daniel bell published a book titled “THE COMING OF POST INDUSTRIAL SOCIETY”. The book was about forecasting to find the changes in economy and society in united state. One of the most visible changes according to him was the work force shifting from manufacturing and agriculture to service based industry which he named as “POST-INDUSTRIAL SOCIETY”. The author was right in his prediction because today only 10% of the total labour force is employed in agriculture and manufacturing industry. Between the period December 2000 and May 2009 US lost more than 5.25 million employees in manufacturing sector. There were many problems in durable goods industry, particularly in auto manufacturing industry. Two or more companies in that sector declared bankruptcy which stated that there was lot more bad news to come. Comparatively, manufacturing jobs were long lasting on an average of 8 years compared to an average of 3 years in service industry. The shift was driven by Wal-Mart. The firm employed about 1.4 million employees in 2009 which was more than that of 20 largest American manufacturing companies together.

This caused changes to occur in pension financing and people started investing in mutual funds. This happened through change in pension financial that took over small amount to mutual fund from large amount of investment savings. This created pressure for high returns and also takes away the option of staying with a single firm. This enabled growth of institutional investors. Huge amount of portable pension funds were managed by banks, mutual funds and insurance firms. Nearly 1000 corporation shares were owned by institutional investors in 2005, with mutual fund taking maximum of 10% or more in hundreds of corporations. For manufacturers the main focus was on share value which spread OME model (Original equipment manufacturer) which means the production is out sourced to other external organizations. Other than manufacturers, functions such as HR and IT etc were also outsourced. This slowly made drastic changes in traditional corporation where it became empty. They were concerned mainly about turning the out-sourced products into branded commodities. This shows that the stock market existed only for intangible assets. (Davis, 2009)

Now we shall discuss about the causes of the Global financial crisis:

One of the main reasons for the crises was the housing bubble. A housing bubble is an economies bubble that occurs in local or international market. The rece本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。