英语论文网

Researcher Charles P. Kindleberger (2005) argued that all financial crises follow a certain pattern which proceeds as follows; it starts with an economic displacement of some kind, a displacement large enough to affect the current investment environment and that alters the profitability opportunities between different business sectors. Brunnermeier (2008) argues that most investors prefer assets with short maturities since such assets, for example, allows investors to withdraw funds at short notice should they need to. Gorton (2008) argues that the lack of information deriving from the securitization process was one of the main factors behind the crisis. As a response to Gorton (2008), Holmström (2008) argues that it is partial information transparency that is the problem - complete transparency or complete lack of transparency increases liquidity. Hellwig (2009) stresses the importance of mark-to-market valuation which made institutions exposed to systemic risk that has little to do with the intrinsic value or solvency of debtors and instead relies upon the functioning (or malfunctioning) of the financial system.

We shall in this section review statements credited to informed sources on the financial meltdown.

• The Us government has bailed out Citigroup Inc. agreeing to shoulder most of the potential losses on $306 billion of high risk assets and inject $20 billion of new capital in its biggest rescuer of a bank yet. Citigroup's rescuer marks the latest government effort to contain a widening financial meltdown that has caused the disappearance or bankruptcies of companies including Bear Stearns Cues, Lehman Brother Holding Inc. and Washington Mutual Inc. (Donald, 2008).

• The price of oil per barrel has moved from $48.20 barrel which is the lowest price so far since three years to a bit over $50pb. The OPEC ministers have an emergency meeting which failed to produce any agreement among them. Most oil ministers played the self interest game and were considering what was best to their individual countries since after this report, oil per barrel had moved below $47.

• As noted by Ayankola (2008:18), unfortunately for the OPEC, the world economic crisis is showing no sign of easing off. The United State, the biggest economy in the world and the biggest consumer of oil, is witnessing a huge drop in demand because of the financial meltdown and president elect, Barrack Obama, is already talking about seeking for alternative energy. In Europe, the situation is also not any better. Many of the European economies are also on the brink of recession with demand for crude oil dropping sharply. China and India which are the two economic power blocks among the Asia tigers are not left out as crude oil demand had also dropped.

• Kuwait is a prosperous country by all standards of assessment but she is not left out of the financial crisis. Wiggles worth (2008:38) reported that despite Kuwait being one of the richest countries in the world due to its ownership of 10 percent of global oil reserves, she has been unsettled by the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。