Financial Crisis Essay - 6766 Words

Introduction â€Å"We are having the single worst recovery the U.S. has had since the Great Depression. I dont care how you measure it. The East Coast knows it. The West Coast knows it. North, South, old, young, everyone knows its the worst recovery since the Great Depression† (Arthur Laffer) I felt this was an apt way to begin my report and analysis on the credit crisis and aspects which can help the world to recover. Although the quote discusses the US I feel this can be applied worldwide. I will discuss in detail what I feel should be implemented to fight the extent and period of recession and austerity which we are operating in. The areas which I will focus on for this analysis will be on the regulation of the financial markets and how†¦show more content†¦I feel the US would never default as it would create a crisis far greater than the great depression and the most recent â€Å"Great Recession†. The ultimate objective for new regulation and trading infrastructure improvements will be to reduce the potential for systemic risk should another major CDS dealer fail, and to improve transparency in the market to facilitate exposure reporting and pricing. What effect such regulation will have on the CDS market remains difficult to gauge. Returning to the debate on the regulation of the default swaps, I feel the planned regulation that the companies who must act as insurance to participate in the regulation market is not severe enough to help the global economy recover. I feel that as history will eventually repeat itself we must try to update the regulation and observation of these new credit products. Personally I feel that the proposed acts to review all trades both public and private is too complicated and flawed to be put into effect along with it also being an invasion of a person’s privacy. I feel that if I were the head of the Securities and Exchange Commission (SEC) I would propose the opening of a branch whose would specialise solely in Credit Default Swaps with the final say for the market being with this office. I feel that if this were to be implemented in each continent with regular contact with the head authority this would lead to a much tighter and clearerShow MoreRelated The Structure of a Financial Crisis Essay4624 Words   |  19 PagesStructure of a Financial Crisis INTRODUCTION   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The year 2001 had been unlucky for Turkey. Apart from the crisis in 1994 and November 2000, the country had to face another financial crisis, causing problems in the management of its economy. Why does a country delve deep into financial crisis? What are the possible immediate triggers for both the current and potential new crises? 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