Solving financial crisis through mortgage crisis processing

Financial Crisis has been one major and important topic hitting our TVs and websites every day. All what we’re watching and hearing are facts and regular informations, yet no serious solutions have been elaborated. The US government is standing still , busy with some other unimportant matters which led indirectly to this crisis. Here’s one of some suggestions posted on the internet. The solution should start on an American basis , home prices should raise up. The US government should open its channels for Asians and others to invest in the collapsed US mortgage market so in this way , the author thinks, the market will pick up slowly and the housing recession will be over in a couple of years and the Americans should offer a green card for a foreigner that investment in this market for 10 years for example. This example and solution is not completely ethical , but who knows it can attract foreigners into this sort of business and lift up the American economy and get it back on track.

References :
- How to solve the global financial crisis. (2008, 10 October). Retrieved 06 November ,2009, from Dancewithshadows.com
http://www.dancewithshadows.com/business/how-to-solve-the-global-financial-crisis/

- Image retrieved from : http://www.american.com/graphics/2008/february-02-08/Mortgage%20feature.jpg

Lebanon , resistant to the Financial Crisis

It doesn’t happen every day to witness a small country which wars , instability and conflicts were always present in it, to overcome difficulties such as the economic crisis. Lebanon was booming while the world was melting , people are losing their jobs and companies and banks are announcing their bankruptcy. 2008 was one of the best years in the Lebanese economy. Riad Salameh , Lebanon’s Chief banker , says that he saw it coming , he prepared the banks and urged them to get out of the international investments. The reason why the small banks didn’t fall in the trap was due to the fact that they have emerged with big banks. Lebanon’s conservative policies kept the Lebanese economy on the track because these policies and the whole system are immune to wars, instability and political assassinations. To sum up , Riad Salemeh our Chief banker , who was elected the world’s best chief banker last year, did a very good and balanced job to keep Lebanon away from additional problems.

References :
- Natalia, A. (2008, 5 December). Lebanon 'immune' to financial crisis. Retrieved 06 November ,2009, from News.bbc.co.uk
http://news.bbc.co.uk/2/hi/middle_east/7764657.stm

- Image Retrieved from : http://newsimg.bbc.co.uk/media/images/45268000/jpg/_45268435_lebapbank466.jpg

Bankruptcy of Lehman Brothers : A worldwide problem

Lehman Brothers , one of the primary banks in the world, has experienced many difficulties and problems which led to its bankruptcy. On the 15th of November , the economic crisis hits the world with striking news : Lehman Brothers Bankruptcy . This was due to financing too many assests with too little capital which was a very risky move. Lehman Brothers is the biggest investment bank to announce economic failure since 1990. After encountering some problems with other bank partners , Lehman Brothers had hoped to raise the capital by selling off a stake in the investment unit, use that capital to sequel some of its assets to stockholders. The bank’s plan didn’t work out , 26000 employees lost their jobs . It’s total chaos , and the outcomes of the economic crisis were more to come.

References :
- Lehman Brothers Holdings Files For Bankruptcy. (2008, 15 September). Retrieved 06 November ,2009, from Recession.org
http://recession.org/news/lehman-brothers-files-for-bankruptcy

- Images retrieved from : http://images.newstatesman.com/articles/2008/1014/014_p22.jpg
http://www.trendbird.co.kr/attach/1/1093925443.jpg

Dubai's Economy going down?

Dubai , one of the leading forces in the international finance , trading center and investments , that holds luxury hotels and resorts , has experienced the decline and turned from boom into bust due to the economic crisis that hit the world . Most of the companies in Dubai, that were a magnet for South Asian workers, were going bankrupt and Indian and Pakistani workers went out of work. Zafar Abbasi is a sample of the consequences of the crisis, he lost his job and now has no money at least to satisfy his physiological needs. He says :”No money for the foods [sic], everything is so expensive, medicine and rents,” . Most of the workers and builders of Dubai were foreign workers and now they’re forced to leave this city , but unfortunately many employees were stuck there because their passports are held.

References:
- Mandy, C. (2009, March 5). Global Economic Crisis Hits Dubai. Retrieved November 6 2009, from Voanews.com
http://www.voanews.com/english/archive/2009-03/2009-03-05-voa28.cfm?CFID=323724514&CFTOKEN=99797612&jsessionid=de3011ec45ccad831f33396c7a75b1d4e468

- Image retrieved from: http://www-scf.usc.edu/~ericsoli/DubaiLaborers.jpg

Financial crisis and the classes affected

Since the Great Depression of 1930s, the financial crisis that hit the world in 2007 has created the greatest financial disorders. There were 4 main asset classes that were hit by the crisis. First of all, the crisis in the equity market that provides some comprehensive view of the fall that happened during the crisis and compares it to earlier markets. Second of all, the crisis of the fixed income that resulted in the falling home prices. The third fact is the crisis that happened in the foreign exchange market. Finally, the last class is the wrong handling of the emerging markets in the crisis.

References :
- Michael, M., & Mark, T. (2009). The global financial crisis: Causes, threats and opportunities. Introduction and overview. Retrieved November 05, 2009, from Sciencedirect.com
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V9S-4WYJSK5-1&_user=894227&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1077226730&_rerunOrigin=google&_acct=C000047539&_version=1&_urlVersion=0&_userid=894227&md5=987c9d27f77c7ab0676c75377ddcbb50

- Image retrieved from : http://www.uml.edu/wuml/podcast/media/global_financial_crisis1.jpg