Financial crisis of 2007–2010
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The financial crisis of 2007–present is a financial crisis triggered by a liquidity shortfall in the United States banking system.
It is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s.
It contributed to the failure of key businesses, declines in consumer wealth estimated in the trillions of U.S. dollars, substantial financial commitments incurred by governments, and a significant decline in economic activity
Responses to financial crisis:
The U.S. Federal Reserve and central banks around the world have taken steps to expand money supplies to avoid the risk of a deflationary spiral, in which lower wages and higher unemployment lead to a self-reinforcing decline in global consumption.
U.S. Federal Reserve, the European Central Bank, and other central banks purchased US$2.5 trillion of government debt and troubled private assets from banks.
The governments of European nations and the USA also raised the capital of their national banking systems by $1.5 trillion, by purchasing newly issued preferred stock in their major banks.
Lessons learnt:
The collaboration of many governments in the world and banks that caused the fast relief of the economic crisis shows that inter-government collaborations can solve big problems that threatens the world.
The Term Paper on Global Financial Crisis 2
... (Acharya, 2007). These crises in the sub-prime mortgage and the declining world stock prices led to the global financial crisis in July 2007. ... as the insurance companies, mortgage banks and banks. The US federal government preferred self regulation of the financial institutions under the rule ... for bankruptcy with the US government. This had a direct effect on almost all the banks in the US and ...
Possible crisis in the future:
A half-mile-wide asteroid crossed Earth’s orbit on March 23, 1989, about 400,000 miles from Earth. Our planet had been on that spot six hours earlier.
The closest near miss was an asteroid about 30 feet wide which passed within 106,000 miles of Earth on January 17, 1991.
Scientists have had a hard time getting Congress to fund an early-warning system. A 1991 NASA study, requested by Congress, called for an international Spaceguard Survey system of ground-based telescopes surveillance cameras to detect Earth-threatening objects. Congress refused to pay for the $10 million-a-year project. NASA spends $1 million a year on smaller search programs which monitor about 10 percent of the sky per month.
Possible solution:
With enough advance notice, military planners might:
Melt it with lasers on Moon or Earth used to boil off layers, thereby redirecting it.
Smash it to smithereens with rockets carrying heavy payloads to smash the object into bits and divert them off course.
Blow it off course with a nuclear blast near the object.
Problem faced:
If the comet that hits the earth would be very large, the unity and cooperation of many governments are required, thus comes several problems:
Who would then be responsible for saving the earth?
Will countries with nuclear weapons cooperate with each other?
Who is to contribute how much to the mission?
Who is to lead the mission?
Possible solution:
The UN
The United Nations Organization (UNO) or simply United Nations (UN) is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and the achieving of world peace.
Thus, the UN could unite countries to hold conferences to discuss the sharing of responsibilities and the usage of resources. The leading scientists in various fields related to the matter could be called in to advise the decisions of the UN.
The Essay on Problems each Country is facing
The Current problems the Libyan government is facing is the rehabilitation of the country’s economy and raise the standard of living of the citizens as well as create jobs of the increasing labor force. The decades of isolation and economic stagnancy have led to the lowering of standard of living as well as increase in the number of the jobless. Since the shift in the Libyan policies most of the ...
Possible problem:
Relationship between America and UN
Since 1945, America had been the dominant force in the UN. America provided the UN with 25% of its annual budget and expected to have a big say in final UN decisions – an influence that matched the hundred of millions of dollars America has paid into the UN’s budget.
Likewise, some major international problems were dealt with by America flexing her diplomatic muscles (such as in Suez and especially in the Middle East) rather than the UN solving them.
Thus the UN may be manipulated by more powerful countries, it may not be firm enough to make countries reach consensus and make comprimises.
Lessons learnt from financial crisis that can be applied to this problem:
Collaboration of governments can solve major problems that the world may encounter. Feasibility and manageability:
It requires the action of many countries and governments, thus this also depends on the political situation and stability of the world at the time of crisis.
