The Global Financial Crisis

Routledge eBooks, 2016

Until Lehman Brothers' bankruptcy in September 2008, the conventional wisdom was that the crisis was the result of problems in the financial sector. However, after the dramatic falls in industrial production in countries such as Japan and Germany starting in the last quarter of 2008, it became clear that the origins of the crisis were deeper. This paper argues that there was an economic crisis that was due to the bursting of a property and stock bubble in the US and a number of other countries. Just as in Japan in the 1990's, this greatly affected the real economy. The problems in the financial system were a symptom rather than a cause, but there was a strong feedback effect into the real economy. The structure of the global financial system and the nature of banking regulation have been severely inadequate. The paper suggests reforms in the structure of the IMF, the governance of central banks and the form of banking regulation. Resumen Antes de la quiebra de Lehman Brothers en septiembre del 2008, la sabiduría popular decía que la crisis se originaba en problemas en el sector financiero. Sin embargo, tras las drásticas caídas de la producción industrial en países como Japón y Alemania a partir del último trimestre de ese año, quedó claro que había que buscar más profundo. Este documento argumenta que hubo una crisis económica al explotar una burbuja inmobiliaria y accionaria en Estados Unidos y otros países. Al igual que en Japón en los noventa, los efectos en la economía real fueron enormes. Los problemas del sistema financiero fueron más un síntoma que una causa, aunque hubo una fuerte realimentación hacia la economía real. La estructura del sistema financiero global y la

2010

Neither interest-capitalism nor communism are natural economic forms, that is, they do not match human nature, but rather are forced by government, meaning that both are destined to fail. Communism leads to laziness and neo-liberalism to greed. In a healthy, that is, natural economic system, neither a planned economy nor interest exist, both of which lead to constrain freedom. With communism, people are enslaved through the forced labour inherent in a planned economy; in an interestbased economy, people are enslaved through the burden of interest, which multiplies exponentially and eventually makes it impossible for an economy to supply households sufficiently, since the exponentially multiplying interest must be earned and paid for.Ni el capitalismo basado en la obtención de intereses ni el comunismo son formas económicas naturales, esto es, no son propios de la naturaleza humana sino que son impuestos por el gobierno, lo que significa que ambos están destinados al fracaso. El comu...

2011

La sostenibilidad economica solo se logra cuando la empresa adapta su modelo de negocio de acuerdo con las circunstancias, tratando de asegurar la viabilidad y la rentabilidad economica. Asi, las funciones de la direccion financiera actual deben alejarse del simple control y centrarse en el compromiso con las politicas de la empresa, analizando su coherencia interna y en relacion con el objetivo de sostenibilidad economica.

Investigación económica / Escuela Nacional de Economía, Universidad Nacional Autónoma de México

The paper argues that process of financialization has profoundly changed how capitalist economics operate. The financial sector has grown relative to the real economy and become more fragile. Non-financial businesses have adopted shareholder value orientation, which had negative effects on investment. Working class households became squeezed because of rising inequality and have become more indebted, in particular in countries with real estate bubbles. Financial globalization has given rise to growing international imbalances, which have allowed two growth models to emerge: a debt-led consumption growth model and an export-led growth model. Both should be understood as reactions to the lack of effective demand due to the polarization of income distribution. The resulting finance-dominated accumulation regime is characterized by slow and fragile growth. The crisis is best understood as the outcome of the interaction of financialization and changes income distribution.

Revista de Derecho Uninorte, 2015

2009

The financial turmoil that originated in 2007 and developed into an unprecedented crisis battering financial and real markets is the latest manifestation, on a grand scale and with new attributes, of a welldefined pathology in the process of market liberalization and integration in the post-Bretton Woods era. At the root of the crisis lies a fundamental inconsistency between financial globalisation

2009

This paper presents the general and specific causes which led to the actual financial and economic crisis, the principal consequences of this crisis like some other theoretical considerations regarding the cyclical normal evolution of the economies and the major disequilibrium instauration between the market’s components which generates crisis. A critical analysis of the actual financial and monetary system emphasizes its pro-cyclic character. On the following pages, the weaknesses and vulnerabilities of the present system are put into light, starting with: lack of an international reserve currency to ensure stability and development, use of complex and opaque financial instruments, making decisions taking into account the rating agencies statistics which have serious problems especially in operating actions, unsecured procedures for the financial assets’ evaluation, existence of the so called “fiscal havens”, inefficiency of “the market’s invisible hand and aspects related to the c...

Ensayos De Economia, 2011

In this paper I want to discuss the financial sector's tendency to dominate, deflate and polarize economies, thwarting economic potential. Understanding these financial dynamics is essential to explain why all nations are not operating up to the technological potential toward which classical liberalism aimed, and why the world economy is polarizing, as are domestic economies even in the most advanced industrial nations.

2009

El máximo ejemplo de un mercado desregulado en la mundialización financiera y por consiguiente muy controversial es el que representan las agencias calificadoras. Desde la mundialización del capital la importancia de las calificadoras ha incrementado cada vez más, porque la calificación que otorgan estas empresas es una forma para los inversionistas de poder comparar títulos financieros sin tener que poseer un conocimiento específico. Esto ha provocado que las agencias calificadoras influyan directamente en la dirección del flujo de los capitales especulativos. Esto ha provocado que las crisis financieras generaran contagios regionales.

The current economic crisis started in the USA between 2007 and 2008, and its causes are still being discussed. Although there are many theoretical proposals that analyze the causes and possible solutions to this situation, the number of empirical research is still very scarce. The objective consisted of collecting and analyzing the opinion of the world scientific community on the causes and possible solutions to the crisis. 1770 scientists answered a questionnaire specifically designed for this purpose. Results show that the causes of the economic crisis depended on the management inside and outside the financial institutions. The highest percentage of participants was in agreement with a solution that promotes private initiative but also with governmental help and control.