Banking And Its Impact On Society

This fills a gap in introducing the reader to economical problems that were triggered due to this banking collapse such as macroeconomic problems. Which I will include in to paper to furthermore give the reader a more global approach in how the economy plays a significant role in our day to days lives.

In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brother and AIG. These collapses not only influence own countries but also international area. Hence, the intervention of governments by changing and

It seems that there is never a time in the world where we can be assured that prosperity for a large percentage of the population is a safe bet for the foreseeable future. There always seems to be another financial crisis lurking around the corner, even when things seem the most settled. That reality can be a scary one for people to confront, since they have their own financial stakes to consider. If you are the head of a household or a family, this prospect can be even more daunting, since you also have to worry about the fortunes of those who count on you as well as your own. The stress from wondering what’s coming next from the economy at large can be unbearable at times.

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

Financial crisis is really a major concern for all economies in the world. Every time a crisis occurs, companies, banks and financial institutions should draw their own lessons, because if the lessons are not recognized, they may still go on the trail of failure of

Freire speaks of how the banking concept has created a “false perception of reality.” (Freire 226) The nature of this method of education is to revoke any sort of independent thought from the student, allowing only the teacher to provide the lessons and conversational layout for a class. The method creates this false perception of reality for the students. Without additional perspectives, the students are only able to see the world though their teacher’s beliefs. This issue is very problematic due to the importance education plays developmentally on human beings. Much of what we learn throughout our lives sticks with us and becomes part of who we are. The problem with these false perceptions is they attempt to destroy the very essence of what makes humanity extraordinary; our ability to reason. Freire writes:

n 2008, the financial crisis affected the companies, the families and the people. This is how I find myself driven towards the financial area. I saw many companies closed and people lose their jobs and families face huge challenge. Therefore, I realized how the financial market changes people’s life and I want to avoid these happening on myself. I pursued a bachelor degree in Business Administration, specifically in finance major. As my knowledge of that field grew, so did my curiosity about the effects of finance, but also in terms of how we can transfer the risk and cut losses.

Throughout society there are many elements that can affect an individual’s life blamelessly, an economy is one of the most significant influences in an individual's life. Although the performance of the economy isn’t always present in an individual’s thought process indefinitely, it plays a key role in almost any decision one makes. The purpose of conducting this research is to place heavy emphasis on the gruesome financial crises that took place in the time period of December 2007 and ended June 2009, the disastrous financial crisis is notoriously known as The Great Recession of 2008. By analyzing and identifying The Great Recession of 2008 it allows us to fully gauge the validity of the crisis and the effects it had on the

In 2008 the world experienced one of the largest economic crisis, next to the great depression of the 1930’s. The meltdown revealed the instability of the US banking system and led to the bankruptcy of investment firm Leimen brothers, and collapse of worlds largest insurance company AIG, which triggered a global financial crisis. International share prices tumbled, causing 30 million people to become unemployed and doubling the US debt. It was the start of a global recession and it was not an accident.

Economic Prosperity: A sound banking system promotes economic well-being by providing them short, medium and long- term loans. Economic Prosperity: A sound banking system promotes economic well-being by providing them short, medium and long- term loansEconomic Prosperity: A sound banking system promotes economic well-being by providing them short, medium and long- term loansEconomic Prosperity:

People always think that the technology renovations, institutional changes and experience gains can make the world emerge from financial crisis saying that 'this time is different'. But they may be too optimistic. The outrageous truth is that each new financial crisis is not predicted or forestalled. As Reinhart and Rogoff said in their book 'This Time is Different', technology is changing, fashion is changing, but self-deception of governments and investors are not.

During the recent years the economy, the business world and the government have been experiencing tremendous change that is impacting all common private and public business practices. Business are experiencing a “ Global Financial Crisis” on which are not only the local or national markets but also the global markets are impacted on a negative and at times threaten the existence of powerful established corporations and organization. The new era is not a safe haven for no one anymore; including those who one time were described as solid financial enterprises. This environment has obligated the USA government on to attempt to rescue or become involve in the process to alleviate or provide some temporary solutions in a form of financial bail outs and economical stimulus package. This era started back on year 2007 and to continue to this very present day touching many economical areas such as Housing Industry, unemployment, investments securities, stock markets and others.

After the financial crisis came into effect the entire world received a wakeup call about their dependency of the success of United States economy (Lam, NPR). The world economy is still dependent on the outright success of the United States of America. A financial crisis like the one in 2007-2009 only happens so often and is undoubtedly one for the history books. For a financial crisis like this to be averted in the future, the borrowers and loaners within the financial system must not rely so heavily on the success of big

The Banking Industry plays an important role in the economic development of the country and is the most dominant segment of the financial sector. Banks encourage economic growth by allocating savings to investments that have potential to yield higher returns. They perform their basic role of accepting deposits and lending funds from these deposits. Banks securely save the money of depositors, provide interest to them, and lend the funds raised from depositors to consumers. They are in a wide range of sizes, from large Global Banks to Regional and Community Banks. We can study the structure of an organized banking industry by taking an example of Indian banking industry:

Just after ten years of Asian financial crisis, another major financial crisis now concern for all developed and some developing countries is “Global Financial Crisis 2008.” It is beginning with the bankruptcy of Lehman Brothers on Sunday, September 14, 2008 and spread like a flood. At first U.S banking sector fall in a great liquidity crisis and simultaneously around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. (Global issue)