...Impact of the Asian Financial Crisis in 1997 and effect to Latin America Name: Institution: Date: Abstract In 1997, the Asian Financial Crisis spread rapidly all over the Asia and affected almost all the economies in the world. Prior to the Asian Financial Crisis, the Asian countries such as Thailand, Malaysia, South Korea, Indonesia, Hong Kong and Singapore experienced a remarkable growth in the economy that was considered the highest in the world. These Asian economies increased by a notable proportion of 6 to 10 percent annually in the GDP. However, what had been regarded as an Asian miracle seemed to crumple down rapidly 1997 when these Asian countries were faced with a severe financial crisis in their local stock and currency markets. When the economies started recovering from the crisis in 1998, the stock markets in several countries had considerably lost more than 70 percent of their worth, while their currencies depreciated in comparison to the US dollar (Pettis, 2001). The Asian Financial Crisis also affected several nations in the Latin America as they experienced a relentless economic meltdown that had detrimental effects to the economies. For instance, the financial crisis force multinational firms to close down due to liquidation, the banking system deteriorated and this forced high levels of lay-offs leading to unemployment. In addition, the financial crisis resulted in the loss of the people’s purchasing power in the Latin American while nations turned to...
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...governments and departments which helped to reduce the bad effects of it. Not a single year has gone by in the past two centuries where there was not a financial crisis somewhere in the world (see figure 1). Arguably, the world witnessed its first international financial crisis in 1825. The opening up of Latin America after the overthrow of the Spanish empire led to the opening up of international trade between England and the Latin American republics. The result was massive capital flows from London to finance infrastructure, mining and government spending. But once the capital outflows impinged on the Bank of England’s (BoE) gold reserves, the policy rate was raised, leading to a banking crisis. A sudden stop of capital flow from London resulted in banking panics in the US and currency crashes across Latin America. Figure 1: The history of financial crises Indeed, the crisis in 1825 marked the first of seven clusters of sovereign defaults in the period 1800 to 2010 In the first cluster of defaults, which happened during 1824-1834, 13 Latin American countries defaulted. The following period (1835–1866) was relatively tranquil. But a lending boom developed in this period, which soon resulted in a new series of default episodes. The global crisis of 1873 started with the collapse of a property boom in Germany and Austria, then spread through the continent and affected the US as European investors dumped...
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...The Cuban Missile Crisis The world was at the edge of a third world war. This was the result of a variety of things: the Cuban Revolution, the failure of the Bay of Pigs invasion, US anti-communism, insecurity of the Soviet Union, and Cuba's fear of invasion all made causes for war. However, war was not the result due to great cooperation from both President Kennedy and President Khrushchev and each of the decisions made by the leaders was crucial in the outcome of The Crisis. Kennedy's choice to take action by means of quarantine instead of air-strike and Khrushchev's decision to abide by the quarantines were perhaps the two most significant decisions made by the leaders in order to prevent war. The Cuban Missile Crisis showed the world that compromising and discussion can in-fact prevent war. As Khrushchev said in 1962, "They talk about who won and who lost. Human reason won. Mankind won." 1 The world had almost seen another world war, the effects of which would have been devastating because of the weapons involved. Humanity, indeed, was the prevention of the war. The Cuban Revolution was a background cause to the crisis. On January 1st, 1959 a Marxist regime in Cuba would have seemed unlikely. To the communist party in Cuba, Fidel Castro appeared tempestuous, irresponsible and stubbornly bourgeois. In 1943 President Batista appointed a communist to his Cabinet, as he used communists as leaders of the labor unions. Batista started to fail the Cuban communists and their...
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...The United States made the right decision in intervening during the Cuban Missile Crisis. The Missiles brought to Cuba were against the Monroe Doctrine, and the USA had to act on it. The Monroe Doctrine warns all nations to not interfere in American affairs. The Nuclear Missiles that were brought to Cuba were an extreme threat to the United States, therefore, establishing a naval quarantine around Cuba and intervening had to be done for the welfare of the United States. The Cuban Missile Crisis was a conflict between the United States and Soviet Union over Soviet nuclear missile bases that were found and being built in Cuba. The conflict only lasted 13 days in the October of 1962. In the short amount of time that the Cuban Missile Crisis transpired,...
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...Cristian Ortiz Global Research Period 7 Central american Refugee Crisis In today's world there are many factors that pull and push people out of their home country. The refugee crisis is a huge problem because many who try to escape their country are either send back or simply can't make it to their destination. The refugee crisis in central america is a huge problems because there are more push factors that make people flee their countries. The refugee crisis in central america has being a problem from a long time. In Central america there has being many conflicts. These conflicts make people wanna leave or be forced to leave their country for safety. One of the major problems in central america that cause people to flee is...
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...company has huge presence in America spanning across 40 states. It serves approximately 54 million consumers in US and its foot print covers 80 % of the population. The bank is being led by Brian Moynihan who succeeded Ken Lewis as the President and CEO effective January 1, 2010. Some of the key highlights of Bank of America are: As of 2010, it is the second largest bank holding company behind JP Morgan Chase in United States by assets which stood over US$ 2 trillion As of 2010, the company is the fifth largest company in United States by revenue which is over 111.4 billion2 The company was also the 3rd largest non-oil company in the US after Wal-Mart and General Electric In 2010, Forbes listed Bank of America as the third largest company in the world 3 The bank has over 5500 branches along with approximately 16300 ATMs and an online banking with 30 million active users 4 The major competitors of Bank of America are JP Morgan Chase, Citi Group and Wells Fargo Bank. 1 http://www.forbes.com/companies/bank-of-america/ 2010 Bank of America Annual Report 3 http://www.forbes.com/companies/bank-of-america/ 4 http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=irol -homeprofile#fbid=W6HlSIbzfcd 2 4 Bank of America: Mobile Banking Case Report Financial Snapshot 5 Company History The company was founded originally as Bank of Italy in 1904 by Amadeo Giannini in San Francisco. Amadeo established the bank to serve the banking needs of many immigrants at that time who were ignored by the existing...
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...……………………………………………………………………………..CHATURVEDI Roll No S133F0010 Batch: 2013-15 [Dean Signature] Dean SBPPSE [Faculty Signature] Faculty Advisor PAGE 2 ACKNOWLEDGEMENT I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals in the organization and School of Business, Public Policy and Social Entrepreneurship, Ambedkar University, Delhi. I would like to extend my sincere thanks to all of them. I am highly indebted to Ms. Nidhi Kaicker for her guidance and constant supervision as well as for providing necessary information regarding the project and also for her support in completing the project. I would like to thank Ms. Kritika Mathur, for helping me out in my time of need during the time I was working on my project. My thanks and appreciations also go to my classmates who have willingly...
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...Bank of America 3/12/12 History of the company: The bank of America has become one the most well known banks in the world. In fact this success is due to it several historical merges, especially with the bank of Italy, founded by Amadeo Giannini in San Francisco in 1904. The founder and president of Bank of America agreed to the merging on 1929. It operated under the name Bank of America, and in 1958 the bank harnessed the technology that lets credit cars to be linked directly to bank accounts by introducing bankamericard, and this was the progenitor of VISA. Bank of America first expanded to the borders of California with its acquisition of Seattle-based Seafirst Corporation in 1983. From this, the company expanded in Idaho, Arizona, Washington and Oregon, and it was the largest in history. In 1998, the company was purchased by NationsBank, which moved the headquarters to charlotte North Carolina. The bank suffered serious losses when the director was not able to pay back the large hedge fund it loaned. NationsBank structured the purchase as a merger and renamed the merged company the bank of America Corporation. The company had assets totaling 570 billion dollars, with 4800 branches situated across 22 states. It is currently the largest bank in the United States. Comentario [RN3]: I got lost with the dates during your presentation. There are some more here, but the history could have been made clearer with specific dates and actions. Comentario [RN2]: This sentence...
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...Thomas Paine “The Crisis” #1 In Thomas Paine’s “The Crisis” Thomas Paine writes about his thoughts, and experiences during the Revolutionary War. Thomas Paine is the speaker in The American Crisis number one. The occasion at the time was the Revolutionary War, which is the war when America broke away from England. The audience included Americans and the English. George Washington even had the first essay read to his soldiers in Valley Forge. The purpose for Thomas Paine writing these essays was to state that he believed America should be independent and he tells about the different battles or ‘crisis’ America goes through during the American Revolutionary War. In the first entry Thomas Paine’s tone starts off angry, yet optimistic; but near...
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...2008 Bank Bailout Economic crisis that strike a nation don’t happen from night to dawn, several factors attribute for an economic crisis to happen similar to a meltdown. This was the case for the 2008 economic crisis in America since the great depression that collapsed the stock market in 1929. Several are needed for a market to crash and crumble in pieces, risky investments, reckless decision making, and investments taking on a greater risks in hopes of greater returns are believed to be what caused the 2008 economic crisis in America. I believe that the bailout plan helped in the short term but will have its negative effects in the long run. The private sector in America especially the banks have a huge impact on the economy; there’s a lot of competition in that aspect of the economy. I believe that when the government intervenes in a free market economy and in the private sector it has to be with rules, regulations and under certain circumstances. The banks cannot just take risks loan money without checking first if the person can pay. For every act there is a consequence that has to be faced. The banks can’t just expect for the government to save them every time the feel they will go bankrupt. The government has stepped in several times since the beginning of 2008 to assist failing financial institutions. In September 2008, the federal government extended $85 billion to the American International Group, the country’s largest insurer and one of the world’s largest companies...
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...Article Critique Euro Crisis Fin 311 Certification of authorship “I certify that I am the author of this paper that any assistance I received in its preparation is fully acknowledged and disclosed herein. I have also cited any source from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by my specifically for this course and is not a replication of a paper submitted for another course. ” Mateo Salazar Abstract The main question about this article that we must ask ourselves is that in what way or how does the European financial crisis affects us. In this article critique we are going to explore and find out how and why is this article relevant to the course and why did I choose it. This article by Martin Feldstein talks about the European economic crisis and how this crisis was foretold long time ago. It analysis the countries involved in this crisis and how did they got there in the first place and how each one is affected by this anomaly. The critique shows us what caused the crisis and what is being done to stop this economic crunch, we will also review what countries are involved, what caused the crisis, what solutions are presented and find out the larger implications and think why and how this will affects people in America. Lately every day seems to bring chaotic news about the way our economy is doing. However, the most shocking or the one that everybody is scared of, would be the Euro...
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...The Cuban Missile Crisis Fear is defined as an unpleasant often strong emotion caused by anticipation or awareness of danger(Merriam-Webster's collegiate dictionary, n.d.). Imagine waking up everyday in fear. Not knowing whether today would be the last day walking the earth. This is the fear that Americans lived in for thirteen straight days. The Cuban missile crisis consisted of an intense military standoff between the United states and the Soviet Union. The Cuban missile came to light during the Cold war era. Throughout world war II the Soviet Union and the U.S. fought as allies, battling the axis powers. Although they were allies America was worried about Stalin and Russian communism. (citation) This helped to start the cold war. The...
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...The 1973 Oil Crisis By Sarah Horton In October of 1973 Middle-eastern OPEC nations stopped exports to the US and other western nations. They meant to punish the western nations that supported Israel, their foe, in the Yom Kippur War, but they also realized the strong influence that they had on the world through oil. One of the many results of the embargo was higher oil prices all throughout the western world, particularly in America. The embargo forced America to consider many things about energy, such as the cost and supply, which up to 1973 no one had worried about (Spiegelman). In order to understand the main cause of the oil crisis one must first know the history of the region and the ArabIsraeli conflict. World War II a Zionist state, known as Israel, was created on 56% of the land that was formerly known as Palestine. This state served as a homeland for Jews. The local Arabs were enraged by the fact that the Palestinian land had been taken to create this state. They refused to acknowledge Israel as an independent state. The Arabs began to launch efforts to recapture the land that they felt was rightfully theirs. This created the Suez-Sinai War. The British and the French sided with the Israelis in order to punish Nasser for nationalizing the Suez Canal. The strong Israeli military forces quickly defeated the Arabs. The Arabs responded to this defeat by uniting. In 1967 Israel launched the Six-Day War, claiming much land. In 1973 Arab forces retaliated. On Yom...
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...Introduction The Cuban Missile Crisis originated because of a number of different issues, stemming from the ongoing struggle between The United States of America and The Soviet Union and between Capitalism and Communism. There were various events and circumstances which caused this standoff. Firstly, the decision to place missiles on Cuban soil was taken by the Soviets as a means to offset their strategic inferiority. The second main cause was the fact that America felt threatened by a Castro lead Communist Cuba. Their continued efforts to oust Castro, was a significant factor in creating a very real fear in Castro of a US invasion of Cuba. This led him to form strong bonds with the Soviets and subsequently allowing them to place missiles in Cuba. We also look at Americas failed attempt to remove Castro with their ‘Bay of Pigs’, invasion of Cuba, in 1961. A final factor in the cause of the crisis is the possibility of the Soviets using the missiles as a means of strengthening their power, with regards to negotiating with America in matters outside of Cuba. The first aspect to look at when dealing with this question is Soviet insecurity and strategic inferiority with the US. The Soviets had many reasons to feel insecure or threatened in the period directly preceding the Cuban Missile Crisis. Khrushchev had long known that the Soviets had a disproportionally lower amount of missiles than the Americans, however it was not until after events surrounding the building of the Berlin...
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...“When the US sneezes, the world catches a cold” (Keating). The 2008 economic crisis didn’t occur suddenly. Signs started to appear in 2004, with the steadily increase in housing prices, when “subprime lending” was generally practiced. Subprime lending is the practice of lending loans to people who may have difficulty maintaining the repayment schedule which sometimes reflects setbacks, such as unemployment, divorce, medical emergencies, and more. Banks would usually lend out loans for an interest rate 100% or more for the values of their houses. Most realtors thought that the prices would have returned to a maintainable level, however, they failed to realize the amount of unreliable loaners (Amadeo). Many people began to lose their trust in the banks and their government, and started to criticizing the Community Reinvestment Act. The Community Reinvestment Act encourages citizens to put more of their money into banks in order to help surrounding communities grow (Community Reinvestment...
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