Financial crisis Essay

tally to this article soros expresses that the current pecuniary crisis is the head of the effect of all the other insignificant financial crisiss that the US preservation has experienced in the past cardinal years, which came as a result of the weakening of the dollar in the financial merchandise over the other strong currencies. It was pass judgment to be happening because financial foodstuff operated in such a bureau that investors over borrowed loans from banks to invest in the house sector hoping that the market would regulate itself agree to the forces of demand and supply and be open to get good returns.The economy kinda suffered a shortage of cash as a result of the over acceptation and the interventions by the Federal Reserve did non work as had worked well before. The borrowers of the loans argon now not suit fitting to wear them back the loans leaving the banks strained with the do of bad loans that the other financial assets argon greatly affected. Ba nks and other financial institutions beat closed down their operations and around gone bankrupt as the personify of borrowing becomes unbearable.What matters closely as of this instant as suggested by Soros is to be able to deal with the political situation in a way that the economy go forth not be compromised. There is gather up to establish policies that will be able to redeem the lenders in the economy from come in collapse. The banks should be helped out of the liquidity problems by the government being recommended to use the Swedish model of dealing with a financial crisis. The model recommends that the banks as the basis time period of recovering the economy from collapse.In most of his articles and one of his best selling restrain the paradigm for financial markets soros has criticized the systems of British and US authorities in the bureaucratic procedures that they which steer too long to react to situations of exigency like this crisis that results to many effe cts on the economies. Word count 335 References George soros worst financial crisis in 60 years tag end of an era. 15th December 2008 inaugural financial times article.