Verified Document

U.S. Financial Market -- Lessons Research Paper

3. Avoid over-inflation of prices

The root cause of the sub-prime mortgages was the necessity for people to buy houses at unrealistically high prices. As a future recommendation then, better controls should be instated not only within financial markets, but within all sectors. The scope of these controls would be that of ensuring that the retail prices implemented, within the real estate sector as well as in any other industries and sectors, are realistic and pegged to the true costs.

4. Recognition of mistakes (or their possibility) and acceptance of the role of others

The United States perceives itself as the most powerful and developed nation, which it is, but we do seem overzealous at times and do not accept the possibility of being wrong. Yet, as this crisis has shown, we are not invincible. So another lesson is that of learning from the mistakes.

Additionally, in these times...

The International Monetary Fund for instance should have sufficient resources -- all financial as well as know-how, technologies, expertise and so on -- to help a country cope with more challenging times (Truman, 2009).

Sources used in this document:
References:

Batson, a., April 2, 2009, China Housing Market Shows Signs of Life, the Wall Street Journal

Makin, J.H., 2009, Three Lessons from the Financial Crisis, American Enterprise Institute for Public Research, http://www.aei.org/outlook/100067 last accessed on March 1, 2010

Truman, E.M., 2009, the Global Financial Crisis: Lessons Learned and Challenged for Developing Countries, Peterson Institute for International Economics, http://www.iie.com/publications/papers/paper.cfm?ResearchID=1240 last accessed on March 1, 2010
Cite this Document:
Copy Bibliography Citation

Related Documents

Financial Institution Statement for the Shareholders Several
Words: 1101 Length: 4 Document Type: Case Study

Financial Institution Statement for the Shareholders Several events have occurred over the past few months that will have an impact on our commercial and investment activities in Germany and the United States. We will discuss each of the events and the likely result on the bank's profitability, strategic business direction, and asset and liability consequences. The events to be analyzed are the raising of short-term rates by the European Central Bank, the

Financial Institution and Construction
Words: 920 Length: 3 Document Type: Case Study

Cricket Road Mason Sexton is trying to renovate the house he inherited located in Charlottesville. The area is a prime location, and with the proposed construction of a multi-storey building, it will attract a good number of tenants. Sexton is not experienced in real estate development, and he has been making calculations based on the research he has carried out. The costings he has come up with are not viable

Financial Institution and Burglary
Words: 996 Length: 3 Document Type: Essay

crime rate data of burglaries in two U.S. metropolitan localities. The UCR (Uniform Crime Reporting) Program of the Federal Bureau of Investigation describes the act of burglary as illegal entry into a structure for committing theft or a felony. For labeling a crime as burglary, it is not necessary for the element of 'forced entry'. UCR provides three sub-categories of burglary: forced entry; non-forced, illegal entry; and attempted forced entry.

Retention in a Financial Institution
Words: 2599 Length: 9 Document Type: Dissertation

These requirements are: The respondent has worked within the financial sector for at least five years The respondent has occupied important positions in the firm (e.g. they are not cleaning staffs) The respondent has been employed with the current firm for at least twelve months. 5. Analysis of data The questionnaire revealed throughout the previous section was issued on 50 respondents, from ten different employers in the local financial sector. The responses are revealed

Financial Institutions and Markets Over
Words: 1591 Length: 5 Document Type: Term Paper

To prevent these kinds of situations, management needs to implement a policy that will limit the total amount of derivative based assets in: the clients' or the company's portfolio to an acceptable amount. At which point, they would have the compliance department monitor these activities, to ensure that everyone is following the different guidelines. This will reduce the possible risks facing the company and it would improve their internal

Financial Derivatives This Study Emphasized the Importance
Words: 3145 Length: 10 Document Type: Thesis

Financial Derivatives This study emphasized the importance roles of financial derivatives, which has been known for the last decade and its effects on the Global financial crisis. It further analyzes the impact of financial derivatives and how it can be controlled to prevent corporations from incurring a lot of risks. It also explains the existence of financial derivatives since 1970, to the recent Global Financial Crisis which occurred in the 2006. Risk

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now