Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Financial Crises Name: Ahmed Al-Mohsen ID: 200801561 Money and Banking Section: 102 Instructors: Mohammad A. Magableh Outline 1. Introduction 2. When and how the financial crises happen 3. The effect of financial crises on Country Company People 4. Graph 5. The 2008 financial crisis 6. The Saudi economy and financial crisis 7. Conclusion 8. Reference Introduction Financial crises are major disruptions in financial markets that are characterized by sharp declines in asset prices and the failures of many financial and nonfinancial firms. In this report will talk about financial crises. When and how the financial crises happen? What are the effects of financial crises on the country, company and people? When and how the financial crises happen The financial crises happen in 2007-2008. The financial crises start in the United States when the banks start to give loans to the peoples how can’t repay the loan. There are loans organizations that agree to give loan to person that have debt because he has property. They give him the lone as security or guarantee for the loan. The demands for properties are declining because there are fewer buyers. This make the price of property go down and force the loans organization to ask for liquidity and compensation from the borrowers who don’t necessarily have money. This effect the price in the market and financial transactions. The banks lose a lot of their money and have lees liquidity will try to barrow the money from other banks but they will not give them the money because they don’t how big the problem the other bank have so they don’t give them the money. This will make a lot of banks have problem with the liquidity even if they don’t have any problem. Because there are a lot of banks with liquidity problem will effect the finical activity. The worker in the stock market always needs the liquidity so they don’t be forced to sell some assets every time one of the investor asks for money he deserved. Because the stock in the stock market is decreasing they sell them for liquidity or due to the situation in the market. The effect of financial crises The financial crises have always have a negative effect. These effects are different in the following: Country The effect of the financial crises in the country will stop the economic growth and will lower the GDP. Company All the company loses a lot of money. Some of the company wants bankruptcy and some of them try to recover from the impact of the financial crises. People The people how put their money in stock market lose all their money. There are some people how lost their job if the company want bankruptcy. Graph The 2008 financial crisis The world is passing through an unprecedented financial crisis. Global financial conditions worsened to the point that the financial system almost ceased operating in early October. Conditions have since improved, but not without massive wealth destruction, as banks have been forced to write down hundreds of billions of dollars, huge financial institutions have gone bankrupt or been bailed out by governments and stock markets have plunged. The Saudi economy and financial crisis No country in the world will be spared from the effects of the financial crisis and ensuing global recession. For Saudi Arabia, it has completely shifted the focus of economic policy from controlling inflation to restoring confidence in the financial sector. We see the following key implications for the Saudi economy. Oil prices will be significantly lower than previously anticipated and reduced production will exacerbate the impact on oil revenues. Finance for local and foreign companies doing business in the Kingdom will be less easily available and more expensive. Economic growth will slow as problems accessing suitably priced financing and lower oil revenues hinder project implementation and hurt confidence. Lower oil revenues will mean the end to the huge budget and current account surpluses of recent years. Sharply lower commodity prices and a strengthening of the riyal will cause inflation to fall back rapidly over the next 12 months. Conclusion Financial crises are major disruptions in financial markets that are characterized by sharp declines in asset prices and the failures of many financial and nonfinancial firms. The financial crises happen in 2007-2008. The financial crises start in the United States when the banks start to give loans to the peoples how can’t repay the loan. The worker in the stock market always needs the liquidity so they don’t be forced to sell some assets every time one of the investor asks for money he deserved. Because the stock in the stock market is decreasing they sell them for liquidity or due to the situation in the market. The financial crises have always have a negative effect. The effect of the financial crises in the country will stop the economic growth and will lower the GDP. All the company loses a lot of money. Some of the company wants bankruptcy and some of them try to recover from the impact of the financial crises. The people how put their money in stock market lose all their money. There are some people how lost their job if the company want bankruptcy. Reference http://arabic.cnn.com/2008/business/10/16/crisis.how/index.html http://www.gulfbase.com/AR/GCC/Index/1 http://www.samba.com/GblDocs/Saudi_Arabia_Baseline_Forecast_2011-13_Eng.pdf http://www.susris.com/articles/2008/ioi/081216-jadwa-bulletin.html