The last financial crisis 2007-2009 has many implication on different Term Paper

The last financial crisis 2007-2009 has many implication on different markets , however there are some arguments that the gulf a - Term Paper Example Granting of loans in an uncontrolled manner, which resulted in the value of the loan exceeding that of the assets, was the root of the problem. These loans were provided to the borrowers without conducting a minimum check on their credit-worthiness. The result was that many of the borrowers failed to pay their loans back, which clearly reflected the financial status of the institutions and their inability to pay their obligations, thereby resulting into collapse. This paper investigates the severity of the impact on the GCC market. In this context, the financial market of the GCC countries has been considered along with special attention towards Qatar. The study revealed that the severity of the impact was not as huge as compared to the rest of the world. This can be due to the fact that the policy makers of GCC countries took ardent steps to mitigate the risk. Moreover, the Qatari economy did not get much affected and the banks were declared solvent in that time. However, the real e state business was seen to experience huge hit by the credit crunch. 1. Introduction In the year 2008 and 2009, the global economy was rocked by the financial crisis which was considered as the most devastating economic event, after the Great Depression in 1930s. The aftermath of this global crisis was felt in every part of the world. The global crisis was initiated by the low interest rate regime along with huge inflow of foreign funds that led to the housing construction boom and encouraged large consumption of debt-financing in USA. The Federal Government of United States made it possible for almost everyone to own a home by giving 1 percent rate on the mortgages. The loans that included the mortgages were given to almost everybody without checking the credit worthiness of the borrowers (Sivakumar and Krishnaswami, 2012). With the decline in the housing prices, the major financial institutions, which were involved in borrowing for investing in the subprime MBS, had reported signi ficant loss. This decrease in the price also resulted in a fall in the prices of the homes that worth less than the mortgage loans, which incentivised financially the entry towards the foreclosure. Towards the end of 2008, the crisis peaked. Several banks and other financial institutions of Europe and USA failed as a result of this crisis and governments were trying hard to save these institutions by bailing them out (Kasekende, Ndikumana and Rajhi, 2009; Anon., 2009). The crisis started propagating beyond its epicentre, thereby affecting not only the advanced economy, but also the emerging economies and the rich Arab GCC countries. This paper aims to analyse the degree of impact on the GCC countries. In this context, the paper will specially analyse the situation in Qatar and other GCC countries. 2. Literature Review 2.1 Evolvement and Concept of Global Financial Crisis The term financial crisis refers to the sudden reduction in the price of the assets, which can be financial, such as, bonds and shares and can even be materials like, equipments and machinery. This sudden reduction can result from the price bubble which indicates an abrupt and huge increase in the prices ending in a sudden collapse. Moreover, the bankruptcy of Lehman Brothers, the giant financial institu

Media Analysis Assignment Essay Example | Topics and Well Written Essays - 1000 words

Media Analysis Assignment - Essay Example This symbolizes the idea that the later generations of the first generation immigrants who made America their home during the early part of the twentieth century, have become an integral part of the culture of this continent. In simple words it means that these later generations have become completely ‘Americanized’ by losing their own cultural identity, thus adding to the cultural pot where all cultures simply melt away to produce a mash called the ‘American culture’. However, a closer look will reveal that it is not so as the myth claims. Indeed, America is more about the co-existence of different cultures that are each vitally alive in their own identities. Here we will review and analyze the movie â€Å"Crash†, and see the different underlying racial discriminations that are often existent in real life America. This movie portrays the co-existence of many cultures from different parts of the world living in America, and tries to show the tensions between them, and how they judge each other and form assumptions. In real sense this movie does a commendable job in bursting the myth of the so called ‘great American cultural melting pot’. There are two very distinct sides to the myth of this ‘cultural melting pot’. One part signifies that all are welcome in this country, irrespective of being rich, poor, black, white or brown. Everyone is welcome to take a part in the grand American dream of prosperity and freedom, and be a part of the single cultural identity that is called ‘Americanism’. The other side is much darker, that which with the help of this myth attempts to extenuate the presence of racial discrimination and bigotry. It simply tries to portray racism and intolerance as a passing phase as the minority immigrants adjust in this new country. This is evident in a magazine article that in 1875 said â€Å"the fusing process goes on as in a blast-furnace;