finanacial crisis video

http://video.google.es/videoplay?docid=-7393267601839226634&hl=es

Essay Cause - Effect

Financial crisis

United States is facing a financial crisis since last month, however, it isnt a new circunstance. Adam Smith´s idea created a low control between government and companies, and the bubble exploded in 1929 leaving people without money. As a consecuece, Keynes´s idea obout a hard control from the state to the companies could help the nation. Many people could find a new job and the economy grew up again, nevertheless, the current crisis has different effects.

We can find many kind of causes to this problem, but certainly two of them are the most important. The first one is China, many factories has broken or lost money this last months becouse of the exports from china couldnt stop. becouse of that, many americans hava lost their employment and they couldnt fallow paying bank debts. Another effect, is the decrease of the retailers demand.

The second one, is the mortage credit. A lot of a houses has built in the last years as a consecuence of the demand. Additionally, people who dindt have liquidity, could take access to these credits. Banks needs money to keep working, but unfortunately people didnt have money anymore as a result of the unemployment.

Nowadays, Central Bank has given money to the other banks to solve the crisis. Economists know that money cant help the country becouse nobody is controlling financial and comercial banks. Government just has controled the money given, forgetting the causes of the problem. Another solution could be help the small companies with a new import law to make it more competite.

Biliography:

'Crisis financiera vale US$1,4 billones de dólares': FMI; 8 veces el PIB de Colombia. Vea en http://www.portafolio.com.co/economia/finanzas/2008-10-10/ARTICULO-WEB-NOTA_INTERIOR_PORTA-4594045.html

Peor caída de Wall Street en 5 años; bajó en 7,33%, pese a esfuerzos del Gobierno. vea en http://www.portafolio.com.co/economia/finanzas/2008-10-10/ARTICULO-WEB-NOTA_INTERIOR_PORTA-4594863.html