FINANCIAL MELTDOWN

Financial Meltdown



Table of Contents

Introduction3

Financial Meltdown4

Review of Global Financial Meltdown4

Concepts of MisLeadership and Globally Fit Leadership (GFL)6

The Global Financial Meltdown7

Decision Making Process Model9

Leadership Flaws12

The Embedded Values Cycle13

Global Recession and Channels Transmission14

Recommendations16

Conclusion16

References18

Financial Meltdown

Introduction

The most discussed topic in recent months around the world this world financial meltdown, its causes and consequences for different countries and finding out. The crisis started in the U.S. first crisis in real estate, when the mortgage loan were used high-risk loans, then the crisis came in the banking sector, then gradually impressed the entire U.S. economy. And as the U.S. economy is one of the main parts of the world economy and the dollar is one of the two world currencies, the crisis has passed on all the economies of the world, and gradually started in all countries. It is also an important cause of the crisis was over-the dollar. The world showed its surplus. The most basic and important question that interests of all is when will the global financial crisis. Different experts give different predictions. Deadlines constantly adjusted and changed. After a small amount of time since the crisis has been more frequently raised the question of how the rest of the world economy since, as will be distributed forces in the world (Rayment and Smith, 2011, 113). Because of the crisis was followed by massive layoffs. Therefore, for the ordinary people who lost their jobs, a very important question is how to find work to do in case of loss is whether to engage in retraining and further training or to continue to look for work on the already existing field.

Financial Meltdown

The deep frustration of the state financial system, followed by inflation, the volatility of the securities, as reflected in the sharp disparity of income to the expenditure budget, instability and a decline in the exchange rate of the national currency, mutual non-payments of economic entities, non-compliance in the money supply requirements of the law of monetary circulation. The financial credit crunch is often the result of the current period of uncontrolled credit and insufficient, causing economic losses for banks and investors interested in debt to the credit is unpleasant and the total debt is detected. As a result, credit to reduce the availability of credit and increasing the cost of access to credit, although interest rates (Bloom, Bond and Reenen, 2007, 392).

Review of Global Financial Meltdown

The global financial crisis of 2007 was comparatively recent in origin as compared to other financial crises, and is possibly persistent until now. Is the credit crisis a good natural experiment? As the answer to this question is important for understanding t he empirical methods in this paper, I will discuss the pertinent features of the credit crisis in depth. The credit crisis refers to the panic ill financial markets ill August 2007. It was triggered by increasing defaults on subprime mortgages and the disruption of the markets for mortgage-backed securities.

Brunnermeier (2009, 77) describes the events that hit the US financial markets as a force of ...