finanacial crises presentation
TRANSCRIPT
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Financial Crises
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Credit Management
Group Members:
Rameez Tariq
Adil Arshad
Amir Alvi
Bilal Hussian
Inayat Karim
Masood Anwar
Hamid Raza
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Introduction
Capitalism is an economic system in which land labor
production pricing and distribution are all determined bythe market.
The term financial crises is broadly used for many
things means if there is great loss happen than its calledfinancial crisis but its mainly related to banking panics.Other situations in which we often use this term is instock market crashes.
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The global financial crisis in 2008-09 which are still on the
go, they actually started from the 20th century and theyhave been increasing since then.
In the end of 20th century the U.S housing prices after a
multiyear started declining, the mortgage prices had been ata very high rise before that and suddenly they started
declining at the end of 20th century.
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Pakistan seems to be one of the hardest hit with this global
crisis. Its economy is already in crises. Saudi Arabia has
refused to give Pakistan a financial concession on the oil
trade.
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Causes of the Crisis
Fundamental mispricing in the capital markets
.
Mistakes made by the banks by keeping the federalfunds rate too low for too long created bubble and
housing bubble
Plus the failure to control poor underwriting standards inthe mortgage markets
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The Crisis Getting Global
Europe
Africa
Asia
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The Financial Crisis and
Pakistan:Two Type of Crises
1. Economic Crises
2. Political crises
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Economic Crises Inflation
Trade deficit
Balance of payment
Foreign exchange reserves
Circular debt
Poor performance of banking sector
GDP growth rate Decline
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Effects of Crises Weaker export revenues
Further pressure on current accounts and balance of
payment(BOP) Lower investment and growth rates
Lost employment
Lower growth translating into poverty
More crime, weaker health systems and even more
difficulties
Meeting the millennium development goals
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Inflation
Rising food and fuel prices have been a major source of
inflationary pressure in South Asian countries especially
Pakistan.
In the year 2009 core inflation rose to 18% from the
14.7% 2008.
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How Tackle the Situation?
Tax breaks will be given to the industry to produce the
product.
Agriculture sector needs a greater support Increasing supporting programs for the labor demanding
activities.
Reduction of the financial policy and decreasing the
rates of productive sector Cash subsidies
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THANKS