They understand and even some might agree that Canada is not currently suffering from a brain drain but there definitely is a problem and if it is not addressed by the government fast then there will be a major threat to the economy of Canada and then there will definitely be a BRAIN DRAIN. McKinsey & Company describes the Brain Drain as “WAR FOR TALEN”, it is a battle of quality rather than quantity so even though the statistical eviden... ... middle of paper ... ...ment does not lower taxes and other economic forces such as post secondary educational subsidies, then we will not only lose our brains but also our most reputable companies (Nortel) will move and establish themselves someplace where talent is found. Bibliography: · William Watson. (1999) “The Brain Drain Campaign” Policy Options Politiques. September.
Yes Canada’s housing market crash will not be on the same scale of damage done to the worldwide economy, but it will surely affect Canadians. "The evidence of overvaluation has increased since the previous assessment in Toronto, Vancouver, Montreal, Edmonton, and Saskatoon as price levels are not fully supported by economic and demographic factors, ' ' CMHC economist Bob Dugan said in a statement. In the end when the CMHC is trying to
When fair value accounting was first brought in by the International Accounting Standards Boards a few years ago, there were some concerns about the volatility it would bring, but in an optimistic economy it made company figures look good and the matter was left alone. However with a credit crunch in full swing, the matter has again been brought up as figures fall dramatically. Companies, regulators and politicians are all attacking the accountancy profession and accountants are taking the flak for banks making huge write downs in their books. Should companies simply ride out their current financial crisis or should the accountancy profession take some responsibility for assisting economic recovery as it was due to their poor financial reporting regulations that contributed to the credit crunch? The financial crisis otherwise known as the ‘credit crunch’ of 2007 to the present was triggered by a liquidity shortfall in the US banking system.
Banks sold these mortgages, along with their risk of default, to bigger banks that pooled mortgages around America into one big investment. Pooling mortgages was designed to reduce the risk of an single individual defaulting on their mortgage. A majority of people were able to pay their mortgages back, only a small percentage would default, making pooled mortgages a profitable investment. Mortgages can only be pooled if their risks are interpreted as uncorrelated. Big banks claimed that the United States housing market is uncorrelated and housing values would fluctuate independent one another in different housing markets.
The Great Depression caused the end of most standard competition policies in banking in order to promote fiscal stability. It was successful but smothered development and forced a burden on the customers. This caused a correction towards deregulation, which added more competition but low stability and many crises (Beck, 2010) The recent financial crises reopened the debate. There are many other factors that can affect the financial stability, such as funding structure, institutional and regulatory environments, regulatory framework in which banks operate and which sets their risk taking incentives, and probably others not even realized yet. A big factor many people look at is the willingness of risk taken by owners... ... middle of paper ... ...e structure of the market and limiting the amount of competition.
Although many experts suggest an economic depression was imminent without the Troubled Asset Relief Program (TARP) many of the funds were used poorly because the investment banks didn’t acknowledge their risky investments, the funds should have directly helped consumers hurt by the mortgage crisis, government financial relief efforts have had a minimal effect on the economy. The Troubled Asset Relief Program was created during the financial crisis of 2008. The programs purpose was to buy bad assets from banks in the form of a low interest loan and transfer ownership to the federal government in an attempt to unfreeze credit and create liquidity. In return the government received non-voting ownership of the assets plus interest on the loan. The bad assets were a large number of mortgages and consumer loans that were converted into bonds that were backed by real estate or other property, another words if the borrower defaulted on their loan,... ... middle of paper ... ...nity.
These two events were the result of weak policies and bad decision making by governments and central banks a crisis quickly turned into an international disaster. The difference is in how we reacted to each event. Taking what we learned from the great depression and the years that followed the response to the crisis in 2008 was quicker and smarter. However, as the author points out that after three quarters of a century of study there is still a lot to learn about the way an economy and a financial system can work together. While the government intervention to stabilize the economy appears to be successful there has to be concern for the effect of such actions on attitudes about risk and responsibility.
With the allegation of collapse from large financial institutions, and the bailout of banks by the government, began the second great depression. Many believe that we are still stuck in this recession and have not completed anything to get out of this situation that’s affecting our nation. I believe that the economic crash in 2008 was the finale building block towards a more structural society, political system, and government in the United States of America. There are a vast amount of listed causes that lead to the 2008 economic collapse, but only a few really dealt the damage. The problems arrived over a period of time from 1995 to 2008.
Besides that, corporate governance, interest rate and subprime mortgage are factors which causes credit crisis. As refer back to the happen of financial crisis in 2007-2008, these breakout made few large global institution's approach insolvency thus the whole financial sector of the world was affected. The government had given a lot of support to slow down the effect and recovery of the economy in their country. In fact, one factor itself does not cause this mess. The credit crisis is derived from a bunch of economic factors.
Many people today would consider the 2008, United States financial crisis a simple “malfunction” or “mistake”, but it was nothing close to that. Contrary to what many believe, renowned economists and financial advisors regarded the financial crisis of 2007 and 2008 to be the most devastating crisis since the Great Depression of the 1930’s. To make matters worse, the decline in the economy expanded nationwide, resulting in the recession of 2007 to 2009 (Brue). David Einhorn, CEO of GreenHorn Capital, even goes as far as to say "What strikes me the most about the recent credit market crisis is how fast the world is trying to go back to business as usual. In my view, the crisis wasn't an accident.