GLOBAL FINANCIAL CRISIS

Financial crisis has long been a part of human history.

• The Black Monday of 1829 during which the market of whole world crashed. This led to the disrupt in the economic system all over the world. It originated in Hong Kong and eventually reached America. The market psychology and institutional rigidity is sometimes blamed for it.
• The Great Depression of 1929 not only shook the USA but the rippling effects palpitated all the world. First the Wall street crisis robbed people off their incomes and then the drought in the country boosted it which subsequently brought the great depression to existence.
• The OPEC price shock of 1973 triggered due to Saudi Arabian embargo of oil sale to USA and other Western countries due to there reluctance to stop sales of Arms to Israel. This not only amounted to great inflation in the region but the monetary policies suddenly got obsolete.
• The Famous financial crisis of 2008 is the most well known among economists. The credit buying became common due to which the demand for houses increased leading to increase in prices. This occurrence immediately blew off when the credit buying was restricted hence the prices of housing fell and the mortgage was expensive. Thus the lenders lost confidence in the market and world economy dampened.
• The euro zone crisis, started when the European countries namely Greece, Portugal, Spain, Italy and Ireland took massive loans. The threat of economy falling started looming and then became a reality when Greece was unable to pay the loans back and defaulted. 

Now it is a fact, when the economic activities in a particular country do not comply with the monetary policies and economic concepts, the incomprehensible effects take place that are not only threatening the country itself but the whole world promptly becomes a victim. The financial crisis in all the cases mentioned above had not only stolen Jobs from people but provoked the bigger crisis of POVERTY.

Solution:
The technocrats and bureaucrats often tend to ignore the macroeconomics effects of their policies. This results in the insecurity of future of the population. So the foremost step would be to design the framework that not only beneficial for the short term but the bigger picture is ultimately preserved.
Secondly, the loan is what kills the future hence the debt has to be repaid and must only be taken in a dire need, not for artificial growth. Thirdly, the third world countries such as Thailand who played the biggest hand in the Asian crisis of 1997 must produce structural reforms rather than hollow growth that would one day bite back. Lastly, the poor is always reaping the effects sown by the officials. This historical phenomenon needs to stop for success in the long term and sustainability in a bigger picture.