The causes are many, but contain and the immediate cause of the crisis lies in the load system in America. The first reason is the uppity inflow of funds to America. At the time when America stated Iraq War, the worldwide flow of cash was concentrated in particular countries; the oil producing countries and BRICs (Brazil, Russia, Indian, and China). When the war started, Iraq, a country with the second largest oil reserves in the world, was hale to cease its oil exporting. Thur, the OPEC (organization of Petroleum Exporting Countries) started to control the terms of the oil. As the result, the oil price globally subjoind, bringing excessive profits into oil producing countries. In addition, BRICs, making a rapid scotch growth, increased their amount of foreign reserves. This surplus money intensively flowed into America; a nature result to a country with the largest economic market and in the middle of the war.
nest egg of the emerging market countries especially China is said to be among one of the main causes of the current financial crisis. The main contrast is that the savings of emerging markets have to find a main office and instead of investment in the real economic assets they were make available to consumers in west nonably Americans to mortgage a house or to buy a car etc.. closely all economists were agreed that the model of Asians make it, Americans buy it is not sustainable in the long term and that Asians have to increase their domestic consumption in order to maintain economic growth in the long term. Whilst, Chinese savings were increase sharply and reached to US saving both on internal and individual level was decreasing as noted above. peerless need not to be...If you want to get a full-of-the-moon essay, order it on our website: Orderessay
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