Strategies Essay Example | Topics and Well Written Essays - 750 words

Strategies - Essay ExampleThis paper briefly analyses the cause of recent US financial problems and recommends plastered solutions for that.The major reason for the current financial crisis in America is the credit policies of the national Reserve. They have do the credit cheaper and loan seekers like the ingleside buyers in like mannerk advantage of the easy credit and the bid up prices of the homes increase drastically. Financial institutions were ready to pay any amounts to the loan seekers as a result of the policies of the Congress and Federal Reserve. Congress continued its support for mortgage tax deduction which encouraged the home buyers to purchase big-ticket(prenominal) houses beyond their financial capabilities. Real estate agents took advantage of the favorable housing market conditions and they encouraged the home buyers to buy expensive houses in order to get more commissions.Wall Street firms paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS) and the Bush administration failed to provide needful government oversight of the increasingly dicey mortgage-backed securities market (Wall Streets Role in the U.S. Mortgage Crisis Examined, 2008). In short, omit of control over the financial institutions was a major cause of the recent financial crisis. Everybody tried to ravish the fish in the muddy water and nobody thought that the American economic bubble whitethorn burst in the near future.In short, lack of governmental control and the visionless policies caused the current financial crisis in America. Globalization and liberalization policies also contributed heavily to the current crisis. The huge expenditure made for war on terror and that for the recent gulf war put immense financial burden upon the common public. unfaltering control over the financial sector is the most important strategy the US government should induce to avoid future financial