Introduction
2008 will be remembered as the year in which the international financial system fell into a deep crisis, which we still do not know how long it will last. We know that the term financial crisis refers to the economic situation of a country, which perhaps when hearing the term crisis leads us to think of things that are not beneficial for the country; But we are usually wrong because the financial crisis has its advantages, therefore this writing has the objective that you know in itself everything that a financial crisis leaves us.
Abstract
2008 will be remembered as the year when the international financial system fell into crisis, still do not know how it lasted.
We know that the term refers to financial crisis the economic situation of a country.
Perhaps hearing the term crisis leads us to think about things not beneficial for the country; but usually mistaken as the financial crisis has its advantages.
As this paper aims at all if you know in which leaves a financial crisis?
The financial crisis and its advantages
The term financial crisis is usually used in a generic sense, to refer to the situation in which a country suffers an economic crisis that does not originate in the country's real economy, but is fundamentally associated with problems in the financial system or of the monetary system. (EXPANSION)
Three main types of financial crisis can be distinguished:
- Exchange rate crises: they occur when a speculative movement against a currency results in a devaluation (or strong depreciation), or forces the monetary authorities to defend the currency by using a large volume of central reserves or a sharp increase in rates Bank crises: situation in which bankruptcies or massive withdrawals (actual or potential) of deposits from banks induce them to suspend the internal convertibility of their liabilities or force the authorities to intervene by granting assistance on a large scale and in this way, prevent bankruptcies and / or withdrawals of deposits. External debt crisis: situation in which a country cannot meet the payment of the service of the debt contracted with the exterior, whether sovereign or private.
The financial crisis began in the United States in August 2007 and has subsequently become a global financial crisis, it is the latest in a series of similar episodes that the economies of various regions of the world have experienced in recent decades. In 2001 the Argentine economy was devastated, which started as a financial crisis. In the 1990s we witnessed the exchange rate crises that occurred within the European Monetary System in 1992-93 and in Latin America (the “Tequila effect” of 1994-95), as well as the deep financial crisis in East Asia (the crisis of 1997-98 in Korea, the Philippines, Indonesia, Malaysia and Thailand) and that later had its effects in Russia and Brazil.
We know that financial crises are costly to varying degrees, and particularly when the crisis affects the banking system, as they are in terms of the fiscal and quasi-fiscal expenditures required to achieve the restructuring of fragile financial systems.
The cost of solving banking crises has in some cases reached 40% of GDP, while bad loans have sometimes exceeded 30% of total loans.
It seems all were disadvantages but not the financial crisis as everything in itself also has its advantages.
Here are the 7 good things that the economy in crisis that we are experiencing will leave us: (ESCUER, 2008)
1. Creativity. In difficult times, creativity unfolds. It is true! We are looking for more efficient and different ways to make our money work, and to look for work or extra income and to save. These are things that can stay with us for a lifetime long after the crisis is gone. The same for companies and retail businesses, they are forced to create new ways to attract customers, lower costs and continue to earn.
2. Eat healthy. The need to save forces us to eat less on the street and buy less junk. We inevitably eat things prepared by us or by someone who loves us and unless they prepare frozen potato and chicken wings every day, it is generally much healthier.
3. Regulation. Markets will have to regulate and that means more safety (or less risk) in the future. Banks will learn that they should not lend indiscriminately or speculate with money they do not have.
4. Credit. Although the hard way, we learn (as families and nations) that borrowed money is very expensive and that 90% of the time its cost is not worth it!
5. Learn to say NO. It is the moment in which any permissive and "cautious" parent not to trauma their children learns to say NO. I can't buy everything you want. It is also time to teach ourselves to say NO. Times of crisis teach that the need for an iPod, travel, restaurants or private yoga class are not necessities, as long as our food, shelter and food are not safe.
6. Get to know us. In difficult times we discover ourselves. We really learn who we are and what we are made of.
7. Price improvements. The prices of many items and services will inevitably go down, and that will help our personal bonds. Little by little if that persists, we will buy one more chunk.
conclusion
As we have seen, it is essential that when we hear the name “financial crisis” we not only think about disadvantages or imagine the worst in our country, but also learn more about the subject and fill ourselves with positive things that are useful and beneficial to us at present.
My recommendation "do not stay only with the bad, look for an advantage of benefit to that existing disadvantage".
