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331The complacent in the end goes to the investors bankers regulators and policymakers Since regulation is the only thing to the world financial volatility regulating the most influential and flushest global bodies is not an easy thing The resources that most of the government requires monitoring the activities of these groups are lacking letting the world economy at the hands of few individuals who control it The powers of Securities and Exchange Commission as well as those of Commodities Futures Trading Commission have been hampered by the un implemented rules and regulations therefore financial reforms at stake The bubble forming with people following the footsteps of other makes it hard to make independent decisions CEOs and managers are risks averse and fearful when uncertainty sways in their presence The actions increase the teeming of the bubble that eventually leads to the collapse of the economy Since there are no charges and counts that have ever been levered on executive and persons caught at the center of lost wealth and financial abuses the accountability would remain below par for decades which is a cause of failure Foster Magdoff 2009
For example in the meltdown of WorldCom and Enron those responsible faced criminal charges The banks and investment financiers should reduce their risky loan and dealings thereby keeping enough capital reserve and reducing situations of over leveraged according to the Volcker Rule Borio 2014 The breaking up of large financial groups and re institution into small entities was a suggestion in the past that worked for Citigroup and can be tried in other banks So peripheral vigilance is the only way to maintaining the price stability In summary the power of external conditions the unpredictability of the financial instrument cause conflicting economic theories makes economic recession inexorable Weak fiscal rules and regulators make the richest and most potent organizations run the world economy that poses a threat to future of trading Nevertheless restriction with loaning risky investments implementation of transparent trading rules and persecuting those responsible for the collapse solve the problem Prevention rests on external vigilance and stabilizing prices