What is the main reason for financial crisis all over the world?

What is the main reason for financial crisis all over the world?

The law of wealth says that the competition among the markets leads to financial growth and stability. This wealth theorem loses its trust in the present financial crisis all over the world. The big corporates were given freedom in all segments of the finance and it leads to a big failure. These corporates earned huge profits by exploiting others without any discriminations. The capitl of countries were diverted to the corporate segments that can make big profits suddenly instead of putting investment in the production sector. That is the basic reason for financial crisis all over the world. Just take the case of stock exchanges all over the world. Speculation and macro financing lead to financial crisis. The difference between poor and rich increased without any extent and it stimulated some sort of inequality in the countries, especially in countries like America and Britain. Lakhs of people in this countries lose their jobs and unemployment became the major headache for the governments.

The beginning of financial ruins started from Wall streets of America which is believed to be the leader of all stock exchanges. Big corporates and insurance companies in America collapsed and shocked every financial experts.

The government of America cannot escape from the responsibility of financial crisis there. The governemtn should have imposed some sort of control over this financial institutions. Just consider the case of A.I.G, Leman Brothers, Northern Rock, and so on. The history of these big financial institutions will be a big lesson for the generations to come.

America is the first country that officially approved that the country is being faced huge financial crisis. The impact was so large that the people of America selected Barack Obama as their president. The report of International Monitoring Fund states that the financial growth rate of the world in 2008 were only 3.7%. The growth rate was 5% in the previous year. All sectors including housing, automobile, aviation, information technology and tourism are being faced the financial crisis.

Unemployment is the biggest product of financial crisis. General Motors, the biggest automobile company in the world, has decided to avoid around 35,000 employees. Around 30,000 people lose their jobs in Lehman brothers, 15,000 in City Bank, and other lakhs of people in Informational Technology.

Barack Obama is trying hard to get ride of the present financial crisis in America. But the approved financial packages can really be effective in the present financial situation?

What is the ultimate remedy of the financial crisis globally? There is huge demand that the governments in every countries should have direct control over the financial sectors in countries. Production sectors like agriculture should be given more priorities. The education systems in the countries should be reviewed in the light of current financial crisis. The financial interest of common man should be given more priorities than the rich minorities. The major banks in the countries should be under the direct control of each governments. Public sectors should be given some sort of importance in the light of current financial crisis. Agriculture should be given top most priorities, more lands to be cultivated rather than more constructions. Inflation should be checked and the meanings of globalisation and privatization should be re-written.