Article Analysis on the Global Economic Crisis

Article Analysis on the demesnewide Economic CrisisTable of ContentsINTRODUCTIONGLOBAL BANKS A WORLD OF PAINCitigroup Citi never reapsGreece rescue Running on EmptyCONCLUSIONBibliographyINTRODUCTIONThis paper is about the discussion on the upstart the economist article based on orbiculate depository financial institutions a world of pain, Citi group Citi never reaps and Greece frugality running on empty.GLOBAL BANKS A WORLD OF PAING1Bail-out big banksIn my opinion, the bailout happens, when the bills of the bank is in the struggling entity to prevent its complete collapse. The world largest banks are connected through a mesh of briefly term loans which provide credit guarantee and financial contracts of others. This connection is a risky one that toilette also be a cause for a big bank to bail out. The economic crisis whitethorn also happen because of the doubts aroused in the ability of a single financial fuddled to reserve its prescribed responsibility and to re salar y their loan. The bank regulation can improve in requiring some appropriate ratio during the thriving ages. Another way is to limit the percentage funding which come from the short time money interbreedinget. (Pettinger 2009)Giant Firms proved hard to manage subsidiaries and struggled to be built common systemIn my opinion, the giant firm may fail to build a common system may be because of the disappointed employees of the firm which may be because of the rules. The big firm wont be having replete time to check whether the highly talented employee is working for the good on-going project and to know whether he is snug with that or not. I also feel that good discussion is a well tell deterrent example for the consistent growth of the firm. So these giant firms might have not followed the discussion process properly. antecedency should also be given for the talented employees to work for the wellness of the firm. The mission and vision should be intelligibly set and the execu tion of the process for it should be done accordingly to make their work more lightsome and it go forth also pave way for building common system.Basel 3 and complicated regulation and enlarge the costIn my opinion, the global and the liquidity rule (Basel 3) can be focussed better than they do now. all(a) the banks bequeath face a strict regulation because of the late liquidity standard, the risk coverage, and the new leverage ratio. Because of the bank bully will also decrease along with the increase in capital ratio for the upcoming years. This will cause problem for some banks. I feel that bank will experience the pressure on Return of Equity (ROE) because of the increase in the capital and the liquidity cost. For this bank have to work in a number of areas and have to work on Basel 3 issues and they have to set priority for the close, mid and for the longer term.Citigroup Citi never reapsG2G3In my opinion, I agree that the Citi bank had money but they are still in a questi on of knowing how the straggling financial firm turn out to be. It had a good growth. According to George Moore the chairman of new look committee said that they boost the development of the business till maximum. But the current head is controversy. Its Michael CorbatG4 who is the CEO of Citi group. All its branches are diminish. Corbat(CEO of Citi group) itselfG5 had sold out nearly 60 businesses. Citi had already failed in the stress test in 2012 and 2014and its asked not to hike its share. At first the failure deceased Vikram Pandit, the former chief decision maker and how if this failure continues it will be hopefully Corbat who will be deceased from the Citi group. G6It do a mark in the market because of its strength and the responsibility. Certain activities of Citi group are glitches. Usage of property design sort of of cash machine by Citi group is a well said example as because it should be the only bank using it. Retail business reduction is uptight. At first they tho ught of lessen the carrying into action in Dallas and Houston of Texas. But later it was in a stage to extinct the complete state. Its operation in the threat lying areas is also a risk. It will surely provide few or no return. Some rules are more complicated here which makes the customers to move away. Mr.Peabody share his view for this shrinking of Citi group is because of responsibility increased in taking many risky transaction for example bought deals. It is of devour the seed corn and producing the profit at a later stage. City group comments that it is of aiding their customers who are in a verge against drive in the currency and commodity. (Citigroup Citi never reaps 2015)Greece Economy Running on EmptyIn my opinion, I am agree that the vital operation initiated by the new blush minister of Greece Mr.Alexis Tsipras asking for the reviled bond out extension of the country is misleading as an awaiting crack from the creditors make the government back and leaning to the cl ose edge make the state economy as excreting and might more worseness in the country. Unbearable process is only has been provided by the government for fleshing out actually few restructurings. After 6 six years the Greek economy showed a little improvement. In the last three months of 2014 there was a fall by 0.2% because of the election. Battering the economy and public pay by semipolitical confusion can be of 3 ways as followsCompulsory adjustment of bank accounts into less valuable drachmasPolitical disruptionPolitical storm in public financeCompulsory revision of bank account into less valuable drachmas, some business and house birth are pulled out. Many withdrawals continued, deposit loss which leads to striking capital controls. Out of these some possible help is reined by ECB (European Central Bank).Political disruption is created ambiguity. Holding the domestic project frightened the foreign investors. This will not decrease until or otherwise confidence is created b y the government to the investors.Political storm in public finance , it is bond market cut off make the government to struggle to pay the bill.I am agree with the author that the worsening of the finance is because the worse treating of the Greece government. A good among disadvantageously is it did not affect the tourism of that country. Mr.Trispas is also in a need to break most of his political promises (Greeces economy Running on empty 2015)CONCLUSIONA complete discussion of the global banks, their struggle in the competitive market because of the emerging local banks and the internal reason for the back enamored has been discussed in the paper. G7The complication in the regulation made the banking tough. The Basel 3 norms are also complicated which made the banks to have the risk coverage and the liquidity standards. Continuous revision for the banks along with discussions can be made to maked their share in the market consistent.BibliographyCitigroup Citi never reaps. March 7 2015. http//www.economist.com/ countersign/finance-and-economics/21645811-making-money-global-banking-network-difficult-it-alluring-citi.Global banks A world of pain. 7 march 2015. http//www.economist.com/news/finance-and-economics/21645807-giants-global-finance-are-trouble-world-pain.Greeces economy Running on empty. 7 March 2015. http//www.economist.com/news/finance-and-economics/21645810-political-brinkmanship-has-exacted-heavy-economic-toll-running-empty.1G1You summarized the articles and did not provide your opinion,I break-down to sub-titles , for each write 150-200 wordsSearch for ready made argument in the net and rephrase it and start in my opinion and I agree or disagreeG2G3Re-write this para As similar what I did with Greece Economy belowG4What his position G5G6It is not empower what you want to say , re-write the sentenceG7Here make summary of the issues above in 4-7 lines