What is the result of the credit crunch, a recession or a depression Essay

What is the result of the credit crunch, a recession or a depression Recession of 2007-2009 and Great Depression - Essay Example The effects of credit crunch were considerably destructive for the financial institutions. Most of the investment banks were suffered a lot. They had no choice either to reduce the value of their assets or to file for bankruptcy. For many investment banks, even the value reduction of assets did not prove to be sufficient enough to protect them for the severity of the global financial crunch. It looked as the investment banks were struggling to fight for their existence; they were trying to stay alive and remain a part of the financial world. But, for many banks, their lives saving attempts were insufficient to protect them from the effects of the credit crunch. As a result, many investment banks had no choice left in the period of 2007 to the year of 2009; willingly or unwillingly, many declared their bankruptcy. In the initial face of the credit crunch, the financial and investment banks faced the harshness and severity of the financial crisis, the entire situation was so disappoint ing that many disappeared from the international financial circle and mergers, acquisitions, liquidations, bankruptcies and nationalization were the only options left for them (The WTO Doha Round and Regionalism, 2009). ‘Recession is when your neighbour loses his job; depression is when you lose yours’ (Ronald Reagan (1980) as saying, quoted by Eslake, 2008). Interestingly, there is no official or generally accepted criterion to identify a difference between a ‘recession’ and a ‘depression’. ... On the face of it, the period of recession is comparatively less than the period of depression. For instance, some economists are of the view that the recession may occur and last for two to three quarters. And its impacts could be limited to some particular sectors of an economy. As a result, recession could put negative impact on the index of employment and may trigger some sort of unemployment in some specific economic sectors of the economy. On the other hand, the period of depression tends to be larger and wide spread. The Great Depression of 1929 did not continue for one or two years; rather it constantly showed its pressure on the economy throughout the decade on the 1930s. Additionally, depression tends to be wide spread in an economy. It almost hit negatively to each economic sector of an economy. Causes of the Great Depression The decade of 1920s considerably experienced consumers taking on more debt in America. In this period of decade, according to Bernanke (1983) the out standing amount of real estate mortgages sharply increased from the level of $11 billion to the level of $27 billion. The debt instalment also saw a sharp increase due to a wide spread availability of consumer goods. Due to the facility of credit and other forms of debt, many consumers facilitated their needs by increasing their purchases of household appliances, cars, homes and other basic necessities that they liked (Parker, 2007). This cause came from the consumer side that were mostly showing their consumer confidence on the economy of the America. On the other hand, the stock market was touching new psychological heights. And on each passing day, the stock market had something more than the previous day

Vietnam Anti-War Movement Research Paper Example | Topics and Well Written Essays - 2000 words

Vietnam Anti-War Movement - Research Paper Example It was during that period that evolution of resistance started amongst Vietnamese nationalists led by Ho Chi Minh pressing for independence. The resistance resulted to the World War 1 that took place between the years 1914 to 1918. France continued to cling to its empire but Ho embraced Marxism-Leninism and built a strong following called Vietminh. The organization prepared to assume power of their territory after the occurrence of the Second World War. The war left France very weak but partly basing its strategies on racism contempt for the Vietnamese, French officials still had a believe that they could reassert their control and power over Indochina. Vietnam Antiwar Movement was a movement against the US involvement in the Vietnam War. Opposition of the Vietnam war took place in the late 1960s and early 1970. The movement took place in form of demonstrations in the year 1964 and continued to grow in terms of strength in the later years. The U.S fell in confusion between those who preferred peace and those who advocated the continuity of involvement in the Vietnam War. The biggest numbers of the participants of the movement were mothers, students, and anti-establishment hippies. Opposition developed with the participation of the African-American civil rights, Chicano movements, women’s liberation, and organized labor sectors. Other groups that joined the movement comprised of journalists, lawyers, academics, clergy, military veterans, leaders of the Civil Rights Movement and physicians. One of the physicians who participated in the movement was Benjamin Spock. Opposition of the war was mainly conducted using peaceful and nonviolent events. However, some few events were deliberately violent and provocative. In fact, some cases called for the police to use violent tactics against all the demonstrators. By the year 1970, there was a steady increase in the majority of Americans considering involvement of the US military in Vietnam as a mistake. Decades later,