All countries have their own policies on collecting taxes from their people, and most of the business are paying multiple taxes and higher levels of taxes that will ultimately borne by the consumers, ended up high price of goods and discouraging business activities environment. Besides, GST do provide effectiveness and transparency on preparing accounts. It helps to build corruption-free tax administration when all taxes are integrated and systematic. Moreover, most nations that adopt GST will able to predict income from collecting taxes from the people due to the effectiveness of taxing system, it will help build the nation’s wealth and has the ability to repay debts, if there is any. Besides, GST create a fair and equate taxing system towards companies.
Firstly, the main catalyst of the disaster is the predatory lending of subprime loans at a time when interest rates where impeccably low. Banking institutions provided subprime loans to many Americans in order to purchase homes, vehicles and other commodities without the means to repay them with interest in the future. As a result, banking corporations made huge losses and defaulted, costing millions of people their jobs. Moreover, the inability of banks and corporations from repaying international institutions spread the financial burden on other countries. Emerging economies such as China foreseen slow projections of growth while European countries such as Ireland defaulted into bankruptcy entirely.
Barclays couldn’t gain much of a profit because the country was suffering from financial crisis which left several companies being shut down. The manipulation of Libor rate left several industries under huge debts during the crisis and the financial crisis worsen up because of the debt individuals were in. Barclays didn’t gain but it lost a lot after the Libor scandal was revealed as the bank was being fined for its involvement in the manipulation of Libor rates. Barclays reputation as the largest bank was tarnished after the scandals were revealed. Barclays lost more money than they could have made by the fines they are currently paying for their role in the manipulation of the Libor rate.
About the cause of the 2007-08 Global Financial Crisis and the measures Along with the development of economic globalization, the world economies have closely linked. Therefore, 2007-08 financial crises made economies have suffered varying degrees of influence. This was a from the USA subprime mortgage crisis and once in a century financial crisis by Arup Shah (2013). Famous American investor, entrepreneur and philanthropist Warren Buffett (2008) claimed that“ the US economy is in recession and degree would be more serious than most people expected”. I found some of the causes of the crisis, for example, investments and loans have distorted the economic development.
Introduction: The financial crises of 2007-2008 and also knows as the Global Financial Crisis, is considered to have been the worst financial crisis since the Great Depression back in the 1930’s. The Global Financial Crisis affected a lot of large companies, financial institutions, banks, central banks, insurers, and many more entities around the world and many of these entities declared bankruptcy and went out of business while some where absorbed by other financial institutions, some also converted into financial holding companies. The main cause of the Global Financial Crisis was the United States housing bubble, which caused the value of securities tied to U.S real state pricing to fall down which damaged financial institutions globally.
The crisis was specifically characterized by accumulating debt levels and extremely high structural deficits of the government. Unfortunately, the Great Recession left a weakened banking sector that has already recorded huge capital losses. The strong relationship between the survival of many Europeans government and their financial stability prompted the government to bail out banks that were badly affected by the Great Recession (Obstfeld et al 2009, 480-486). Thus, the banking sector is obviously in a very weak condition to intervene in the
It turned out to be that Jensen's suggestion was premature. The wave of bankruptcy due to the crash of the junk bond market literally swept away approximately 190 billion dollars and then this once – promising organizational form virtually disappeared by the early 1990s. Nonetheless, we have been witnessing a strong raise, even stronger than that in 1980s, of private equity since mid – 2000s. There should be a good explanation for that spectacular return of the form. In this paper, we will review the changes in various aspects of corporate governance that introduced by private equity as well as the corresponding economic effect of these
Revenues and benefits go to the wealthy at the expense of everyone else. For instance, the middle class is progressively shrinking. According to White House’s Council of Economic Advisers, the percentage of people who are middle class has fallen from 50 percent to 42 percent. On the contrary, a 2012 report by the Congressional Research Service reveals that the wealthiest 10 percent of households went from controlling 67 percent of the country’s wealth in 1989 to almost 75 percent in 2010. Moreover, this uneven distribution of wealth has contributed enormously to increased poverty and deprivation in the US.
The foreign exchange reserves were depleted and the nation came to such a point that it could barely finance three weeks’ worth of essential imports. The government was close to defaulting on its external obligations. The government, in order to come out if the crisis tried to obtain an emergency loan from the International Monetary Fund (IMF). To get this loan, the government had to pledge its entire gold reserve, which stood at 67 tons, as collateral security. They airlifted 47 tons to the Bank of England and 20 tons to the Union Bank of Switzerland and raised $600 million.
Moreover, due to political instability and less exports, because Pakistan's foreign exchange reserves declined, Pakistan faces enormous capital flight. All socks jams and exchange-traded stock price has fallen to a very low price, people have lost millions of rupees Stock Exchange. The government has set up a reserve to support the stock exchange, but people have lost their trust, so no big deal is happening in the stock market. There are reports that the Karachi Stock Exchange will be liquidated rumors, but these are just