Global financial crisis: Requisite solution.
The world financial scenario was jolted tremendously during the recession period. However with the growing lending and borrowing going on in the markets it still remains to be seen whether analysts come up with a requisite solution to the problem.
Money for the stock market is compared to oil in the engine. Without money the engine may splutter and seize causing instability in the running of the machinery; only here it is the financial machinery.
Solutions that have been thought of by leading analysts and financial advisers are as follows:
• Investor’s money should be guaranteed by payment using the funds meant for the tax payers.
• Secondly bailout packages that relate to the buying out of financial institutions with ever increasing sums of tax payers funds.
• The banking system needs to be revolutionized thus bringing into scope new regulation and directives that keep a watch on the lending schemes and thus help to avert exorbitant lending sprees that may lead to a financial catastrophe once again.