The Probability of Crisis in 2012-2013 in the Usa

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Research Paper
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THE PROBABILITY OF FINANCIAL CRISIS IN THE USA IN 2012-2013
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Ilias Habbasov
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BBA course
submitted to Elżbieta Jendrych, PhD on 3 December 2012
Winter Semester
2012/2013
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I hereby certify that this paper is the result of my own work and that all sources I used have been reported. -------------------------------------------------

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Signature
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© Kozminski University 2012

The probability of crisis in 2012-2013 in the USA
Ilias Habbasov

Abstract
This research assessed the probability of occasion of the financial crisis in the USA within 2012-2013. Such an anxiety was caused by balance of trade. The study utilized qualitative and deductive methods including interview with an economist. The entire data was taken. More than half of information was taken from the USA government’s websites. The investigation was implemented and it was concluded that current problem completely depends on the government’s actions. All the information presented here are valuable for those who would like to know about the current economic situation in the USA. Key words: financial crisis, default, government.

Table of contents
Abstract......................................................................................................................................3 Introduction................................................................................................................................5 Methods and Materials...............................................................................................................6 Results........................................................................................................................................8 Discussion................................................................................................................................10 References................................................................................................................................11 Apendix....................................................................................................................................12

Introduction
As of 2012 a threat of the financial crisis in the USA was exacerbated. This disquiet was evoked by balance of trade. According to US Census Bureau (2012) a trade deficit in the USA has been since 1971. Therefore, there is a necessary requirement of studying and monitoring the possible problem. The world needs to be prepared for any negative changes in Economics.

Since crisis of 2012 is not clearly determined there are no scientific books or pieces of research on this subject. Hence the only reliable sources are Statistics, articles and predictions of scholars in Economics.

Primarily, there is a necessity to reconsider the past event, scilicet the global crisis of 2008. Crisis also leaded to the global recession, which was overcome in 2012. However, a high risk of a depression still exists. The Financial Crisis Inquiry Commission (2010) of the USA concluded that the crisis was the result of human action and inaction. FCCIC claims the following:

The captains of finance and the public stewards of our financial system ignored warnings and failed to question, understand, and manage evolving risks …While the business cycle cannot be repealed, a crisis of this magnitude need not have occurred....
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