The Global impact of Financial Markets
The Global impact of Financial Markets
The world as a whole is affected by the actions or lack of actions by the other. What we do today has an accounting for tomorrow whether we wish to accept that as a fact or not. To say that the Global impact of financial markets is somewhat backwards in statement. The real truth of the matter is the fact that when you look at the financial markets you see right away their impact across the globe. It is another example of greed gone awry and the fact that while as a race we could deviate from personal desire of wealth the need for greed is prevalent in our blood. It is purported by everything that we see and consume in our world. The problem is that we do not see its impact on the rest of society or the world for that matter until it is too little too late. One can by a hotdog and eat it but the thought behind how and what it took to get that hotdog into our hands so that we could be able to meet the demand of hunger is never really given one ounce of thought or concern. Yes, the world is consumed by greed or the need to sate its ever-growing desire for more without any regard for the effects of our actions on the rest of the world. Financial markets are the center of which people trade items of value in order to make a profit. Anything and everything that could have a value can be sold, bought and traded simultaneously in any number of transactions. It is just a matter of obtaining wealth that such actions are perpetuated every day in every nation all across the world. When prices or the cost of an time rises the economy is immediately affected by such actions. It is thereby secondary actions that are triggered – borrowing, trading or loaning. This in turn puts a strain on the lower income people who have to adjust or die All of this occurring without so much as a single thought by those at the top of the pyramid of the Global economic scheme of things. It is my hope by presenting to you in this paper the facts that substantiate the stance that Global Financial Markets do in fact impact our world. It is a direct link of ourselves to the world around us that should give us pause to see and realize that our responsibility is to the world around us – thanks to the evident fact of Global Financial Markets. Because of such, we all have an accounting to each other whether we accept it or not. For that matter that our actions cause harm or benefit to others as a direct manner of the choices we make today for our very own tomorrows. Every drop into the pond that we call Global Financial Markets does indeed have such an effect.
A fine example of how a single drop of a pebble in a pond has an effect as the ripples flow outward and thus creating simultaneous ripples in their wake is that of Spain's recession. Which has probably deepened and the nation may not meet its deficit-cutting targets resulted in yields in the sovereign debt of the beleaguered nation rising, the euro sinking against the dollar, and falling stocks. The euro-zone's fourth largest economy likely contracted 1.7% from the same period last year, compared with a 1.3% contraction in the second quarter, Spain's central bank said. The bank also said it can't rule out a 2012 deficit target overrun. A downgrade by Moody's Investors Service Inc. of Catalonia and four other Spanish regions also weighed on bond markets. "Spain has returned to center stage, with Moody's downgrade late yesterday of several regions and today's official admission of what many had long anticipated; namely that Spain's relaxed fiscal targets would be overshot," said Brown Brothers Harriman's Global Currency Strategy Team in a note to clients. "Moody's passed on cutting Spain's sovereign rating recently, but the general sigh of relief has been short-lived." The euro sank below the sensitively substantial $1.30 mark, but reestablished back at...
References: (1) Nina Bains and Michele Maatouk (October 23, 2012, 7:54 a.m. ET) “GLOBAL MARKETS: Weak Spanish Outlook Hits European Financial Markets”[Abstract] ; The Wall Street Journal
(2) Satyajit Das (Wednesday 17 October 2012) “World economy is addicted to credit and the markets seem oblivious” [Abstract]. The Independent
(3) Emily Kaiser and Lesley Wroughton (October 09, 2012) “IMF warns global economic slowdown deepens, prods U.S., Europe” [Abstract]. Reuters
(4) Michael Snyder (October 15th, 2012) “Why The Global Economy Is In Trouble” [Abstract]. The Market Daily News
(5) Naveen Mathur (Oct 8, 2012, 08.00AM IST) “Global economy 's deterioration & policy uncertainty may impact commodity prices” [Abstract].The Economic Times
Please join StudyMode to read the full document