Wednesday, May 27, 2009

President Obama's stance on economic reforms are strong, especially on corporate spending. With the current recession, he is vigilant on monitoring top executives of companies on their bonuses and strongly urging them to save. Unlike his predecessor, he is now pushing for more helpful policies leaning towards reform in their ailing health care sector and education. He still supports the war on terrorism, but addresses the human rights issues of detained prisoners who were suspected as terrorists. He is ushering an era of change where he focuses on what the Americans really need and by not misleading them through hatred and greed. The rest of the world is about to see that there will be more emphasis on the use of renewable energy sources aligned with the conservation of the environment due to the urgent response to global climate change.

On September 15, 2008, the global investment bank Lehman Brothers filed for bankruptcy protection, sending shock waves across the international financial system. This was soon followed by other bankruptcies, bailouts, and takeovers of financial institutions in the United States and Europe. The high point was reached when Iceland declared itself bankrupt following the meltdown of its financial system. What caused the systemic failure of the global financial
system and the subsequent credit crunch? The underlying reasons are a combination of overzealous ideology, financial innovation, faulty policy, perverse incentives, and in some cases outright deception. All these factors are
interrelated, and therefore has lead to a chain reaction that is already felt all throughout the globe. Most Asian countries like the Philippines, are dependent on goods and services that are exported to western countries, mainly the U. S. now that a lot of Americans are cash strapped, industries here that are in the export sector have suffered a great loss leading to laying-off workers, contracting growth, and ultimately, closing down their factories. Although, not all third world countries have totally experienced negative growth. Indonesia, is expected to grow at 3.4 % GDP this year, because of their oil exports. China perhaps is the least affected of all Asian countries, they expect to have a 6-8% increase in their GDP.

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