Impact of global economic crisis on Bangladesh
Barrister Harun ur Rashid
The financial crisis that started in the US in March of this year has now turned into a full-fledged economic crisis that has pushed the European Union, Japan, Hong Kong and others into recession There is a saying that when America sneezes, countries around the world get flu. This has been evident from the fact that the American financial crisis has left everyone in a state of shock. October 10 was the day when stocks and shares dropped to the lowest level in US, Japan, Britain and Australia and pretty much across the world. No country was spared from the financial crisis because of globalisation and inter-locking of financial interests. Some economists have compared October 10 to September 11, 2001 when terrorists attacked the World Tower in New York. Financially 10/10 is the new 9/11 because the financial system and the money markets will never the same. 10/10 has dramatically changed forever, according to economists, the global financial system. Governments have intervened with funds to avoid collapse of reputable banks and some say nationalisation in part of banks was unthinkable during 21st century. But it has happened in a free market economic system. The crisis is compounded by the fact that the Bush administration has not been prudent in having a deficit budgets for several years. It is reported the current budget deficit of the US in this financial year that ended on October 1st hit a record high to $ 455 billion, partly because of the on-going huge expenses ($10 billion per month) in the misconceived war in Iraq.. ( It is noted President Bush inherited a surplus budget of $79 billion from the Clinton administration). Furthermore the US regulators have not supervised adequately the way the banks were providing loans to all kinds of people during the housing- boom period. And the financial regulatory bodies in the US ignored the warning signs of financial storm since August...
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