How can we prevent the next economic crisis and avoid a domino effect in France?

Thèmes abordés

Economics, finance, recession, down turn

Résumé du document

The economic crisis of 2008-2010 often called the Great Recession is in a recession which came most of the industrialized world following the collapse of the fall of 2008, second phase of the financial crisis of 2007 -2010. The United States were the first to enter recession in December 2007, followed by several European countries during 2008 and the euro area as a whole. France enters the recession in 2009 for accounting. This global economic crisis is considered the worst since the Great Depression.

This crisis is marked by a sharp rise in oil prices and agricultural products. The exorbitant rise in asset prices and the associated demand are considered as the consequence of a period of easy credit, of regulation and inadequate supervision or increasing inequality. With the decline in equities and house prices, large U.S. and European banks have lost a lot of money. Despite massive aid granted by States to counter the threat of bankruptcy and systemic banking crisis, it resulted in a global recession which led to a slowdown in international trade, higher unemployment and lower prices Commodities.

In 2009, countries have generally opted for recovery policies. In early 2010, though most seem to emerge from recession, the IMF remains cautious. Unemployment persists, significant imbalances in current account balances remain, and risks of new financial bubbles bursting may occur.

The question is: How can we prevent the next economic crisis and avoid a domino effect'? Moreover, how its effect to my country's economic (France)?
Firstavall, we will see that the dominant view of the crisis as financial crisis is spreading to the economy. Then, the roots of the crisis: a new capitalism. A deep systemic crisis, which is not complete, even with a risk of other serious crises if we do not have what it takes. And, upcoming crises: scenarios and desirable shift.
How can we prevent the next economic crisis and avoid a domino effect'?

Extraits

[...] I remind you that the Paulson plan was considered huge 700 billion and that to cope with global warming, we estimated that it would invest 400 to 500,000,000,000 per year worldwide. A very modest tax on the World Heritage of the very rich will provide. The world is rich, but an incredibly unequal nine million millionaires in dollars, nearly a billion who suffer from hunger! It is fundamentally unequal economic power (which is also reflected in the share of value added with the disempowerment of employees and unions) that produced the other inequalities. [...]

[...] For the social crisis and inequality, the key measure is the establishment of a maximum allowable income which would also, through funds raised, to do away with poverty really: there are 8 million people who live TODAY under the poverty line in France. At what level this maximum income? Only the debate will tell, but if we started by proposing that no one wins more than ten times the minimum wage full-time or euros per month, is this a referendum on that proposal would not receive a huge majority votes? One can also go in stages, with a highly progressive tax on high incomes, all income, including savings and investments. It has existed in France as in the U.S. [...]

[...] Venue of the United States, this crisis is part of a mortgage granted to fragile populations (subprime means below normal standards of risk). The real problem started when these loans were restructured and securitized becoming unrecognizable. We do not know what are the accommodations that have been funded or holding them, as they were securitized, that is to say . sold to investors after being converted into securities. At one point, the United States, there were over 1000 billion of property assets financed in the short term, until we realized that the values of these assets had been overvalued. [...]

[...] Would we be more at risk than others? All this means that to finance a recovery by diverting ecological and social, state must increase its resources going to take them elsewhere than in the pockets of the poor and middle class. Find for example, without increasing debt, in contrast or 60 billion euros per year in addition, since the previous list, this is absolutely not an economic problem. Now when we pronounce the word or taxes is the popular unrest (caused in part by the media and conservative politicians) and for my part I understand very well because for many people life is hard and they fear being victims, as they have often been. [...]

[...] Social Crisis This is the third crisis, but in reality it is perhaps the most important. We have not said enough: the incredible rise in inequality since the 1980 or 1990 depending on the country was at least as decisive as a factor of crisis that financial deregulation, and they are in fact been accompanied by increasing. The standard of living has stagnated or even more modest decline to U.S. while the richest saw their income and assets soar, most of their income and financial assets, dividends, very high salaries, bonuses, stock options and stock market speculation. [...]