Financial System   

Financial system for every country needs to be very strong. Financial system includes lending or borrowing and also includes the financial institutions and other related credit unions. Financial system should always be strong in order to support people in a way which is appropriate.  Financial system of every country is now a days affecting by the turmoil which US economy is facing now a days. Financial system some years back was very strong and was able to support people in their needs and to meet the expenses; but here because of the financial crisis the financial systems are becoming very weak day by day and that’s the reason that most of the people are not able to meet their family desires and needs. The salaried people are not in the position to buy the luxurious things; but still they would like to have the loans and cash advances but here the situation is typically very opposite to that which was some days back; now the financial institutes are not able to give any loans to the people because the recovery is very difficult and some times non payment in time will leads to bankruptcy and liquidity. Now days the foreclosure is very common among the countries and the organizations.

The causes of financial crisis are numerous but no doubt the main cause is the mis- management and a greed for money; the lenders used to give money to people in order to have interest rates on monthly basis which is very huge as far as profits are concerned but no doubt some times it happens that the lenders are not able to get the money from the borrowers and this was mostly in the case of un secured loan which is not given against any security; then what happens that the lenders used to run after the borrowers to repay the amount and collectively it becomes millions and trillions of amount which leads to bankruptcy.  No doubt the US financial system is very strong but now it went down for I believe for some time but this scenario is affecting the economies now days to a great extent.  Some years back the financial system was so much strong that banks and many financial institutions were very happy to give loans for houses to people but now they have to face so much trouble that one cannot imagine properly.

The authorities and the finance minister of the countries should take some constructive steps in order to help people in this depress situation as people have to eat properly and have to run their families but now it is becoming very difficult for them to even eat a single loaf and give to their children. There are many speeches which one can see in the books and can watch on the television regarding the financial crisis. Life is to take for enjoyment but obviously one need to take very rational decisions in terms of monetary.  Money is very essential to live properly but it needs to be managed properly as well.