Did Government Housing Policy Cause the Financial Crisis Essay

Did Government Housing Policy Cause the Financial Crisis - Essay Example This research will begin with the statement that the global financial crisis that started in the year 2008 had serious negative impacts on the investment in most parts of the worlds. The global financial crisis marked a period of failure of many financial institutions, increase in unemployment and reduction of the capacity to invest. In the Gulf Area, most countries that highly dependent on the oil industry faced a period of reduced investment. Therefore, the period saw an increase in the poverty level as investment reduced and the people remained without jobs. The high unemployment rate and the collapse of the financial institutions cumulatively limited the potential of individuals and corporations to invest. There has evolved a controversy on the possible causes of the global recession different authors providing different perspectives on the same issue. While some agree that the government housing policies that allowed the provision of subprime loans and mortgages was the reason f or the issue, some argue that it was caused by the stagnated workers’ income. From the close look at the problem, it is clear that instability in financial income was a major cause of the problem. The government housing policy required that the banks offer cheap loans and mortgages that the people could afford to buy houses as part of its commitment to house its citizens. As a result, the people shifted their attention from investing to purchase of assets such as cars and houses. According to the economist, the result of the government housing policy was the rise in the greed for money that ended up buying dodgy securities. The idea of the author is that the government policies resulted to use of money, not for investment but in the project that did not generate income. As a result, the people could not afford to back debts and the banks and this is the reason why the banking sector went down just before the financial crisis set in. The Lehman brother’s global bank is an example of the banks that failed because of too many defaulted loans. However, statistics show that the house ownership rate only increased by 4% even after this low, indicating only a small difference from the time when the policy was not in play. This shows that other reasons could have been the cause of the global financial crisis.

Strategic Diagnosis Project of the General Electric Company Research Paper

Strategic Diagnosis Project of the General Electric Company - Research Paper Example This essay stresses that GE aviation caters to commercial as well as military aircraft producers. Their exemplary research and development enables them to manufacture specialized engines for marine applications. GE aviation has a well established research set up, the research work carried out at GE’s research labs are the main reason for their latest and successful aircraft engine designs. GE aviation also provides services like engine exchange, on board service for aircrafts and technology up gradation. The engine exchange service of GE provides innovative solution for delivering the overhaul needs. In this service programme GE replaces the old engines of the aircraft with an overhauled engine. This service helps commercial and military aircraft operators in acquiring a fully functioning engine while their engine is removed for maintenance purpose. This paper makes a conclusion that the On wing support service of GE provides value added repair facility for customers at anyplace and at any time. This helps the aircraft operators to lower their operational cost and maximize their profit. GE aviation also offers various upgraded technologies for the aircraft running in old engines. This service provides the aircraft operators a cost effective way of upgrading their engines without incurring the cost of new engine. These up gradation are provided in customized packages to address each client requirement specifically.