2007 Financial Crisis and Executive Handling

The World Financial Crisis had severe aftermath for a great number of people who lost their jobs or the financial state of whose became significantly worse. That is why, under these conditions, the question of the management of the economy and finances in terms of crisis becomes especially vital. The strategy of executive handling could be analyzed from this very perspective to determine whether it is efficient or not. The necessity of this investigation is obvious as the current state of affairs leaves the possibility of a new crisis open.

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To give a clear answer to this question it is necessary to analyze its background and determine the main reasons. It should be said that the Financial Crisis of 2007-2008 is considered to be the worst financial crisis of last year and had the most significant influence on economies of various countries (Crash Course, 2013). One of the main reasons for this crisis was the bursting of the housing bubble of the USA and as the result, the banks started to give great sums of money as loans for people who could be taken as potential house owners (Havemann, n.d.).

Availability of credits triggered the house construction boom and various institutions started to invest in building companies. However, the decrease in the prices of houses and property led to the collapse of the market as many financial institutions were dependent on this sector and loaned great sums of money. The collapse of these institutions resulted in the stagnation of the economy and the property crash. The further events can be taken as the logical result of these causes.

With this in mind, it is possible to analyze the main possible advantages of the usage of the procedure of financial handling in terms of crisis. First of all, the idea that the crisis could have been avoided should be analyzed. It is obvious, that the described situation happened because of the absence of centralized control over the property and financial market. Financiers could have predicted the further development of actions. However, institutions did not take the possible aftermath of the blistering development of this sector into account.

However, the main sense of executive handling lies in the fact that all financial operations of a company or organization are controlled by a certain person or group. Under these conditions, all these operations are analyzed to see their possible influence on the whole sector and predict the advantages and disadvantages of the chosen strategy. Moreover, executive handling turned out to be rather efficient in terms of the functioning of a certain company under the conditions of the world financial crisis (Cline, 2009).

That is why this option can be taken as the advantage of this remedy. However, executive handling also leads to some loss of independence of a company. Besides, taking into account the unusual character of the financial crisis and the necessity of emergent actions, this strategy could serve during a certain period until a company recover.

In conclusion, it is possible to state the fact that the world financial crisis of 2007-2008 became great stress for a great number of companies which had to stop their functioning. That is why a certain strategy should be found to be ready to react to situations like that. Executive handling can be taken as the possible way out as it helps to improve the functioning of a company and guarantee its recovery.

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References

Cline, W. (2009). The Global Financial Crisis and Development Strategy for Emerging Market Economies. Web.

Crash Course. (2013). Web.

Havemann, J. (n.d.). The Financial Crisis of 2008: Year In Review 2008. Web.

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StudyCorgi. (2021, March 31). 2007 Financial Crisis and Executive Handling. Retrieved from https://studycorgi.com/2007-financial-crisis-and-executive-handling/

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StudyCorgi. "2007 Financial Crisis and Executive Handling." March 31, 2021. https://studycorgi.com/2007-financial-crisis-and-executive-handling/.

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StudyCorgi. 2021. "2007 Financial Crisis and Executive Handling." March 31, 2021. https://studycorgi.com/2007-financial-crisis-and-executive-handling/.

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StudyCorgi. (2021) '2007 Financial Crisis and Executive Handling'. 31 March.

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