WHAT WERE THE CAUSES OF OUR PRESENT FINANCIAL CRISIS? Business Essay

The Causes of Our Present Financial Crisis?
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The Causes of Our Present Financial Crisis?
Periods of macroeconomic instability continue to hit the world. Such events disrupt the normal functioning of the economy, which has adverse effects on people. During a financial crisis, the banking sector comes to a near collapse. Despite the financial crises that have happened in the past, little action has been taken to prevent a similar occurrence. This leaves room for similar events to destroy the economies of the world in the future. The present financial crisis has multiple causes; corporate greed, pride among the industry players, and ignorance of similar historical events.
Corporate greed has been instrumental in fueling the current financial crisis. Greed implies an excessive desire to get something more, and in particular money than required. The desire to get reach is not necessarily a bad thing from an economic perspective, since it fuels economic growth and development. However, when the desire to make money is taken to the extreme, a crisis occurs. The inability of corporates to restraint the desire for wealth and recognition has become a major obstacle for ethical professional conduct (van Driel, 2018). As a result, some managers in the financial sector, despite realizing what is happening continue to evade some challenging decisions that could jeopardize their career.
Additionally, pride among the financiers, economists, and regulators is to blame for the current problems. Instead of the individuals in the sector working together to ensure the present financial crisis does not persist, they avoid submitting to the supervision of each other. The pride that currently exists among the actors prevents them from consulting one another extensively. In ...