Financial Crisis Essay

Ethical Dilemmas During the Financial Crisis

A financial crisis can be described as a specific situation in which a company, business or production firm loses the value of its assets rapidly and enormously leading to low cost of the assets. In addition, during a financial crisis the value of financial institutions also becomes relatively low in such a way that they cannot efficiently carry out their financial roles within an economy. As a result, financial crisis is usually concomitant to a panic or a run on the available banks so as to salvage the few assets that might not be affected by the financial crisis. Moreover, in an event of a financial crisis, the supply of money often overwhelms the demand thus creating a huge deficit in the money market.

Notably, when a financial crisis emerges, the liquidity rate for money reduces to a level where saving cannot help in salvaging the already worsened money situation. For instance, one of the most prevalent financial crises took place in 2008 when the global money market went through a massive recession period thus creating a huge economic fuss across the globe. In any situation of financial crisis, companies and businesses are often faced by the problem of ethical dilemma on how to react to the financial crisis at hand. These ethical dilemmas are brought about by the fact that the business might have several options on reacting to the situation that is responsible for the financial crisis.

Basically, this research paper aims at exploring the threats that most users of financial information have gone through in divergent parts of the world over the recent past. In addition, the paper seeks to come up with coherent findings one the most contemporary local and overall financial disinte...

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...in the demand for money. Moreover, the supply for money reduces thus creating a major shortage in the level of income among taxpayers. The research paper recommends that, in order to solve the ethical issues that come up due to increased financial crises, both the government and banking institutions need to be more cautious in asset protection policies. In addition, the taxpayers should be able to understand the fact that any period of recession, they must ensure that their savings are taken care of by the banks so as to avoid miscellaneous activities. From the research, I was able to make findings on major ethical dilemmas involved during a financial crisis such as need to seek loans and raise interests. Moreover, some unscrupulous businesspeople take advantage of the financial crisis to exploit consumers thus increasing the negative results of a financial crisis