EFFECTS OF THE CRISIS ECONOMIC 2008

Nobody doubts that the world is in crisis, nor that the crisis originated in the financial system of the United States and then spread, first to the rest of the Western world (Western Europe and Japan) and emerging economies. The crisis has occurred within the capitalist system or into other words, within a free market economic system, which is part of the system, a global financial market, hence it is not surprising that the most affected areas have been United States , as the origin of the crisis, the European Union and Japan, which together contribute almost 70% of world production.

The crisis will also have strong effects on the fragile economic balance, social and political rights in developing countries, particularly in Latin America for his dependency on raw materials production, remittances and foreign capital flows that are shrinking rapidly. The root causes of this are related to the huge imbalances, both external, as prosecutors in the United States so far this twenty-first century, the country imported more than it exported and the government spent more than it raised, both in excess. This allowed the period of prosperity between the U.S. where the financial system lends support to those who did not have to repay loans, the system became so complex with an impressive development of financial systems required to regulate the banks was very little, and some were left out of this, at this juncture of complication and confusion is the most abundant liquidity generated by the sharp reduction in interest rates from the Federal Reserve.

At the end of the stability of the U.S. economy, shaken by what became of globalization, world economies, Japan also went into recession to their GDP contracted 0.1% in the period from July to September and 0.4% with respect to annual recalculation in 2008. Japanese companies were hard hit by falling U.S. demand and the difficulties in obtaining bank finance, the worst could be on its way by the aftermath of the global financial turbulence, particularly the collapse in international demand vehicles and electronic goods from Japan. Signature Automotive Toyota Motor Corp., for example, reduced the forecast of net income for the fiscal year of $ 5,500 million, almost one third of the gains of last year.


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