What made 2011 a mercurial year and what should be done to avoid such situation in the future? – Part 4
Tuesday, January 3rd, 2012 4:00:14 by Usman KhalidThe main reason why the 2008 upheaval occurred was loosely monitored banking sector that showed profits and profits, nothing else, however; in reality the Enron crisis was in the making. The same happened in Europe.
However, the US government and the international community for that matter needs to create units which can oversee the operation more clearly and closely and can come up with solutions that will be beneficial in the long run. There is no guarantee of a success
in a situation like this, but the slow and strict policy might not inflict such huge losses to the countries and might be beneficial in the long.
There are two aspects of economy that need to be addresses on as soon as possible basis. First these countries need to ensure the domestic production of the items that are most profitable internationally and the products that are most consumed inside the
country. This way the deficit in the exports and imports might be controlled.
In the US particularly, the focus from investing on entirely new projects should be redirected at the projects that fell victim to the 2008 situation, more like what General Motors did in 2011 by reopening its Spring Hill, Tennessee plant, which cost them
almost half of the investment required to start a new production unit and also encourage employment in Tennessee.
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