The financial crisis
The present crisis is preparing the way for the collapse of the capitalist system. Is the beginning of a new chapter in the history of the financial world, in which some of the old system gives way and new forms may expand to drastically affect the global structures of power and domination in the world.
The Mexican crisis first financial crisis was taken a decision toexhaust its reserves protecting its dollar in 1994 led to difficulties rolling over its tesobonos in 1995. Because of the tesobonos was the first independent financial crisis that by vocation together a lot of banks and getting them to agree to modify the terms of their growing loans to supply the borrower with more time to pay, and as a result required a different kind of response. So in some waythe first real financial crisis of Mexico is the one that started in August 2008. Today most rising economies are in a far better financial shape. The basic solution is taking bad bank possessions, repackaging them in some way and selling them into the market. So if the banks had taken losses more quickly and unchained up their balance sheet to lend to new sectors, economy could have recoveredmore quickly.
There were many changes in the global consumption value of many products like the production and selling of cars that have a deepening global hold back along with depressing growth and falling consumer confidence to take control and starts on European automakers and they need to sustain high levels of investment to carry the market transition to low-emission vehicles without the helpof adequately strong consumer demand and political sustain. The auto manufacturer are having a lot of financial problems as the credit crunch makes it more difficult for the sector to finance daily operations and a low demand for new cars. This tendency will get in the way of the EU objective to replace the European car fleet by more fuel-efficient vehicles in order to cut CO2 emissions. Withoutgovernment hold up, excessively tight CO2 regulation risks to upset the delicate economics of an industry already in difficult situation.
So this makes that car sales drop (The European automotive industry was a major contributor to the EU economy, generating turnover of 551 billion euro, which represents around 5% of the Europe’s gross domestic product (GDP) and the moribund demand in WesternEurope, Japan and the US could balance the expected growth away, while the growth pace in developing markets too slow as well), high investment levels (reform efforts remained a priority for European automakers, as they struggled with high rare materials costs and a flat European market), call for government support (car manufacturers know that they need measures that should be considered by EUpolicy makers to guarantee the future of car manufacturing in Europe and support the momentum in consumer demand for fuel-efficient vehicles), pressure on employment (production site cuts capacity, suppliers are left with no other choice than to follow so Europe recognized that the current environment of radically slowing new vehicle sales in country), and some damage in the car sales like in BMWGroup, DAF Trucks, Daimler, FIAT, Ford of Europe, General Motors Europe, Jaguar Land Rover, MAN Nutzfahrzeuge, Porsche, PSA Peugeot Citroën, Renault, Scania, Toyota Motor Europe, Volkswagen and Volvo provide direct jobs to 2.3 million people and indirectly support employment of another 10 million families. “The manufacturers annually invest 20 billion euro in research and development, or 4% ofincome.”
The oil is also making the crisis more difficult by its growingly future scarcity. The accessible energy alternatives for this product would be generally solar and wind power that offers only weak energy substitutes comparing with oil energy. So conservation and renewable energy are likely to have any significant crash on the growing demand for oil products because they can offer you the same...
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