Economics Business Article Analysis

1144 WordsNov 1, 20095 Pages
Analysis on “Market fatigue: The Anglo-Saxon model has taken a knock” The article from ‘The Economist Journal’ named ‘Market fatigue’ states the current microeconomic issue of the recent financial crisis that has shaken the global economy. The report outlines two important topics: Anglo-Saxon model and Securitization. (Economist, 2009) According to this article, the Anglo-Saxon model is no more up to the mark since the recent world recession has crashed markets, banks, institutions and created unemployment. To understand how the model has lost its mystique, we must first find out what the model is about. Anglo-Saxon model is based on liberalization and deregulation. It emphasizes to loosen up trade restrictions (taxes) and barriers with little government control and to benefit from international trade. The theory promotes capitalism. The orientation is towards free market and liberalization. (Beck, Klobes and Scherrer, 2005) The report blames financial failure for the economic meltdown and not market failure specifically. The hardest market to deal with is the securities markets i.e. swaps, futures (derivative market), and subprime loans etc. Karl Frederisckson in his article ‘The True Cause of the Global Financial Meltdown’ suspecting some other factors leading to the global slump such as greediness, irresponsible financers, negligent regulators and consumers. He believes however, that greet was not the main cause instead just a coincident. He designs a different approach for the cause of decline in the global financial system and that’s mathematics. To stay within the topic and not to go deep into numbers, the point is it was the carelessness of bankers and the rest to not to be able to forecast the uncertainty involved in the market as well as housing real state property.

More about Economics Business Article Analysis

Open Document