Critical evaluation of the impact of the global financial crisis on Coursework

Critical evaluation of the impact of the global financial crisis on worker migration - Coursework Example 21-23). In addition, millions of jobs were lost by people, many lost their life time savings and earnings, and many dreams shuttered. These impacts of global financial crisis make my topic important and interesting to study. Everyone wants to know how worker migration was affected, the implication, and probably the causes of the financial crisis. That is what my study is seeking to achieve. Aims and objectives of the study The aim of this study is to critically evaluate the impacts of global financial crisis on the worker migration. In order to achieve this, the following objectives will be met by the study: 1. To identify the effects of global financial crisis on worker migration 2. To identify factors that caused the global financial crisis 3. To determine the implications of global financial crisis on the world economy and the job market 4. To assess and evaluate the rationale of the global financial crisis Literature review Financial crisis is a situation in which the values of f inancial assets or institutions falls rapidly; it can also be applied widely to various situations in which some financial assets all over sudden lose a very big part of their nominal value. Many financial crises are associated with banking panics- a situation where by a bank suffers a sudden rush of withdrawals by depositors and many recessions coincided with the panics. There are other situations that can also be termed as financial crises; stock market crashes- a sudden dramatic turn down of prices of stock in a significant stock market cross section that leads to a significant loss of paper wealth. Therefore global financial crisis means a worldwide period of economic difficulty experienced by consumers and markets. It is a difficult business environment where by potential consumers reduces their purchase of goods and services until the economic situation improves (Morris 2008, p. 24-25). The global financial crisis expressively impacted on the world leading to worker migration. United States of America is basically in control of the world and financial crisis that took place due to the decline in moral values specifically the economic and political power (Longstaff 2008, p. 19-20). In the second half of 2008, the financial markets of the United States, and ultimately all main financial markets of the world, were distraught by the repercussions of the unethical practices of lending carried out by the major lending institutions. The unethical loans were conducted at the height of the bubble real estate in the U.S. Aggressive and destructive lenders engaged in sub-prime mortgage loans (Cooper 2008, p. 17-19). These were extremely high risk mortgages and most of them were found in the violation of the standards of traditional underwriting practice for the industry. Ethics and prudence were ignored and greed dominated the ethical judgment among nationwide mortgage lenders. This problem was entirely aggravated by leveraging and packaging of such loans by the fi nancial companies of the Wall Street. Workers began a massive migration in search of greener pasture. They could no longer afford the cost of living (Cassidy 2009, p. 30-33). Global financial crisis occurred in the US in the year 2007 and spread to a number of other advanced economies through a combination of direct exposure to subprime assets which led to gradual loss of confidence in a number of asset classes and the drying up of wholesale