The Root Causes of the 2008-2009 Economic Crisis is the U.S Essay

The Root Causes of the 2008-2009 Economic Crisis is the U.S - Essay Example The effects of the crisis led to numerous evictions and foreclosures in the housing sector and prolonged periods of unemployment for many people. The crisis contributed to the failure of many businesses leading to a massive decline in consumer wealth, a loss which was estimated to be worth trillions of dollars (Simkovic, 255). Generally, there was a significant decline in economic activity all over the world as a result of the recession. This paper will look into how many governments strived to put appropriate measures in place to curb mitigate the crisis; particularly, the United States’ government, through the various policy makers and stakeholders, implemented effective measures to deal with the crisis.  The crisis resulted from a complex interplay of liquidity and valuation problems in the banking system of the United States in 2008. The bursting of the housing bubble in the United State’s mortgage sector in 2007 resulted in a crisis in the subprime mortgage marke t. Consequently, the values of all securities that were tied to real estate pricing in the United States plummeted significantly leading to the damage of the financial institutions, both in the United States and the world at large. The challenges that resulted from the insolvency in the banking industry led to a decline in the availability of credit. This led to decline in investor confidence that impacted negatively on the stock markets around the globe leading to large losses in the stock markets especially in 2009. Economies from all over the world slowed down significantly during this period as international trade declined and credit tightened (Lahart, 140). While there have been many suggested causes of the crisis by the experts, the senate of the United States issued a report on the same. It ruled out the possibility of the crisis being a natural disaster. Instead, it explained the crisis as having resulted from complex and high-risk financial products; conflicts of interest t hat had remained undisclosed; failure by credit rating agencies and regulators; and the market which was reported to rein in the Wall Street excesses (Lahart, 142). On the other hand, Ross explains that investors and credit rating agencies failed to do accurate pricing of the risk that was involved with the financial products related to the mortgage sector. They also claimed that the government failed to adjust the regulatory practices that would address the financial markets in the twenty first century appropriately. A repeal done in 1999 on the Glass-Steagall Act of 1993 removed the separation that had existed between depository banks and the investment banks in Wall Street. Both the regulatory solutions and the market-based solutions were considered in response to the crisis and were embedded in the various solution packages. According to Gross, many economic analysts agree that the economic crisis was triggered in 2007 in the subprime mortgage sector as a result of banks in the United States giving high-risk loans to economically unstable people most of whom had poor credit histories. Even then, the root causes of the economic crisis are complex. They include an unregulated or poorly regulated banking industry especially in matters of investment and lending, which led to proliferation of speculative people with unstable income into the mortgage market. The proliferation coupled with highly reduced interest rates for a long period of time created space for overextension of

Customer Service Profile Essay Example | Topics and Well Written Essays - 1250 words

Customer Service Profile - Essay Example Customer service is the engine behind the moving of any successful firm. Good customer service involves selling the right product, which has good quantity and that which cannot harm the intended customer (Cavinato, 2001). This paper presents a detailed discussion of exceptional customer service offered by Sony Corporation. To do this, an evaluation of the company’s customer service success will be explored, and the customer service policies that  have had an impact on its performance determined. Sony Corporation, originally known as Tokyo Tsushin Kogyo (TTK), was established on 7th May 1946 in Tokyo Japan. Initially it was a radio repair shop before its development. The word Sony was derived from the Latin word ‘sonus’ which means sound as it dealt with the production of electronic materials that produced sound, and the slang word ‘sonny’ in American English. It widened its marketing from Japan and entered America, specifically the United States, be fore opening other branches in Spain, France and Germany. As per 2011 it had more than 168,000 employees and more than 100 branches spread worldwide making it one of the largest companies in the world (Kottler, 2001). Basically, sonny deals with electronic. Along the years since its establishment, sonny has produced some of the best and durable media formats like radios, televisions, laptops, memory sticks, and blue ray discs among many others. Sonny has its leading sales in the United States, Europe and Japan. It is a company that has a wide series of measures to enhance its operations with a mission of developing more innovative multimedia services for entertainment (Cavinato, 2001). Good customer relations and rapport can be established by providing customers with products at a set price, with the best services and convenience to their time schedule. A customer will always be happy to work with a seller who is flexible and reliable. This implies that if a customer misses to recei ve a product as per the stipulated time, he or she will be dissatisfied and will not come back to the seller in future. Maintenance of a good customer relationship is the key item in any firm. Some of the services that will keep a customer coming, and which enhance a positive attitude to an organization are; best price, offer in transportation costs, promotions in products, and at large levels offers in warehouse costs. Working along these customer service offers, a firm achieves best customer relations crucial for the success of it in the market place (Cavinato, 2001). Customer services may go to the extent of providing financial credits and offering repair to achieve a competitive advantage. Sonny has various customer policies that are specifically meant for the customer needs. In some of its customer service policies, customers have a right to be provided with services without any discrimination; customers are different and so each customer should be handled as per his or her wis h and character and customers should be given the best treatment. The organization ensures customers are offered the best services, offered with rewards to motivate them to keep coming back and that their feedback is received and responded to in time. Statistics indicate that Sony receives 85% positive feedback from customers daily, has all payment methods for customers, has contest and price offers for customers and has on time