Q: 3: I have argued that investors take on greater risks because they have more money to invest and they already have low risk investments like government bonds, prime commercial property and blue chip shares. Does the FCIC report provide any evidence that this view is correct?
History emerged with continuous record breaking issues. In the arena of finance and economics, this turns into a collapsing shape. Shaky sentiment though was felt when this kind of financial turbulence starts. But, it becomes too late which can be called as “little time to control it”. Arguments behind this kind of financial melting create lots of debate amid analysts, regulators, business personnel and so as general people. But, almost all the time, after effect left a digester for the future. This disaster begins with ‘Fear’ and turns into ‘Panic’. Then dilemma prevailed alongside the indecisions especially, to them who fall in trap. Massive losses incur always. Most of the time, it takes lots of interval to recover. Financial Crisis 2008 was a remarkable history that would shake all the people mostly in USA and Europe. Besides, nearly all the countries felt its bad paws that drastically affected the economy of respective countries.
Beginning in 1990, getting incremental shape in 2000 and turning into a robust figure with the participation of general people, housing bubble left an antiquity of learning for all the citizens. Excess liquidity of one country that remained unused passes to another country, where it has massive demand keeping alignment with balance of payment. This is termed as Capital Flight. When money becomes so much available to general public, interest rates drastically fall, usually. And when interest rates fall and came to the loom of the capacity of general human, then they start to take the advantage of it. But, most of the cases they become the sufferers. Finance