Mortgage crisis, causes of financial crisis in USA and World (part 1)
Original articles written by: Dahlan Iskan – CEO Java Pos
In 2008, there was very great financial crisis in the United States of America that spreated over Europe and Asia or the other financial centers of the world. The global financial crisis began from mortgage crisis in the United States of America. The crisis caused of some big companies closed down. Why did this happen?
The cause of the financial crisis was from the mortgage crisis, where greediness and careless in doing business crisis caused a chain of crisis that and eventually swept the world.
As we know, the companies that ” Go Public” already have been forced to grow and develop in all sectors. Included the sectors of production, distribution, sales volume, advertising, marketing and the most important is the growth in earnings or profits. Hopefully the company’s profits can grow up to 20% per year. How does it run? it must be submitted in full to the CEO and the director. The CEO and his directors pressured to produce higher profits and greater for the company.
The owners of the company, namely the shareholders, generally do not want to know what and how the company operate. They do not want to know anything else, what they wanted are 2 things, specifically: the share price keep rise and rise and profits should keeps grow.
Usually in USA, a public company stock is owned by thousands or hundreds owners. In order that shareholders concerned with matters pertaining to their operations, such as implaborers expand of factories and the distribution, advertising strategies and markating, and so on. For them, they have already paid CEOs and it team, and they just wanted the money hundreds foldedback.
The First question, why do they expect their stock prices rise? the answer is if one day that the shareholders sell their shares, they will get benefits and they’ll get higher price than the price at the first time they have bought.
The second question, why do they want the company profits rise? it relates to the dividends. If they do not sell their shares yet, each year they will get the profit (dividends) are more and more.
About how to make the stock prices keeps-rise, it’ll hand out to The CEO of the company. Does the CEO want to use this way or the other ways, there is no restrictions. Because there are law that oversee the workings of these CEOs, such as the company’s law, capital market’s law, tax’s law and the labor’s law, etc.etc
Related posts:
- Mortgage crisis, causes of financial crisis in USA and World (part 2)
- Mortgage crisis, causes of financial crisis in USA and World (part 3)
- Mortgage crisis, causes of financial crisis in USA and World (part 5)
- Mortgage crisis, causes of financial crisis in USA and World (part 4)
- Mortgage crisis, causes of financial crisis in USA and World (part 7)
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