TOPIC: Global Financial Crises

Sir Thomas Gresham (1519 â€" 1579), an English financier in Tudor times, was given this theory. At that time the reason was different.

Today the same theory is working with other reasons but the way is same.

Four (4) Reasons for Global Financial Crises

1. 80% Circulated money in hands of 10 % people.

Reference: Black Money

2. 80% population of the world is not able to buy their major necessities.

Reference: Industrial Decline

3. Diminishes concept of Savings.

Reference: Banking System

4. Additional Investments on purchases.

Reference: Land & Buildings

Details of References

Reference â€" 1                Black Money

Commission & corruption first, killed the quality industries which developed unhealthy competition and then major part of money goes into the hands of bad utilizer of money.

Reference â€" 2                Industrial Declines

There are Five Types of Industries agriculture, mining, electricity & water and oil.

But the major user (poor & Middle class) of these industries is in chronic crises from last five years because 80% resources have gone in the hands of 10%. So, the major consumer started to compromises with the quality and tries to meet their needs with cheapest quality products and also sacrifices their needs up to 30%. But at the same time spend more money on non-specified education & luxuries. (Media play the vital role)

Reference â€" 3                Banking System

Black money enhances quantity of banks and banks offered unhealthy economic activities like; Credit Cards, Auto loans, House loans and personal loans by which major part of population could not keep balance between their income & expenses and goes into threatening financial crises, which leads to crises of five industries.

Reference â€" 4                Land & Buildings

Temporary rises in prices of Land & Buildings by black money holders attracted small investors in buying Land & Buildings but they lost their active money when their come a fall down in prices.

CONCLUSION

Simply we can say, Bad Money (Black money, Bad Banks & Bad Banking Services) drives Good Money (Good Investors & Good Consumer) out of Markets.

So, the result in Global Financial Crises.