Impact of the Financial Turmoil on the Romanian Capital Market
The unprecedented financial and economic world present turmoil is dangerously covering the Europe and Japan, coming from the USA and being more painful than the economic downturn of the ‘80s. A massive decrease of trust and confidence is also perceived by consumers and business alike, and their answer and reaction is a continuous cut of the expenditures. With a view to rebuild the stability and to recover the economy, the USA government as well as certain Western European governments have nationalised substantial parts of their financial sectors, in such an extent that is simply against the modern capitalism basis. Actually, the whole world is changing its usual course, towards an age when the role of the state is becoming greater and greater, while the role and the significance of the private sector is drastically diminishing, as the most dramatic consequence of the present crisis. Annalists’ opinions consider July 2007 as the beginning of the present financial turmoil, since this was the moment when the appearance of the first mortgages troubles seriously upset the global stock exchange markets, as shown in the records of the negative major indices or in the weekly - and even daily – downturns, hardly to conceive and unseen in the last five years. One can consider that the real lesson of the actual financial turmoil consists in the necessity of an ideal meeting between the most important theoretical systems concerning the economic and social process and phenomena, in order to create a new and more desirable model of economy and society. This normative and explanatory character of the new theory and synthesis is keen connected with the necessary giving-up the old model of the economic and social optimality that should be replaced by the new model of sustainability.
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- Ewerhart, Christian & Tapking, Jens, 2008. "Repo markets, counterparty risk and the 2007/2008 liquidity crisis," Working Paper Series 0909, European Central Bank.
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