It is very the worse time in generations for the financial sector and we have already seen some of the biggest investment banks collapsing. It was out of imagination that a bank like Lahman Brother will go bankrupt and the biggest bank, Citi bank, will ask for bailout package from US federal government but everything has happened and more is expected to happen.
One of the main reason behind the current situation is cited by the economist is low confidence among the consumers. it is a cyclic effect. low confidence means they spend less and it affect the economy even worse and the consumers spend even more. It has not been many months that the consumers' confidence level was reasonable and this crisis did not seem so deep.
Why this is happening so fast? the only reason we can find is the role of media. In current world, we access to too many TV channels, online and off line news papers and many other sources. It is disgusting to see the way the media has played its role in reducing the consumers' confidence. For last couple of months, every sort of media has published report of collapsing banks, insurance companies and financial institutions on front page. My question is is this demanded for?
Journalist and the media will say they need freedom of expression and need to report the truth. I completely agree with this. My only worry is the way they has reported it. I do not think that all the bad news regarding the crisis has to be reported on the front page. Many of the articles related to 'financial crisis' could have been on the inner pages where the news papers publish news regarding business and economy. Probably it was not mainstream news if a bank collapses in any part of the world. Is this the first time that a bank is collapsing? The media has exaggerated the extent of the feeling of the crisis. It will take many years before the same level of confidence will return and economy will start establishing to see another economic boom.
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