Government intervention in the financial market during recession

Authors

Sandhu, Navneet Kaur

Issue Date

2010

Degree

MA of Business Administration (international)

Publisher

Dublin Business School

Rights

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Abstract

The current state of the economy shows a clear indication that there is a global recession and the financial markets are crumbling. The property bubble has burst, GDP has dropped more than predicted in the last two years, unemployment rates soar and some of the world largest financial institutions either have been nationalized or face nationalisation. Governments are at the centre of this crisis as they stand accused of inappropriate regulation of the financial market and using the tax payer‟s money in a bid to save banks which were irresponsible. This is basis of what this dissertation explores; its aim was to conduct primary research in an attempt to answer the research objectives, which were to measure the general awareness of the recession, how it came about and who was to blame; Along with an attempt to establish whether government intervention in the financial market is necessary either by way of stricter regulation or nationalization. As a result of the finding of the survey, the sample population affirmed that it is essential for the government to intervene as that is why they are put in power, to prevent and to resolve any problems which the economy is faced with, whether this be through nationalisation or to impose stricter regulations on banks. The research was carried out to establish whether government intervention was necessary in the financial market. Therefore, to get the best possible response the sample participants were individuals who are involved in the financial market as well as business owners. The survey was administered to them via email. A total number of twenty responses were gathered, then this collected data was analysed using spreadsheet techniques to reach the final findings.