2. Is Us law has fault for the crisis? Provide evidence

Answers to the Case

1. As you know, there were several reasons for the global economic crisis that began in 2008.

The main reason is that the crisis in the United States, which began in 2007, is due to the continued lending of those who cannot pay it. The mortgage crisis began at the end of 2006 due to the unpaid debt of shares purchased and soon spread to the US financial sector and then to other countries. Most companies went bankrupt or suffered serious losses, which led to a sharp drop in lending and the collapse of the US economy. The crisis began with the crisis in the United States on mortgage lending. Subsequently, the scale of the process expanded and the liquidity of large banks and financial institutions weakened, ie, their solvency became a financial crisis. Indexes of the largest companies in the world's leading stock markets and the market value of shares have led to a devastating decline. All this, in turn, has led to unemployment and other negative consequences in many countries due to a sharp drop in production and economic growth rates.

Most international experts acknowledge that the US mortgage market has been on the rise in 2007 and its active impact on the emergence of the global financial crisis has been a major consumer of US GDP. The common cause of all the crises so far is that the crisis in one country, due to the increasingly globalization of world countries, has a direct negative impact on the economies of its partner countries. This is illustrated by the global financial crisis of 2008 and the 1929 Great Depression. Also, the common cause of these two crises is the mistakes made in regulating capital flows. For example, the long-term and many privileges of mortgage loans by the US banking and financial system have led to severe financial crises.

The rise in loans has led to a decline in the population's demand for mortgages and a reduction in the repayment of debtors.

2. The volume of bank lending has grown dramatically as a result of the non-monetary monetary policy pursued by the US Federal Reserve, led by former chairman of the US Federal Reserve, Alan Grinspen, and chronic low rates of refinancing. Expansionary monetary policy of the Federal Reserve was reflected in the reduction of interest rates on loans to commercial banks by 1.25%. Alan Grinspen's lack of confidence in the mortgage markets, the excessive liberalization of mortgage lending requirements led to a rise in real estate demand and a sharp rise in housing prices in the short term. As a result of inadequate regulation of commercial banks, the system of lending to banks was greatly facilitated, which made it impossible to take into account the level of solvency in the use of loans. 3. Indeed, in the early years of Uzbekistan's independence, as in other CIS countries, the question was on which principles and methods of state and social construction should be based on the way in determining the socio-economic and political development of the country.
3. Indeed, in the early years of Uzbekistan's independence, as in other CIS countries, the question was on which principles and methods of state and social construction should be based on the way in determining the socio-economic and political development of the country.
Through the specific model of reform and modernization adopted in Uzbekistan, we have set ourselves the task of realizing our long-term and long-term national interests, first of all from attempts at external implementation of so-called "shock therapy" methods. We have abandoned the very simple idea that market economies are self-regulating. During the transition from the administrative system to the market management system, we have chosen a gradual and gradual implementation of reforms based on the principle of "Don't break the old house before building a new home". Most importantly, we have made it clear that in the transitional period, it is the state that has to take responsibility as the Chief Reformer in order to avoid disintegration and chaos. In the case of long-term and long-term interests of the country and the need to overcome the emerging problems, the methods of state management were used in the economy, and this approach was fully justified. It should be noted that Uzbekistan has sufficient resources and sufficient resources to ensure the stable and uninterrupted functioning of the financial and economic, budgetary, banking and credit systems, as well as the enterprises and sectors of the real sector of the economy. The Anti-Crisis Program for 2009-2012, aimed at overcoming the negative effects of the global economic crisis, has become one of the priority areas of social and economic development of Uzbekistan in 2009. Specific sections of the Anti-Crisis Program - a set of measures designed to address the following key objectives:

First is the accelerated modernization, technical and technological re-equipment of enterprises, the widespread introduction of modern, flexible technologies. This, in turn, will ensure that our country has a stable position in both domestic and foreign markets.

Secondly, in the conditions of the current deterioration of the current business environment, the implementation of specific measures to support export companies' competitiveness in foreign markets and creating additional factors to stimulate exports, including: - working capital Providing enterprises with preferential loans for up to 12 months at rates not exceeding 70% of the refinancing rate of the Central Bank;

Thirdly, to increase the competitiveness of enterprises by introducing a solid savings system, stimulating production and cost reduction. Fourth - to take measures to modernize the power system, reduce energy consumption and introduce an efficient energy saving system. Further enhancing the competitiveness of our economy and improving the wellbeing of the population largely depend on how we can use our existing resources, primarily electricity and energy. Fifth, in a time of decline in global markets, supporting domestic producers by stimulating domestic demand is critical to maintaining high economic growth rates.

Consistent implementation of the anti-crisis program measures allowed to adequately counter the threats and risks of the global financial and economic crisis and prevent its negative impact on our economy. The global financial and economic crisis has been sealed in history as a crisis that has covered almost every member of the world community and caused the greatest economic loss. And for our national economy, this crisis has not had a severe impact on a number of factors.

4. The November 2008 Summit in Washington, which was attended by 20 major countries that produce 85% of global GDP, confirms the widespread nature of the global financial crisis. that they are looking for ways to get out. EU countries have agreed to use a system of government guarantees for loans from commercial banks to deal with the crisis. The largest European banks have been nationalized, that is, they were bought by the state. In conclusion, all developed and developing countries have sought ways to overcome the economic crisis and have succeeded in finding for themselves.




List of references:
1. The work of the President of the Republic of Uzbekistan Islam Karimov “The global financial and economic crisis, ways and measures to overcome it in the conditions of Uzbekistan”

2. The book The Great Destruction: Causes of The Global Financial Crisis in 2008

3. US_financial_crisis

4. Sample case prepared by the teachers of "Economics and Business" of Tashkent State University of Law