Describe the causes and effects of the global credit crisis. Name two global exchange services and explain how they reacted to the global credit crisis.

As for all financial crises, a number of factors explain the GFC and its severity and care in its lending decisions because they did not expect to bear any losses consisting of thousands of individual mortgage loans of varying quality. The Global Financial Crisis (GFC) refers to the period of extreme stress in global terms.

Explanation:

The global credit crisis started with the failure of Lehman Brothers, a global bank. However, this wasn’t the cause, only the first sign that there were problems. Lehman Brothers, and other banks enjoying a prosperous economy, took risks that were not advisable according to the traditionally conservative industry. They loaned money to people and corporations that could never hope to pay back the loans. Regulators, the watchdogs of the banking industry, also are to blame for knowingly allowing the banks to take on these loans, as they were also complacent in the booming economy. Many other banks faced the same fate, some caused by their own faulty loans, but also because Lehman Brothers started a domino effect due to the global markets that depended so heavily on them.

GXS is a global exchange service that handles more than 12 billion transactions annually. Approximately 600,000 businesses worldwide utilize the GXS Trading Grid, a product that enables electronic exchange. Because GXS is strong financially, its response to the credit crisis was to take on acquisitions and partnerships of smaller companies that had software and products that complemented their portfolio. In July 2009, GSX partnered with CGI, a technology company, to integrate their services to provide supply chain finance solutions to banks and other financial institutions.

Another global exchange is Forex. This matches independent traders with global currency markets. During the credit crisis, Forex traders were found guilty of rigging the foreign exchange market by colluding, although these traders were not employees of the company but using the trading platform.

Explanation:

Edmentum

formal arguments

in written, formal arguments, the best way to build credibility with readers is to provide them with evidence. no matter what your argument might be and which side you agree with, citing strong evidence to back up your claim leaves the opposition with little to argue.

emotional appeal is often used in oral arguments. written arguments, however, rely on four main types of evidence. as you read further, you will see that some types are more credible than others and "hold more water" so to speak.

statistical evidence

the strongest type of evidence in formal writing is statistical evidence. this ranges from true, hard data presented as a percentage or number, to survey-type data. for example, statistical evidence could be:

4 out of 5 experts claim

85% of women in the united

7 members were present

statistical evidence can be proven as fact. you can actually go out and find hard information to prove your particular claim.

testimonial evidence

the use of celebrities as credibility evidence can be considered testimonial in nature. many people look up to celebrities as role models in their lives. good or bad, when a person chooses a life-path that takes them into public light, there will be many others out there who want to emulate the celebrity. these celebrity endorsements provide the second-strongest type of evidence found in formal arguments.

testimonial evidence can also be collected from experts and authorities in a given field. doctors, dentists, lawyers often provide expert testimonials. their authority is not often questions. they are expected to "know their stuff."

anecdotal evidence

when storytelling is involved as evidence, anecdotal evidence is being used. due to its less objective nature, anecdotal evidence is not extremely strong. when coupled with statistical or testimonial evidence, anecdotal evidence can be highly effective in determining credibility or proof.

storytelling, although based on fact, can include quite a bit of opinion, thus making it less objective. usually, eyewitnesses are used as providers of anecdotal evidence. they saw or experienced the phenomenon at hand are telling their version or side of the story.

analogical evidence

when information is scarce about something and little is known, analogical evidence is often used in a formal argument to increase credibility of the proof. if the phenomenon in question is new and little is known about it, analogical evidence that pulls in known factors about a similar phenomenon to show parallels can be an effective way to provide proof.

due to limited knowledge about the phenomenon, in this situation, analogical evidence can be regarded as the weakest type of evidence used in formal arguments. one can only imagine and hope that the comparison-phenomenon is close enough that the results can be applied to the new phenomenon.

in the

all that really matters in a formal argument is whether or not the writer has credible evidence to back up what they want to say or what they are thinking. so often, we hear people say, "prove it! " to one another.

one last little formal arguments not only provide credible evidence to support claims, don't forget that acknowledgment of the opposing point of view in an argument also strengthens the entire product.

the answer is b to the question