First Publishing Essay of Mine called "Seed Cannot Outgrow Its Soil"

Hello? All?
How is everybody doing? In this blog, i am going to post my first ever blog essay that i've done. I am going to let you discover it, i will not spoil the surprise. Enjoy!


Seed Cannot Outgrow Its Soil
There is a Chinese old saying, “Seed cannot outgrow its soil,” it means until we change the culture, environment, or the setting the nature of result cannot be altered. To put it into perspective, let’s take the global financial crisis of 2008 as an example. Unless we change the culture of global financial market, the global financial crisis of 2008 is likely to happen again in the future. To address this issue, we must dig deeper to find the possible cause and
contributions, and try to mend and fix it so that it doesn’t happen again.

In 2008’s global financial crisis, the U.S played the major role, thus, it is logical to start from the U.S to make the sufficient changes to improve global financial system. According to Steve Forbes’, CEO, president and editor-in-chief of Forbes magazine, article “How Capitalism Will Save Us,” global financial crisis ignited as the Federal Government and the Treasury Department of the U.S’ miscalculation and misinterpretation of the U.S dollar value being “strong” they pumped excessive dollar to the market in 2004. It leaded to commodities prices to hike, and started housing market bubble which is made possible by packaged subprime mortgage loans from investment institutions. However, the housing bubble bursted in 2008 dragging the investment institutions along with it, and global financial crisis ensued. Thus, fixing has to go to the Federal Government and the Treasury Department.

However, some might argue that consumers who purchased the subprime mortgages were the ones who should be blamed because they encouraged the trend that was set by investment institutions. But, the consumers usually don’t have the necessary information and knowledge to distinguish between good deal in the long run and the deal that could add up to something disastrous, which in our case was the housing bubble burst.

Others could argue that investment institutions are the faulty bunch, but that is partially true. Investment companies are profit driven, and only there to satisfy the shareholders, but in order them to be successful the comfortable situation must be created, and in our case the feds and treasury department provided them with customers with incentives and environment where investment institutions can take advantage of. Hence, the real blame must go to the feds and treasury department because they created environment for middle man (investment institutions) to create not-so-good deal (subprime mortgages) and watched it unfold without any interference. As Steve Forbes suggested, having a stable, protected, secured and sound global financial market the federal government and treasury department has to be separated and have their few major goals to be set as priorities. The Federal Government should be responsible for regulatory role of financial market and the Treasury Department should be true monetary guardian of the financial market in the U.S. Once we accomplish those goals in the U.S the global financial situation would be in much better position.

However, the well being of global finance is dependent on all aspects regarding global community of each member states. One possibility to improve the whole global finance is to set or arrange ways to make global communities to communicate well with one another. They must interact efficiently, faster, and without any disruption of global financial flow as John J. Mack, former CEO and current chairman of Morgan Stanley-Smith Barney suggested. The governments, government agencies, institutions and third party companies that are overseeing the financial markets all over the world must connect and exchange information with one another to prevent future global financial crisis.

Critics might argue that these information exchange activities might get breached and become fraudulent, or turned into one way to make money out of them by whoever that has information, but if we can monitor the activities that they involved the result can be tremendous.

Also, some might say that activities such as information exchanges might slow down the market flow, but we could assign people, agencies, and institutions to overlook those transactions, thus making things smooth and easier for all parties that are involved in the transaction. After all, worst we could get is something that is different than what we have now which is failing us.

Some might say keep the faith in the financial market by let the “invisible hand” take care of it, but we just don’t want another global financial crisis because we haven’t fully covered from the last one yet.

Lastly, I suggest that the time has come for change, it is well overdue for soil change, hence making significant improvement on our global financial system; to do that we need to change regulation, monetary control, and efficient, secure exchanging of informations throughout the world.

If you have any question,feeling, concern, please feel free to channel them in the comment, thanks.