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The crisis in brief
Credit crisis began 13 months ago in August 2007 when the growing payment mortgages deficit, put millions of debt obligations in danger of which was guaranteed and sold to investment banks, which retained in the lists of their budgets.

Sep 14, 2008 Wall Street experienced one of the most catastrophic day in its history. It was the day when three big financial firms proceed into mess. On that day, Lehman Brothers, one of the world’s biggest investment banks, went bankrupt; Merrill Lynch was bought over by Bank of America for $ 50 billion and American International Group (AIG) is one of the largest insurance companies in the world. It needed to get up to $40 billion to stave off a major downgrade by credit-rating firms.

Black Monday and Global Financial Meltdown
Black Monday Sep 15, bankruptcy and lose of confidence in the market guided global financial crises, within first three weeks of Sep (1-17 Sep), global stock market losses was $18.47 trillion, equivalent to 34% of world gross domestic product (GDP) in 2007, has been erased year to date (YTD) as Bloomberg transmitted.

Despite the crisis that shook U.S.  The world's largest economy, the Secretary-General of the United Nations Ban Ki-moon in a dialogue with the United Nations Radio the possibility of achieving the Millennium Development Goals for its agreed deadline by the year 2015, noting that he would ask the leaders for high-level meeting in the twenty-fifth of September so as to discuss the efforts needed in order to achieve those goals.
According to the report published by the UN News Center, just 79% of the exports from the least developed countries reach the markets of developed countries without customs, which are lower than the target, which amount to 97%, and there is a slight decrease in tariffs on agricultural exports.

The development goals of the new millennium, signed by 147 heads of State during the Millennium Summit in September 2000, focused on the efforts of the international community to achieve significant and measurable improvements in the lives of people with in 2015 and to enhance the following:

• Eradicate extreme poverty and hunger
• Achieve universal primary education
• Promote gender equality and the empowerment of women
• Reduce child mortality
• Improve maternal health
• Combating HIV AIDS, malaria and other diseases
• Ensure environmental sustainability
• Develop a global partnership for development.

Alan Greenspan, former chairman of the U.S. Federal Reserve mentioned that the financial crisis in the United States and reflected on the global economy in general is the most serious in more than half a century. In an interview with U.S. television network Greenspan said that the pronouncement solution to this crisis is still a long way to go and he acknowledged that, situation similar to this occurs every fifty or hundred years.
He said that the federal government can not establish a net safety over the financial companies that are bankrupt, adding that the attempt to solve the crisis of federal government's investments, "Lehman Brothers" should not be at the expense of public funds.

 

Collective Action of Central Banks to Calm the "Tsunami" Financial Markets
Major central banks around the world have revealed on the process of pumping extensive additional liquidity in financial markets and in the framework of the coordination aims ending at the escalating current crisis taking place in global financial markets.
Major Central Banks together they stressed (European Bank, Bank of Japan, Bank of England, Bank of Canada and Swiss National Bank), in a joint statement pledging to work on coordinating and take appropriate action to deal with the current pressures facing the markets.

A widening current financial crisis in the international capital markets, which is the worst of its kind since the end of last century, the International Monetary Fund forecast that the economy will recover from the escalating crisis, which affected a number of major U.S. financial institutions and world wide economy by 2009.

Financial Bailout Plan
in order to tackle global financial crises U.S. government decided to build a giant plan costing up to half a trillion dollars in a bid to contain the current crisis of capital markets
Japan Central Bank pumps money in the market 16 consecutive days, and the country’s inflation measured by the consumer price index (CPI) hit a 12-year high of 1.5%, while the CPI of Hong Kong, Singapore, and US hit 5.8%, 7.5% and 4.3%. The reasons behind how Japan shields itself from the storm are: Energy efficiency, deflation, a strong current Account, valuations, and all that reasons Japan become a safe haven, as mentioned in fundsupermart website.

In UK after Pumping money in the market, it nationalizes troubled banks, elsewhere in the European banking sector, the governments of Belgium, the Netherlands and Luxembourg announced a $16bn bailout for troubled financial services giant Fortis, while Iceland nationalizes its biggest bank. At least six countries (Russia, Singapore, Thailand, Indonesia, and Australia) have suspended trading in financial markets, Singapore was the only country in the region that did not affected Asia financial crisis (1997/1998), but currently declares recession
So as to show unity, Finance ministers from the G7 leading industrial countries are set to meet in Washington to discuss the crisis, and meeting will be held at the International Monetary Fund (IMF) in Washington. Each country in the world suffers by its own way, but the root of the pain remains the same: credit crunch, fraud, unwise lending, loss of confidence, lack of effective and efficiency strategy to the face the matter.

It is no surprise that leaders and investors are veering towards more defensive strategy in order to ride out the storm, but what will be the situation a country like Somalia that suffers severe losses such as: As stated by the U.N. High Commissioner on Refugees Somalia has become the world’s worst humanitarian crisis. Over 3.5 million or 50 percent of Somalis are currently in need of urgent aid, and that number is potential to increase. Also political instability, colonization, spread fake notes to markets, ban of live stock export to the Gulf Countries, poor harvest, Import of Qaad (trade deficit), Dollarizing the Economy, neighbor countries suggesting proactive strategy (brilliant idea) as they said; dividing Somalia equally to its lovely neighbors (Ethiopia and Kenya) etc?.

Conclusion
The crisis is spreading across the US’s and global financial system like wildfire. This happened exactly one week after the US government took over the housing giants Freddie Mac and Fanny Mea and six months after the fall of Bear Sterns, the first major casualty of sub-prime mortgage crisis.

Restoration of confidence in the market (between banks, banks and customers) Central banks around the world pumps money in the market, cuts interest rate so as to encourage lending, but still global market bleeds red inky and toward worst recession; if miracle did not take place.