Economic crisis

Bank run When a bank suffers a sudden rush of withdrawals by depositors, this is called a bank run. Since banks lend out most of the cash they receive in deposits see fractional-reserve bankingit is difficult for them to quickly pay back all deposits if these are suddenly demanded, so a run renders the bank insolvent, causing customers to lose their deposits, to the extent that they are not covered by deposit insurance.

Economic crisis

Hospitals are overcrowded with sick children while doctors don't have enough medicine or X-ray machines.

Venezuela: How a rich country collapsed

About the only thing Venezuela has in abundance Economic crisis chaos. The economy has spiraled toward collapse, and a humanitarian crisis has plunged hordes into needless sickness and starvation. The country is also in the grip of a political crisis. The referendum on Sunday called by President Nicolas Maduro could erode the last vestiges of democracy.

The vote would allow him to rewrite the constitution and replace the National Assembly, which is controlled by the opposition, with an entirely new legislative body filled with Economic crisis hand-picked nominees.

Venezuela was once the richest country in Latin America. Here's how it fell apart. Live Updates from Venezuela Venezuela's economy: Now the government is running out of money, prices are soaring, and nobody knows how much worse it will get.

Economic crisis

Venezuela was a powerhouse of South America in the s. Former President Bill Clinton made it his first stop on a trip to the region in But inequality grew extreme. A small elite class controlled everything while the increasingly impoverished masses fumed.

The country turned toward socialism in and elected Hugo Chavez president.

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He championed populism, cut ties with the United States and cozied up to China and Russia, both of which loaned Venezuela billions. Chavez ruled until his death inand is still seen today as a hero for the poor.

Venezuelans lose weight as food shortages worsen But his government far overspent on welfare programs, and it fixed prices for everything. It declared farmlands state property and then abandoned them, and instead made the nation dependent on selling its oil abroad. Before he died, Chavez picked Maduro to succeed him, and Maduro kept up the regime's practices.

His administration also stopped publishing any reliable statistics, including on economic growth and inflation. It accepted millions in bribes for construction projects and racked up debts that it is still struggling to pay.

Meanwhile, the only commodity Venezuela had left began to plunge in value. Then several countries started to pump too much oil as previously inaccessible oil could be dredged up with new drilling technology. At the same time, businesses globally weren't buying more gasoline.

Trump could hit Venezuela where it hurts: Oil With oil prices low and the government's cash dwindling, price controls have become a huge problem.

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The state still subsidizes food far below normal prices to appease the poor. Maduro has printed money at breakneck speed, and the bolivar has plunged in value, wiping out jobs and income. At the same time, Maduro's hostility to foreign business has created a corporate exodus.The global financial crisis, brewing for a while, really started to show its effects in the middle of and into Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.

Sep 21,  · News about Economic Crisis and Market Upheavals, including commentary and archival articles published in The New York Times.

Those who caused the financial crisis still haven’t been held to account A national environment-friendly infrastructure plan is urgently required to . The United Kingdom’s impending departure from the European Union is an occasion to reflect on the nature of that Union, which remains insufficiently understood and not only in Britain.

Jul 26,  · The economy has spiraled toward collapse, and a humanitarian crisis has plunged hordes into needless sickness and starvation..

The country is also in the grip of a political crisis. Are You Prepared For The Coming Economic Collapse And The Next Great Depression?

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