Financial crisis is the sudden devaluation of the majority of all the financial instruments. During the long human history there were numerous financial crises in different countries but their total number occurred in the 20th century with the process of globalization and rapid development of the world economics.
Financial crisis is caused by numerous factors, which can not be controlled and predicted and are generally based on the imperfectness of the modern economic system. The majority of crises are associated with the bank runs, when the bank can not pay the deposits to its clients when the panic begins and people start withdrawing their money from the bank. The brightest example of this sort of crisis was the Great Depression in the USA in the 1929, which was caused by the problem of overproduction, credits and the lack of the money mass.
It is difficult to explain the cause of the financial crises but the most obvious explanation is the set of various negative factors: bankruptcy of the big companies, the factors of overproduction and underproduction (deficit), the problem of crediting, etc. The latest financial crisis which started in the 2008 is generally caused by the increase of the number of credits which have been taken all over the world but people do not have the opportunity to pay these credits; another problem is the economic cycle, which is characterized with the constant repeat of the economic processes; misbalanced international trade; high prices on oil, etc. The result of financial crisis is the reduction of the quality of life in the world, depression and constant stress of the people whose capital is under the risk of burning.
Financial crisis is the most widespread topic for the discussion in the modern society, because the frequency of such situations is increasing constantly. Professional financial crisis research proposal should be a brand new approach towards the research of the question and analyze the problem form various alternative sides. One should persuade the professor in the quality of the chosen topic and explain the purpose and the expected results of the research and present the appropriate methods and sources used for the research. The student should present a reasonable summary of the future research paper and dwell on the core points of the research convincing the professor to approve the proposal.
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