economic crises and financial disasters

8/6/2019 Economic Crises and Financial Disasters

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ECONOMIC CRISES AND FINANCIAL DISASTERS

Synopsis and Summarize

Turmoil has rocked the business world this year. Two major global investment banks,

Bear Stearns and Lehman Brothers, collapsed. Facing bankruptcy, the worlds largest

insurance company, AIG , was bought out by taxpayers. The biggest bank failure in U.S.

history occurred when federal regulators seized Washington Mutual. The Dow Jones

Industrial Average, a stock market index, has plunged by more than a third this year,

decimating retirement funds and college savings. Rates of unemployment and home

foreclosures have skyrocketed. Earlier this month, The U.S. Congress passed a $700 Billion

bailout to try to revive the credit markets and the larger economic. In the wake of this global

economic crisis, some of those larger economy. In the wake of this global economic crisis,

some of those responsible theyre summoned to testify under oath before Congressional

committees to explain to the public what went wrong. What they said opened a window onto

the thought processes and communication abilities of major business leaders. Many of them

denied responsibility, failed to explain what occurred, and undermined their own credibility;

as a result theyre pilloried by Congress and the media (Becker & White, 2008; Dodd, 2009).

The narrator said as the academic field of business communication, do bear some of

the blame for economic crises business scandals and financial disaster not the whole blame,

of course but enough to make us take action. She said we have an important opportunity to

use this power and influence in an effective way. First, She said establish how economic

crises, business scandals, and financial disasters often result as much from communication

problems or technical mistakes. Second, She said explain why, as an academic field we may

share some blame for these crises, scandals and disasters Third, She said suggest several


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ways in which our field might help prevent or reduce the severity of future economic crises,

business scandals and financial disasters by shifting our priorities for and approaches to

business communication scholarship and research.

FINANCIAL CRISES AS COMMUNICATION PROBLEMS.

Economic crises, business scandals, and financial disaster are often more

communication problems than either ethical or technical problems. Anyone who has taught

business communication for even a few years has former students who ere directly involed in

the current mortgage and credit crisis and whose communication practices affected it.

Investment bankers and lawyers created exotic new financial instruments and persuaded

investors to buy them. Financial managers around the world, inclubding those in corporations

government and nonprofit organizations made bad investment decision based on illogical

reasoning and inadequate evidence. Government officials in the Securities and Exchange

Commission and other agencies failed to ask enough questions or gather enough information

to stop abuses. Man people believe that the current economic crisis resulted primarily from

corruption. Instead, they started out by intending to apply what they had learned in business

school and in their past work experience: to make a profit by creating new products and

services and then persuading people to buy or invest in them. An alternative belief is that the

current crisis was primarily a quantitative technical problem. The longtime executive director

of ABC, Francis W, Weeks, always warned them to rermeber that not all problems are

communication problems. But in many ways the current situation does seem to be a series of

communication failures. Failed to listen carefully to alternative or minority viewpoints failed

to explain information clearly and fairly, especially technical or legal failed to read contracts

and mortgage documents carefully and to question passages that were not clear. All these

actions are forms of communication to persuade, convey, reconfigure, listen, ask, explain,

read, question, and imagine, the people involved either couldnt or wouldnt communicate


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what was necessary. In sum, although the financial instruments and economic models were

complex and some people acted unethically or illegally, the most widespread underlying

factors that led to the current crisis were communication failures at every level of business

organizations

THE FIELDS RESOPONSIBILIT FOR FINANCIAL CRISES

She said we bear some responsibility, first because we taught many of these people.

Business communication courses focus more on individual communication choices and

strategies than on the collective impact of communication within latger economic, cultural,

political, and societal contexts. A second reason that they a field bear some responsibility

froecnomic crises, business scandals, and financial disaters arises frome the narrow scope of

our researcha and limited dissemination of resulte. They look at a genre, activity, or situation

in isolation rather than positioning it within larger organzational, societal, cultural, or global

contexts, As a result, research designs are narrowed. The author of the manuscript will have

created new knoledge for a very small, strictly academic audience. The results will definitely

not be accessible to business practitioners. It is rarely disseminated to and translated for those

who might benefit from it. Of course, there is a good reason that we limit our outreach to

practitioners and the genera public. One way to achieve such synergy might be to extend the

metaphor of business communication as translation. They need to make greater efforts to

translate our research results into ideas that are meaningful to those who pracice business

communication.

HOW BUSINESS COMMUNICATON RESEARCH NIGHT HELP PREVENT

FUTURE CRISES

The field of business communication might help prevent future economic crises,

Business scandals, and financial disasters if they shifted some of our priorities for and


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approaches to scholarship and research. To explore how this change might happen, they turn

to epistemology, that is , the theory o knowledge how they know what they know. This is a

critical and contested question in business communication, as well as in management, in

communication, and in most interdisciplinary fields. Are there ways of knowing that would

better illuminate different dimensions of this problem of how communication failures lead to

economic crises and financial disasters.

Approaching Problems Through Science

The theory of knowledge in science is built on the assumption that an objective realit

exists external to the human mind and that the goal of inquiry is certainty knowledge of

singular truths. For instance, they might conduct an experiment to determine the best way to

help borrowers understand their loan obligations. If a representative grup of potential

borrowers could be identified and recruited and this is a big if and experiment could compare

the effectiveness of different disclosure language or of different communication channels.

The resulting knowledge better disclosure language better disclosure language might help

banks avoid future disasters like those recently experienced. The document design movement

has, over the last few decades conducted studies rated to similar problems, and the Securities

and Exchange Commission. In fact, the current economic crisis provides examples of the

limitations of science as applied to business phenomena. Using the theory knowledge of

science, organizations relied on quantitative economic models but these failed to predict

accurately how mortgage securities performed.

Approaching Problems Through the Social Sciences

The social sciences share with the hard sciences the basic epistemological

assumptions that an objective reality exists and that the goal of inquiry is certainty knowledge

of singular truths. Social science could certainly help answer the question of how


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communication failure lead to economic crises. They could for instance, survey mortgage

holders to discover their perceptions about the way in which banks or mortgage brokers

communicated with them.

Approaching Problems Through the Humaities

The theory of know the humanities at least in the age of postmodernism question

whether objectivity is possible. The goal is not singular truth but provisional understanding of

meanings that are constructed, negotiated, and often linked to a specific context in time and

place. The humanities scholar is not so much a researcher as a critic or historian. Criticism

and history privilege individual interpretation and insight. To approach the question of

economic crises through criticism and history could lead to greater insight anout the

economic crises. A historical study of AIG, for instance might trace the way in which the

decision-making communication in one small office in London brought down the entire

corporation. Investigative journalism suggests some approaches for applying methods from

the humanities to business question. Some of the best examples are Kurt Eichenwalds study

of archer Daniels midland, Bethany Mclean and peter Elkins study of Enron and ken Arletas

sis and interpretive research these authors provided important insights into the role that

communication played in major business events. We could learn much from their work.

However, while humanities-oriented approaches would provide broader insights into the

nature of business communication they would not provide the practical actionable guidance

that scientific approaches would Ultimately, What would help business communication as a

field contribute more fully to the solution of real-world problems would be to develp a

careful balance among research based on the theory of the sciences social sciences and

humanities so that the strengths of each could be realized.


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Summarize

Economic Crises and Financial Disasters.

The narrator say that the main problem of financial crises that is communication

problems and then academic field of business communication should have blame for

economic crises business scandals and financial disasters not the whole blame. The business

communication they can predict what will happen next year or they can remind everyone by

researcher. The narrator separate the three points in discussion First, that is financial crises as

communication problems. Seconds, that is The fields responsibility for financial crises. And

third that is How business communication research might help prevent future crises. All of

this that is whole main idea of this journal let start with first main idea that is financial crises

as communication problems they said the stake holder in the business has wrong decision

about company and then they dont have any information enough to decision and unreasoning

but they should to decision that is the disasters of financial anyways this problem that is not

only one problem. Then is the journal she have example of company that has been to

financial disasters that is AIG company in the journal said Many people believe that the

current economic crisis resulted primarily from corruption. But in fact the company wanna do

the step by step and how solve the problem that they have learn by they produce new product

and service to attractive the people to buy or invest in them. But that is wrong decision of

stake holder and share holder to do something like this to recovery the company.

Many people believe that the current economic crisis resulted primarily from

corruption.

But in fact the corruption is not only fact of financial crisis the communication failures that is

the part of this because the coporate directors and government regulators failed to listen

carefully to alternative or minority viewpoints and brokers failed to explain information


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clearly and fairly, especially technical consumers failed to read contracts and mortgage

documents carefully and question passages that were not clear. All of this act are forms of

communication to persuade, convey, reconfigure, listen, ask, explain, read, question, and

imagine. The people involved either couldnt or wouldnt communicate what was necessary.

In the sum of this topic that is financial instruments and economic models , the most

widespread underlying factors that led to the currents crisis were communication failures at

every level of business organization.

For the second part that is the Fields responsibility for financial crises the narrator said we

bear some responsibility. First because they taught many of these people. they cant claim

credit for the success and achievements of our students if they dont also accept some of the

responsibility for their mistake and failures. Second, reason for economic crises, business

scandals, and financial disasters the from the narrow scope of the research and limited

dissemination of results. And they dont look widely enough to see what global what would it

be right now even a small research in small attitude that it easy to control anyway that will

make the research small information by the way. How ever if the big research or big project

and high quality of research but the outreach to general public that is limit from that reason

why everyone seen like dont know what will happen in next year or dont know the situation

right now so the best way to solve the problem they need to make greater efforts to translate

their research results into ideas that are meaningful to those who practice business

communication.

Third part is how business communication research might help prevent future crises the

business communication might help to prevent the future of company and future economic

crises, business scandals, and financial disasters and then they need to rearrange first what

then give the scholarship and research. To explore how this change might happen, and after

they know that sure they can fix the problem will coming soon or protect to economic. So in


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communication and in most interdisciplinary field. Approaching Problems Through Science

the epistemology of science is built on the assumption that an objective reality exists external

to the human mind and that the goal of inquiry is certainty knowledge of singular truths.

However the language is the main factor for financial disasters because if they not good in

language that sure the meaning of the world or the meaning whole paper will change . For

instance, they might conduct an experiment to determine the best way to help borrowers

understand their loan obligations. If a representative group of potential borrowers could be

identified and recruited and this is a big if an experiment could compare the effectiveness of

different disclosure language or of different communication channels. The resulting

knowledge better in language might help banks avoid future disasters like those recently

experienced.

Approaching Problems Through the Social Sciences

The narrator said about the social have effect to decision making on mortgage or loan in

bank, just like a customer have affect from financial and globalization so the consumer

decide to loan or mortgage something to facing problem anyway after have the pressure of

financial come to attack but they have a group of people who read the research and prepare of

the problem will happen. Social science method would bring them closer to gainig knowledge

of the big picture.

Approaching Problems Through the Humanities

The goal is no singular truth but provisional understanding of meaning that are

constructed ,negotiated, and often linked to a specific context in time and place the

humanities scholar is not so much a researcher a critic or historian. In casa of AIG the is good


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example to study and lean for prevent the future that it would not happen again the

humanities that is a part of this crises the researcher must help and warning to company that

have risk in financial crises However, while humanities-oriented approaches would provide

broader the nature of business communication the would not provide the practical actionable

guild. The solution of real world problems would be to develop a careful balance among

research based on the the theory of knowledge of the sciences, social science, and humanities,

so that the strengths of each could be realized.

Finally, the three part of business communication that is the sciences , the social sciences, and

the humanities. I my opinion I think the weight of example and reason that is not enough and

business communication that is not 100% of all the problem so if you ask me this research

can prove the main idea for financial disasters I will answer no because the example dont

have evidence enough to support the main idea anyway I still agree with communication in

language that have problem a lot. this is good journal.

PANNEE PRUKPANCHAI

ID 1521003010

TAWATCHAI RANGSADTHONG

ID 1521003952

economic crises and financial disasters

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