Tom Ward's Blog

Recently the world was thrown into a state of turmoil as we suffered arguably the biggest global financial crisis ever. A situation such as this has reinforced the importance of finance. Finance is the science of funds management and serves as an integral element in the maintenance of a steady economy. If financial calculations about the future of certain markets in society are inaccurate then the whole world can be thrown into disarray. This is what we have recently witnessed all due to a liquidity shortfall in the United States banking system. Previously profitable banks, companies and investors suffered losses so large that bankruptcy and liquidation was inevitable. It was finance that played a part in the creation of this crisis. But more importantly it is finance that would be the solution to the large scale disaster. Finance became even more important in a situation such as this. Establishing methods and alternatives to overcome the pressure of the crisis is the area where finance is crucial. How do you put together the funds to dig a company out of millions of dollars of debt? The answer to such a problem falls directly under the category of finance.

The below clip gives a basic and humorous example of what happens when finance goes bad.