Famous economist Keynesian had defined that a Òperfect economyÓ is nothing but where the things should balance according to the situations and there should be no such hindrances. And also it has been determined that economics can never be a perfect science which is why the occurrence of severe dejection and job loss situation appears which leads to financial crisis. So, financial crisis is nothing but a range of circumstances where the financial organization or possessions unexpectedly lose a very enormous part of their value. Mainly the financial crises are linked to the banking area, which certainly corresponds to the stock market zones, currency catastrophe and autonomous default.

Though KeynesianÕs point of view regarding the economics is not an ultimate solution from the peopleÕs standpoint, but it is much truthful in its way. Recently, the financial crises has occurred in the year 2001, where it had been considered as the shortest and most well controlled depression or recession that was ever held. This led to the reduction of zero percent interest rates, which had been made by the Fed Chairman Alan Greenspan and this facilitate the banks to give more loans with more risks and chances. But the benefit part of this amendment was that the people who had small business grew faster and made huge profits at a limited period of time and the negative impact was that customers, who were not supposed to be getting mortgages, started getting loans which led to low impact on credit values.

Another way of finding out the root cause might be the greed, as it has been told that the de-regulation supervision which was carried by the Bush administration was the main financial failure due to the greed of collapsing the financial giants of Wall Street and due to the obstruction made by the Fed crises that was much more worsen. In that particular time they had reduced the interest rates which kept it low for a very long time and this had agitated the financial system which led to certain disadvantages. But according to the Keynesian definition of true economy, the rates should have raised instantly, but due to the hindrance by Bush government, it has been prevented from happening.

Government at those certain situations were trying to overcome it but all in a vain, because the main cause of the problem was still there. As in the case of Lehman Brothers, the governmentÕs vigorous efforts was to avoid from being bankrupted, but it was totally the opposite part that led to the longer recession with a very negative consequences and still the situation is not under control and it is worsening day by day in the presence of the new government which is under the Barack Obama leadership. The main principle behind the control of the recession is that the government has increased the debt intensity to excruciating levels. But the other side has led to the possibility of depreciation (deflation), which is clearly seen in the economy level. And most probably the government canÕt bear the unlimited tolerance of double recession and deflation simultaneously, so the last option that is left behind is the money printing, which will surely lower the money value, and this will benefit the common people and the best investment seems to be the gold, which will be soon arise in the economy market.

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