Arguably, the worst financial and economic crisis in global history has brought about radical changes in the way finances are operated, funds are managed, and checks-and-balances are made. This crisis has brought people on their toes for keeping a close eye on how fund managers and investment firms manage their hard-earned earnings. In line with the same, people began to lose their trust amongst the fund managers – let them be banks, brokers, investment firms, funds, or business venture capitalists. This gradually reduced the investments of a common man from these businesses. As funds remain the life-line or the blood of business, this gradual removal of trust and money let down the business at a time where the economy was readily taking them down and out, thus, developing a two-fold effect on the businesses. Hereby, government intervention became a critical aspect. though against the concept of controlled economies, government intervention became critical in free-economies of today to ensure that the bankruptcies and the losses incurred are genuine in nature, with absolutely no window-dressing of the declared financials.The role of governments in the era that exists today cannot be forfeited completely and their regulatory aspect needs to keep checks and balances on how businesses enter into the economy, conduct business, and then retire their business.Today, the era is of free economies, and the conventional era of government intervention is almost over unless there is an extreme need, which would be discussed later in this section. Traditionally, the role of government as an intervening authority for markets has always been criticized to an extent that the free-floating market economies came into existence, whereby, the markets floated freely, with all forms of ups and downs. Traditionally, the role of government as an intervening authority for markets has always been criticized to an extent that the free-floating market economies came into existence, whereby, the markets floated freely, with all forms of ups and downs.
Has the Global Financial Crisis Led to Fundamental Change in the Relationship between Government and Business