Why would you buy non-perishable food for twenty-five years? Newspapers claim horrible truths about the national deficit and the seemingly endless global financial crisis. Many people are considering backup plans when the economy collapses and the dollar is almost worthless. There is no certainty that developed countries, such as the United States, will remain an international leader. Financial crises are avoidable, but only if the government adheres to the warning signs. If there is a lack of governance, a financial crisis may occur, leading to national and international economic suffering for the people of the world. Financial crises have occurred many times throughout history, both in developing and developed countries. The most important factor contributing to this demise is the lack of governance within a country. Due to lack of authority, there is an absence of management. This thus leads to the more serious problem of the inability of member states to reconcile their national interests and their global obligations. Asset bubbles are the result of imbalance in the system. Furthermore, the government is failing to recognize the warnings, understand the situation and manage the associated risks within the system. When there is doubt about political stability, foreign and domestic investors tend to cause capital flight. Through this action, there is a shortage of funds in the debtor country's banks, causing domestic interest rates to skyrocket. This puts pressure on authorities to place value on their currency, which often leads to currency devaluation. Once a currency has been devalued, the economy and society are destabilized, creating negative impacts on individuals, businesses, states and the entire world. Consumer spending has fallen significantly due to lower incomes, but personal debt has increased due to increased use of credit cards. The recessions could have been avoided if governance had not been weak during the Asian and global crises. Societies in both developed and developing countries need to put in place regulations to ensure that such weak governance does not happen again. In doing so, there will be no negative chain reaction of economic, political and social effects. The collateral damage of crises will not be the responsibility of real people and real communities. Because these people and these communities have done nothing to contribute to the financial upheaval. In today's media, the financial crisis is the subject of incessant debate about what precautions should be taken. After this analysis of the financial crisis, strengthening governance will take us in the right direction.