The Global Financial Crisis 0f 2008 - 1181 Words

The Global Financial Crisis of 2008-2008: The Role of Greed, Fear, and Oligarchs The global financial crisis of 2008-2009 is considered to be worst financial crisis since the Great Depression of the 1930s. Large financial institutions collapsed, banks received bailouts by the government, and stock markets plummeted as well. In result, people were being denied loans. The housing market became a problem because of financial issues and many people were unable to continue to pay their mortgages which resulted in evictions and foreclosures. Sellers’ homes’ remained on the market and were unable to be sold. There was an extreme amount of supply, but not enough demand. Major businesses also failed, and millions of people lost their†¦show more content†¦Mortgage-backed securities and credit default swaps (CDS) were two types of derivatives that became noticeable during the housing boom. CDS were contracts that were similar to insurance policies which were typically for municipal bonds, corporate debt and mortgage securities that assured people that they would offer coverage for certain securities in the event of default. For this reason, CDS was extremely popular. The close ties between Washington and Wall Street contributed to the financial crisis as well. There were enormous financial contributions from Wall Street to the political campaigns for constituents which contributed to this relationship. As far as â€Å"influx† of new money, as the US banking regulations was easing, other countries were experiencing a boom and looking for somewhere to invest. So who is to be blamed for this financial crisis and the problem with the housing market? Was it the government? Was it the banks? Was it Politicians? The blame was a global discussion during this time. Amongst others playing a role included: †¢ mortgage lenders †¢ credit rating agencies †¢ insurance companies †¢ regulators †¢ governments sponsored entities †¢ investors †¢ homeowners Many also believed that those working in theShow MoreRelatedFactors That Affects The Global Economy And Its Impact On The Nigeria And Egypt Economy1568 Words   |  7 Pagesthe factors that affects the global economy and their impact on the Nigeria and Egypt economy. In 2007, the financial crisis, which later extended to the global financial crisis began in the United States of America. The origin and elements of the 2007/2012 global financial crisis have been widely discussed in the literature throughout the period. The aim of this work is to, however, try to point out the reasons and also the macroeconomic effects of the financial crisis in both countries economy andRead MoreThe Causes and Effects of a Recession Essay2728 Words   |  11 Pagesincreased bankruptcies. In UK, recession is when there is negative economic growth for consecutively two quarters which is measured by Real Gross domestic product.GDP is standard measure of total value of county’s output of goods and services. The recent 2008/2009 recession is said to be a â€Å"Great Recession† by many authors. According to Office for National Statistics (2013a) previous recessions (post-war) were recovered quickly; maximum time was almost 13 quarters (1980s) to reach the pre-downturn peakRead MoreStrategic Analysis Burberry4740 Words   |  19 Pages The Strategic Position 6 2.1. Macro-Environment 6 2.2. Industry and market structure and competitive conditions 7 2.3. Strategic capability, Resources and Competences 8 2.3.1. Strategic capability 9 2.3.2. Resources 9 2.3.3. Competences 9 2.4. Financial situation of Burberry 9 3. Strategic choice 10 3.1. Business level strategic choice 11 3.2. Corporate level strategic choice 11 3.3. Direction and methods 11 3.4. Recommendations 13 4. Conclusion 14 5. Appendix 14 6. References 15 1. Recent pastRead MoreStrategic Analysis Burberry4734 Words   |  19 PagesStrategic Position 6 2.1. Macro-Environment 6 2.2. Industry and market structure and competitive conditions 7 2.3. Strategic capability, Resources and Competences 8 2.3.1. Strategic capability 9 2.3.2. Resources 9 2.3.3. Competences 9 2.4. Financial situation of Burberry 9 3. Strategic choice 10 3.1. Business level strategic choice 11 3.2. Corporate level strategic choice 11 3.3. Direction and methods 11 3.4. Recommendations 13 4. Conclusion 14 5. Appendix 14 6. References 15 1. Recent