Financial Crisis World Wide

In 2007, the U.S. economy experienced one of the greatest downturns since the Depression era, and furthered by the collapse on a global scale. The bubble burst on the housing market and the house of cards called the mortgage industry tumbled down, no longer able to sustain charade of success. This caused the collapse of some of the largest financial institutions, once thought to be immortal. This rippled into a massive tightening of the belts of many companies, as they found themselves without lines of credit, lack of business, and the daisy-chain collapse of their support networks. Who paid the final price? Companies cut costs through pay cuts, layoffs, and closings. While this may have saved jobs for many, the feeling of loss and

Financial Crisis of 2007-2008 originated in the United States spread to the financial systems of many other countries, including CIS countries, by means of the domino effect. Bankruptcy of one of the largest Americans Bank, Lehman Brothers Holdings PLC, in someway was a launcher of this global crisis the scope of that can be compared with the Great Depression of the 30s of the last century. No one could have even believed that a crisis in the local market of subprime mortgage loans in the USA would have such enormous affect on the financial systems over the world and crash banking sectors of many countries one by one.

The Great Recession of 2008-9 was the deepest and longest capitalist economic slump since the Great Depression of 1929-32. The recent financial crisis is known as the “Great Recession” of 2008-9. Its downturn was sparked by the collapse of the US housing market. In 2006, the prices of home began to rise and the banks began to encourage potential homebuyers to take out larger loans. There were lower interest rates at the time, and this seemed like a good idea for most individuals who were searching for a new home. Then, in mid-2007, the interest rates began to rise. The values of the homes decreased and the amount of money a house was worth declined significantly. Many homeowners were stuck with large loans, increasingly high interest rates, and a decreased price of their home. Many homeowners went into foreclosure or were evicted. This eventually led to large financial institutions and banks to become bankrupt, which lead to an overall fall in the US economy. Stocks dropped, consumer spending declined significantly, and companies began to go out of business (Athanasiu, 43).

The American stock market has crashed and the nation has been run into the ground. What once was a fast developing nation has had the brakes put on and is fighting to get buy. Work conditions were poor. Kids working dangerous jobs and getting killed daily. Men were being worked and weren’t even paid enough to survive on. Women had to join the workforce. In what seemed to be a never ending depression, Americans managed to

In 2008, USA experienced another tragic downfall when her market went down and unemployment rate charged up. Millions of workers lost their jobs; from the young, the old, the whites, Asians, Latinos, both men and women. Distress filled every household as prices rose and income fell. The whole country was in turmoil back then.

Now these financial markets have allowed many to become successful and live the “American Dream,” but have also caused many to suffer and lose everything. Back in 2007, the United States’ economy experienced a large financial crisis that almost paralleled the financial crisis during the Great Depression. Large financial institutions suffered a great deal and the stock market plummeted worldwide. The housing market took a huge hit as well, causing many foreclosures and evictions. This crisis stemmed from a major default in the subprime mortgage market. The bad credit records should have given some forewarning to the looming crisis, but the financial innovation for these mortgages gave investors a chance to succeed in the market. So as a large volume of cash flowed into the United States, the subprime mortgage market took off and became a trillion dollar market by 2007 (Mishkin 208). With prices rising in the housing market, subprime borrowers could simply refinance their houses by taking out even larger loans as homes appreciated in value. These borrowers were also unlikely to default because the houses could be sold off to pay back the loan. This benefited investors since the securities backed by cash flows from subprime mortgages had high returns. And this continued growth of the subprime mortgage market further increased the demand for houses and continued to fuel the increase in housing prices.

The financial crisis of 2007–2008, also known as the 2008 or global financial crisis, is considered by many economists to have been the worst crisis since the Great Depression of the 1930s. It occurred despite aggressive efforts by the Federal Reserve and Treasury Department to prevent the U.S. banking system from collapsing. This led to the Great Recession. That's when housing prices fell 31.8 percent, more than during the Depression. Two years after the recession ended, unemployment was still above 9

American debt held by households is rising ominously, plus our economic policies change. That debt balloon powered by radical income inequality will become the next bust. It drives by spending on domestic demand or more likely consumer spending not just by the wealthy, but by everyone else. An important explaining about the unity that emerged from our latest research has shown as relatively that ten percent were prosperous, saving, and investment in which natural and interests to find the path of them in the financial markets, but primarily ninety percent had borrowed. As the result many Americans concern about the financial crisis and the cartoon uses to sarcasm, irony, and logos to convey its message.

The Global Financial Crisis of 2008 is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It resulted in the threat of total collapse of large financial institutions, the bailout of small and big banks by national governments, and downturns in stock markets around the world. In United States, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer confidence, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European

Those who live in park ave Manhattan own over 56 rooms in their apartments, mansions. Although they are big spenders with the most expensive things, we’ll think they all only spend money on fancy cars clothes & etc. Not knowing they use their wealth to rig the game with political system in their favor. The wealthiest Americans take the term “financial meltdown “as if it meant freedom. In other words getting money from taxes from other American’s not only making them a little richer but a lot more. While everyone’s income went down the rich, they went up 5%. The Rich learn to use government control to get more and more Federal Reserve notes which gives them more assets to negotiate with. This may help them to receive the money they get but hurting & destroying a lot of other people’s lives in America.

When you think of the 2008 financial crisis that affected not just the US economy, but the world as a whole, most average middle-class Americans won’t really know what triggered this economic disaster. Most will probably blame, and rightfully so, those large corporations on Wall Street. These corporations, which deal with insanely large amounts of money, will always be wary of their stocks decreasing. But they also know that 99% of the time, everything will go back to normal in the future. What they are not prepared for is economical collapses like we say in the year 2008. The financial crisis of 2008 can be compared to the stock market crash of 1929, the event responsible for the Great Depression. The financial crisis of 2008 can mainly be attributed to what would be the mortgage market collapse. The exposures for these large Wall Street corporations were too high, and when the bubble finally burst, trillions of dollars were lost. The company that lost the most: Lehman Brothers.

The Crisis of 2008 has been the worst financial crisis since the devastating era of the Great Depression. The Crisis of 2008 just like the Great depression left millions of people unemployed, and homeless. After the crisis the causes were viewed like speculation, fragility of the system, and greed of the managers which adversely affected the market.

The global financial crisis of 2008-09 that spread contagiously across the globe has particularly hit the European economies hard, accentuating turmoil in the world financial markets and precipitating the European sovereign debt crisis almost instantaneously. This has consequently wiped away all of the EU’s accomplishments in economic growth and job creation (European Commission, 2010a:3). Statistics published subsequently exposed the magnitude of the crisis: real GDP contracted by 4%, unemployment soared at an unprecedented level, public finances deteriorated, and social cohesion in the EU has fragmented (Eurostat, 2010). The crisis has also exposed the fundamental weakness of the Union, especially in the face of new challenges from emerging market competition, an ageing population, and depletion of resources. Therefore, the Europe 2020 strategy adopted by the European Commission in 2010 introduces a new growth model for the EU to respond to the various challenges mentioned above, particularly the global financial crisis. (European Commission, 2010a:5).

Economic growth is mostly stagnated and has been since the global financial collapse of 2008. This collapse led people into different avenues of providing financially for their families and themselves, mostly due to the loss of jobs. In addition to that, people had surrendered to the idea that their financial futures would be threatened and that there is not secure job as that is a paradigm of the past. It appeared that the only viable option would be to start a business of their own. In an effort to minimize expenses most of the businesses that these people, who are known as entrepreneurs, are starting businesses in their own homes.

The recent global financial turmoil started on July 2007 ,mainly in the USA and spread among developed nations in the later part of 2008 and subsequently shifted to the developing nations .this crisis consisted of some prime drawbacks not only for the developed countries but also for developing countries .the most talked about issue in the recent financial arena in the global financial crisis ,which started to show its effect in the middle of the year 2007.the turmoil ,however ,was rooted in the subprime mortgage crisis that began in mid -2007.the massive global crises ,already being dubbed by some as the great Recession since the great depression of the 1930s,began since the end of 2007with the subprime montage crisis in the USA .it subsequently and quickly spread to the international financial system, resulting in negative growth rates in key countries and regions ,including the US,UK and Japan .many developing countries were also infected by the contagion, from China, Brazil and South Africa to the countries of South Asia and Latin America. Asian countries were more affected by a strong recession in the USA Bangladesh