The Global Financial Crisis ( Gfc )

1761 Words Oct 26th, 2014 8 Pages
For me the Global Financial crisis (GFC) has been/is quite important because I remember the majority of what happened and is still going i.e. the aftermath of the GFC. However, I have never really looked at GFC from a study purpose point of view. Moreover, although I had followed the crisis in the news I had never really thought about the meaning of the financial terms like Collateralized Debt Obligation (CDO), derivatives and the International Monetary Fund (IMF), just to name few. Therefore, it was quite interesting for me to read the articles for this week’s class.
Being from Denmark one of the first things that I remembered was the housing bubble in the U.S. and then I heard about the Icelandic Bank crack and that they had borrowed beyond their means, i.e. that the Icelandic had bank borrowed and spent money beyond their States liquidity. They simply spend more than their State could manage resulting in many losing their jobs and Island that we have always seen as a tightknit and strong community collapsed. Many Icelandic people then ended up trying to seek jobs and a better life in Denmark for instance. I did not know that not only companies but also private households in Iceland amongst others had borrowed money in foreign currency with a low interest rate (UNCTAD, p.7).
The article by Helleiner gave me a good idea of how the global financial crisis had started and what led up to the crisis. I knew that the GFC had started in the U.S. and that it had something to do…
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