The Global Financial Crisis ( Gfc )

The Australian exception could be related to the relative proximity of the fast growing Asian developing countries such as China which can bolster Australian’s economic activities. It could also be related to the relative good health of Australia’s financial market before the financial crisis that made it more resilient to it. Or it could also be that the Australian government’s actions were efficient at counteracting the financial

For this in-depth interview, I have selected my father, James Trainor as the ideal candidate to provide a comprehensive recount of the global economic climate during the 2008 Global Financial Crisis (GFC). And how his experiences of economic fluctuations and policies during the GFC changed his perspectives and understandings of macroeconomic decisions, as well as their effects on the modern world. At the time of the Global Financial Crisis, James was the Global Head of Employment Tax for the Macquarie Group, one of Australia’s largest investment banking institutions. Fortunately, James retained his position at Macquarie throughout the GFC. This allowed him to see first-hand the economic climate

Australia has been one of the few developed nations to remain largely unscathed by the global financial crises of 2008 – a crisis, which has left in its wake seemingly intractable problems of unemployment, large government debts, financial fragility and political unrest in Europe, Japan and North America (McAuley 2012). This would be further explored in the essay.

It is said that when an event of extreme importance happens our brain remembers where we were, how we felt and what we were doing when the event took place. This applies to me as I remember precisely how my dad was driving me back from school when he heard at the radio the collapse of Lehman Brothers, he knew that our lives and the entire economy was about to change in a way I could not even imagine. At the time I was a young middle schooler and was not capable of understanding fully what the Global Financial Crisis (GFC) was about and still today my knowledge of the subject is too limited to firmly grasp the concept, however thanks to the movie “The Big Short” my interest grew and the movie helped me understand what have may been the causes in a more simple way. Being that my opinion is that the GFC can not be only attributed to a mortgage problem but rather to a whole failure in a system we have always been told to trust.

A Global Financial Crisis is a situation where financial assets or contracts held by people from different parts of the world become less valuable than previously thought. It is also a situation in which holders of such contracts agree simultaneously that they cannot be honored which causes the value to plummet sharply. Global financial crises are rare occurrences. There have been only two such scenarios in the last century. Statistically speaking, a Global Financial Crisis is unlikely to happen within the foreseeable future. The essay below discusses why a GFC is unlikely to take place (Sun, Stewart and Pollard).

There have been few financial crises in the United States. The Global Financial Crisis of 2008 to 2009 was the most recent and before that was The Great Depression of the 1930s. The Global Financial Crisis actually began in 2007 when prices of homes tanked. It not only affected the U.S. but it also affected economies overseas. The entire investment banking industry, some of the biggest insurance companies, enterprises government used for mortgage lending, top mortgage lenders, the largest savings and loan companies, and two of the largest commercial banks were many of the financial sectors affected by the crisis. “Banks stopped making loans, share prices plunged throughout the world and most of the world plummeted into a recession” (The Financial Crisis of 2008: Year In Review 2008,” 2009, para. 1).

The Global Financial Crisis, also known as The Great Recession, broke out in the United States of America in the middle of 2007 and continued on until 2008. There were many factors that contributed to the cause of The Global Financial Crisis and many effects that emerged, because the impact it had on the financial system. The Global Financial Crisis started because of house market crash in 2007. There were many factors that contributed to the housing market crash in 2007. These factors included: subprime mortgages, the housing bubble, and government policies and regulations. The factors were a result of poor financial investments and high risk gambling, which slumped down interest rates and price of many assets. Government policies and regulations were made in order to attempt to solve the crises that emerged; instead the government policies made backfired and escalated the problem even further.

In every country, they always have a chance to have a financial crisis, it depends on the government and banks, which means Australia might go to have a financial crisis in the further year. Banks can reduce the likelihood of having a financial crisis in countries. Many possible ways to have a financial crisis and 2008 is a big international crisis. Australia financial system helped the government to reduce the damage from the 2008 international crisis, many countries except Australia have a serious problem and impact after the crisis. Australia financial crisis can cause by banking and houses, it can avoid one crisis, but may not evade the second, so they should find a solution to avoid the crisis come.

The recent global financial crisis (GFC) started prior to 2007 which represented the first ‘’panic phase’’ as the crisis expanded from a relatively limited proportion of financial markets focused on subprime mortgages into a broad‐based run on many types of short‐term debt (Gorton and Metrick, 2012) in August of 2007. For the purposes of this essay I shall focus on the general situation between 2007 and 2009 which shaped the GFC rather than the specific events that occurred during that period. In the second part of this essay I shall examine how recessionary conditions affected the incidence of participation and involvement in human resource management using material from company reports and a small survey conducted in the North West of England (Marchington and Kynighou, 2012).

It can be argued that the global financial crisis (GFC) shook the foundation that the global economy was built upon. APRA (2012, p.3) indicated that the primary reason behind the cause of GFC was disproportionate amount of leverage and ‘…gradual erosion of level and quality of capital base…’ that the banking sectors had accumulated. During the onset of GFC, the holdings of the banks were insufficient to cover their losses leaving some of them insolvent. Despite the popular belief, APRA (2012) explicitly claims that ‘Australia was not immune from these impacts’. It is in fact true that Australian banks didn’t take on the similar banking activities on a big scale that the US banks undertook, the point still remains that the global economy is interconnected and the lack of consistency, resilience and transparency in international banking system can cause more cataclysmic crisis’ (Edey 2011). This may be why the APRA, in compliance with Basel Committee on Banking Supervision has considered a move to Basel III with an attempt to minimise or eliminate the impact financial crisis’ having on banks.

Analysis of “The Global Financial Crisis: Causes, Effects, Policies and Prospects” Dominick Salvatore, Journal of Politics & Society, Columbia University

In 2008, the global financial industry experienced dramatic changes when the global financial crisis came furiously. In the United States, the historical changes appeared in the structure of investment banking. These changes included the fifth-largest US investment bank, Bear Stearns and the third-largest US investment bank, Merrill Lynch was acquired respectively, and the fourth-largest US investment bank, Lehman Brothers declared bankruptcy. In addition, the Goldman Sachs and the Morgan Stanley had no choice but to transform separately into the bank holding company. Moreover, the American government took over the Fannie Mae and the Freddie Mac and held a major share in the American International Group. There were also various events about the bankruptcy and merger of the other financial institutions. In the wider world, some banks in Belgium, Britain, Switzerland and Germany also got into the dilemmas and troubles, and these banks accepted the government aids without choices.

While the GFC predominately impacted the financial market in the USA initially, and subsequently in financial markets across the world, wider impacts were continuously discovered as time went on and governments began to react. Disorder was created within markets around the world through tighter credit availability, currency turmoil, and their direct effect on trade (Norris, 2009). The USA, as the principal

Another wave of corporate bankruptcies hit the global economy during the period of Global Financial Crisis (GFC) and its ramifications are still reverberating through global markets initially causing a severe banking and credit crisis (Barney 2009). The GFC impacted the financial sector more severely than any other industries, but many other sectors were also

In 2008, the U.S.-originated financial turmoil threatened the global capitalist system. All countries in the world were affected. The repercussions of the turmoil widespread around the globe resulted in various issues in the economies; the real sector contracted, unemployment levels rose, and commodity prices decreased. The economies hit the hardest experienced sharp reduction in stock prices and rates of exchange.