Tuesday, March 17, 2009
Reasons of the Global Financial Crisis
A collapse of the US sub-prime mortgage market and the reversal of the housing boom in other industrialized economies have had a ripple effect around the world. The origins of the current credit crisis lie in a loose monetary policy and excessive capital flows used by banks. Furthermore, other weaknesses in the global financial system have surfaced.Borrowing bought more borrowing, fuelling price increases in financial assets -- debt, equity, property, infrastructure. Major banks have reported losses of around $45 billion on their investments. The major regulatory response had been cut down in the US Fed funds rate and the discount rate. The credit problems required a substantial reduction in the level of borrowings and leverage in the global financial system.
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mehroz its a good topic to be discussed
ReplyDeleteThe financial crisis of 2007–2009 began in July 2007 when a loss of confidence by investors in the value of securitized mortgages in the United States resulted in a liquidity crisis that prompted a substantial injection of capital into financial markets by the United States Federal Reserve, Bank of England and the European Central Bank.
ReplyDeletei think that more of such topics should be posted, to make people aware of the financial crisis through out the world
ReplyDeleteAnother reason is also the future contracts of oil commodity
ReplyDeleteFinancial crisis occured in America mainly because of leasing.
ReplyDeletewell this article helled me understand about the financial crises
ReplyDeleteIt will be updated ona regular basis to provide u with more feedback with concern to this topic
ReplyDeleteThe financial crisis of 2007–2009 began in July 2007 when a loss of confidence by investors in the value of securitized mortgages in the United States resulted in a liquidity crisis that prompted a substantial injection of capital into financial markets by the United States Federal Reserve, Bank of England and the European Central Bank.
ReplyDeletethink that more of such topics should be posted, to make people aware of the financial crisis through out the world
ReplyDeletemehroz its a good topic to be discussed
ReplyDeleteit is a very good topic and will be useful for all students studying finance
ReplyDeleteFinancial crisis is like a good news for the people beacuse they know that they have to work hard and save more. People always waste money, so beacuse of financial crisis they know the value of money....
ReplyDeletehttp://timesofindia.indiatimes.com/Business/Forbes-list-Anil-biggest-loser/articleshow/4253833.cms
ReplyDeleteIn this article, it is discussed that how this global crisis has effected the top 10 billionaires of the world. Out of these 10, Anil Ambani, the biggest gainer of 2007, was the biggest looser of 2008 by loosing almost $32 billion in 12 months.
its an interesting topic and one will get a lot of information regarding the financial crisis existing all over the world
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteits an interesting topic and one will get a lot of information regarding the financial crisis existing all over the world
ReplyDeleteWhat are your expectation how long this crisis prolonged?
ReplyDeletewe will keep You people Updated with more of such topics
ReplyDeletewell i think that it will take about 10 to 15 years to get over this turmoil
ReplyDeleteit has resultantly crashed many economies throughout the world
ReplyDeleteThe financial crisis of 2007–2009 began in July 2007[1] when a loss of confidence by investors in the value of securitized mortgages in the United States resulted in a liquidity crisis that prompted a substantial injection of capital into financial markets by the United States Federal Reserve, Bank of England and the European Central Bank.
ReplyDeleteInteresting. The blog indeed provides a very comprehensive list of reasons. Impressive work.
ReplyDelete