Nobody downloaded yet

Economic Collapse of 2008 - Research Paper Example

Comments (0) Cite this document
The Economic Collapse of 2008 Name of the Writer Name of the Institution The Economic Collapse of 2008 Introduction Every once in a while comes an economic or financial event that stops us in our tracks, puts a brake on the system and challenges present wisdom…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.7% of users find it useful
Economic Collapse of 2008
Read TextPreview

Extract of sample
"Economic Collapse of 2008"

Download file to see previous pages When events like this occur, we automatically look back at the control systems that are supposed to alert us and in fact prevent such a fiasco from assuming alarming proportions. In this case, obviously something went wrong somewhere or the signs were ignored. This paper will look at the main factors that led to the collapse, the consequences of the collapse, who should be held accountable for it, where we stand today and how it has impacted on our hopes for the future. Main Factors Which Led to the Collapse It all started with an excess of lending in the sub–prime mortgage sector of the USA. The economy was going well and life was good. It seemed that the good times were here to last and there was no letting up. And then it finally happened. Bankers who had previously considered even people with a bad credit history as good enough for taking a loan now began to cut back on lending in the interests of risk control and compliance. As the economy shrunk and credit dried up, bankers began to call on the sub-prime mortgages and the consumers were left with nowhere to turn to. Imagine their predicament as interest rates rose up and they had to let go of their precious mortgages. It was havoc and pandemonium in the housing sector. As the crisis deepened, even the banks that had not provided adequately for bad debts in the real estate sector were affected. Merrill Lynch and Lehman Brothers in the USA and Morgan Stanley in the UK were institutions that were brought down by the crisis; others have had to sell off, divest and re-organize themselves. For institutions like international banks, who have diversified their investment portfolios across the world in different continents to spread risk, it was inevitable that their holdings were impacted in some way or the other. AIG and Citibank in the USA, Deutsche Bank in Europe, Citigroup in the USA and Standard Chartered in the UK were all offered stimulus packages that have helped them recover rather than join the ranks of the bankrupt companies. To date in excess of 400 small and large banks have had to bite the dust. One contributing factor it seems that too much power had been given to Fannie Mae and Freddie Mac in relation to credit and control over the housing and real estate sector in the USA. The burgeoning housing sector has been hard to control. With their disbanding, and control in the hands of another regulatory agency, things are expected to become better. Another factor that has us bogged down is our insistence on continuing the War on Terror, a war we cannot win so easily. After nine years of fighting in Afghanistan and five in Iraq, we have little to show for it. We are spending millions of dollars per day and the average US citizen is being mired in debt without his consent. The 9/11 attacks were a blessing in disguise to the faltering Bush Administration who wasted no time passing the Patriot Act, creating Homeland Security and terrorizing citizens with different alert levels, racial profiling and enhanced security checks at airports. Bush had famously announced the names of countries he regarded as the Axis of Evil nations in a speech. He vetoed many of the expenses on the War on Terror, over the combined judgment of Congress representatives. The result is trillions of dollars in debt which we cannot possibly correct in our lifetimes. Many have criticized the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Economic Collapse of 2008 Research Paper Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved from
(Economic Collapse of 2008 Research Paper Example | Topics and Well Written Essays - 2500 Words)
“Economic Collapse of 2008 Research Paper Example | Topics and Well Written Essays - 2500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Economic Crisis of 2008 and Natural Resources
...Economic crisis of 2008 and natural resources Introduction The natural reserve has been integrated in the sustenance of the resources found within the ecosystem. However, the factors that have threatened the sustainability of these resources have been projected to be caused by human activities directly or indirectly. The direct measures have been those performed by human activities to present the effect to lead to the degradation of the environment. An example of the direct environmental influence has been witnessed in deforestation and poor use of the available resources. However, the most notorious measures have been witnessed in the more indirect causes of natural resource depletion in poor...
5 Pages(1250 words)Essay
The US/World Economic Collapse. Mainly What caused the crash of 2008 crisis since 2008, Kaushik Basu, the chief economic advisor to the prime minister, anticipates another tanking of global economy in 2014.” (Governance Now) Root Cause and Lessons Learned The Great economic depression triggered off in the year 1930 in the US, it was triggered off by the collapse of the US stock market which is now known as Nasdaq. It was the worst period of the US history, people slept on Hoover blankets and had no money to spend. The economy of the US recovered from this setback only to suffer from a similar setback of a lesser magnitude which is called recession. This paper will comprehensively throw light upon the roots and causes of the...
5 Pages(1250 words)Research Paper
Financial collapse
...(IMF) economic aid package together with the austere measure it came with. The total of about 19.9 billion Dollars was unveiled by the IMF as a rescue package with the baht reaching its pre-crises highs of 36.5 to the dollar. REFERENCES 1. Michael Pettis, The volatility machine: Emerging Economics and the threat of Financial collapse Oxford University Press 2001 2. Paul Bhistein, The chastening: Inside the crisis that Rocked the Global Financial System and Humbled the IMF Public Affairs 2001. 3. Twari, Rajmish (2003): Post-Crisis Exchange Rate Regimes in Southeast Asia, Seminar Paper, University of Hamburg...
6 Pages(1500 words)Essay
Impact of the Communism Collapse on Countries` Economic Systems
...February 13, 2007 Discuss the impact that the collapse of the communism had on economic systems Communism can be seen as a theory and a system of both political and social organization that has had a great impact on the world through most of the twentieth century. There are many different definitions of communism. Miskelly and Noce defined it as "A political, economic and social theory that promotes common ownership of property for the use of all citizens, all profits are to be equally distributed and prices on goods and services are usually set by the state" (Miskelly & Noce, 410). In theory communism should create a classless society and freedom, in which all people would enjoy equal economic status. That may be a theory... in the economy....
4 Pages(1000 words)Essay
Collapse paper
...2Yusuke Yamashita Collapse paper The United s of America has one of the largest and most advanced economies in the world. Its Gross Domestic Product amounted to 11.75 trillion dollars in 2004 (CIA). Majority of the leading global companies originate from the US or are currently owned by American corporations. The US dollar has been a world standard in terms of foreign exchange rates for decades. This and a lot of other factors clearly highlight how powerful and significant is US economy on a world scale. They also infer how pervasive its effect on the world environment can be. Economic history of the United States of America extends over a period of less than two and half centuries. Over the course of...
5 Pages(1250 words)Essay
Economic Collapse and the Second Global War: 1930-1945
...Economic Collapse and the Second Global War: 1930-1945 IBM and The Holocaust The pinpoint accuracy and precision with which the brutal massacre of Jews was carried out in Nazi Germany suggests that “there was collusion between the autocratic regime and some of the mighty American corporations like Ford, GM, and IBM etc”. (Finzer, 14). Amongst them, the case of IBM is unique in the sense that it just clearly automated the process and thus the largest mass execution in the history of mankind had occurred. The strategies included in the execution process were “identification of Jews and then they were targeted for asset confiscation, ghettoization, deportation, and ultimately extermination” (Black,1). Though...
2 Pages(500 words)Essay
Economic Crime- Collapse of Franklin National Bank
...Economic Crime- Collapse of Franklin National Bank The year 1974 was a year which had the most or worst financial disasters in the United s. This crisis was the worst since the year 1930. The failure of Franklin National bank in 1974 was a great shock to the financial sector, especially the banking sector. The failure caused shock waves in the international baking sector and this sector too was also close to a big disaster. The failure of the Franklin international bank prompted the US government to think about new regulations and methods that would help to stop such disasters in the future. Franklin National bank was the twentieth largest bank in the US in terms of its size. The failure of the bank...
8 Pages(2000 words)Essay
... Why societies collapsed and recovered Introduction As Diamond d, there are various reasons as to why societiescollapsed. In his book, Diamond has described various reasons as to why societies collapsed as will be discussed in this paper. The paper provides a critical review of the reasons as to why societies collapsed and how they were able to recover from the collapse. The paper starts with a strong thesis statement as the author of the book and other materials bring forward. Secondly, the paper will critically discuss the reasons as to why the societies collapsed and then, the paper will provide some of the ways that the societies used in order t revive. The paper will conclude with a critical evaluation f Diamond’s book... and...
4 Pages(1000 words)Essay
Collapse Paper
... sketch Specialised vehicle for paramedics team Concept wristwatch to relay information. This is worn by the patient (Mary) Works cited Alegre Claude. "The wall street Journal." No Need to Panic About Global Warming. N.p., 18 Mar 2013. Web. 19 Mar 2013. . Albert H. Teich. Technology and the future. Boston, MA 02210: Wadsworth, 2008. Print. Nick Bilton. I live in the future and here is how it works. New York: Crown business, 2010. Print. Mary Male. Apple Technology for Diverse Learners. 2013. 18 March. 2013 . M. Letcher, Trevor. Climate Change: Observed impacts on Planet Earth. 1. New York: Oxford, 2009. Print.... number the paper Future medical systems Global warming and climate change comes with devastating effects among them global...
2 Pages(500 words)Assignment
Ethical failures that led to the economic collapse of 2008
...Ethical failures that led to the economic collapse of 2008 It is has been said that the business conundrum in which the worlds economy was submerged since mid 2007 is an ethical conundrum by analyzing the performance of the people who made the resolutions that led to the crisis. Bad conducts were present before the crisis and in countries not affected by it in 2007, commercial markets were shaken by the first episodes of what would become a severe crisis. Certain financial companies in the United States experienced a rise in mortgage loan defaults, especially in the so called subprime segment. It has been called an ethical crisis because moral faults may explain why political and...
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Research Paper on topic Economic Collapse of 2008 for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us