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.
Nobody downloaded yet

Briefly Describe the Nature of the Recent Global Financial Crisis (GFC) - Essay Example

Comments (0)
Briefly describe the nature of the recent Global Financial Crisis (GFC). Suggest policies to address the effects of the GFC on trading nations, using data and examples from one or more countries of your choice. Thesis Statement: The nature of the Global Financial Crisis and its impacts on selected trading country…
Download full paper
Briefly Describe the Nature of the Recent Global Financial Crisis (GFC)
Read TextPreview

Extract of sample
Briefly Describe the Nature of the Recent Global Financial Crisis (GFC)

Download file to see previous pages... The governments of almost all the nations had to come up with packages that are required to move out from such a situation. The financial crisis will shed its impacts around the globe due to globalization. The livelihood of all people at every corner will feel the heat of crisis (World Bank, 2009). Financial Crisis The collapse of the U.S. housing market regarded as the housing bubble is characterized as one of the prime reason for the situation to arrive. The collapse resulted in surge of mortgage loan defaults (World Health Organization, 2009, 2). The collapse of the real estate market and the subprime mortgage market of the U.S. had the severe effects around the globe. Uncertainties accrued in the financial systems. The creditors involved themselves in pulling out their funds and cashed out securities that were issued by the financial institutions (Jalilian, n.d., 1). These lead to failure of many institutions while others struggled to survive poorly. The loan and credit possibilities from the bank dried up (Baily, Litan, and Johnson, M., 2008, 11). There was a downturn in the share market as investors dumped their holdings. The system lost the confidence. In order to create securitization, the banks started to borrow more money. As long as the banks can pull out money by selling loans on the basis of securities, they did not feel the dependency to rely on the savers (European Commission, 2009, 8). Some of the banks even moved into mortgages. There was pressure from the government to serve the poor and the loans offered to the poor were risky as there was the fear of default (Roitman, 2009). They used to buy the mortgage in order to securitize them and then sell them. Some of the banks started to buy securities as well. This increased the exposure of the banks to risks. When the problem got realized, the process of lending got slowed. Some of the banks were on the verge of the most risky loans which was beyond the intention of the investors. The lenders fell upon to take back their loans. The investment banks fell drastically as they had no or little deposits. The problem got intensified and even the banks with large capital reserves began to feel the pressure. They turned to the government for support. The banks began to feel nervous to loan out the injected money and the shrinking banks sucked money out of the economy. Many economies are (or have been) in recession, technically defined as 2 or more quarters of negative growth or contraction of real GDP, for example the economies of the US, Japan, the Euro area, UK, and New Zealand (but not Australia). Among the other effects include rise in the level of unemployment, rising in the levels of international and domestic debt, crisis in housing and mortgage, failure of key businesses such as automobile industry of U.S., along with various banks and housing lenders. There were downturns in the share market along with declines in the wealth of the consumers. The volumes of international trade and investment declined. There has been some recovery with the assistance of the governments such as stimulatory spending (but often financed by further debt), financial institution guarantees and buyouts, and assistance to industries (but needed to be within the framework of WTO rules and agreements). In order to combat with the situation of fall in confidence it was necessary to inject liquidity into the financial institu ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Reasons for the recent global financial crisis
This paper examines failures of real estate values and subprime lending; bad quantitative risk models in banks (Basel 2); rating agencies failures; underestimation of aggregate risks; mark-to-market accounting; shadow banking system; off-balance sheet financing; credit default swaps and over-the counter derivatives; moral hazard problem.
8 Pages(2000 words)Essay
Global Financial Crisis
Global Financial Crisis of 2007 had its beginning in United States of America with the crash of the home loan or credit market during July 2007. This credit crunch which happened in United States during 2007 rapidly spread to other global economies thus jeopardizing the global financial system.
6 Pages(1500 words)Essay
Critically evaluate the reasons for the recent global financial crisis
Reasons have been analyzed for the failure of the financial markets. They have included faulting banks and investment houses for speculating under high leverage and low collateral, and homeowners defaulting on mortgages. Niinimaki (2007) noted a study that observed financial crises were usually preceded by periods of high defaults in the real estate market.
6 Pages(1500 words)Essay
Evaluate the reasons for the recent global financial crisis. ( Banking and Finance Moudle)
As a result, lending and investment in reliance on the weak macroeconomic model eventually culminated in a domino effect triggered by the collapse of the US housing bubble; which further raises questions about increased government regulation of the finance industry going forward.
8 Pages(2000 words)Essay
The Recent Global Financial Crisis
The primary cause of the global recession could be addressed to the collapse that occurred in the sub-prime mortgage market in the United States (US) accompanied by turnaround of housing as reported by several other economies. The impact of the global economic crisis not only affected the financial institutions but the livelihood of almost everyone to some levels or the other (Shah, 2010).
6 Pages(1500 words)Essay
Discuss and analyse the recent global financial crisis and consequent credit crunch
This combination has been a growing problem in the past few decades. The origin of the global financial crisis can also be linked to the bursting of the oil price and housing bubbles, and excessive low interest rates among the key nations in the global economy.
7 Pages(1750 words)Essay
Recent Global Economic crisis
This is of tremendous interest to me, simply because such a huge crisis is something that is not a very regularly occurring event, and being at the age that I am right now, I believe I
24 Pages(6000 words)Essay
Global Financial Crisis in Context
It is expected that 2010 shall witness a global growth of 4 percent up from 0.8 percent witnessed last year with the private sector largely taking over. This is bound to encourage stronger economic growth within the emerging markets and economies.
6 Pages(1500 words)Essay
Discuss the importance of ethics in business in light of the recent global financial crisis (GFC)
In addition an electronic copy of your assessment needs to be uploaded to your specific Turnitin assignment drop box in the BAS vUWS site no later than 11.00am on the day of your workshop. If students need to apply for a short extension of time to complete an
2 Pages(500 words)Assignment
Write a two page essay on the global financial crisis. Briefly explain what happened and why it happened
The crisis not only imposed a huge threat to financial institutions that almost collapsed, but also resulted to bank bailouts by national governments in addition to stock market down turns globally (Shah, 2013). Apart from elaborating
2 Pages(500 words)Essay
Let us find you another Essay on topic Briefly Describe the Nature of the Recent Global Financial Crisis (GFC) for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us