StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Nobody downloaded yet

The Reasons for the Recent Global Financial Crisis - Coursework Example

Comments (0) Cite this document
Summary
In "The Reasons for the Recent Global Financial Crisis" paper an overview of worldwide monetary crisis, critical evaluation regarding the root causes of the crisis along with an effective conclusion is portrayed. Various reasons can be observed for the formation of a recent worldwide monetary crisis…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
The Reasons for the Recent Global Financial Crisis
Read TextPreview

Extract of sample "The Reasons for the Recent Global Financial Crisis"

Download file to see previous pages Through increasing the level of the crisis, along with the effectiveness in the credit flow towards businesses, the real market of services and commodities is also observed to be inauspiciously affected with the evolution of the crisis (Jickling, 2008).

In this regard, it has been identified by experts that the current worldwide economic crisis possessed a considerable impact especially upon the stock markets, larger financial institutions, and also in the global economies of the countries.  In lieu of this, due to the rapid rise of worldwide economic crisis, the global stock markets had been observed to slacken along with the collapsing of larger financial institutions to a certain extent (Shah, 2010).

Various noteworthy reasons can be observed for the formation of a recent worldwide monetary crisis. According to Bessis (2011), the worldwide economic crisis was mainly originated through the “sub-prime mortgage” crisis and was witnessed by many economies all around the world. Due to the origination of this particular crisis relating to “sub-prime mortgage”, the rate of interest was raised and the net worth in the housing market declined. As a result, with the increase in the rate of interests and fall in the value of the housing, there was a sharp jump in non-repayment and foreclosures of credits. Rangarajan (2009) also noted that there lies a mutual suspect among the monetary institutions that severely led to freezing up of several markets which also include the interbank sector. It was because of the emergence of a worldwide economic crisis that the various market risks, FDI flows, lending of bank flows as well as export volumes were recorded to be negative during this time period. As a result, with the downturn in economic performances through a worldwide economic crisis, many countries experienced substantial declines, especially in their business expansion and also in their credit growth (Rangarajan, 2009).
  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Reasons for the Recent Global Financial Crisis Coursework - 2, n.d.)
The Reasons for the Recent Global Financial Crisis Coursework - 2. https://studentshare.org/macro-microeconomics/1767999-critically-evaluate-the-reasons-for-the-recent-global-financial-crisis
(The Reasons for the Recent Global Financial Crisis Coursework - 2)
The Reasons for the Recent Global Financial Crisis Coursework - 2. https://studentshare.org/macro-microeconomics/1767999-critically-evaluate-the-reasons-for-the-recent-global-financial-crisis.
“The Reasons for the Recent Global Financial Crisis Coursework - 2”. https://studentshare.org/macro-microeconomics/1767999-critically-evaluate-the-reasons-for-the-recent-global-financial-crisis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Reasons for the Recent Global Financial Crisis

Reasons for the recent global financial crisis

...The Reasons for the Recent Global Financial Crisis... The Reasons for the Recent Global Financial Crisis... Reasons for the recent global financial crisis Introduction The cause of the recent financial crisis and economic recessions has been attributed to various factors in the economy (Freedman 2010). The initial trigger of the financial crisis has been traced to the toxic mortgage backed assets whose decline in value and uncertain duration led to massive losses in the U.S economy. Fannie Mae and Freddie Mac were both taken over by the US government. Lehman Brothers was declared bankrupt since it could not increase its capitalization (Joseph 8). Merrill Lynch was bought by the Bank of America while American International Group (AIG) was rescued...
8 Pages(2000 words)Essay

Critically evaluate the reasons for the recent global financial crisis

...The Reasons for the Recent Global Financial Crisis... The Reasons for the Recent Global Financial Crisis... ment The recent and current global financial crisis was rooted by a collapse in the value of real e under to US mortgage companies and a variety of banks, including banking investment houses. This collapse led to immediate and deeply disparaging effects on the financial systems of the US and Europe and resulted in an international contraction of the employment market, increasing unemployment figures in most of the important global markets. 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...
6 Pages(1500 words)Essay

Evaluate the reasons for the recent global financial crisis. ( Banking and Finance Moudle)

...?Evaluate the reasons for the recent global financial crisis The recent global economic crisis has fuelled debate in relation to the causes of financial crisis and the current models of macroeconomic policy. This paper critically evaluates the rationale and challenges of the current financial crisis and posits that recent macroeconomic policy resulted in false assumptions, which failed to account for the actual capital/risk ratio. 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. The recent global economic crisis...
8 Pages(2000 words)Essay

Critically evaluate the reasons for the recent global financial crisis, in the light of the articles in reference and other rele

...The Reasons for the Recent Global Financial Crisis... The Reasons for the Recent Global Financial Crisis... There are many reasons underlying the recent global financial crisis and it is difficult to evaluate any major one as the "main" cause.Verick and Islam (2010), in a report written for Institute for the Study of Labor, outline the reasons as the play of "interest rates, global imbalances, perceptions of risks and regulation of the financial system (2010). This view is a good one which will more or less be developed in this report. As far as establishing blame for the crisis, it may be perhaps be better to view the crisis as a business cycle because it is bound to occur again in spite of the current concern and efforts to set up corrective...
8 Pages(2000 words)Essay

The Recent Global Financial Crisis

...The Reasons for the Recent Global Financial Crisis... The Reasons for the Recent Global Financial Crisis... Recent Global Financial Crisis Introduction: The recent global crisis that the world suffered from had started developing for a while before it had its impacts in the middle of the year 2007 and then in 2008 (Obstfeld & Rogoff, 2009, p.1). The crisis affected the entire world with fall in the stock markets, financial institutions being sold out or warped leading to the emergency need for rescue packages from the governments in order to bail out the severely impacted financial firms. 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)...
6 Pages(1500 words)Essay

Reasons behind the Financial Crisis

...The Reasons for the Recent Global Financial Crisis... The Reasons for the Recent Global Financial Crisis... Reasons Behind the Financial Crisis In regard to the financial crisis, director’s liabilities played a crucial role in fueling its onset. The first notable instance of liability is liability of tort whereby most directors can be said to be guilty of negligent mismanagement. In such a scenario, the director can be said to be careless in the oversight of a corporation's operations in relation to finances and asset management. In most of these cases, the board is aware of the negligent mismanagement, but for some reason, mostly personal, they ignore it. Still on torts, directors can be held liable due to their subordinates both beneficial and...
3 Pages(750 words)Essay

Recent Global Economic crisis

...The Reasons for the Recent Global Financial Crisis... The Reasons for the Recent Global Financial Crisis... Economic Crisis Question Choice of Mess The mess that I have selected is the global financial and economic crisis, with particular reference to the on-going ‘mess’ it has created in the global arena. At present, probably there is no economy in the world that is not affected due to this crisis. Even, as I see, countries those are seemingly isolated from the world such as Iran, are also affected herewith. 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 will have stories to share with my off springs, whereby, ...
24 Pages(6000 words)Essay

The Recent and Current Global Financial Crisis

...The Reasons for the Recent Global Financial Crisis... The Reasons for the Recent Global Financial Crisis... Recent and Current Global Financial Crisis The recent and current global financial crisis was rooted by a collapse in the value of real estate under title to US mortgage companies and a variety of banks, including banking investment houses. This collapse led to immediate and deeply disparaging effects on the financial systems of the US and Europe and resulted in an international contraction of the employment market, increasing unemployment figures in most of the important global markets. Reasons have been analyzed for the failure of the financial markets. They have included faulting banks and investment houses for speculating under high le...
9 Pages(2250 words)Essay

Asian Financial Crisis Versus Global Financial Crisis

...The Reasons for the Recent Global Financial Crisis... The Reasons for the Recent Global Financial Crisis... paper is about the ongoing Global Financial crisis and the Asian financial crisis of the late 1990’s. The paper attempts to study the similarities between these two crises and the differences between them along with an analysis of the causes, effects and recovery strategies used by the various governments in the aftermath of these crises. The role of the regulatory agencies has come under scrutiny in both the crises and they have been criticized for turning a “blind eye” to the rampant financial speculation and when the crisis struck, acting in haste which led to some undesirable consequences in both the cases. The paper also discusses the...
9 Pages(2250 words)Term Paper

Reasons That Triggered the Global Financial Crisis

...The Reasons for the Recent Global Financial Crisis... The Reasons for the Recent Global Financial Crisis... the reasons that triggered the global financial crisis, elaborating in detail on the flaws in the management of risks by banks. Answer Many causes created the global financial crisis. In the United States of America, Sub-prime mortgage loans and the real estate bubble became the root causes (Lannuzzi & Berardi, 2010). Additionally, soon after the attacks of 9/11, the Fed reduced the interest rates to the level of 1 percent with an aim of supporting the labour market. In the late 1990s and the early 2000s, many developing countries put a large amount of savings into the US banks and other financial institutions (Shomali & Giblin, 2010). Conse...
11 Pages(2750 words)Assignment
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 Coursework on topic The Reasons for the Recent Global Financial Crisis for FREE!

Contact Us