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Business Skills - Assignment

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Added on  2020-01-28

Business Skills - Assignment

   Added on 2020-01-28

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Business Skills
Business Skills - Assignment_1
TABLE OF CONTENTCould western nations have avoided financial crisis in 2008? ...................................................3REFERENCES................................................................................................................................62
Business Skills - Assignment_2
Could western nations have avoided financial crisis in 2008? Financial crisis of 2008 are also known as Global financial crisis and it is considered asthe worst crisis ever. From the middle of 20007 and 2008 financial crisis started to show theireffects worldwide (Reddy and et.al., 2014). During the period many financial institutionscollapsed, many were bought by other companies, there was a huge downfall in the stock marketand even the governments that were healthy and good enough came out with financial crisis'sproblem. The seeds of the crisis were sown at unusual times.With such issues livelihoods of people were getting affected. The institutions andcompanies were throwing employees out of their organization which was directly affecting thesurvival of common ma int the world where countries are interconnected. Collapse of the USsub-prime market had laid the great impact on the world. Many financial organization becamecomplex which lead to ultimate failure of the whole system (Soll, 2014). The last months of2008 witnessed the worst financial crisis. The first indication started to appear in January 2008.On 15 January, drop in the profits of Citigroup banking led to fall in profits of New York StockExchange. At the end of year 2007 many American and European companies faced losses. In thelater months of the year an investment bank which was 158 years old witnessed bankruptcy. Inorder to stop further downfall and stop collapse further most dramatic involvement in financialmarket was made by US government.The decline and degradation in real economy is being matched up to the collapse ofmarkets of finance. Stock markets were dropping worldwide even if the government was tryingto prevent the bailout of financial institutions and banks. Market suffered unemployment. UShousing bubble burst caused damage to financial organizations globally (Nelson and et.al.,2014). The financial crisis were prompted due to interplay of many policies that were promotingownership of home, easier access to loans etc. The crisis had a significant role in declination ofthe country's as well as individual's wealth. This was actually the storm that was brewing overthe years but now has reached to its break down point. It absorbed many financial organizations,institutions and banks and investment companies.The basic cause behind the crises constitutes the factors that its ability to create new linesfor credit that resulted into dry up of money flow and slowed down economic growth as well aspurchase and sell of assets. Therefore, institutions that were holding assets with them had3
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