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Global Financial Crisis Essay

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Added on  2020-07-23

Global Financial Crisis Essay

   Added on 2020-07-23

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Global Financial Crisis (GFC)
Global Financial Crisis Essay_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Other Examples of GFC..............................................................................................................1Discussing the causes of financial crisis.....................................................................................2Discuss Could GFC be repeated.................................................................................................3GFC and Australia.......................................................................................................................3GFC and UK...............................................................................................................................4GFC and USA.............................................................................................................................4Identification of the actual or proposed reforms.........................................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................7
Global Financial Crisis Essay_2
INTRODUCTIONDepression is the long and very severe recession within any economy of the world and ifthat recession affect the whole world then that is known as Global Financial Crisis. Recession isthe phenomenon which is regarded as the economic downtime or fall of GDP of any countryduring two successive quarters. In this recession all the industrial activities including trade andfinance work is been decreased or reduced and then there is credit crunch in economy. Wholeworld faced the Global Financial Crisis of 1929 which lasted till 1939 this is till the timeregarded as the worst times which were faced by people of USA which then widespread to allover the globe. This is in general terms regarded to as Great Depression of 1929 and the bestexample of till what extent economies of world could be destroyed financially. This was mainlycaused because of major fall of stock market prices which began on 4th September 1929.Other Examples of GFCThe Great Depression of 1929 is so far the best example of financial crisis which worldfaced in 20th Century but in the year 2007 the same kind of crisis was encounter (Ohanian,2017). After 1929 the year 2007-08 crisis was the 2nd most devastating financial loss asconsidered by many economists of world. This depression lasted till 2012 and this was alsooriginated in USA which is the largest economy of world. The measure and timing of theeconomic crisis in all countries vary from each other but the impact was still the same as othercountries. The major cause behind this recession was the largely declining prices of real estatemarket in America and its impact was more than 1930 as concluded by International MonetaryFund. Thus resulting into lack and scarcity of valuable assets and the cascading the effects onfinancial institution and banking sector began to collapse down. The effect an impact of thisrecession was not evenly spread ot all the nations of world largely particulate in developedeconomies like North America and European countries. However, the developing nation like thatof China and India was grew during this period.This lead to sub prime mortgage crisis which was an emergency situation within globalleader like USA and this greatly contributed to the recession stage of 2007-09 (Knüpfer,Rantapuska and Sarvimäki, 2017). The prices of house and real estate within the USA beganincreasing in starting of 2006 which declined in 2006-07 and then came to its lowest in 2012 thiswas known as housing bubble of USA. Then this resulted into delinquent mortgage and lenders1
Global Financial Crisis Essay_3

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