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Global financial crisis

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Added on  2020-11-23

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1 Discussion about if GFC could be repeated again.2 The scale and impact of GFC in economies of different countries. 4 CONCLUSION 6 6 REFERENCES 7 INTRODUCTION Global financial crisis means a worldwide period of money-based difficulty experienced by markets and people who use a product or service (Sargent-Cox, Butterworth and Anstey, 2011). A worldwide major money monetary problem is very hard surrounding conditions to succeed in since possible peoples tend to reduce their spending of financial crisis

Global financial crisis

   Added on 2020-11-23

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Global financial crisis_1
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY ..................................................................................................................................1The possible causes of the financial crisis..................................................................................1Discussion about if GFC could be repeated again......................................................................2The scale and impact of GFC in economies of different countries.............................................4CONCLUSION ...............................................................................................................................6.........................................................................................................................................................6REFERENCES................................................................................................................................7
Global financial crisis_2
INTRODUCTIONGlobal financial crisis means a worldwide period of money-based difficulty experiencedby markets and people who use a product or service (Sargent-Cox, Butterworth and Anstey,2011). A worldwide major money monetary problem is very hard surrounding conditions tosucceed in since possible peoples tend to reduce their instance of buying things for money. Forexample, sub prime mortgage case, Lehman brothers' collapse are famous examples of globalcrisis. This report Includes various causes of financial crisis and discussion about if it could berepeated again. Explanation of scale and Impact of GFC in different economies also covered inthis report. Actual and proposed reforms are evaluated for identification. Global financial crisisalso called great depression situation in economy. MAIN BODY The possible causes of the financial crisis.The great depression was the deepest and longest-lasting economic downturn in thewestern industrialized world. It mainly started after the stock market crashes. Americans wereunemployed and nearly half of the banks of country got failed. Causes of financial crisis: The great depression was lasted from 1929 to 1939 and was avery hard economic condition in the history of country (Bancel and Mittoo, 2011). As thecountries start downturn but the truth is that many things caused for that not even a single event.Some of the causes are as follows:1.Banks created too much money: Every time a bank makes a new loan. Apart from that,a new money is created and huge amount of loan was credited to the customers as a resultdebt was doubled in economy. 2.Speculate on financial markets: credited money in terms of loan was used outside thefinancial sector. A huge amount was used in speculation in financial market to push upprices which was later become a big cause of that global situation. 3.Eventually the debts become unplayable: As the loans credited in larger amount, withthat debt rising very fast than income. So peoples stop repaying their loan amount andbanks going to danger of bankrupt.
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