Category: Financial Crisis

Causes of the 2008 Financial Meltdown The documentary, The Inside Job, highlights some of the reasons why the 2008 financial meltdown happened. The film shows how bankers, regulators, and politicians all contributed to the crisis. One of the causes of the financial meltdown presented in the documentary is the high levels of lending that financial…

The global financial crisis of 2008-2009 was triggered in the US as a result of the bursting of the US housing bubble. This was precipitated by the increased defaults of subprime mortgages where banks encouraged homeowners to take on high loans hoping that they would be able to pay them back quickly while not taking…

Corporate organisations are social entities or systems where people of different ethnicities, socioeconomic backgrounds, cultures, and calibres merge to form an organisational structure. According to Boddy (2011), modern organisations exist in a hierarchical arrangement where leaders and subordinates interact and share views. Socialists have argued that almost all organisations are social in nature, but only…

Chan, Sun. Financial Crisis Was Avoidable, Inquiry Finds. The New York Times, 2011, New Ed.: A1. This article explores the report by Financial Crisis Inquiry Commission, where the commission is quoted to have concluded that the credit crunch could not have been avoided. The article summarizes the blame game of the commission, which cast a…

Table of Contents Introduction Types of Financial crisis Causes of the financial crisis Prospects on the impact of the financial crisis Works Cited Introduction A financial crisis refers to a situation where the assets of financial institutions keep on reducing their value. A financial crisis may occur in banks, at the stock market, or in…

Table of Contents Introduction Analysis Slow Government Inflation Inefficient Economy Conclusion References Introduction It would not be an overstatement to claim that the Great Depression era was one of the darkest pages in U.S. economic history. Causing the U.S. economy to suffer a tremendous collapse, Great Depression led to poverty rates spiraling out of control,…

Table of Contents Abstract Introduction Body of the Paper Conclusion References Abstract This paper explains the mechanics of how the so-called Housing Bubble (believed to be the actual cause of the financial crisis of 2008-2009) came into being, and explains why, contrary to what many people believe, this crisis is best described as having been…

The 2020-2021 financial crisis due to COVID-19 significantly differed from the 2009 Great Recession. First, the causes and nature of the crises were different. In 2009, the economy imploded and partially collapsed due to the financial system, a range of poor oversight and negative decisions led to the crisis. Meanwhile, in 2020, the constraint is…

Table of Contents Introduction Predictors Achievements and Pending Issues The Risk of a New Crisis Conclusion References Introduction The global financial crisis of 2008-2009 was the worst economic calamity since the Great Depression. The crisis was an extremely complex event the causes of which are still disputed among economic scholars. Academic accounts of the economic…

Deregulation in the financial sector was the primary driver of the 2008 financial crisis because it gave banks the power to fund trading activities with derivatives. As a result, banks raised their mortgages to cushion the derivatives sales, which brought more profit (Bernanke 251). Similarly, the move encouraged more borrowing by subprime customers because the…