Financial Crisis
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- Date Submitted: 11/28/2011 02:20 AM
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Financial crisis:-
Financial crisis are those crisis which related to the economy of the country. In the scenario of financial crisis the value of assets going down gradually and the GDP’s of the country are going downward in negative zone.
How financial crisis held?
Financial crisis are held when the banks face the shortage of money. In this way investors sell of their assets and withdraw money from their accounts because they think the value of their assets will drop if they remain at financial institution.
Global financial crisis:-
Global financial crisis are those crisis in which the economies of the countries moving downward in destructive zone.
The global financial crisis, mashing the world slowly but really begin to show, its effects in middle of 2007 and 2008. Stocks markets have collapsed, large financial institute have break down, and government in even the richest nation have had to come up with salvation packages to rescue the financial system.
Causes of global of financial crisis:-
Easy access to credit:
The first cause of US housing market break down is easy access to credit.
Falling interest rate
Availability of mortgages
Encouraged the consumer to buy home
Relaxed lending standards:-
The second cause is relaxed lending standard to cater acquire the large number of mortgage seekers. Money lender issued a large number of loans.
Inadequate regulations:-
They make regulations with poor transparency, full of ambiguity and greater risk factor.
Interest on loans:-
They provide interest on loans to those people who have less monthly income. The interest rates are normally 1, 3, 5 years which motivates people to buy home.
Market collapse:-
The property moves to boom with the oversupply of housing and prices which do not affirmed as longer. It started the self-destructive behavior that led to the crash of market.
Impact of Global Economic Slowdown
Impact on Stock Markets Globally:-
World stock market has fallen down which make...
Financial crisis are those crisis which related to the economy of the country. In the scenario of financial crisis the value of assets going down gradually and the GDP’s of the country are going downward in negative zone.
How financial crisis held?
Financial crisis are held when the banks face the shortage of money. In this way investors sell of their assets and withdraw money from their accounts because they think the value of their assets will drop if they remain at financial institution.
Global financial crisis:-
Global financial crisis are those crisis in which the economies of the countries moving downward in destructive zone.
The global financial crisis, mashing the world slowly but really begin to show, its effects in middle of 2007 and 2008. Stocks markets have collapsed, large financial institute have break down, and government in even the richest nation have had to come up with salvation packages to rescue the financial system.
Causes of global of financial crisis:-
Easy access to credit:
The first cause of US housing market break down is easy access to credit.
Falling interest rate
Availability of mortgages
Encouraged the consumer to buy home
Relaxed lending standards:-
The second cause is relaxed lending standard to cater acquire the large number of mortgage seekers. Money lender issued a large number of loans.
Inadequate regulations:-
They make regulations with poor transparency, full of ambiguity and greater risk factor.
Interest on loans:-
They provide interest on loans to those people who have less monthly income. The interest rates are normally 1, 3, 5 years which motivates people to buy home.
Market collapse:-
The property moves to boom with the oversupply of housing and prices which do not affirmed as longer. It started the self-destructive behavior that led to the crash of market.
Impact of Global Economic Slowdown
Impact on Stock Markets Globally:-
World stock market has fallen down which make...