financial crisis

INTRODUCTION
With the financial meltdown that has rocked the United States (US) and early(a) major economies, apprehension has grown over the fate of the financial system of other nations, as the crisis persist. Both public and private sector operators possess had cause to ruminate over the possible effects of the impute crushed leather on the nations economies. There are still blinding signs of a gloomy global economic outlook which gallop to spin despite frantic moves by the US political sympathies and World Bank to reverse the trend.
The International Monetary depot (IMF) noted that the world economy is now entering a major downturn in the face of the most grave shock in mature financial markets since the 19930s. It is believed that when the United States sneezes, the full-page world catches cold. This recent crisis tends to confirm this statement as we run into its cataclysmic effects on international business.
HISTORICAL BACKGROUD
The puzzle began with the collapse of the American Mortgage market when for several reasons, the regard as of properties went down drastically, leading to inability to refinance individual household mortgage because the banks were reluctant to lend. Banks that had a lot of money bind up in loans to house owners who were no long-acting qualified to pay went bankrupt or near bankrupt.



With this went the credit crunch because people, who used their houses as collateral to borrow money, were no longer able to access credit. These loans were also sold by the banks to dickens giant banking institutions Freddie Mac and Fanny Mae, which served as holding financial institutions for mortgage loans. The problem of the sector led to the collapse of these devil giants which the American government reluctantly took over. The credit crunch was shape up exacerbated by the high energy cost which is reflected in the warmheartedness price of petroleum, sometimes averaging over four dollars ($4) per litre.
The end of 158-year-old Lehman Brothers and 94-year-old Merrill Lynch, two of the largest Wall Street...If you want to get a full essay, straddle it on our website: Orderessay



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