ipl-logo

2008 Financial Crisis Passed Essay

1380 Words6 Pages

Has the 2008 Financial Crisis Passed?
The question of whether or not the 2008 financial crisis has actually passed is a worthwhile one, and has been a topic of discussion for economists since 2008. The debate is based on the fact that while there are those analysts who state that the crisis ended completely and the world healed, there are others who hold that the crisis has yet to pass completely. Better yet, some of the analysts insist that the financial crisis signs and symptoms may have been relieved, but the real problem is not gone yet, and that it could be repeated once again. In spite of the two sides of the debate, there appears to be a consensus that the financial meltdown that was witnessed in 2008 is almost certainly …show more content…

Since 2010, the US economy has been growing by at least 1.5% each year. During the 2008 financial crisis, the GDP experienced a negative growth. In addition, while the unemployment levels has risen during the financial crisis, they have since returned to the pre-crisis levels, suggesting that the financial crisis may have passed, although the “disease” may have yet to be cured completely. Moreover, according to Matthews (2016), homeowners’ equity has grown to become higher than the rates recorded in the pre-crisis period of 2007, with financial analysts estimating that the homeowners’ real estate equity will continue to improve going forward. This reflects positive performance of the economy, which could not be said of the 2008 financial crunch. Lastly about the 2008 economic crunch, the household debt to the net disposable income ratio has continued to decrease, which implies that the general economic conditions are favorable (Solomon, 2014). In the Middle East and North African countries, the 2008 crisis was marked by a reduction in oil prices, drastic reduction in GDP, and the failure of large banks (Reinikka, 2010). However, in the post-2009 period, the economies have experienced a rebound effects, experiencing positive economic growth, with oil prices improving and GDP generally growing. The ripple effects of the financial crunch, such as the reduction of foreign direct investment also appeared to change positively, with expectations that an upward growth will be expected going forward (Reinikka,

Show More
Related

DBQ Great Recession

624 Words | 3 Pages

Due to the common occurrence of recessions, americans now spend wisely and think about the future for their families (document f) .Unfortunately some baby boomers and caregivers worry about retirement because of the recession's impact on the economy(document e). Banks have now become stable and require a rigorous program on mortgage so they will avoid another downfall. The Great Recession could have been easily been avoided if the government had maintained and organized the economy more efficiently.

Read More

Comparison Between 2008-2009 And The 1930's Great Depression

1114 Words | 5 Pages

Taking on the task of managing the U.S economy is a very tedious task and should not be taken lightly. Nevertheless, our country has been tried many of times throughout its short lifespan, and we can learn from previous mistakes to help us get ready for any future financial problems. Increased government spending to fight recessions The protagonist opinion in the text, reviews the contrasting views between the recent recession of 2008-2009 and the 1930's "Great Depression", (Mankiw, 2015).

Read More

Ben Bernanke: The 2008 Financial Crisis

1310 Words | 6 Pages

economy’s recovery. Of course, there will always be criticisms regarding what took place, such as we still do not have a balanced budget, but I have to be happy that we also do not have the abysmal economic indicators we had in 2008. We did see an increase in our national debt. . It is currently at 17,941,406,575,143.38 (US Department of the Treasury, 2014), but I see this as a necessary evil for having to stimulate the economy and save some of those troubled institutions. And as far as the Feds focusing too much on financial institutions and banks and bailing out financial institutions rather than letting private market economy prevail, or “directing funds to the best-managed, most creditworthy borrowers” (Miller, 2012, p. 330), I think the failure and ruin of some of those institutions would have shaken up the US public confidence far worse and perhaps contributed to even more of a crisis.

Read More

What Are The Similarities Between Great Depression And The Great Recession

578 Words | 3 Pages

The article points out that monetary policy played a critical role in addressing immediate crises, but it may not be sufficient to address long-term growth issues. The author discusses the vulnerabilities in the financial sector during both crises, as well as the use of state guarantees, recapitalization, and "bad banks" as responses to distressed financial institutions. The article notes the significance of global imbalances in contributing to the origin of both crises and their different unwinding processes. Evaluation: The author's position about the similarities and differences between the Great Depression and the Great Recession is generally compelling. The article effectively presents historical evidence to support the notion that while some lessons from the past can be informative, policymakers must recognize the complexities of the current economic

Read More

The Great Recession In 2007-2008

1072 Words | 5 Pages

In the aftermath regulations such as the Dodd-Frank Act have been enacted to help identify signs of financial crisis, but regulation cannot eliminate financial crisis. The bull market for stocks continues, but at some point a correction will happen, how will the U.S. economy respond, that is the question that economists will continue to try and answer. References: Guynn, R.D., (2010, November 20). Financial panic of 2008 and financial regulatory reform. Retrieved from https://corpgov.law.harvard.edu/2010/11/20/the-financial-panic-of-2008-and-financial-regulatory-reform/ Minshkin, F.S., & Eakins, S.G. (2015).

Read More

Henry Paulson Great Depression Summary

438 Words | 2 Pages

The biggest enemy to the end of the financial crisis and the beginning of an economic recovery is Treasury Secretary Henry Paulson himself. Lets forget for a minute that the decision by Paulson and Bernanke to let Lehman Brothers fail was the precipitating event leading to credit markets freezing up and the first round of financial panic. Since then, the two have been working diligently to correct this collosal mistake. But separating actions from words, we see that words are in fact much more potent. Since the end of September, every time Henry Paulson has opened his month, the Dow has dropped on average 196 points.

Read More

The Dodd-Frank Act

1154 Words | 5 Pages

When was the start of the recent financial crises? Fitzpatrick IV and Thompson (2011) asserted that “many observers point to the summer of 2007 as the starting date for the financial crisis that would bring down most of the U.S. investment banking industry” (p. 1). However, there are many conditions that led up to the crisis, including housing policies and interest rates. Besides banks, government, homebuyers, and rating agencies had a role in the financial crisis, which led to the federal government actions to pass the Dodd-Frank Act to solve and avoid another crisis in the future.

Read More

2008 Housing Market Crisis Essay

443 Words | 2 Pages

Beginning in the 1999, the growth of mortgage-backed securities played an important role for what was to happen in 2008. The rise of the subprime mortgage market gain popularity among commercial investors but it soon became obvious that involvements with the mortgage market meant huge trouble for the U.S. financial market. Main factors that contributed to the decline include, the high-risk mortgages, government’s easy-money policy and mortgage insurance, and the failure of banks. The economy in general faced a decline and when the crash was over. To alleviate the pressure that was built up, the government made promises to the public to help prevent such as crisis from happening

Read More

Paul Krugman Discuses The Financial Crisis Of 2008

543 Words | 3 Pages

This is shown through countless home foreclosures as well as the expunction of small and big businesses. Unfortunately, 2008 isn’t that far in the past. A common phrase says that it is easier to ruin a grade in a class than to improve a grade. The same goes for the economy, it can crash over night but will take years to recover. The way we fix what we have now is by not make mistakes from the past.

Read More

Essay On Did The Economic Crisis Really Over America

1017 Words | 5 Pages

Did the America economic crisis really over？ With the advance and development of the American society the new economic data draw a charge and more and more people think the economical of the US across the future road, but did the America economic crisis really over? Some people think that the end of economic crisis, because of they may be not lost their own work, but in the market, there are the rest of economic crisis in the business. The economic crisis emerged the phenomenon of negative growth. Nowadays in our society, sometimes we can find economic crisis around us.

Read More

Great Recession Essay

620 Words | 3 Pages

Since the Great Depression of 1929-30, the economy faced another biggest turmoil or what is being called as the worst financial crisis in 2008. The indications for the arrival of such crisis began in January 2008 when there was news of drastic fall in the profits of the Citigroup banking. It had a great impact over the New York Stock Exchange at that time. Followed the incidence, there was a series of declaration of a number of American and European banks. All these banks and financial institutions declared massive losses in their 2007 end of the year results.

Read More

2008 Financial Crisis Essay

723 Words | 3 Pages

Karen Hoe mentions on page 298 that; “the subprime disaster that began to dominate mainstream news in the summer of 2007 has

Read More

2008 Financial Crisis Essay

614 Words | 3 Pages

In 2008 the world economy faced its most dangerous crisis since the Great Depression of the 1930s. The pestilence, which began and resided in the US as the sky-rocketed house prices reached its nadir, soon spread throughout the globe. The losers in the United States included a) the entire investment banking industry, b) the biggest insurance company, c) the two enterprises chartered by the government to facilitate mortgage lending, d) the largest mortgage lender, e) the largest savings and loan, and f) two of the largest commercial banks, 'Indymac' and 'Washington Mutual Bank'. Mortgage leaders agreed on loans on terms unfavourable to most households as mmany of them ideally did not qualify for a loan. Some of these so-called subprime mortgages had low “teaser” interest rates in the early years that swelled to double-digit rates in later years.

Read More

Financial Crisis Of 2008: The Most Serious Recession In The United States

2183 Words | 9 Pages

Both the financial crisis and the downturn in the U.S. economy mentioned above spread to many foreign nations, resulting in a global recession and contributing to the European sovereign-debt crisis. This study will explore the crisis to see how it played a significant role in the failure

Read More

Causes And Effects Of The 2008 Financial Crisis

1886 Words | 8 Pages

The United States was able to pull back from the financial crisis and economic collapse in late 2008 and early 2009. It wasn’t until it was to late when the economy was on the edge of collapse that any actions was taken to address the problems that have been building for years. (The Cost of the financial crisis) There were various effects to the economy and the working people of America, and the world anywhere from loss of jobs, to bankruptcy of large companies and industries such as see with many automobile industries. A variety of different government interventions were used to stabilize banks and other financial sector firms, ranging from the Federal Reserve, to loans.

Read More

More about 2008 Financial Crisis Passed Essay

Related Topics

Open Document