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Great Depression Causes

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Causes for the Uneven Impact of the Financial Depression
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Introduction
The economic and financial depression of 2008 was the worst crisis since the Great Depression that occurred in the 1930s. It commenced in the U.S. and swiftly spread to other industrialized states, middle, and low-income countries through multiple channels. To date, the consequence of this event has still been unraveling and its impact has spread not only to the financial arena but also at the social and economic fronts. In this paper, an analysis will be provided on some of the reasons that contributed to the uneven impact of the crisis. Several examples will be used to achieve this objective.
Uneven Distribution of Wealth
One …show more content…

An assessment of the financial markets across the world reveals that some countries were too indebted and no longer had the capacity to repay the interests on their bonds. Countries such as Greece, Spain, and Italy had a high cost of borrowing and no clear strategy on how to resolve both their economic and financial problems (Steiner, 2012). Secondly, the vulnerability of the financial markets was stipulated within the banking systems of some states (Steiner, 2012). In Europe, for instance, countries such as Germany and France owned several bonds from states that had intense financial struggles such as Spain, Greece, and Iceland (Steiner, 2012). This situation was worsened by the fact that countries like Ireland and Spain had many banks and financial institutions that had loans on their books imposed by the collapsing of their real estate markets (Steiner, …show more content…

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