ipl-logo

How To Write An Essay About The 2008 Financial Crisis

863 Words4 Pages

Abstract
A severe catastrophe destroyed the world’s economy and many people’s life because of the Financial Crisis a couple of years ago. Even the managers in Wall Street were scared and nobody predicted it would happen. Faced to the ruins after the crisis, economists and scholars were trying to find out what caused this and how to recover from such kind of impact as soon as possible. Many people lost their savings and living place in the disaster, also, lost their jobs. In case of that, it’s very important to study about the financial crisis and its recovery.

What happened in 2007
In 2007, the world’s economy experienced a catastrophe that began on Wall Street. Most economists regard this disaster (also known as the Global Financial Crisis) to be the worst financial event since the Great Depression. It caused many large financial institutions to go bankrupt such as Lehman Brothers Holdings, it was a top financial institution in the United States which was controlled about one billions of dollars money. The Lehman Brothers Holdings was also a prime signal of the collapse of Wall Street. At the same time, other areas which were related to the …show more content…

The value of the MBS and CDO was from mortgage payments and housing prices (Simkovic, 2013). Due to MBS and CDO, people and financial institutions had passion to invest in real estate market. However, banks who borrowed lots of money to investors, also financial institutions invested in house market lost heavily while the price of house declined. The house was less worth that it before and the mortgage loan because of the falling of house prices. The effect also influenced many other economic fields like stocks market and GDP growth.Experts estimated that trillions of dollars were lost over the world (“IMF Loss Estimates”,

Show More
Related

Apush 2003 Dbq

141 Words | 1 Pages

In Addition to maldistribution stood the credit structure of the economy, some farmers were in deep land mortgage debt, so they lowered their crop prices in order to regain credit, and because the farmers were no longer accountable for what they owed banks. Across the nation the banking system found themselves in constant trouble. In America both small and large bankers were concerned for their survival, so they began investing recklessly in stock markets and granting unwise loans. These unconscious decisions would lead a large consequence, such as families losing their life savings and their deposits became uninsured. “ More than 9,000 American banks either went bankrupt or closed their doors to avoid bankruptcy between 1930 and 1933.”Although

Read More

Great Depression Dbq

468 Words | 2 Pages

This being the cause of prices concerning stocks and shares to increase, to the point that it was nearly impossible to invest in the market. This being a factor in causing companies to terminate their employees swiftly, and if an individual remained employed, their wage decreased dramatically below the minimum wage. Many counterparts had invested in the stocks with loans or borrowed money, and when the market crashed, their share had been utterly wiped out, leaving them with absolutely no money. Individuals who had their money in banks, became skeptical of the banks and started to withdraw their money, to preserve their remaining savings. This, causing the banks to have to take out loans from bigger banks so that they could pay the individuals their money.

Read More

Great Depression Dbq Essay

615 Words | 3 Pages

Fortunes disappeared within days and people surrounded the banks in an effort to withdraw their life savings which was often too late causing panic. This caused the political, economic and social organizations in the US to collapse to all-time

Read More

DBQ Great Recession

624 Words | 3 Pages

The Great Recession was a period of general economic decline observed by world markets beginning around the end of the first decade of the 21st century. The recession was a result of a financial crisis in 2007 which effected the years to come . The primary source of this problem was that banks were creating too much money. In addition, banks had doubled the amount of money and debt in the economy. Resulting in a financial crisis as the government and banks had failed to constrain the financial system’s creation of private credit and money.

Read More

Great Depression Dbq

460 Words | 2 Pages

When the stock market crashed, wealthy people had all their saved money wiped. People couldn’t really take loans out because they were in debt owing money to the bank. After banks shut down, then local stores, factories, and restaurants all shut down. This then escalated into unemployment. Over 600% of citizens were unemployed and had no income.

Read More

Jon D. Wiseman And The Great Depression

878 Words | 4 Pages

The timing of these failures, the bank’s lack of dealing with them effectively, and the brevity of the Stock Market Crash caused the economy to suffer

Read More

New Deal Dbq

1583 Words | 7 Pages

The Great Depression, which lasted from 1929 to 1939 was undoubtedly the worst depression in the history of this country. It is widely agreed upon that the first event which started the economic downturn was the crash of the stock market on the 24th of October of 1929. In the same year, more than 700 banks failed, and the next year (1930), the same unfortunate fate struck another 3,000 banks. At this time, bank failure meant the loss of money for the common people. Knowing this, people panicked and rushed to the banks to withdraw money from their accounts.

Read More

New Deal Dbq

776 Words | 4 Pages

After the stock market crashed, the country and its people lost everything and became greatly in debt. The United States stock market took a huge downfall when it crashed on October 27, 1929 (Leuchtenburg). People who

Read More

How Did Hoover Cause The Great Depression

683 Words | 3 Pages

half of its value in a month (Oakes 719). During the 1920s, the shift from an agricultural economy to a consumer goods based economy was taking place (Oakes 719). The shift caused crops to be valued very low, causing many people being to be unemployed, spending of what little savings they had, and then relying on “rickety credit and financial systems” (Oakes 719-720). Something very similar can be observed between the cause of the great depression and the most recent economic disaster. In both disasters, banks made risky investments or gave out risky loans, which lead to a much more disastrous financial meltdown (Oakes 720).

Read More

Great Depression Dbq

927 Words | 4 Pages

The companies kept pushing higher prices than what their products were really worth. This lead to the stock market crash. This meant workers were fired, wages cut, and business went out of business. After the stock market crashed, Americans lost trust in their banks to hold their

Read More

Great Depression Dbq

1331 Words | 6 Pages

Because they could no longer continue to expand, a slowdown was inevitable. While profits went up, wages increased – which widened the distribution of wealth. Because banks didn’t have guarantees with their customers, a situation was created causing most people to panic when times got hard. Very few regulations were placed on banks, enabling people to spend money recklessly in the stock markets. This series of events set off the worst economic downturn in the history of the industrialized world (History.com, par.

Read More

Sharecroppers During The Great Depression

294 Words | 2 Pages

In the year of 1929, an estimated nine thousand banks failed and were shut down shortly after the stock market crash. Just a few months later, The Great Depression struck America. Everyone throughout the states were effected by this change in economy. Some, in different ways than others but none of which were effected in a positive way. Sharecroppers were forced out of their homes due to crops not being as worthy as they were before the stock market crash and struggled to produce food and supplies for there families.

Read More

Great Depression Dq

643 Words | 3 Pages

Financial and economic crises are not unfamiliar to the U.S economy, as they almost appeared in a cyclical way at various times throughout the centuries, shaking many times the foundations of the country. Concerning the Great Depression 1929-1933, let us remember that on 29 October 1929, billions of dollars turned into dust. Before the crisis’ years, the market "The Dow" was turning endless of people into millionaires. This kind of market turned into the hobby of many ignorant people who knew nothing about the stock market. When the government entered the “game” trying to calm things down by increasing the interest rate, panic rose.

Read More

Great Depression Effects On American History

1055 Words | 5 Pages

Banks and companies went out of business, and banks refused to lend any money. Stock prices fell rapidly in the New York Stock Exchange, causing that to wipe out millions of investors. This caused a surge of panic as people had invested almost all of their money in the New York Stock Exchange. By then, there were millions of people on the streets, because they couldn’t afford to pay their mortgage payments. Environmental issues were not any help either.

Read More

Lehman Brothers: Financial Fraud In 2008

2178 Words | 9 Pages

Pressure Lehman Brothers was one of the largest investment banks in the world, so expectation and pressures of reporting positive financial results that apply to a bank of that magnitude are intense. Were a bank of this size to have a poor reporting period it would have a significant impact on its quoted share price. In the years leading up to 2008, Lehman Brothers invested heavily in the US sub-prime mortgage market. Were they lent large sums of money to individuals with the purpose of becoming homeowners, it was seen as a quick way of making money as they would group a lot of the mortgages together, sell them on to other banks and make a profit.

Read More

More about How To Write An Essay About The 2008 Financial Crisis

Related Topics

Open Document