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Wall Street And The Financial Crisis Research Paper

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Wall Street and the financial crisis

Hussain Alansari
Submitted to
Ian shears

In fulfillment of course requirements for academic writing & presentation skills AWP100
Background
In this essay, I will talk about the financial crisis of 2008. In the fall of 2008, America endured a staggering monetary breakdown, that’s when profitable securities lost most of the majority of their worth, obligation markets solidified, securities exchanges dove, and storied money related firms went under. A large number of people lost their works many great families lost their houses, and great organizations shut down. These occasions cast the United States into a monetary subsidence so profound that the nation has yet to completely recuperate. By utilizing …show more content…

Further, the financial crisis of 2008 is the worst crisis since the great depression in 1930s. This essay will also cover the causes of the crisis and the reasons. The first causatives are Fannie Mae and Freddie Mac from mortgage lending issue. Second causative is Moody’s and Standard & Poor’s from inflated credit ratings issue. Last causative is Lehman brother from bankruptcy. Further, after covering the causes of the crisis and the reasons, which had an impact on US financial market and its effects on U.S. economics. The essay includes some strategy and solutions to handle this issue and it is to use the financial rescue plan, which was drafted by US Treasury Secretary Henry Paulson. These solutions consisted of three steps: first is Devalue, second inflate, and third default. To save the US financial system these steps must be followed. The Financial Crisis of 2008 has affected the (GDP) gross domestic product, financial markets, and the housing market as a result of the breakdown in the level …show more content…

A credit rating can be appointed to any substance that looks to get cash – an individual, company, state or common power, or sovereign government. Credit appraisal and assessment for organizations and governments is by and large done by credit rating agencies, for example, Standard and Poor's, Moody's or Fitch. These rating organizations are paid by the element that is looking for a rating for itself or for one of its obligation issues (according to INVESTOPEDIA). The credit assessment it's so important, the Credit evaluations for borrowers depend on significant due tirelessness led by the rating organizations. While a borrower will endeavor to have the most astounding conceivable credit rating since it majorly affects loan fees charged by banks, the rating organizations must take an adjusted and target perspective of the borrower's budgetary circumstance and ability to benefit/reimburse the obligation, or we can say the credit rating it put you, organizations and government in the loop about their debt. According to (CNBC) the credit rating agencies is the second causative of the financial crisis 2008. The three credit rating agencies made the crisis more dangerous with five things. Firstly, inaccurate rating models which is From 2004 to 2007, Moody's and S&P utilized credit rating models

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