Burak Ãetin
MSc International Business
IBS, Budapest
8 November , 2014
2008 Financial Crisis
Bank failures, billions of dollars soared, global growth lowered, impotent governments. Financial
capitalism is in crisis.Media loop line numbers of the crisis, the stock market falls, the huge losses
of some banks without necessarily really explain What is happening in simple terms. But what are
the reasons of the global financial crisis? . And could it prevent ? The main cause of the crisis is the
collapse of the US mortgage market. About four years ago the banks and the US government began
to give a lot of loans for the purchase of property, financial liberalization occurred.
In its report on the world economy, the International Monetary Fund does not mince words and
defines the economic crisis of recent months (in 2008) as "the worst since the 1930s." The Fund
describes a global economy slowing down, at a pace that many experts consider the edge of
recession because of the most dangerous financial shock in advanced economies from the thirties.
For many years, central banks have proposed rates' extremely low interest pushing many people
into debt for the 'purchase of the house of' car, etc ( Ouarda ,2010).
Suddenly, in a few months, the bankers have begun to raise interest rates to put into serious
difficulties that many families, especially in the US, have not been able to pay the installments of
their mortgage and so they lost the property purchased . Many people have found themselves
suddenly poor, the salary was suddenly insufficient for their needs, even basic ones, and so the
'economy began to "turn" less. Less money and fewer purchases in a short time they sent in crisis
many companies have been forced to close or lay off workers due to lack...