What is the global financial crisis?

The global financial crisis concerns the widespread economic emergency, which began in 2007. Starting with an accident of the United States financial system, the crisis has spread rapidly throughout the world due to the connected markets of modern global business systems. It is still impossible to fully explain the effects of the global financial crisis, as the disaster is still damaging and prevents markets around the world several years after the initial event.

In the United States, a number of complicated factors lead to the almost simultaneous collapse of the banking industry, financial market, housing system and other related markets. Although the causes are still very argued, this event undoubtedly radiated to the global market almost immediately. The United States traditionally plays an extremely influential role in global trading in shares and the financial industry, which means that the collapse had devastating effects not only in depositing around the world.

The extensive effects of the global financial crisis have really begun to take off at the end of 2007,When food and fuel prices began to rise around the world. Even factors that may seem smaller, such as the increase in fertilizer prices, began to harm the import of food and the industry of crops in developing countries around the world. As the US financial crisis deepened during 2008, banks and financial organizations tried to reduce spending, especially in foreign investments. This disadvantage has intensified the global problem, as many economies rely strongly on US foreign investment in survival.

While the economic melting of America was a huge factor, the crisis could be more detained, not if the functioning of the global trade. While the poor and developing nations suffered from the loss of US investment, the rich country ALSO was worn by the loss of such an impact of a business partner. When wealthy countries began to feel effects, they also attracted back to foreign investment to makeThey protected domestic assets, leading to other problems with the development world.

worldwide, the global financial crisis has caused extensive decreases in production, trade and capital. Unemployment has risen in many areas, while consumer prices for many basic needs such as food and fuel have continued to grow. The level of poverty and starvation has increased, albeit in rich countries of recovery and growth remained slow.

The effects of the global financial crisis have not yet been fully explained or solved. More confusing, although the timelines of related accidents are recorded, the cause of the event is warmly discussed among economists, financial professionals and politicians. Without a complete and comprehensive understanding of the factors that caused the global financial crisis, some experts feel that the world remains very vulnerable to another such disaster.