The Financial Crisis Of 2008 Essay - 2553 Words

When you think of the 2008 financial crisis that affected not just the US economy, but the world as a whole, most average middle-class Americans won’t really know what triggered this economic disaster. Most will probably blame, and rightfully so, those large corporations on Wall Street. These corporations, which deal with insanely large amounts of money, will always be wary of their stocks decreasing. But they also know that 99% of the time, everything will go back to normal in the future. What they are not prepared for is economical collapses like we say in the year 2008. The financial crisis of 2008 can be compared to the stock market crash of 1929, the event responsible for the Great Depression. The financial crisis of 2008 can mainly be attributed to what would be the mortgage market collapse. The exposures for these large Wall Street corporations were too high, and when the bubble finally burst, trillions of dollars were lost. The company that lost the most: Lehman Brothe rs. For a company as large as Lehman Brothers was, one has to wonder how this could have possible occurred. Surely there were red flags along the way that could have prevented this, right? The answer is yes. The media reported on events that would have lead you to believe that trouble was coming for Lehman Brothers, but truth be told, no one really knew that it would result in the company ending up bankrupt. Everything from having a front row seat to watching another giant like Bear Stearns fail, toShow MoreRelatedThe Financial Crisis Of 20081384 Words   |  6 PagesThe turmoil in the financial markets also known as the financial crisis of 2008 was considered the worst financial crisis since the Great Depression. Many areas of the United States suffered. The housing market plummeted and as a result of that, many evictions occurred, as well as foreclosures and unemployment. Leading up to the financial crash, most of the money that was made by investors was based on people speculating on investments like real estate, stocks, debt buying, and complex investmentRead MoreThe Financial Crisis Of 20081747 Words   |  7 PagesThe economic crisis of 2008 was one for the ages, it changed the world of investing forever. That year, the stock market crashed, bank failures and the infamous wall street bailout that can all be traced back to the subprime mortgage crisis.. The 2008 economic crisis rocked the global economy for the worst, and to this day the United States is trying to recover from the impact that the crisis had. In order to understand why exactly the banks failed people have to understand the subprime mortgageRead MoreThe Financial Crisis Of 20081817 Words   |  8 PagesThe financial crisis of 2008 did not arise by chance. The meltdown was precipitated by systematic striping away of the New Deal era policies of bank regulation. Most notable of these deregulatory acts was that of the Gramm-Leach-Bliley Act of 1999. This bill repealed the legislation which held commercial banks and investment banks separate. As the beginning of the 21 century approached many bankers clamored for an end to the policy of the â€Å"firewall† between Investment and commercial banks. Gramm-Leach-BlileyRead MoreFinancial Crisis 20085972 Words   |  24 PagesCORPORATE FINANCE THE GLOBAL FINANCIAL CRISIS 2008 Group’s member:Nguyá »â€¦n NhÆ ° Nam (C)Phan Thu AnNguyá »â€¦n Thà ¹y DungHoà  ng Bà ¡ SÆ ¡nNgà ´ Thá »â€¹ à nh Tuyá º ¿tDate: 28/11/2014 | AbstractIn 2008 the world was fell into the worst financial crisis since the Great Depression of 1929-1933. Although this crisis has gone, however, its consequences for the economy of many countries is very serious, even now many nations are still struggling to escape difficulty. Just in a short period, the crisis originating from AmericaRead MoreThe Financial Crisis Of 2008 Essay2044 Words   |  9 PagesThe 2008 financial meltdown resulted in the most treacherous investment landscape observed since the great depression. The most notorious issue was the subprime mortgage crisis, which had a ripple effect felt through every market in the world. The banks, whose leverage rate should never have been higher than two times capitalization, surged as high as thirty to forty times market cap. With this level of exposure, any unforeseen market fluctuations could mean disaster. Lehman Brothers, the oldestRead MoreThe Financial Crisis Of 20081125 Words   |  5 PagesA mortgage meltdown and financial crisis of unbelievable magnitude was brewing and very few people, including politicians, the media, and the poor unsuspecting mortgage borrowers anticipated the ramifications that were about to occur. The financial crisis of 2008 was the worst financial crisis since the Great Depression; ultimately coalescing into the largest bankruptcies in world history--approximately 30 million people lost their jobs, trillions of dollars in wealth diminished, and millions ofRead MoreThe Financial Crisis Of 20081689 Words   |  7 PagesOur society seems to doing well since the financial crisis of 2008. The country is recovering from the Great Recession, unemployment is down and the global domestic product is up. People have jobs and are paying taxes. President Obama lowered our budget deficit and promised to make healthcare more available to all. On average, America is well on its way to recovery. But what about the people that slipped through the cracks of the financial stimulus pl an? These are the people that lost their jobsRead MoreThe Financial Crisis Of 20082083 Words   |  9 PagesEver since the economic virus called â€Å"negative interest rates† scattered over European and later Japanese banks, our economic system has been the most unstable since the financial crisis of 2008. The virus, negative interest rates, is a concept in which the central bank charges interest in borrowing money and holding an account. It was brought forth in efforts to increase economic growth by giving commercial banks a tax on the large amount of reserves they hold in the bank. In other words, commercialRead MoreFinancial Crisis of 20081794 Words   |  8 PagesThe Financial Crisis of 2008 was the worst financial crisis since the Great Depression, however a lot of American’s want tougher law of be enforced against executives and companies they think started the mess (Jost/Misconduct). Civil charges have been brought up against major banks for misleading invest ors, but a federal judge rejected a proposed settlement saying it was too lenient (Jost/Misconduct). The flood of subprime mortgages roiling the housing market in the U.S. is also causing the worldwideRead MoreThe Financial Crisis Of 20081946 Words   |  8 PagesThe world before the financial crisis of 2008 had stability. Iceland in 2000 was viewed as the perfect place to live and have your family grow. Iceland had clean energy, high standard of living, jobs, and low government debt. Iceland was a place were children played and parents laughed and enjoyed their life. Everyone lived well; Iceland was the role model of finance, until it all melted away. Iceland let giant corporations come into its territory and exploit its geothermal and hydroelectric resources