External Factors and Internal Factors The 2008 great recession had caused several economic downturns to many financial institutions, which forced to go out of business or filed a bankruptcy protection. This financial crisis had caught many economists off-guarded the severity of financial damages that the crisis created. There were numerous factors that caused the financial collapse included the over-heat real estate market, the mortgage-back security products, the loose monetary policy, the questionable regulation, the family borrowing beyond their mean, and other imminent factors led to the global crisis. David and David (2015) insist that external factors need to include actionable elements, such as GDP numbers, unemployment percent, real earning, interest rates, or other key statistics.
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These mortgage products generated unaffordable payments, higher interest rates, and increasing principles in the future. Because of these negative occurrences, many consumers default their payments and foreclosed their properties. Equally, financial institutions were starting to note their earnings began to decline significantly, absorbed major financial losses, and filed bankruptcy protections.
Regarding internal factors include the financial ratios, customers purchase demands, business expenses, sales percent, and other internal concerns that may weaken the organization?s outlooks (David and David, 2015). Many economists had downplayed any financial drawn down prior to the 2008 economic catastrophe. In consequences, the intensity of financial downturns had wiped out more than 6 trillion dollars in assets. Base on the assessment of the internal and external factors in the 2008 great recession, the external factors were outpaced the internal factors in terms of financial damages, job losses, and financial
These mortgage products generated unaffordable payments, higher interest rates, and increasing principles in the future. Because of these negative occurrences, many consumers default their payments and foreclosed their properties. Equally, financial institutions were starting to note their earnings began to decline significantly, absorbed major financial losses, and filed bankruptcy protections.
Regarding internal factors include the financial ratios, customers purchase demands, business expenses, sales percent, and other internal concerns that may weaken the organization?s outlooks (David and David, 2015). Many economists had downplayed any financial drawn down prior to the 2008 economic catastrophe. In consequences, the intensity of financial downturns had wiped out more than 6 trillion dollars in assets. Base on the assessment of the internal and external factors in the 2008 great recession, the external factors were outpaced the internal factors in terms of financial damages, job losses, and financial