Essay on Financial Crisis 2008

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Banking Academy | City University of Seattle |


THE GLOBAL FINANCIAL CRISIS 2008 Group’s member:Nguyễn Như Nam (C)Phan Thu AnNguyễn Thùy DungHoàng Bá SơnNgô Thị Ánh TuyếtDate: 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 America has spread to all continents. It led to a series of serious consequences such as the falling in stock markets, increasing in unemployment rates, large financial institutions had been
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The initial reason was the difficulties in the U.S subprime mortgage market, rapidly clambered up and spilled over first to financial markets and after that to the real economy in all over the world. The crisis actually changed the financial landscape worldwide and now its consequences are still not evaluated fully. The effects are still being felt today, however, people do not really understand about this serious crisis and they often make mistake with the Economic crisis event. Hence, the objective of this case study is launch the clearly view about the Global Financial Crisis 2008. In order to clarify it, this paper will be separated into four parts: the reasons, the development, the consequences and the lessons drawn from this terrible event.
To understand the occurrence easily, we should know about what is financial crisis first. Theoretically, it is a situation in which the value of financial assets or financial institutions drops rapidly in a short time. According to (Kose, 2013), a financial crisis is often associated with a run on the banks, in which investors sell off assets or withdraw money from their savings accounts. And it leads to the collapse of the financial system.
A financial crisis is related to financial structure, affects international capital flows and impacts on the collapse of financial institution and the real economy. On the other hand, an economic crisis is related to economic

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