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Today's Crisis - 2009 vs. 2007 Crisis - Essay Example
Finance & Accounting
Pages 8 (2008 words)
The financial crisis of the period 2007 and 2008 has been an outcome of credit crunch and liquidity crisis mainly in the United States. This crisis has been generated in the United States at the beginning and then it spread through the entire World…
Some of the biggest financial companies of the world, including Lehman Brothers and Merrill Lynch, have collapsed completely during this time (Savona et al., 2011, p.295). The crisis situation involves large number of aspects from restructuring of financial markets to that of economic policies across the globe (Kent et al., 2011, p.128). This decline has caused the decline in the financial as well as monetary system of countries across the globe. The financial crisis of 2009 has been a continuation of the financial crisis of 2007. This crisis has occurred because of the failure of world financial system to cope up with the growing level of demand for different goods and services and capital accumulation. This fact has been accelerated by the fact that during this time the rate of unemployment across the globe has reached a very high level (Poole, n.d., p.442). This paper is aimed at providing an analytical perspective of the crises situations. Global effects: The world economy has been facing a 30% risk of entering into the depression. This figure has been coined according to the “Economist Intelligence Unit”. The London consultancy has defined the fact that an economic or a financial depression as growth or development process in the developed as well as developing world averaging lower than 1% per year between the time period of 2009 and 2013. ...
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