Financial Crisis of 2008 - Essay Example

Running Header: Financial Crises of 2008 Name: “2008 Financial Crises' Date Module The 2008 Financial crisis were one of the toughest economic crises faced by the big economy of United States of America.... (NY, 2009) Credit Default Swaps are one of the most risky instruments that were common in the United States of America's financial system prior to the 2008 financial crises.... MBS or Mortgage Backed Securities were another fancy term used in the era prior to the 2008 financial crises....

In this essay 'Housing Markets in the Financial Crisis of 2008' the causative circumstances of the bubble are described.... In simple terms, the logic governing the growth of the housing bubble was one such that the wealthy were spending the money they had accumulated from the favorable stock markets (Baker, 2008, 73).... The supply of housing is, of course, fixed so this therefore meant that the sudden increase in demand was likely to cause the housing bubble effect (Baker, 2008, 73)....

The US financial crisis was a process and not an event.... The combination of the diverse factors led to a toxic potent mix that eventually reached a tipping point in September 2008, heralding the beginning of the full-blown financial crisis.... Another factor leading to the outbreak of the financial crisis is deregulation of the financial sector and the markets.... 2008, when a number of large financial institutions based in the US collapsed....

in the past thirty five years is supposed to be the underlying cause of the current financial crisis [Wisman &Barker, 2008].... [Wisman &Barker, 2008].... In the 1930s, it was the greed of the common man that led to the Recession, while in 2008, it was the greed of the investment bankers and other financial wizards that led to the recession.... In another article, Saving Private Savings, or, The God That Failed he discusses at length the plausible reasons reasons for the current economic crisis....

When the biggest financial crisis in US history hit the headlines in the Fall of 2008, the world's greatest financial gurus pointed fingers in disbelief as if the headlines in the Wall Street Journal were the first inclination they had that a major problem was boiling just beneath the balance sheet.... It looked just like the kid that suddenly got caught with his hand in the cookie jar groping in shock for the words that just won't come and simply mumbles; When the biggest financial crisis in US history hit the headlines in the Fall of 2008, the world's greatest financial gurus pointed fingers in disbelief as if the headlines in the Wall Street Journal were the first inclination they had that a major problem was boiling just beneath the balance sheet....

The idea of this research emerged from the author's interest and fascination in how the adoption of the capitalist system of the economy led to high levels of mortgages and securitization problems in the economy which, in turn, made way for the financial crisis to hit the world.... The financial crisis, therefore, hit China hard.... The cause of the global financial crisis can be ascribed to a number of factors like the Housing Bubble, the Subprime Mortgage Crisis, the global macroeconomic imbalances (Acharya, 2009), incorrect pricing of risk, financial innovation and complexity and heavy reliance on leverage....

"The Causes of the Economic Financial Crisis of 2008" paper identifies what case can be made that it was the lack of regulation of the banking sector that led to the Financial Crisis of 2008-9 and the new regulatory structures that are being proposed in the US and the UK.... In looking at The Financial Crisis of 2008-9, which started in the US and then spread out to affect the UK and other regions globally, one can make many cases for blame.... A case can be made that it was the lack of regulation of the banking sector that led to the Financial Crisis of 2008-9....

This essay "The Financial Crisis of 2008" examines the issues related to the mortgage crisis and the impending threat of bank failures, all bought on by the global Financial Crisis of 2008.... There are many lessons to be learning from the Global Financial Crisis of 2008.... The aptly termed 'housing bubble' in the United States is considered by many economists to be the precipitating factor in causing the global financial crisis in 2008....