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Essay example - financial marketing
Pages 12 (3012 words)
Financial Marketing Table of Contents Table of Contents 2 Part A: Causes and Consequences of Crises in the Financial Markets 3 A.1: The ‘Credit Crunch’ 3 A.2: Mechanics of the Crunch 4 A.3: Responsibility for the Crunch 7 Part B: The Political Economy of Financial Markets 10 B.1: The Contribution Which a Well-Functioning Financial Market Can Make To an Economy 10 B.2: The Role of Global Financial Markets in Economic Globalization and an Evaluation of the Gainers and Losers of Such Economic Developments 11 References 14 Part A: Causes and Consequences of Crises in the Financial Markets A.1: The ‘Credit Crunch’ A credit crunch is usually identified as a reduction in the availability of …
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In relation to the situation of credit crunch, it is usually observed that lenders are unable to provide adequate credits to borrowers, resulting in lessening their purchasing power. The term ‘credit crunch’ is recognised as a sudden restriction in the availability of various elements linked with credits or loans that include credit cards, inter-bank lending along with mortgages due to lack of financial liquidity. Thus, credit crunch is a situation wherein the availability of loans reduces by a considerable extent and accordingly, results into the condition of depression or recession (Cava, 2013). The quotation ‘‘… the 2007 credit crunch is generally considered to have been triggered by losses on subprime mortgages in the USA, but its impact was too wide and too deep to be explained by losses in that sector alone” imply shortage of credit in the US economy (Pilbeam, 2010, pp. 427). This particular concern or issue i.e. ...
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