“A recession in the U.S. economy began in late 2007. Concerns deepened as an epic financial crisis shattered the confidence of businesses and consumers. In the fall of 2008, the United States, in the midst of the worst recession since 1930, and major financial institutions were on the verge of bankruptcy. Financial crisis and recession spread worldwide. risk Many saw the global financial system could collapse, possibly precipitating a repetition of the economic devastation along the Great Depression of the 1930s. governments have responded by creating a huge stimulus that greatly increases the deficit and the national debt, and loosening of monetary policy with near zero interest and huge tracts of the money supply. In its efforts to save the financial system, governments have also offered to bail out banks, including loans, guarantees and equity. For fall 2009, the crisis has stabilized, and the appearance of “” green shoots “” promised recovery . In 2010, it was possible to the financial crisis in perspective, and to examine the causes and consequences. Of particular concern is whether new regulations to prevent a repeat may be necessary, and if some of the strictest regulations must be international in scope. A related concern is whether non-bank financial institutions and banks these rules should apply. Governments have also sought to determine how to get out of the unique fiscal and monetary positions that now seemed to put their economies at risk of deficiency courses and future inflation. ”
by
Danielle Cadieux,
David W. Conklin
Source: Ivey Publishing
11 pages.
Date Posted: January 15, 2010. Prod #: 910M08-PDF-ENG
The Great Recession, 2007-2010: causes and consequences of the event Solution
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