Scribd Logo
Upload

Welcome to Scribd!

  • 165 views

    Presentation About Financial Crisis 2008

    Uploaded by

    Schanzae Shabbir
    The document summarizes the causes and consequences of the 2008 financial crisis. It discusses that flexible monetary policy and the formation of a real estate bubble led to lower interest rates and rising house prices, fueling subprime mortgages. When the housing bubble burst, home prices fell and many homeowners owed more than their houses were worth. This led to the collapse of major financial firms like Bear Stearns and the nationalization of Fannie Mae and Freddie Mac. The crisis had widespread consequences, including a global recession, plunging commodity prices, destabilized interest rates, falling real estate values, and the reconstruction of financial systems.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Presentation About Financial Crisis 2008

    Uploaded by

    Schanzae Shabbir
    165 views16 pages
    The document summarizes the causes and consequences of the 2008 financial crisis. It discusses that flexible monetary policy and the formation of a real estate bubble led to lower interest rates and rising house prices, fueling subprime mortgages. When the housing bubble burst, home prices fell and many homeowners owed more than their houses were worth. This led to the collapse of major financial firms like Bear Stearns and the nationalization of Fannie Mae and Freddie Mac. The crisis had widespread consequences, including a global recession, plunging commodity prices, destabilized interest rates, falling real estate values, and the reconstruction of financial systems.

    Original Description:

    Presentation Type

    Original Title

    Presentation about Financial Crisis 2008

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes the causes and consequences of the 2008 financial crisis. It discusses that flexible monetary policy and the formation of a real estate bubble led to lower interest rates and rising house prices, fueling subprime mortgages. When the housing bubble burst, home prices fell and many homeowners owed more than their houses were worth. This led to the collapse of major financial firms like Bear Stearns and the nationalization of Fannie Mae and Freddie Mac. The crisis had widespread consequences, including a global recession, plunging commodity prices, destabilized interest rates, falling real estate values, and the reconstruction of financial systems.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    165 views16 pages

    Presentation About Financial Crisis 2008

    Uploaded by

    Schanzae Shabbir
    The document summarizes the causes and consequences of the 2008 financial crisis. It discusses that flexible monetary policy and the formation of a real estate bubble led to lower interest rates and rising house prices, fueling subprime mortgages. When the housing bubble burst, home prices fell and many homeowners owed more than their houses were worth. This led to the collapse of major financial firms like Bear Stearns and the nationalization of Fannie Mae and Freddie Mac. The crisis had widespread consequences, including a global recession, plunging commodity prices, destabilized interest rates, falling real estate values, and the reconstruction of financial systems.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    Greeting Ladies and

    Gentlemen !
    [Name of the Writer]
    [Name of the Institute or Organization]

    1
    1

    Financial Crisis 2008


    Table of Content
    3

    ◈ Reasons for Financial Crisis


    ◈ Developments of Financial Crisis
    ◈ Consequences of Financial Crisis
    ◈ Short Term and Long Term Consequences
    Reasons of Financial Crisis
    4

    ◈ Flexible monetary policy of US extended


    for a long period.
    ◈ Formation of Real Estate Bubble took
    place.
    Reasons Continued
    5

    ◈ Lower Interest Rates


    ◈ Increasing the borrower to buy more
    houses
    ◈ Prices of the house started to rise
    ◈ Subprime Mortgage rapidly developing
    Outbreak of derivative securities
    6

    ◈ MBS + CDS = closed relation between the real


    estate market and financial market. (Money,
    Banking, and Your World)
    7
    Reasons Continued
    8

    ◈ Burst of Real state Bubble


    ◈ Reduction in the prices of the house
    ◈ Value own house couldn’t offset value of
    loans
    ◈ Reduction in the prices of Bond and Stock
    Development of Financial Crisis
    9
    Bear Stearnes Fanie Mack and FEB spent
    was forced to Freddie Mack around $200
    sell itself were billion as a
    To JP Morgan Nationalized lifeline for these
    for $10 per companies
    share
    Development of Financial Crisis
    10

    • US economy fell into a recession of around


    0.3%
    • Japanese official announced a fall in recession
    with continuous negative growth.
    Consequences of the Financial Crisis
    11

    ◈ Financial System of the Country Collapsed


    ◈ Prices of most of the commodities were plunged
    ◈ Interest rate were destabilized
    ◈ Real estate prices plumaged. (Bartmann, 2017)
    Country Interest Rates 2007 Interest Rates 2008

    America 5.35% 0.25%

    England 5.5 2.00%

    - - -

    12
    Consequences of Financial Crisis
    13
    ◈ Reconstruction of Financial Corporations in
    European Countries. (Allen, 2009 )

    ◈ Fiscal Policy – reducing tax and increasing the


    subsidies
    Consequences of Financial Crisis
    14

    ◈ Lead to the Financial Crisis in Asia


    ◈ Goods Price Fell
    ◈ Investors were discouraged
    ◈ Anti Globalization
    Consequences of Financial Crisis
    15

    ◈ Undercover Banks
    ◈ Public Debt
    ◈ Lack of Structure Reforms
    ◈ Vulnerable Economy
    References
    16

    Allen, F. (2009 ). An Overview of the Crisis:.

    Bartmann, R. (2017). Causes and effects of 2008.

    Money, Banking, and Your World. (n.d.). The Saylor Foundation.

    You might also like