Current global economic crisis

Answer 1

The Subprime Mortgage Crisis is an ongoing economic problem that has become more apparent in 2008 and has resulted in reduced liquidity in the global credit market and also the banking & financial systems. This crisis has exposed the weakness in the global financial system and also the regulatory framework that is overlooking them. Some of the reasons for this crisis are: 1. The US real estate market crash 2. High default rates on Subprime loans & 3. Subprime Mortgage backed securities

Answer 2

The Subprime Mortgage Crisis is an ongoing economic problem that has become more apparent in 2008 and has resulted in reduced liquidity in the global credit market and also the banking & financial systems. This crisis has exposed the weakness in the global financial system and also the regulatory framework that is overlooking them.

Some of the reasons for this crisis are:

1. The US Real estate market crash

2. High default rates on Subprime loans &

3. Subprime Mortgage backed securities

A Subprime loan is a loan that is granted to a borrower who does not qualify for loans owing to a variety of risk factors like low income level, bad credit history etc.

Answer 3

The term 'global economic crisis' refers to the current period of global recession from a period of very fast growth, brought on by poorly controlled economic conditions.

Although it was present in many of European countries, the main cause is said to be irresponsible 'sub-prime' lending by banks and financial institutions in the USA, as it was made viable economically if lenders did not realistically expect a return.

As a result, the crisis deepens as confidence in all markets drops, causing a chain reaction that started in the finance sector.

Answer 4

Global economic crisis refers to an economic scenario where the economies of countries all over the world have taken a beating. The GDP's of countries are going down are in -ve zone.

There is severe liquidity crunch and countries & governments around the world are frantically taking steps to combat this issue

Answer 5

what is your view on the current global economic crisis?

Answer 6

It shows that capitalism is uncontrollable and unpredictable.