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The global crisis occurs when people aren't buying enough goods and services. This then puts business in a bad situation because the demand for goods and services are down and people are saving their money instead of spending it. It's basically when a recession happens and the crisis is that the economy is not coping and business isn't coping. People need more money so that's why the government gives out stimulus packages of money so people can buy goods and services and the economy picks up.
Wiki User
∙ 12y ago
Wiki User
∙ 14y agosituation in which the economy of a country experiences a sudden downturn brought on by a financial crisis. An economy facing an economic crisis will most likely experience a falling GDP, a drying up of liquidity and rising/falling prices due to inflation/deflation. An economic crisis can take the form of a recession or a depression. Also called real economic crisis. See also collapse, recession, depression.
Wiki User
∙ 15y agoThe 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.
Wiki User
∙ 15y agocan you send me the factors that affect the global crisis
Wiki User
∙ 15y agoWhat_causes_global_economic_crisis
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What is a economic crisis?
Economic crisis is wherein there is negative GDP growth lasting for two or more quarters. It is severe recession or depression.
What do you mean by global economic crisis?
in July 2006
What is the definition of ECONOMIC ASPECT?
Entrepreneurs economic aspects
Have the latest economic crisis affected Disneyland California?
Yes
What is the definition of Economic Demand?
no answer
Definition of environmental crisis?
what is a proper definition of environmental crisis
Do you agree that we are now in the economic and financial crisis?
Yes I do believe we are in a economic crisis
Is high education the solution to economic crisis?
Personally, yes education is the solution to economic crisis.
Is Ireland having a crisis?
yes! economic crisis
When will the crisis over?
You have to be more specific when you are talking about "crisis". Do you mean the economic crisis?
What is the difference between a financial crisis and an economic crisis and which of both affects the other most?
A financial crisis is when wall street and the banks are failing. An economic crisis is when there is high unemployment or a recession.
Does credit have anything to do with economic crisis?
The economic crisis has severely affected the availability of credit. It is also termed as the credit crunch.
What is the definition of crisis planning?
Planning for a crisis. Glad I could help.
The daWES PLAN OF 1924 SHOWED AMERICAS?
concern over Germany's economic crisis
What is a economic crisis?
Economic crisis is wherein there is negative GDP growth lasting for two or more quarters. It is severe recession or depression.
Fannie Mae and Freddie Mac were not the reason behind the economic crisis.?
Fannie Mae and Freddie Mac were not the reason behind the economic crisis.
The meaning of financial meltdown?
Financial meltdown is another term used for a financial crisis. You can compare the performance of the financial markets with the burning of a candle. The world economy and financial markets were in a bad mess a few months back due to the subprime economic crisis. Investment Banks went bust, home loan foreclosures and defaults were at their peak, stock markets crashed, etc etc
