Question

In what ways has the 2008 global financial crisis affected the world, U.S. and WI?

Answer 1

The 2008 global financial crisis had been the biggest since the great depression of the 30's and the effect of it was felt and seen far and wide across the globe.

There are number of ways the financial crisis affected the world, US and WI

a)

The asset prices have fallen to the floor and there were very few takers for financial assets as well are real assets.

b)

As there was excess leverage and borrowing, the borrowings were controlled and credit was tightened across the globe

c)

As the asset prices fell to the floor, the stock markets across the globe fell to their record levels thus making it increasingly challenging for firms to raise capital

d)

Since the crisis spilled over into the real economy, it was followed by recession in US and downturn in other markets. Europe also had to go through recession

e)

The statistical organizations like S&P, Moody and the investment banks all came under the global radar and the perverse pay compensation of the executives came under regulatory scrutiny.

f)

The fed in the US and other central banks in the rest of the world began to follow loosening of credit policy to enable more credit to real sector and to bring back the economy from the brink of depression.