Question

The 2008 global financial crisis and the Great Recession since then have been devastating. However, not all industries and not all firms have suffered. Some may have benefited from these events. Write a short paper describing how some industries and firms may have profited from the crises and the recession.

Answer 1

Financial crisis of 2007–2008

This article is about the financial crisis that peaked in 2008. For the global recession triggered by the financial crisis, see Great Recession.
The TED spread (in red) increased significantly during the financial crisis, reflecting an increase in perceived credit risk
World map showing real GDP growth rates for 2009 (Countries in brown were in recession.)

The financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.[1][2][3][4]

It began in 2007 with a crisis in the subprime mortgage market in the US, and developed into a full-blown international banking crisiswith the collapse of the investment bank Lehman Brothers on September 15, 2008.[5]Excessive risk-taking by banks such as Lehman Brothers helped to magnify the financial impact globally.[6] Massive bail-outsof financial institutions and other palliative monetary and fiscal policies were employed to prevent a possible collapse of the world financial system. The crisis was nonetheless followed by a global economic downturn, the Great Recession. The European debt crisis, a crisis in the banking system of the European countries using the euro, followed later.

The Dodd–Frank Act[7] was enacted in the US in the aftermath of the crisis to "promote the financial stability of the United States".[8] The Basel III capital and liquidity standards were adopted by countries around the world.[9]

SummaryCausesImpact on financial marketsIndyMacEffects on the global economy (as of 2009)Government responsesStabilizationMedia coverageEmerging and developing economies