Today I had a lecture by Steve and here are some note-taking.
Most serious crisis since Gmat depression (1930) due to Globaisation.
Banks lent to buy house ----> after that bank sells debt to other banks. But if house price fall and interest rate increase people will default and they can not pay back. Banks in turmoil, investment banks collapse, stock market rollercoaster. Sub-prime loans and CDOs effects are main causes, lead to collapse the world finance system, bankruptcy,recession, loss of value, unemployment, falling stock market. Globalisation is blamed which causes of serios crisis. This is one negative side of globalisation beside benefits.
Most serious crisis since Gmat depression (1930) due to Globaisation.
Banks lent to buy house ----> after that bank sells debt to other banks. But if house price fall and interest rate increase people will default and they can not pay back. Banks in turmoil, investment banks collapse, stock market rollercoaster. Sub-prime loans and CDOs effects are main causes, lead to collapse the world finance system, bankruptcy,recession, loss of value, unemployment, falling stock market. Globalisation is blamed which causes of serios crisis. This is one negative side of globalisation beside benefits.
No comments:
Post a Comment