Chapter EMA, Problem 4DS

To determine

To state: The consequences of the 2008 financial crises.

Explanation of Solution

The consequences of the 2008 financial crisis are as follows:

The housing market was intensely affected by the crisis. Foreclosures and Evictions began within months. The stock market, in reaction, began to fall and major businesses all over the world began to fail, losing millions. This led to widespread layoffs and prolonged periods of unemployment all over the world.

Consequences of the 2008-2009 crisis for banks: Its failure produced long-lasting chaos in financial markets all over the world, rigorously damaged the portfolios of the banks that had lent it money, and raised new suspicion among banks, leading them to further decrease interbank lending.

Economics Concept Introduction

Introduction:

Financial crisis: is often regarded as a mixture of events, including considerable changes in asset prices and credit volume, severe disturbances in financial intermediation, large-scale balance sheet difficulties, especially the supply of external financing, and the requirement for large-scale government help.