Subprime Mortgage Crisis An Example Of A Financial Crisis

Question1. Subprime mortgage crisis is an example of a financial crisis that affected global markets worldwide. Give another example of a financial crisis in your discussions below. The subprime mortgage financial crisis which happened in 2008 to 2009.this crisis leaves the world in frightened. Therefore financial economy is totally unable to regain on the same situation. However to control the economy crisis and to avoid in the future for such situation we need to review and need to avoid this situation. Subprime Mortgage Bank burst real estate bubble crisis is considered to be the biggest cause of exacerbates. However, it is only the financial crisis, due to the growing exposure to several factors. Some of the other causes of the financial crisis are as follows 1- The collapse of the housing bubble A.: home prices have a significant impact on household wealth. Home prices almost 2006, 2007-2008 previous doubled from 2000.According to the United States home price index for the first quarter of 2009 from the first quarter of 2008 fell 6.2%. Housing and subprime mortgage prices increasing spending by people. Homes and residential investment falling by a sudden drop in the price of services decreased income and savings; they enter a power saving mode led to forced. 2- Increase the equity risk premium: United States of America and United States monetary tightening interest rates higher equity risk premium from the market leaders. The failure of Lehman Brothers in 2008 toShow MoreRelatedTheu.s. Housing Market And The U.s. Financial Crisis1448 Words   |  6 Pagesbiggest global financial crisis. The impact of this crisis extended over the world, and the economies of many countries were damaged. 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