Global Financial Collapse Of 2008 - 908 Words

Economic growth is mostly stagnated and has been since the global financial collapse of 2008. This collapse led people into different avenues of providing financially for their families and themselves, mostly due to the loss of jobs. In addition to that, people had surrendered to the idea that their financial futures would be threatened and that there is not secure job as that is a paradigm of the past. It appeared that the only viable option would be to start a business of their own. In an effort to minimize expenses most of the businesses that these people, who are known as entrepreneurs, are starting businesses in their own homes. The businesses are referred to as home-based businesses and it is believed that they have generated a large portion of the economy in the United States alone. Some of the most profitable businesses to start are make and sell food products, teaching music, teaching a craft, photography, computer and graphic design services, and many more (Best Home-based Business Ideas, 2015). However, the one point that must be considered is that the study of entrepreneurship is not a new phenomenon as attempts to study it in a systematic manner are becoming fairly common in colleges throughout the world. What is interesting about many businesses that are home-based is that a majority of them do no possess the same characteristics as a traditional business would, â€Å"These ventures may or may not be formally registered, typically have no premises, very few assets,Show MoreRelatedThe Great Recession And The Housing Crisis1600 Words   |  7 Pagesrecession of 2007 -2008 and the Housing bubble and the latter talks about the newspapers articles and other opinions of economists which support the idea of approaching bubble. These reflect the conditions in those specific areas related to them or demonstrate the housing behavior in overall United States. THE GREAT RECESSION The financial crisis that began in August 2007 has been the most severe of the post-World War II era and, possibly--once one takes into account the global scope of the crisisRead MoreThe Financial Crisis Of 2007-20081419 Words   |  6 Pagesof the recent credit crunch. The financial crisis of 2007–2008, also known as the Global Financial Crisis and 2008 financial crisis, is considered by some economists such as Nouriel Roubini, professor of economics and international business at New York University, Kenneth Rogoff, professor of economics and public policy at Harvard University, and Nariman Behravesh, chief economist and executive vice president for IHS Global Insight, to have been the worst financial crisis since the Great DepressionRead MoreCredit Derivatives in the Recent Global Financial Crisis1671 Words   |  7 PagesCredit Derivatives in the recent Global Financial Crisis 1.0 Introduction: In the recent times credit derivatives have become a very popular financial security for investors. If we take a look at the chart given below we can see how the popularity of credit derivatives increased in the past decade. The maximum volume of derivatives was traded during the years 2005 to 2007 of which 2006 was the highest at $2000bn. Then when the financial crisis occurred at the end of 2007 the trading decreased rapidlyRead MoreThe Global Financial Crisis Of 2007-20081123 Words   |  5 PagesThe Global Financial Crisis of 2007-2008 is the worst financial crisis since the 1930’s The Great Depression (Reuters, 2009). Even if bailouts of banks by national governments prevented the collapse of major financial institutions, worldwide stock markets continued to drop. Evictions and foreclosures overwhelmed the housing market while severed unemployment embraced the labor market (Baily and Elliot, 2009). This global financial crisis was responsible for the decline in the consu mers’ wealth, andRead MoreThe Collapse Of The Lehman Brothers1638 Words   |  7 PagesThe global financial crisis of 2008 that reeked havoc on most of the financial institutions had them fall into liquidation and bankruptcy. One of the most popular and most debated incident was the failure of the Lehman Brothers. The Lehman Brothers were a leading US investment bank that was worth $600 billion (D’Arcy). The global financial crisis prompted Lehman Brothers to close its leading subprime lender (BNC Mortages) in 23 locations (). The closing of these locations were so aggressive thatRead MoreThe Issue Of Corporate Greed1287 Words   |  6 Pagesa life-ruining, economy-changing financial crisis be skewed for dramatic effect?† The Big Short tells the story of the financial crisis of 2008 and tackles the issue of corporate greed in the form of the true stories of a few men who saw the crisis coming. The issue is not overblown at all. This can be observed by simply looking to the devastation and chaos caused by banks trying to make money by preying on the poor and un-informed in the years following 2008. Most of us are old enough to rememberRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 PagesThe 2008 global financial crisis has affected today’s economy severely based on the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen inRead MoreFinancial Crisis Essay1088 Words   |  5 Pagesinstitutional investors propagated the financial crises. Institutional investors, which is both, individual or compani es do enjoy the benefits of reduced commission preferential regulations. This is due to their large and professional investments. Institutional investors like the mutual funds, pension funds, hedge funds like Magnetar Capital, and Life insurance companies like the AIG and investments trusts contributed to the global financial crises of 2007-2008. This financial crisis also referred to as theRead MoreThe World Experienced A Tremendous Financial Crisis Essay1131 Words   |  5 Pages Introduction In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish individual lives. For example, the financial crisis has resultedRead MoreGlobal Financial Crisis : The Fall Of Lehman Brothers1250 Words   |  5 Pages Global banks indeed play crucial roles in keeping the global economic growth in track. The fall of Lehman Brothers in 2008 as the major factor for the economic downturns leading to the Global Financial Crisis, or 2008 financial crisis, proves this point. Started from the irresponsible handling of mortgages of consumers, the prices of houses in America sank. Interest rates fell while capital ratios became lax. It was a case of impending Great Depression. Given its role of lending funds and providing