1 what is the cause of the world financial crisis and how it eventually resulted in a severe economic down-turn?
2 how is the severity of the shock?
3 explain what the contemporary government response is around the world. How and why does it differ from governments' response in the Great Depression?
4 What do you think the likely outcome of this intervention will be?
The current world financial crisis started off with the mortgage crisis, mortgage companies started the subprime mortgages, people took huge mortgages, they knew they could not pay it off. So after some time they faced foreclosure. So they gave the house back to the bank, and did not have to pay the debt back. So Freddie Mac and Fannie Mae crashed. So they could no longer lend. This meant banks could no longer get loans to operate, and they could not give loans, so they just stood there, consuming the little money they have left. So those banks just crashed, such as Lehman Brothers.作者: 浪客剑心 时间: 2009-10-8 20:06:46
