The Financial Crisis Of America - 1007 Words

Introduction In the end of the year 2007 onwards to the beginning of 2008, America experienced the financial crisis. This was something that took place in America and went on to affect the world at large. The financial crisis threatened to collapse the large financial institutions were in the country as a result of lack of funds. The global financial crisis, as it is known, lead to several problems including in the real estate industry where housing became a problem and it lead to evictions from properties as well as foreclosure of many different buildings both industrial and office property. According to Bernanke, (2013), it also led to a lot of unemployment in many industries which was not for a shot time but a prolonged period of time. This led to the levels of unemployment in the country increasing. It led to failure of key businesses in different sectors of the economy and this only made the effects to be felt harder on the consumers and ultimately reduced the consumer’s wealth in all the sectors. This also led to a liquidity crisis that affected most financial institutions. The main issue however was what exactly led to such a big problem that could affect many of the big developed countries and the businesses that they run. Events Preceding the Financial Crisis The events that led to the financial crisis had begun some seven years before in the year 2001. This was the year when the country almost went to a recession period. The main reason was that the shares ofShow MoreRelatedImpact Of The Financial Crisis On America1436 Words   |  6 PagesCDO impact of the Financial crisis Since 2003,  there are  economists warned  America   s real estate bubble will  burst  a year,  although  this prediction  has not  fulfilled,however,  the occurrence of  happen sooner or later.  In 2007  August,America  sub-prime mortgage crisis  broke out suddenly,  not only the real estate  bubble has finally burst,  America  also fell into the  since twentieth Century 30  the Great Depression of  the most serious financial crisis. 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