Topic > Essay on Global Financial Crisis - 802

The global financial crisis of 2008-2009 is a familiar topic in these decades to understand its implications for the future. Nowadays, the world is facing much more than just a financial crisis. Furthermore, the side effects of the financial crisis must be half of a discussion to holistically understand the consequences that led to the global financial crisis and spread the effects across the world. The 2008-2009 crisis in general changed the global economic and financial landscape as a whole. To understand the issue as a whole, there are two basic types of costs for investors and consumers: economic costs and financial costs. Both are related to each other and tend to influence each other. The world economy faced the deepest financial recession in decades and the first simultaneous recession in the industrial world since the first oil crisis of 1973-74. The International Monetary Fund significantly reduces its forecast for 2009 global real growth from 2.2% to 0.5% as the macroeconomic implications of the financial crisis become better understood and the depth of the financial crisis itself becomes apparent. This reduction came just three months after the IMF's previous forecast. At that time, many industrialized countries were facing financial crisis. This statement was stated in a book Global Financial Crisis: Impact and Solutions by Paolo Savona, he stated: “ . . . industrialized countries were the hardest hit, with real growth forecasts falling to 2% compared to the modest 0.5% estimated in October. The most affected were the United States, where a drop in growth of 1.6% was expected compared to the previous estimate of zero..." (Paolo Savona, 201... half of the document... the administration asked for $700 billion) to buy up distressed mortgage assets and get the financial system moving again Western nations have seen their values ​​rise rapidly with the growth of the new Internet industry and related fields. The period was also marked by the founding of a new group of Internet-based companies commonly called “dot-coms.” setting increases in stock valuations of dot-com companies, and taking action to move quickly, and choosing to mitigate risk by starting many companies and letting the market decide which will succeed. They choose this way because they assume it is the best way to mitigate and heal the financial crisis.