Global Banking Crisis,
A Brief History...
The current global banking crisis began with an escalation in foreclosure rates among homeowners during 2006–2007, leading to a critical juncture in August 2008.
The way that the nation's mortgage markets are structured mean that a decline in the housing market hits other things: home builders, real estate, home supply, retail outlets, money markets, hedge funds (held by large institutional investors), and foreign banks. All of which increase the risk of a nationwide recession.
By 2007-2008 we were in the worst financial emergency since 1930s Great Depression. Large fiscal institutions were threatened by financial breakdown; then bailed out by national governments. Causing a downturn in the world's stock markets.
The backwash resulted in troubles in the housing market - leading to foreclosures and evictions - with lengthened and increased unemployment.
"The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis."
The global credit crisis nearly destroyed the world's banking systems.
"Could the current financial crisis have been predicted from historians knowledge of past down turns and depressions globally?
Dr David Chambers, University Lecturer in Finance and Deputy Director of the School’s Master of Finance programme, thinks so.
An analysis of what happened in the crash of the 1930s may prove a good way to predict how long it may take us to get out of the current financial difficulties.
Structural problems, Dr Chambers says, need to be faced up to before a recovery is likely, and there could well be a few false dawns along that road to recovery.
