Experts think that the debt crisis is one of the biggest economic crises in the world since the Great Depression of the 1930’s and early 1940’s. much of the world should not be disturbed. The International Monetary Fund (IMF) expects GDP growth to be about 0.6% in 2009.
The financial crisis in the banks is exacerbated by the crisis over subprime housing. The crisis was exacerbated by the devastation, which escalated in late 2006. This reversed the global economic slowdown from 2007 to 2008.
The very high prices set the stage for the crisis when people who did not qualify for the loan (subprime) were given the same. This made the jobs more dangerous. Subprime loan holders had a history of debt and were unable to repay the loan. Uncertainty was widespread because the housing market was not as expected.
Research shows that about 1.3 million homes in the United States of America re-emerged in 2007. In addition to the real estate crisis, ARM or low mortgage interest rates have been significantly increased. As of February 2008, banks and non-bank organizations are repaying $ 170 billion.
Consequences of US subprime repatriation on the economy
The crisis over bank loans in the USA has not only caused economic hardship but the global economy has also slowed down. Some countries may have heard of it before and some of them may have been battling the storms for months. Eventually all the great wealth was overcome by the problems of subprime. Let’s take a look at how markets in Asia, Australia and Europe have fared, following the domestic crisis in the USA.
1. South Korea’s largest list goes down by 4%
2. Benchmark signals in Hong Kong and Thailand have dropped by 3% plus.
3. Major sales also occurred in Asian markets.
4. Market analysts in Great Britain still do not know the cause of the financial crisis.
5. The retail market in Thailand, Australia and Germany was severely affected.
6. France, Britain and Germany saw their growth rates exceed 2%.
7. IKB Deutsche Industriebank was particularly affected by the US housing crisis.
8. The Asian financial market saw the withdrawal of all shares by First State Investment.
9. Macquarie Bank, Australia’s leading financial services company, has reported that investors have lost about 25% or more of their savings.