This slide explains the financial crisis of 2008 in a very simplified. The global financial crisis of 20072009 and subsequent great. Students can copy and paste these images into a word document entitled financial crisis for dummies. The global financial crisis gfc or global economic crisis is commonly believed to have begun in july 2007 with the credit crunch. Federal takeover of fannie mae and freddie mac wikipedia. Helped support americans seeking to obtain or refinance a mortgage, or avoid foreclosure. The financial crisis explained in simple authorstream. W e all know the familiar story of how the financial crisis that precipitated the great recession supposedly came to be. Read about the greece crisis in this article thegreecedebtcrisisexplained. Although most countries were negatively affected by the financial crisis and global recession, some emerged stronger than others.
So, all this starts with home mortgages, and the use of. How to be productive at home from a remote work veteran. It is considered by many economists to have been the most serious financial crisis since the great depression of the 1930s. The financial crisis of 200708, also known as the global financial crisis gfc, was a severe worldwide economic crisis. First, what are the main factors explaining financial crises. Mortgage lenders issued a large number of exotic, subprime, adjustablerate mortgages that were packaged into securities eventually purchased by the enormous governmentsponsored enterprises fannie mae and freddie mac. If we were using the consumer price index cpi, the price of. But the crisis has also struck household balance sheets through a decline in their assets, notably housing and the stock market. To address the growing savings and loan crisis, the financial institutions reform, recovery and enforcement act firrea is passed. Financial crisis of 20072008 powerpoint ppt presentation loading. The share prices of both companies plunged and investors were fearful of a collapse due to escalating foreclosure rates and plummeting housing prices.
Financial crisis powerpoint templates financial crisis powerpoint template. Before we begin our story, let us define the characters of our story along with one key feature and function that defines our ch. The global financial crisis has been one of the most significant economic shocks in the post. A financial crisis is a crisis which critically affects the functioning of the financial system financial system includes banks, mutual funds, investment banks etc.
It is very much possible to have low budget for financial crisis powerpoint presentation design and you might think simple presentation will be fine for your upcoming project. We show the impact then and during the decade that followed. Major responses in the world khong thi huong kt40b 3. The course draws upon examples from financial crises around the world, especially the recent subprime financial crisis.
The 2008 housing crisis center for american progress. In order to increase sales, she decides to allow her loyal customers most of whom are unemployed alcoholics to drink now but pay later. Legislative attempts to rapidly wind down fannie and freddie would not prevent another recession. Dec, 2008 by admin in charts and graphs, economics, government. In reality, they were a prime example of the broader economic forces that caused the banking credit crisis and bailout.
The kings of leverage were fannie mae and freddie mac, the two behemoth gov. Jun 12, 2016 members evaluation content presented by i. Apr, 2017 contrary to conservative arguments, the 2008 housing crisis was caused by unregulated and loosely regulated private financial entitiesnot the federal governments support for homeownership. Financial crisis ppt fms 1 free download as powerpoint presentation. Reasons of financial crisis 2008 2009 nguyen thi huong kt40a ii. The 2008 financial crisis explained the 2008 crash was the greatest jolt to the global financial system in almost a century it pushed the worlds banking system towards the edge of collapse.
Understanding the 20072008 global financial crisis. How to convert a word document to pdf on windows and mac. Fannie, freddie government lifeline cut could cause. Aig presentation university of california, berkeley. Its some client work i did for, originally posted here this financial crisis is quite difficult to pin down because there are many factors involved, chain reactions, and negligence abound. Fannie mae and freddie mac remain highly involved in, the secondary market for mortgagebacked securities as they continued to help american families realize the american dream of homeownership. Sep 06, 2012 exactly four years ago, during the early days of the financial crisis, the federal government took control of mortgage financiers fannie mae and freddie mac through a legal process called. Whether you are an economics professor describing how an economical crisis takes place in the business scenario or you are a chief finance officer explaining the current financial situation of your company, youll require suitable visual aids. Differences between financial crisis in useurope and india 2. Private entities fannie mae and freddie mac were pushed to provide liquidity to the residential mortgage market.
It combines normative recommendations based on conventional welfare economics with positive assessments of the kind of measures likely to be adopted based on political economy considerations. The european financial crisis analysis and a novel intervention 3 if you only pay attention to the media, the eurozone crisis is about the economy. Jan 11, 2008 2008 financial crisis timeline timeline description. The debate for and against this point is summed up in the article. The 2008 financial crisis was the largest and most severe financial event since the great depression and reshaped the world of finance and investment banking. Financial crisis free powerpoint template thetemplatewizard. The downloadable file is available in jpeg, in large screen resolution 1152x815. We explore the causes and consequences of the crash, consider its historical parallels, and ask how will history remember the crisis. Bureau of economic analysis via federal reserve economic data. The site converts not only documents into word, but also excel templates and powerpoint presentations, always maintaining the. The causes and effects of the financial crisis 2008 youtube. This contributed to a general credit crisis, which evolved into a worldwide financial crisis. The global financial crisis and its effects edey 2009. The case of freddie mac, fannie mae and ginnie mae.
The effects of the financial crisis are still being felt, five years on. In laymans terms, what caused the 2008 financial crisis. Financial crisis ppt fms 1 collateralized debt obligation. Financial crisis powerpoint templates financial crisis. Government entities like fannie mae and freddie mac guaranteed mortgages, even if they were subprime or those lent to people who wouldnt normally qualify for. Global power shift another major impact of the global financial crisis is a global power shift. Causes of the financial crisis congressional research service summary the current financial crisis began in august 2007, when financial stability replaced inflation as the federal reserves chief concern. The federal takeover of fannie mae and freddie mac was the placing into conservatorship of the governmentsponsored enterprises gses federal national mortgage association and federal home loan mortgage corporation freddie mac by the u. Aug 01, 2019 the 2008 financial crisis explained the 2008 crash was the greatest jolt to the global financial system in almost a century it pushed the worlds banking system towards the edge of collapse. Lehman brothers bankruptcy and the financial crisis. Although this crisis was caused by a shock larger than that which caused the great depression, we were able to put out the financial fires at much lower cost and with much less overall economic damage than occurred during a broad mix of financial crises over the last few decades. Jun 20, 2016 financial crisis 2008 explained powerpoint presentation phuripat yimserhthi. Fannie mae and freddie mac has been argued to lead to excessive risk taking. It was one of the financial events among many in the subprime mortgage crisis on september 6, 2008, the director of.
Subprime mortgage crisis articles management study guide. Economic interactions and flows geography for 2020. The financial crisis explained the 2008 financial crisis started with a housing bubble and cascaded into a fullblown recession, and some americans are still recovering. Exactly four years ago, during the early days of the financial crisis, the federal government took control of mortgage financiers fannie mae and freddie mac through a legal process called. The united states is the epicentre of the current financial crisis. In its analysis of the crisis, my testimony before the financial crisis. September 15 marks the fifth anniversary of the lehman brothers bankruptcy, the supposed spark that set off the financial crisis of 2008. Excessively accommodative monetary policy in the us and other.
Subprime lending means giving loans to people who may havedifficulty in maintaining the repayment schedule. In this second installment of a threepart series, professor richard rumelt and mckinseys lowell bryan discuss the prospects for the economy, companies, and workers. The effects are still being felt today, yet many people do not actually understand the causes or what took place. The government response to the financial crisis and its reverberations in the real economy have been extraordinary. The freddie mac cases stem from the height of the financial crisis. Learn more about how it all happened, who was responsible, and how the economy was able to recover. The roots of the crisis go back much further, and there are various views on the fundamental causes. Based on the boundaries of the current conversation, the crisis is about overleveraged countries and individuals accumulating excessive debt. Jul 16, 2019 the great recession was a period between december 2007 and june 2009 that saw the 2008 financial crisis, some of the worst unemployment rates, gdp, and economic disasters since world war ii. Its some client work i did for, originally posted here. The financial crisis of 2008 simplified slideshare. They do a good job in explaining how it came about and the steps they took to counter it.
This monopoly, combined with the governments implicit guarantee to. This lecture is a tour dhorizon of the financial crisis aimed at extracting lessons for future financial regulation. The big short, however, is a characterdriven piece that focuses not just on the events leading up to the financial crisis but also the conflicted morality of several men who foresaw the crisis. Fannie mae and freddie mac were given a governmentsponsored monopoly in a large part of the u.
Sep 19, 2018 the great recession that began in 2008 led to some of the highest recorded rates of unemployment and home foreclosures in the u. Federal reserve board and freddie mac via federal reserve economic. But if you really want to success with this financial background then you can use it for financial powerpoint clear simple and other interesting topics like the magic of compounding financial powerpoint. We provide powerpoint clip art financial crisis for powerpoint backgrounds, which can be used for your ppt slides, use this for your presentation. The system melted down in the 20072008 financial crisis, forcing the government to take direct control over the pair. A financial crisis is a situation in which the value of financial institutions or assets drops rapidly.
Dec 11, 2008 a visual guide to the financial crisis. A brief history of fannie mae and freddie mac chicago. A financial crisis is often associated with a panic or a run on the banks. The crisis began in the subprime lending market, but eventually spread widely into the financial markets and later, led to widespread recession. Wheelock how did problems in a relatively small portion of the home mortgage market trigger the most severe financial crisis in the united states since the great depression. Catalyzed by the crisis in subprime mortgagebacked securities, the crisis spread to mutual funds, pensions, and the corporations that owned these securities, with widespread national and. Jan 22, 2020 fannie mae and freddie mac were given a governmentsponsored monopoly in a large part of the u. Thetemplatewizard presents to you free financial crisis powerpoint template for your upcoming financial crisis presentation. The 2008 financial crisis caused substantial and lasting difficulties for the united states. Financial and economic crises lessons from other crises recognized, like a number of other economists, that features of the housing and credit markets were unsustainable michigan was the epicenter of the crisis rising unemployment, declining personal income, defaults on subprime mortgages. How to convert a word document to pdf on windows and mac to make the conversion to pdf, go to the site and select the file to be converted from your computer. From enron to the financial crisis, with alan greenspan in between todays disaster is a result of lessons not learned during the enron mess. Presentation global financial crisis 2008 slideshare.
Financial crises and accompanying economic recessions have occurred throughout history. The great recession was a global economic downturn that devastated world financial markets as well as the banking and real estate industries. Its causes, solutions and even ways to take advantage of it are explained in this presentation. Our predesigned professionally built powerpoint financial crisis template will prove helpful in several ways. Weighing the us governments response to the crisis. It also analyses how this act may have possibly been the cause of the subprime mortgage crisis. Financial crisis 2008 explained powerpoint presentation youtube. Criticality of banking system as bank provide credit and operate payments failure can have a more damaging effect on the economy than the collapse of other businesses hence need for more regulation by government reserve requirement holding a proportion of bank deposits at the central bank crr match a.
This article presents the case of freddie mac, fannie man and ginnie mae which were government sponsored entities. The federal regulator of freddie mac and fannie mae, the federal housing finance agency, took over both entities in september 2008, after rising mortgage defaults undermined their financial conditions. Today on crash course economics, adriene and jacob talk about the 2008 financial crisis and the us goverments response to the troubles. Oct 21, 2015 today on crash course economics, adriene and jacob talk about the 2008 financial crisis and the us goverments response to the troubles. Brazil, russia, india, and china, also known as the bric countries, enhanced their power visavis the united states, western europe, and japan. Ppt financial crisis of 20072008 powerpoint presentation free to download id. You work for a famous american politician and have been asked to write a commentary for the seven cartoons. The 2008 financial crisis is the worst economic disaster since the great depression of 1929, and it occurred despite the federal reserve fed and treasury departments efforts to prevent it. This article, the first of a series of five on the lessons of the. The crisis led to the great recession, where housing prices dropped more than the price plunge during the great depression.
This financial crisis is quite difficult to pin down because there are many factors involved, chain reactions, and negligence abound. It has been 10 years since the start of the global financial crisis. D ownload free finance powerpoint templates design now and see the distinction. Powerpoint of images to introduce the current financial crisis. It is considered by many economists to have been the most serious financial crisis since the great depression of the 1930s the crisis began in 2007 with a depreciation in the subprime mortgage market in the united states, and it developed into an international banking. Understanding the economic crisis in 800 words huffpost. The financial crisis response in charts treasury department. The trump administrations aspiration to end government control of fannie mae and freddie mac is unlikely to be realized anytime soon, and any. A financial crisis is a situation where the value of assets drop rapidly. Developments of financial crisis 20082009 tran van an kt40a iii. At its core, the crisis originated in credit markets in developed countries centred particularly in the united states, the united kingdom and europe but the fallout has had a significant effect on activity in every country and region. Bureau of economic analysis, bureau of labor statistics, federal reserve flow of funds. A free powerpoint ppt presentation displayed as a flash slide show on id. Were fannie mae and freddie mac the real cause of the subprime mortgage crisis.
The three authors were at the epicentre of the financial crisis. The ppt also helped increasing student achievement during financial crisis as a microsoft powerpoint design templates financial. The rise in the price of a big mac is occurring faster than the official rise in consumer prices and has been this way since the late 90s. From enron to the financial crisis, with alan greenspan in. The great recession was a period between december 2007 and june 2009 that saw the 2008 financial crisis, some of the worst unemployment. Many critics have held the united states congressand its unwillingness to rein in fannie mae and freddie mac responsible for the credit crisis. Us home prices fall 14% in first quarter this how the global financial crises arises in 2008. The fear was that both entities lacked the capital to absorb the predicted losses. Periodic crises appear to be part of financial systems of dominant or global powers. Types of financial crisis currency crisis when a fixed exchange rate regime collapses or a currency goes into a free fall balance of payments bop or external debt crisis sovereign debt crisis banking crisis corporate debt crisis household debt crisis broad financial crisis. Financial crisis of 20072008 1 financial crisis of 20072008. The financial crisis of 20072009 olin business school. These are images are also in the photo gallery below.
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