the financial crisis 0f 2008 Article review
The author of Financial crisis 2008, Joel Havemann, is European economist .In his article the financial crisis 0f 2008, the USA experience a severe financial crisis in 2008 this crisis almost led to the collapse of the United States economy. the cause of the financial crisis and possible solutions, monetary and fiscal policies and also the role of the government in safeguarding the economy’s truly like this article he suggested the financiers, central bankers, European banks, the great moderation, saving gut among others .Research shows that European banks had borrowed in American money markets, and this led to the crisis the funds were used to buy risky securities h e also outlines possible solution to the crisis.
With authors goals is to make us understand the causes of the US 2008 financial crisis and the possible solution .In simple terms what are the reasons for economical crisis in the year 2008 and who were the main contributors of such crises’ o bring a picture on how the us economy looked in 2008.
Despite the fact that everything is explained some issues need clarity for instance even the economists disagree on the cause of low-interest rates, were unable to identify whether it was the result of central bankers or change in the world economy. The incentive for banks and other investors to hunt for assets which are more risk that offered the little interests created higher returns .Central bankers showed concerns about America’s big deficit and the offsetting capital inflows from Asia’s excess savings. Greater gross capital flows from European banks was affected. America’s loose credit conditions before the crisis were in global banking and not in world economies. Furthermore the home loan related securities at the heart of the emergency couldn’t have been showcased and sold without their seal of endorsement. Financial specialists depended on them, frequently indiscriminately. Now and again, they were committed to utilize them, or administrative capital guidelines were depended on them.
Generally I like this article since it has highlighted some issues about the American economy .I have learned the reasons behind the financial crisis and the causes of such crisis in 2008.Further more it has put some light on how financial crisis are being created and how we can solve such problems in future in order to secure the US economy.
REFERENCE
Havemann, J. (2009). The Financial Crisis of 2008: Year In Review 2008.Britannica book of the year.