RESCUE STIMULATION PACKAGE

Rescue Stimulation Package

Rescue Stimulation Package

Overview of the Financial Crisis in 2008-09

The U.S. currency continued to strengthen its position against the euro amid fears of investors about the situation in the global economy and the downward dynamics of stock indices. Though, the U.S. economic publications were presented to the detriment towards the growth of the dollar. The concerns about the state of the Euro zone at present prevailed in the market, and American money value acts as a currency of refuge, even surpassing the position of low-income rates. However, in the U.S. economy, the decline of price pressure, forced the Fed to use all the new techniques out of the crisis in addition to monetary policy. Import prices in January fell by 1.1% compared with the previous month and by 12.5% ??year on year, while the forecast was at -1.0% and -11.2% respectively. In addition, both the U.S. housing market continued to show deterioration in the current situation. The number of bookmarks of new foundations in January dropped to 466,000 against 555,000 in the previous month and the 530,000 expected, while the number of building permits issued fell to 521,000 against 549,000 in December and the forecast of 525,000. As well as the volume of industrial output in January fell by 1.8% compared with the previous month, against the forecast of -1.5%, although the deterioration in the manufacturing sector remained in almost all regions. Capacity utilization fell to 72.0% versus 73.6% in December. The euro area also represented disappointing statistics, which contributed to the depreciation of the euro. Output in the construction sector in the region in December fell by 2.2% against 1.1% a month earlier and 10.1% vs. 4.7%, respectively, year on year. These were disappointing statistics that had a lot of negative value. The first economic depression occurred in USA in 1929 and in 2008, the second financial crisis occurred throughout the whole country. The purpose of this assignment is exploring the details related to the rescue and stimulation package implemented by the UK government during the financial crisis. There is a need to trace the causes of the global economic crisis in order to identify to the major factors related to the leading European countries (Andrews, 2006, 54).

The causes of the global economic crisis in 2008

The global crisis in the United States, not all experts were surprised. The crisis has been waiting for. George Soros, Warren Buffett and other financial gurus who warned that the fascination with American banks risky mortgages had no good end. The financial crisis was expected from several experts representing different countries. However, no one could guess the exact moment when the crisis started in the U.S., as well as its scale and impact on the global economy. The birth of the global crisis occurred in the United States in 2006. In fact, if it has not been dealt with international phenomenon and U.S. only, the first crash took place in the American mortgage market, which is why many mortgage ...