GLOBAL FINANCIAL CRISIS

Global Financial Crises

[Name of the Institute]

Introduction1

Discussion1

Issues1

1. Unpaid loans1

2. Frauds:2

3. Bankruptcy:2

4. Lack of funding money:2

Retail clients2

Corporate client's3

Events4

3 December 20084

11 February 20095

Unprecedented levels of widespread debt6

Economic measures8

UK economic indicators10

Other economic data of UK11

Growth of GDP, GDP per capita11

Recent Study Related To UK:12

Conclusion12

Reference13

Annotated Bibliography15

Global financial crisis

Introduction

It can be defined as the period in which the world is facing bad economic conditions that influence both markets and consumers. It also reduces the purchasing power of consumers and they are able to buy again when conditions become good. Global financial crises also put its impact on retail and corporate markets because they start facing difficulties in lending and borrowing (Www.businessdictionary.com). As such this is a common issue, that countries have to face, but they need to take some measure that will make them deal with it. Global financial crises usually includes all the conditions in world which let people know about the difficulties they are facing. Basically, the problems that countries are facing are may be not because of them directly. It usually consists of the factors that are affecting the countries indirectly. There are a lot of different reasons for the global financial crisis.

Discussion

UK faced the recession in early 1990s, when interest rates become low. Large amount of loans where present that encourage both individual and companies to borrow freely. In 2007, many individuals were able to repay those loans back, and this usually happens at the time of economic difficulties or global financial crises. When global financial crisis exist in the worldwide world so that let a lot of banks to go bankrupt. It was such an issues that those who did not maintain their loan repayments declare bankruptcy. Then in April 2006, analyst's starts asking about the “MINSKY MOMENT” which means that the borrowers should sell their assets in order to repay their loans (Barnes, 2011,p.n.d). The basic issue that has been arised at the time of global financial crisis are the lack of money or financial resources. As everyone and every sector is suffering from this condition so they can not help one another. Because of all this, bad conditions evolved day by day.

Issues

1. Unpaid loans

As shown in the discussion that there were a lot of people in UK, who was unable able to repay their loans back. Global financial crises bring disaster to the whole world either its retail clients or corporate ones. If any bank or any corporation is giving a loan to any retail or corporate clients, so they need to have it back as it will b harmful for them. So it is a very big issue that let people sell their personal properties to repay the loans.

2. Frauds:

Frauds are also one of the issues that let retail and corporate clients suffer from global financial crises. May be retail and corporate client invests or finance somewhere, but they result in frauds. There is a possibility of default and clients were not been able to get the money or benefit ...