The financial crisis that is affecting financial markets since the early months of 2007 and has not ceased to manifest its negative effects, defining itself as the crisis of financial globalization and how the worst crisis since 1929, pushing the global financial system to a collapse of several billions of euros / dollars.
The stock markets around the world are witnessing crazy bounces of the major stock indices with an average loss of 5 / 7 percentage points (see Piazza Affari of 10/10/2008). Many investors, though attentive to the care of their money, they see those who have been fading gains of years of hard work, ended up in the grip of an unexpected crisis, but already heralded by analysts and scholars of economic and monetary policy. Not cite a random example represented by the collapse of all Italian case Cirio and Parmalat seeing those small investors remained "scrubbed" of securities of companies that failed to be found in his pocket paper.
E 'therefore need to reflect on the fundamental causes, the implications for the global economy and the lessons to be learned to prevent similar problems in future. So it is useful to summarize the main essential characteristics of the crisis, analyze the data in the course and then assess the risks that lie ahead for the global economy. Not in the case of financial crisis and mistrust in banks is back to talk to when, a few weeks ago, there was the biggest crash in history: the failure of Lehman Brothers, the third largest bank in the United States.
The consequences of the collapse of the overseas also pay us: thousands of Italian investors, they had bought Lehman's financial products. (A survey by the Friday of the Republic No. 1073). Meanwhile, to try to understand something about the essential characteristics of the crisis it is necessary to orient themselves in the jargon of finance, to try to understand something more.
The consequences of the collapse of the overseas also pay us: thousands of Italian investors, they had bought Lehman's financial products. (A survey by the Friday of the Republic No. 1073). Meanwhile, to try to understand something about the essential characteristics of the crisis it is necessary to orient themselves in the jargon of finance, to try to understand something more.
Thus, we learn that an investment bank "does not allow stores but offers high quality services with high risk and speculation," and that the subprime "covering the area of \u200b\u200blower quality U.S. mortgages, are loans granted by banks to those who can not access the normal interest rates because it has an income too low or because he has a history of an insolvent debtor. Given their high interest rate, present a very high risk. Another element is represented by securities (ABS, Asset Backed Securities) issued as a result of securitization processes that led to excessive growth of the debt that is translating into a real "bubble" which, like all bubbles must eventually burst, with effects general. The great expansion of
debt and financial instruments has generally been favored by the conditions of abundant liquidity and the level of extraordinarily low interest rates, which reached the lowest level in decades. The result was a huge boost to debt, which has affected not only the business sector (see the U.S. and the UK) but also the household sector.
debt and financial instruments has generally been favored by the conditions of abundant liquidity and the level of extraordinarily low interest rates, which reached the lowest level in decades. The result was a huge boost to debt, which has affected not only the business sector (see the U.S. and the UK) but also the household sector.
