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About Our Current Financial Crisis
The 2007-2009 financial crisis (also known as the credit crunch) commenced in the month of July in 2007 and took many by complete surprise. Although we can assume that the modern media portrays many things worse than they actually are there is no denying that the 2007-2009 financial crisis is affecting the global economy in a major way and this is having a knock on effect on everyone from major companies through to the working class.
The 2007-2009 financial crisis began when investors lost confidence in the value of various mortgages in the USA resulting in a liquidity problem that required a major injection of money by various quarters including the US Federal Reserve and the Bank of England. The housing collapse in America was quickly followed by a similar crash (albeit less dramatic) in the United Kingdom and across various European countries and by September 2008 a number of banks, lenders of mortgages and insurance companies had all fallen to the 2007-2009 financial crisis.
The 2007-2009 financial crisis has demonstrated how remarkable a domino effect can be, with one system crashing and bringing down another system, and so on until the entire global economy is affected. Financial markets have seen various crashes, equity funds and hedge funds were forced to get rid of assets, personal finance and credit became increasingly hard to get, insurance activities fell, and a general poor economic climate followed.
Some experts actually predicted the 2007-2009 financial crisis when the 2006 HSBC results were published, demonstrating a forthcoming mortgage problem if the situation was left to develop. Northern Rock were the first major bank to fall, leading to many loosing confidence in banks in general and investors panicking and again loosing faith in banks. For a long time many banks have been lending money to people who, quite frankly cannot afford to pay it back, helping to exacerbate the financial crisis. This came back to punish various financial institutions during the 2007-2009 financial crisis with many foreclosures taking place.
Although we are indeed in the midst of a crisis the 2007-2009 financial crisis is starting to wane according to many experts with some predicting small growth and stabilising economies in various areas towards the second half of 2009.
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