1. Agenda
Global meltdown
Who’s behind the financial meltdown(2008-2009)
Root causes….
The 5 big collapse
Major takeovers
Consequences of global meltdown
Countries mainly affected
Bailout plan
Stimulus package to curb recession
Global outlook as per GDP
Present scenario
Upcoming future changes
Recent news
References

2. Global meltdown or “the great recession” means slow down of all the
economies.
Cause……
When consumer loose confidence in the growth of the economy & spend
less.
This leads to:-
 A decreased demand for goods & services .
Decrease in production.
Layoff.
Sharpe rise in unemployment.
Investor spends less as they fear stocks values will fall and
THE STOCK MARKET FALL ON THE –ve SIDE.

3. 2008-2009
It all started in US
December 2007 as determined
by the US (NBER).
A major panic broke out when on September 15, 2008
LEHMAN BROTHER suffered from huge losses & even
faced BANKRUPTCY.

4. 1997-98 Asian economies-
Thailand, Malaysia, Indonesia-need for foreign
exchange revenue.
Foreign exchange revenue-conversion of
currencies between the countries-allows easy
money flow.
Asian countries-started to purchase US
reserves and securities-build good foreign
exchange reserve.
US economy flooded with dollars-needed an
outlet.
Outlet-spending and buying splurge.
Main reasons that attracted borrowers-low
interest rate and huge funds available as loans.

5. Attractive promises-more loans-building houses
and investments.
Banks-surplus money-terms relaxed-looking for
borrowers irrespective of background, returning
capacity and credit history.
House prices-soaring-due to huge investments.
In case borrower unable to pay interest-house
could be sold off.
Overbuild of houses-prices declined-grasping
returning capacity of the borrowers.
Situation worsened when loan amount exceeded
total cost of the house –gave way to the meltdown.