The document summarizes the global credit crisis that began in 2007 and its widespread impacts. It started as a downturn in the US housing market and spread to global financial markets as large banks reported massive losses from mortgage-backed securities. The crisis led to a deep global recession, widespread job losses, and government bailouts of banks. While some regions and countries were affected more indirectly, the crisis underscored the interconnectedness of the global economy and demonstrated that no country was immune to the turmoil that began in the US housing and credit markets.

1. Credit Crisis: Is There An End In Sight?

2. What actually happened? Fed rate drops to 1% Rising home prices Finance industry investing heavily in real estate Spend like there is no tomorrow! Rising U.S. debts! Rest of World increase IOUs Subprime borrowers default! U.S. housing market bursts 1 st wave of mortgage –related losses Crisis in large global banks Wall St. down, bankruptcies, credit writedowns of over $500 bn Turmoil in world markets!

5. Credit Crisis: The Americas Canada :  reduced interest rates and increasing liquidity Mexico :  falling Peso and dwindling economy Brazil :  Heavy credits, but stabilizing and recouping U.S. : ??? still working out financial bail-outs; more bank failures to come Argentina :  Heavy job losses, higher import tariffs and weaker Peso “ Borrow indefinitely: Only in America”

8. Some are indirectly affected

10. BUT, the crisis is truly GLOBAL! Ireland :  First Eurozone co u ntry to slide into recession Poland :  Part of Eurozone,but has a stable banking sector Russia :  Fast growing economy with large foreign reserves Singapore :  Prosperous, government guarantee for deposits till 2010 China : ??? Strained with economic surplus and counterfeit goods India :  Economic slowdown with high inflation and poverty France :  Sluggish economy heading for recession Hungary :  -ve credit raing, heavy debts, huge current account deficit