2008 CRISIS vs 2020 CRISIS

1. 2008 CRISIS VS 2020
CRISIS
PRANJIT DEKA SECTION A

2. Global 2008 crisis
 Housing prices started to fall
 Insatiable demand for mortgages
 Banks have to absorb losses
 Investors sold of their shares
 Investment banks jumped neck-deep into risk

3. 2020 Global crisis
 loss of 600 lakh crores in the economy
 The corona crisis
 Stock market is falling down
 Weaker growth in both advance and
developing countries

4. Causes
 2008 global crisis
 Increased borrowing by banks and investors
 Deregulation in financial history
 Excessive risk taking in macroeconomic
environment

5. Causes
 2020 global crisis
 Corona virus created chaos
 Countries daily functions have been locked
out
 Scarcity of resources

6. Impact
 Global 2008 crisis
 Financial crisis cost the us an estimated $648
billion
 Us lost $3.4 trillion in real estate wealth
 Slowdown in international trade
 Declines in consumer wealth

7. Impact
 2020 global crisis
 Declining oil prices
 Tourism suffered the most
 Consumers buying less
 Manufacturing sectors slowed down
 Stock markets declined

8. Suggestions
Two things could have prevented the 2008 crisis:
 The first would have been regulation of mortgage brokers, who made the bad loans, and
hedge funds, which used too much leverage
 The second would have been recognized early on that it was a credibility problem. The
only solution was for the government to buy bad loans

9. Suggestions
Suggestions that could have avoid the 2020 crisis:
 Clean your hands often
 Avoid close contact and Stay home if you’re sick
 use a hand sanitizer that contains at least 60% alcohol.
 Avoid touching your eyes, nose, and mouth with unwashed hands.
 Cover coughs and sneezes
 Wear a facemask if you are sick