Answer: A recession in the US economy began at the end of 2007. Concerns deepened as an epic financial crisis shattered business and consumer confidence.By the fall of 2008 the US was in the midst of the worst recession since the 1930 and and major financial institutions were on the verge of bankruptcy.The financial crisis and recession spread around the world. The crisis came largely as surprise to many policy makers,acadmics and investors.Leading up to the crisis there were many telltale signs that should have set off alarm bells.The vast majority of academics , officals and investors ignored the signals and rather made profuse claims about a new era.The casue of crisis have become understandably a major topic of discourage among both academic and policymakers. Rates, Risk, Regulation and Global imbalance are major factors behind the Global fiaincial risk. 1.Use of off - balance sheet entities and over the counter transaction 2. Complex securitization of assets accompanied by lax risk analysis. 3. Excessive leverage and reliance on short term debt. 4. Remunaration incentive encouraged excessive risk taking 5. Credit rating agencies failure to accurately assess risk 6. Aggressive mortage lending and poor lending statnderds. 7.Fiiancial deregulation 1990s onwards 8. Loose monetary policy 2002 - 005 9.Household borrowing beyond their means 10. Inter - linkages in Global financial system Solution Answer: A recession in the US economy began at the end of 2007. Concerns deepened as an epic financial crisis shattered business and consumer confidence.By the fall of 2008 the US was in the midst of the worst recession since the 1930 and and major financial institutions were on the verge of bankruptcy.The financial crisis and recession spread around the world. The crisis came largely as surprise to many policy makers,acadmics and investors.Leading up to the crisis there were many telltale signs that should have set off alarm bells.The vast majority of academics , officals and investors ignored the signals and rather made profuse claims about a new era.The casue of crisis have become understandably a major topic of discourage among both academic and policymakers. Rates, Risk, Regulation and Global imbalance are major factors behind the Global fiaincial risk. 1.Use of off - balance sheet entities and over the counter transaction 2. Complex securitization of assets accompanied by lax risk analysis. 3. Excessive leverage and reliance on short term debt. 4. Remunaration incentive encouraged excessive risk taking 5. Credit rating agencies failure to accurately assess risk 6. Aggressive mortage lending and poor lending statnderds. 7.Fiiancial deregulation 1990s onwards 8. Loose monetary policy 2002 - 005 9.Household borrowing beyond their means 10. Inter - linkages in Global financial system.

1. Answer:
A recession in the US economy began at the end of 2007. Concerns deepened as an epic financial
crisis shattered business and consumer confidence.By the fall of 2008 the US was in the midst
of the worst recession since the 1930 and and major financial institutions were on the verge of
bankruptcy.The financial crisis and recession spread around the world.
The crisis came largely as surprise to many policy makers,acadmics and investors.Leading up to
the crisis there were many telltale signs that should have set off alarm bells.The vast majority of
academics , officals and investors ignored the signals and rather made profuse claims about a
new era.The casue of crisis have become understandably a major topic of discourage among both
academic and policymakers.
Rates, Risk, Regulation and Global imbalance are major factors behind the Global fiaincial risk.
1.Use of off - balance sheet entities and over the counter transaction
2. Complex securitization of assets accompanied by lax risk analysis.
3. Excessive leverage and reliance on short term debt.
4. Remunaration incentive encouraged excessive risk taking
5. Credit rating agencies failure to accurately assess risk
6. Aggressive mortage lending and poor lending statnderds.
7.Fiiancial deregulation 1990s onwards
8. Loose monetary policy 2002 - 005
9.Household borrowing beyond their means
10. Inter - linkages in Global financial system
Solution
Answer:
A recession in the US economy began at the end of 2007. Concerns deepened as an epic financial
crisis shattered business and consumer confidence.By the fall of 2008 the US was in the midst
of the worst recession since the 1930 and and major financial institutions were on the verge of
bankruptcy.The financial crisis and recession spread around the world.
The crisis came largely as surprise to many policy makers,acadmics and investors.Leading up to
the crisis there were many telltale signs that should have set off alarm bells.The vast majority of
academics , officals and investors ignored the signals and rather made profuse claims about a
new era.The casue of crisis have become understandably a major topic of discourage among both
academic and policymakers.
Rates, Risk, Regulation and Global imbalance are major factors behind the Global fiaincial risk.

2. 1.Use of off - balance sheet entities and over the counter transaction
2. Complex securitization of assets accompanied by lax risk analysis.
3. Excessive leverage and reliance on short term debt.
4. Remunaration incentive encouraged excessive risk taking
5. Credit rating agencies failure to accurately assess risk
6. Aggressive mortage lending and poor lending statnderds.
7.Fiiancial deregulation 1990s onwards
8. Loose monetary policy 2002 - 005
9.Household borrowing beyond their means
10. Inter - linkages in Global financial system