The document discusses various financial crises throughout history including their causes and effects. It provides details on the Great Depression of the 1920s, the OPEC oil crisis of the 1970s, the dot-com bubble of 2000, and the 2008 global financial crisis. It notes that the Great Depression resulted in a 25% unemployment rate in the US and an 80% drop in stock market values. The OPEC crisis quadrupled oil prices between 1973-1974. The document also outlines signs of financial bubbles like rising unemployment and inflation, declining housing sales, and sustained stock market losses.
An Analysis Of The Financial Crises Of The Past Centuryiosrjce
IOSR Journal of Economics and Finance (IOSR-JEF) discourages theoretical articles that are limited to axiomatics or that discuss minor variations of familiar models. Similarly, IOSR-JEF has little interest in empirical papers that do not explain the model's theoretical foundations or that exhausts themselves in applying a new or established technique (such as cointegration) to another data set without providing very good reasons why this research is important.
The Great Depression - Presentation (Macroeconomics Perspective)Arjun Parekh
This brief presentation on 'The Great Depression' has been made from the point of view of understanding Macroeconomic factors that played an important role.
Chapter 7 The Global Financial CrisisTHE GLOBAL FINANCIAL CRIS.docxbissacr
Chapter 7 The Global Financial Crisis
THE GLOBAL FINANCIAL CRISIS HAD WIDESPREAD EFFECTS. In its early days in September 2008, a trader reacted to the numbers on the floor of the New York Stock Exchange as the Dow plummeted.
Learning Objectives
1. 7.1Evaluate the causes that contributed to creating the financial crisis
2. 7.2Review the impact of the global financial crisis on different world economies, business, employment, and global power shifts
3. 7.3Evaluate the concerns that made different countries respond in different ways to the financial crisis
Financial crises and accompanying economic recessions have occurred throughout history. Periodic crises appear to be part of financial systems of dominant or global powers. The United States was at the epicenter of the financial crisis of 2008–2009. Enjoying a unipolar moment following the collapse of the Soviet Union and the failure of Communism, the United States was confident that economic liberalization and the proliferation of computer and communications technologies would contribute to ever-increasing global economic growth and prosperity. Globalization contributed to the extraordinary accumulation of wealth by a relatively few individuals and created greater inequality. In an effort to reduce inequality in the United States, the government implemented policies that engendered the financial crisis.
As we discussed in Chapter1, is usually the leading force in the growth of globalization. The rise of great powers is inextricably linked to access to investments and their ability to function as leading financial centers, as we saw in Chapter2. Their decline is also closely linked to financial problems. Finance enables entrepreneurs to start various enterprises and to become competitors of established companies. It is also essential to innovation and scientific discoveries. Finance also facilitates risk sharing and provides insurance for risk takers. Countries that have large financial sectors tend to grow faster, their inhabitants are generally richer, and there are more opportunities. Financial globalization contributed to unprecedented growth and prosperity around the world. China and India became significant economic powers, and the industrialized countries grew even richer. Closely integrated into the financial system are banks and investment firms. When the financial system is in crisis, banks reduce lending, companies often face bankruptcy, and unemployment rises. Ultimately, as we saw in the financial crisis of 2008–2009, many banks fail.
The financial crisis triggered a global economic recession that resulted in more than $4.1 trillion in losses, saw unemployment rates that climbed to more than 10 percent in the United States and higher elsewhere, and increased poverty. Stock markets around the world crashed. American investors lost roughly 40 percent of the value of their savings. Housing prices plummeted from their record highs in 2006. Consumers reduced their spending, manufactu.
An Analysis Of The Financial Crises Of The Past Centuryiosrjce
IOSR Journal of Economics and Finance (IOSR-JEF) discourages theoretical articles that are limited to axiomatics or that discuss minor variations of familiar models. Similarly, IOSR-JEF has little interest in empirical papers that do not explain the model's theoretical foundations or that exhausts themselves in applying a new or established technique (such as cointegration) to another data set without providing very good reasons why this research is important.
The Great Depression - Presentation (Macroeconomics Perspective)Arjun Parekh
This brief presentation on 'The Great Depression' has been made from the point of view of understanding Macroeconomic factors that played an important role.
Chapter 7 The Global Financial CrisisTHE GLOBAL FINANCIAL CRIS.docxbissacr
Chapter 7 The Global Financial Crisis
THE GLOBAL FINANCIAL CRISIS HAD WIDESPREAD EFFECTS. In its early days in September 2008, a trader reacted to the numbers on the floor of the New York Stock Exchange as the Dow plummeted.
Learning Objectives
1. 7.1Evaluate the causes that contributed to creating the financial crisis
2. 7.2Review the impact of the global financial crisis on different world economies, business, employment, and global power shifts
3. 7.3Evaluate the concerns that made different countries respond in different ways to the financial crisis
Financial crises and accompanying economic recessions have occurred throughout history. Periodic crises appear to be part of financial systems of dominant or global powers. The United States was at the epicenter of the financial crisis of 2008–2009. Enjoying a unipolar moment following the collapse of the Soviet Union and the failure of Communism, the United States was confident that economic liberalization and the proliferation of computer and communications technologies would contribute to ever-increasing global economic growth and prosperity. Globalization contributed to the extraordinary accumulation of wealth by a relatively few individuals and created greater inequality. In an effort to reduce inequality in the United States, the government implemented policies that engendered the financial crisis.
As we discussed in Chapter1, is usually the leading force in the growth of globalization. The rise of great powers is inextricably linked to access to investments and their ability to function as leading financial centers, as we saw in Chapter2. Their decline is also closely linked to financial problems. Finance enables entrepreneurs to start various enterprises and to become competitors of established companies. It is also essential to innovation and scientific discoveries. Finance also facilitates risk sharing and provides insurance for risk takers. Countries that have large financial sectors tend to grow faster, their inhabitants are generally richer, and there are more opportunities. Financial globalization contributed to unprecedented growth and prosperity around the world. China and India became significant economic powers, and the industrialized countries grew even richer. Closely integrated into the financial system are banks and investment firms. When the financial system is in crisis, banks reduce lending, companies often face bankruptcy, and unemployment rises. Ultimately, as we saw in the financial crisis of 2008–2009, many banks fail.
The financial crisis triggered a global economic recession that resulted in more than $4.1 trillion in losses, saw unemployment rates that climbed to more than 10 percent in the United States and higher elsewhere, and increased poverty. Stock markets around the world crashed. American investors lost roughly 40 percent of the value of their savings. Housing prices plummeted from their record highs in 2006. Consumers reduced their spending, manufactu.
Enterprise Liquidity Risk: Overcoming the challengesCognizant
Given the vastness of today's global financial system and the volume and complexity of data that financial institutions must deal with every day, firms must learn how to proactively manage liquidity risk and avoid the pitfalls that sparked past financial crises. Predictive analytics and advanced risk-monitoring systems are among the tools available to help these institutions overcome the challenges of doing business in an increasingly connected world.
Overview of GLOBAL FINANCE CRISIS and impact with market. Impacts of the US Financial Crisis on Indian Economy. FINANCE CRISIS, Subprime Mortgage Crisis, US Financial Markets, US Unemployment and Stock Market Returns, Treasury Rates and Inflation,
Covid19 Pandemic: Looming Global Recession and Impact on BangladeshMd. Tanzirul Amin
The following article was written by me, and was published in the Economic Trends section of the Keystone Quarterly Review (Volume-30) on July 30, 2020: https://lnkd.in/g9nGxzn
The article covers the effects of the Covid-19 Pandemic in the world economics, and the resulting impacts on the Bangladeshi economy. Various other economic aspects are covered, along with the alarming signs/symptoms of another "Great Global Recession".
A market and economic review presented by Delta Capital Management's Sean Casterline, Alex Moore & Matt Haushalter. We review the stock market, investment strategies, business strategies, financial services and more.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
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how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
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What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
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how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
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There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
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how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Financial crisis and Its Effects on Security Markets.pptx
1. Financial crisis
and Its Effects on
Global Security
Markets
BHARAT RACHURI (57)
KRISHNA RATHI (65)
RISHI SHARMA (79)
AKASH A V (53)
2. Agenda
How the financial crises occur in
security markets.
01
major financial crisis’s effect
on the economy and people
03
How the economies react in the
after math of the financial crisis
04
What are the changes that the
takes place in the security
markets after the financial crisis
05
02
How a bubble is created in
market
06 Signs of a bubble in a market and
safeguards in a market
3. Causes of financial crisis
Excess leverage is the heart of all
financial crises which extends beyond
the balance sheet.
Leverage
Liquidity mismatches (lending long,
borrowing short) must be drastically
reduced
Liquidity
industry that is too large, and
"systemically critical" to regulate,
govern, or let to collapse.
Too Big To Fail
Such obvious conflicts of interest are
not accepted in any other profession
Conflicts of Interest
01 02
03 04
A financial crisis usually occurs due to various causes but often it a combination of
assets being overvalued, excessive risk taking, policy and regulation error,
geopolitical or natural disaster like a pandemic which trigger a irrational behavior
in the investors in rapid selloff of stressed assets.
Taxes and Subsidies
Governance
06
05
Some of the root causes of the financial crisis are :
substantial influence on cost and
movement of capital, and the existing
tax law as it relates to finance need
revision.
democratic governance is required
or the commons will be seized
4. How bubble forms in a market
Panic
While some latecomers to the game may
have waited for an asset's price to rise
again in the past, by the time the bubble
reaches its panic stage, this is no longer a
viable option. Instead, the eagerness to
acquire an item has given way to a
panicked desire to sell it. The price drop
quickly wipes out gains and encourages
more panic-driven selling
Boom
Price rises during the displacement stage,
but things really take off during the
bubble's second stage. The boom period
attracts speculators, who help drive the
asset's price higher as word of the asset's
gains spreads
Earning a Profit
price increase turns out to be too good to
be true. Booms are followed by busts,
and as the bubble reaches the profit-
taking stage, some investors start selling
to lock in profits. The stock market
bubble has burst, and those who
recognize the signs will profit sooner
rather than later.
Euphoria
The fervor grows stronger as the asset's
price rises. Excitement motivates people
more than rational justification for the
massive price increase during the peak
bliss stage.
And, because new investors are always
eager to join, there is always the
possibility that someone will be willing to
pay more for the asset.
.
5. Major financial crisis’s effect on
economy and people
British credit crisis of
1772-1773
The 1772-1773 credit
crisis is possibly the
least well-known
financial catastrophe
of the eighteenth
century. It occurred
between two infamous
events: the 1763
financial crisis and the
American
Revolutionary War's
economic turbulence.
Great Depression
1920
The Great Depression is
worst economic disaster
of the 20th century and,
possibly, the worst in the
history. between 1929 and
1933, the unemployment
rate increased to 25% of
the work force, the stock
market lost 80% of its
value, and over 7,000
banks failed. Financial crisis 2008
Global financial crisis
of 2007-08 caused by
the Lehman brothers
bank made ripples
through global
economy due to which
many banks, companies
and institutions were
bankrupt.
Covid-19 Pandemic
Covid and war in
Ukraine disrupted
many lives and send
shock waves through
our financial and social
life.
British credit crisis of
1772-1773
Great Depression 1920
OPEC Crisis
Financial crisis 2008
Covid-19 Pandemic
OPEC Crisis
OPAC crisis or the
oil crisis of 1972 had
rapidly increased the
oil price due to
which there was an
energy shortage
leading to inflation
in many countries.
6. • Worldwide economic downturn that began in 1929 and lasted until
about 1939. It was the longest and most severe depression ever
experienced by the industrialized Western world. Although the
Depression originated in the United States, it resulted in drastic
declines in output, severe unemployment, and acute deflation in almost
every country of the globe.
• But its social and cultural effects were no less staggering, especially in
the United States. After the WALL STREET CRASH OF 1929, where
The Dow Jones Industrial level dropped from 381 to 198 over the
course of two months, optimism persisted for some time.
The Great Depression 1920’s
-80%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
united states united kingdom france Germany
The Great Depression 1929
Industrial production Whole sale price foreign Trade
• Between 1929 and 1932, worldwide GROSS DOMESTIC PRODUCT(GDP) fell by an estimated 15%. By comparison,
worldwide GDP fell by less than 1% from 2008 to 2009 during the GREAT RECESSION. Some economies started to recover by
the mid-1930s. However, in many countries, the negative effects of the Great Depression lasted until the beginning of world war
II.
7. OPEC CRISIS
• The OPEC oil embargo was an event where the 12 countries that
made up OPEC at the time stopped selling oil to the United
States.
• The embargo sent gas prices through the roof. Between 1973 and
1974, prices more than quadrupled. The embargo contributed to
stagflation.
• The OPEC oil embargo was an event where the 12 countries that
made up OPEC at the time stopped selling oil to the United
States.
• The embargo sent gas prices through the roof. Between 1973 and
1974, prices more than quadrupled (four times).
• The embargo contributed to stagflation.
• OAPEC countries cut production of oil and placed an embargo on
oil exports to the United States when Richard Nixon requested
$2.2 billion to support Israel in the Yom Kippur War on October
19, 1973. The embargo only lasted until January 1974, but the
price of oil remained high even after the embargo was lifted.
• In response to the 1973 oil crisis, the United States took steps to
become increasingly energy independent.
8. Dot Com Bubble 2000
How dot com bubble started
1. Many companies chasing few internet users
ie 300 million users but 17 million websites.
2. Overvalued tech companies.
3. Media build up hype of internet companies.
Where did the money raised spent on.
Why the bubble did not expand further and how
did the bubble burst.
Money supply- y2k bug- Japan recession
Ex: pets.com & Web van
Other facts – false reports, emails leak,
2001 twin tower attack
Positive effect like - Culture of tech
entrepreneurship and rise of big companies.
Start - 1989
9. Financial crisis 2008
• Start – interest rate decrease and Bush dream
• Golden age – Because buying homes till burry’s
observation
• Other facts- Rajan, professors Iceland and Hank Paulson
• How Escalated –Bank liquidity and surplus liquidity with
that interesting things CDO’s passed on till sub prime
defaulted
• Credit Default Swaps – AIG where Micheal burry made
money
• Price of Houses remained mostly flat which which rose
due to flipping.
• Lessons – Are we afraid ? No it’s better to be cautious
• What can be done – Not lowered taxes and would have
regulated the financial sector
10. Covid-19 Pandemic
The pandemic has triggered severe social and economic
disruption around the world, including the largest global
recession since the Great Depression.
The June edition of the Global Economic Prospects, put it
plainly: “COVID-19 has triggered a global crisis like no other –
a global health crisis that, in addition to an enormous human
toll, is leading to the deepest global recession since the Second
World War.” It forecast that the global economy as well as
per capita.
33%
7%
15%
25%
11. How financial crisis Changes the markets
OPEC oil Crisis 1973
Covid impact on stock market
Heavily populated, impoverished countries, whose economies
were largely dependent on oil—including MEXICO, NIGERA,
ALGERIA, and LIBYA—did not prepare for a market reversal
that left them in sometimes desperate situations.
The stock market peaked on February 19, 2020, just before the
COVID-19 epidemic prompted a freefall in share prices. since, the
globe has transformed, reshaping our lives, economies, and
company fortunes—an unfolding journey mirrored in the ups and
downs of share prices.
The Great Depression
2008 financial crisis
• Stock market crash
• Banking panics and monetary contraction
• The Gold Standard
• Inflation During the 1910s to the 1930s
financial crisis effected many countries and
stock markets of many countries fell
causing million of job losses and trillion in
loss. The financial crisis effected the stock
market around the world.
12. Signs of a bubble in market
economy enters a recession nine months after the jobless rate
reaches its lowest point, or "trough." It stands to reason that
unemployment would climb in the run-up to a recession and peak
at the worst of it.
Sharp declines in both new house building and home sales are two of the clearest
markers of an impending recession.
It indicates that unemployment is low, people are well compensated, and they
are spending their money. Retail prices rise in tandem with customer demand,
which is what causes inflation
A protracted decrease in equity prices is a leading signal of lesser profits projected
to be made by firms, or at least lower earnings than the stock market had previously
predicted
Short-term bond rates are frequently lower than longer-term bond yields, although
not always. When this occurs, a recession is almost always on the horizon.
The Treasury Yield Curve Flips
Sustained Stock Market Losses
Drop in Housing Construction
and Sales
Rising Inflation
Unemployment Bottoms Out
13. safeguards are that are implemented to prevent these financial crises
01 02 03 04
Innovation and structu
ral changes
Destabilizing incentive
s
Systemic risk and pro
cyclical risk-taking
Transparency and disc
losure and Role of cre
dit ratings
Procyclical capital requireme
nts and accounting
Leverage and risk
Making both capital require
ments and macroeconomic p
olicy more countercyclical
Risk disclosure and
valuation
Excessively market-based,
backward-looking risk
management.
Disregard of systemic risk.
Reassessing mark-to-
market accounting
Securitization processes and
markets
A more complex but less
differentiated configuration
of players.
Regulatory reform
priorities
Making securitization more c
ompatible with incentives
Quality of the rating process
and conflicts of interest.
originate-to-distribute
model and wholesale
funding.
Strengthening liquidity mana
gement.
Uses of ratings.