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The great recession of 2009 have the lessons been learnt
The document summarizes the causes, effects, and lessons of the global recession. It outlines factors like the housing bubble burst, subprime mortgages, high oil prices, and corruption as causes. Effects included bankruptcy, bailouts, foreclosure, and stock market declines. Lessons discussed avoiding excessive borrowing and that jobs are most important. The recession impacted India through foreign investment declines and stock market crashes. However, some lessons still have not been learned like matching supply and demand or ensuring full financial transparency.
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The great recession of 2009 have the lessons been learnt
- 1. Presented by SURAJ ZARE RISHIGUPTA ROHIT JAIN ABHIJEET BANERJEE NIMIT KUMAR
- 2. Agenda Causes ofrecession Lessons from recession Effects of recession Impact on India Lessons still not learnt Conclusion
- 3. Causes of recession The Housing Bubble Burst The Subprime Mortgage Fiasco Sky-High Price of Crude Oil and Refined Product Dollar Devaluation Corruption Unlimited supply of credit
- 4. Lessons from recession Just because you can qualify to borrow money doesn't mean you should A house is primarily a place to live Stock prices can keep falling a very long time You cant avoid risk by avoiding stock market Your job is your greatest asset
- 5. Effects of recession Bankruptcy Bailouts Foreclosure Economic meltdown Loss of confidence in stock market
- 6. Impact on India FIIs pulled out of money from the Indian stock market Public Sector Banks, State Bank Of India, Bank Of Baroda, Canara Bank, Punjab National Bank etc did not have major exposure to credit derivatives market due to their limited overseas operations Stock market Crashed and BSE sensex crashed from 24000 level to 8000 level ICICI Bank incurred a loss of close to Rs.1000 Crores because of exposure to international securities market
- 7. Lessons still notlearnt Supply is not being matched with demand this will help accelerate the domino effect eg. China real estate Corruption is still a problem in many countries No complete transparency in the financial system in major economies Major economies are at very high risk of collapse
- 8. Conclusion World ison a time bomb of bailouts Lessons should be taken seriously With differences increasing in the real asset and financial asset the risk is also increasing Credit should only be provided for temporary leverage without effecting the supply side.