The World Experienced A Tremendous Financial Crisis Essay

Introduction In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brother and AIG. These collapses not only influence own countries but also international area. Hence, the intervention of governments by changing and expanding the monetary and fiscal policy or giving bailout is needed in order to eliminate and control enormous effects of the financial crisis. The presence of the global crisis and its overwhelming widespread poses great challenges for the Asian and Pacific regions as well as Vietnam. Vietnam is known as one of the most open economy of the globe and it relies deeply on external capital sources (e.g. FDI or ODA) to raise its development demands. Thus, Vietnam is highly vulnerable to the vast effects of the financial crisis on global trade and financial flows. First of all, this essay attempts to analyse the causes of the financial crisis which originated from the U.S. The financial crisis of 2008, which has also been referred to as The GreatShow MoreRelatedFinancial Management And Financial Crisis1404 Words   |  6 PagesSince the financial crisis is the value of financial institutions or assets in one country or several countries drops rapidly, and it can affect the stability and development of the relevant country or region even the world economic. The causes of this situation should be well studied to prevent the recurrence. 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