Vietnam national university of economics and business
CHAPTER 2. THE CAUSES OF THE 2008 GLOBAL FINANCIAL CRISIS
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Khung-CTDT-TCNH-CLC, Ruot thang 4 (2)-99-102
- Điều hướng trang này:
- 2.1. Overview of the US financial crisis
- 2.1.1. The period from 2000 to 2007, warning signs of the crisis
CHAPTER 2. THE CAUSES OF THE 2008 GLOBAL FINANCIAL CRISISThe economic crisis of 2008 was a crisis that included a series of banking system failures, credit starvation, stock price declines and large-scale currency devaluations in many countries around the world. world, whose main starting point is the breakdown of the financial crisis in the US. 2.1. Overview of the US financial crisisExperts say that the economic crisis in the US in 2008 was the biggest crisis since the Great Depression also in the US from 1929 to 1930. It can be said that the crisis has been lurking for years. 2000 with the Dot-com crisis and the 9/11 terrorist attacks, which weakened the US economy. The crisis had its seeds many years ago, specifically as follows: 2.1.1. The period from 2000 to 2007, warning signs of the crisisDot-com Bubble 2000 In 1995, Microsoft introduced Windows 95 operating system with many breakthrough improvements compared to previous versions. Competition among software firms that manufacture computer hardware, especially microprocessors, has made personal computers cheaper. Two factors open the door to widespread use of personal computers in businesses and homes. Netscape's Internet browser has allowed people to exploit and exchange information over the network, ushering in the era of e-commerce, harnessing the power of management systems. On August 9, 1995, Netscape Company made its initial public offering. On that day, Netscape's stock price increased from 28 USD to 71 USD. This phenomenon has led to a series of computer companies issuing shares and listing on the stock market. The investment fever in stocks of the information technology industry lasted from 1995-2000, causing stocks to rise sharply. Even though companies are not profitable, their share prices have risen sharply, no longer reflecting the true value of the company. The stock market bubble appeared, and the big bubble burst in 2000 leading to the bankruptcy of a series of information technology companies, opening the economic recession in the early 2000s of the United States. The NASDAQ Composite Index during the Dot-com bubble Housing bubble 2001-2006 In 2001-2004, the Fed implemented an easy monetary policy to save the economy from recession, using measures to support investment and stimulate consumption. Specifically, the reduction of interest rates from 6.25% in 2001 to 1.75% in 2003 and remained at 1% between 2003 and mid 2004. This was the driving force for the development of the real estate sector. real estate and construction industry. Banks easily provided credit to customers, resulting in massive borrowing for speculative purposes leading to the formation of a housing bubble. Prices in the states of Arizona, California, Florida, Hawaii… increased by over 25% a year. America's housing boom begins. 2005: Up to 28% of homes were bought for speculative purposes and 12% were bought for nothing. This year, the housing bubble grew to its peak and burst. From the fourth quarter to the first quarter of 2006, the median home value fell by 3.3%. At that time, the cumulative value of housing credits reached 600 billion USD. Many borrowers are unable to repay their loans, leading to foreclosure. Falling house prices make foreclosures unable to cover loans from banks, causing many banks to fall into difficulties. 2006: The real estate market continued to decline. The sharp drop in prices resulted in a significant surplus of homes. The US housing construction index in mid-August fell 40% year on year. US home sales from 1987 to 2008 tải về 195.42 Kb. Chia sẻ với bạn bè của bạn:
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