Financial Crisis Of 2008 Struck The World - 1398 Words

When the financial crisis of 2008 struck the world, there were multiple business scams and schemes that became exposed, creating a colossal uproar and unrest around the world. When the stock market collapsed, people all across America took a hit, with 2.4 trillion dollars of the Americans people’s savings vanishing in just a few weeks. This financial crisis also brought to light an unprecedented amount of fraud, over exposing people who were cutting corners. One of the most famous scams that surfaced in late 2008 was operated and executed by Bernard Madoff, in which he perpetrated the largest Ponzi scam in American history. A Ponzi scheme is a simple swindle where by one set of investors are paid unreal returns out of money received from another investor. A Ponzi scheme is however always disaster prone from the beginning as there is never a strategy to wholly recoup investors money. Bernard Madoff founded his first company in 1960, an Investment Securities business in which Madoff’s methods were considered very up to date. He was known as a pioneer in electronic trading. As Madoff’s business started to flourish in the early 2000’s, he became the go to guys that people at the Securities and Exchange Commission turned to and trusted. He was a highly respected individual in his field. Bernard Madoff’s firm became one of the major market makers in the US, and by 2008, Madoff Investment Securities was the sixth largest market maker on Wall Street (The Wall Street Journal, â€Å"theShow MoreRelatedThe Economic Crisis Of The United States1680 Words   |  7 Pages Although the global economic crisis in 2008 occurred in many countries around the world, it was originally initiated by the United States of America. Being as though the United States is one of the world s most hegemonies countries after its economy suffered from an immense downturn many smaller countries were affected, most specifically the Caribbean. Many countries within the Caribbean were affected greatly by the recession due to the fact that most of their gross domestic product comes fromRead MoreThe Government And The Central Bank1641 Words   |  7 Pages As the world is more global now than before and Canada’s economy is export-based we have to wider our looks outside of Canada to understand whether their actions are reasonable made. Therefor I will in this essay compare Canada with other countries which also have large natural resource reserves, such as Russia and Norway. To understand the acts of the Canadian government and the central bank we have to take in account the financial damages of what the financial crisis in 2007-2008 caused notRead MoreKeynesian Theory During The Great Depression949 Words   |  4 Pagesrates to name the few. Financial crisis that occurred in 2007-2008, boosted the debate among politicians, economists, scholars over the way the economics policies should be conducted. To begin with, Keynes came up with a theory that challenged monetarist model, that was widely employed in 1930s, as a reflection of the unprecedented events of the Great Depression. From Keynes’ point of view, it was the failure of the free market theory that led the world into financial crisis. 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Banks believed that authorities would bail them out if the risk were to backfire on their end. As the housing market continued to decline, people were less willing to purchase homes. Investment banks began acquiring more assets that were decliningRead MoreThe Global Economy Has Affected Those Polices1412 Words   |  6 Pagesessay I will discuss the policy objectives, which governments have used from the credit crunch of 2008 and up to the present. I will explain how effective they have been and how far the global economy has affected those polices. UK Governments have used many policies to help stimulate the credit crunch of 2008-2009, bringing many advantages and disadvantages to the UK. On September 15th 2008 the collapse of the Lehman brothers filed for bankruptcy. The filing was the largest in historyRead MoreFinancial World Is Full Of Volatile Market Movements Which1369 Words   |  6 PagesFinancial world is full of volatile market movements which expose any investor to tribulations that can lead to wipe away of huge amount of invested capital. Global Economy has seen great depressions including that of Mortgage crisis in 2008 that led to millions of job being lost and investors losing confidence in market. There is a saying in financial world that ‘an individual is rewarded for the amount of risk they take while investments’. There exists variety of people with diversified mentalityRead MoreWhat Did The World Economic Downturn Of 2008-09 Boost China s Position As A World Leader?1075 Words   |  5 PagesENVIROMENT Q1. To what extent did the world economic downturn of 2008-09 boost China’s position as a world leader? A1. China began its 2008, fiscal year with a continuing growth rate in double digits until the Global Financial Crisis struck the world leaving the United States and the Europe economically wounded. Though during the phase it was assumed China would be immune to the GFC, however the banks collapsing in the Europe and the America dragged China into a financial mess itself. The recorded GDP growthRead MoreAsian Tigers Vs. South Korea1473 Words   |  6 Pagesturned out to be an imperative role model for many of the developing countries and these countries include the â€Å"Tiger Cub Economies† comprising of Malaysia, Indonesia, Philippines and Thailand. Subsequent to the 1997 Asian Financial Crisis and the western Financial Crisis of 2007-2008, at the time there was a continuing decline in GDP (Gross Domestic Product-market assessment of all absolute commodities and services, compared to the populace, in any given year). For all the Asian Tiger countries, howeverRead MoreWall S treet : The Great And Powerful Financial District Of The World1407 Words   |  6 Pages Wall Street is the great and powerful financial district of the world. With that statement being true Wall Street isn’t perfect. Wall Street has faced many problems throughout its existence as recessions and depressions came into play and single handedly pushed America into a financial crisis. As early as 1929 till as recent as 2008 recessions still occur and throughout the existence of Wall Street they will never stop existing. The argument of whether or not a recession could be predicted is a