Global Financial Crisis
The present financial crisis had been building up over the last few years starting with the housing prices “bubble” that saw continued rises in mortgaged properties. But what some experts concede is that they are caught by surprise with the extent and severity of the crisis which has spread to other parts of the world. The housing crisis quickly became a credit crunch which further deteriorated into a financial crisis which threatened to bring down world markets. World leaders were forced to act, lest their countries will collapse with dire effects on employment and their national economies. Some economists expect a two or three-year time of recession and possibly depression starting next year. Finance ministers blame the crisis on taking excessive risks such as the trade in derivatives called credit default swaps or CDS.
Affected by the Global Financial Crisis