Financial Crisis

Public and private sector. Role of

government (public money) in saving

economies. Cases of selected countries

.

Agenda

1. What is a crisis?

2. Briefly about causes of financial crisis 2008

3. Government’s role

4. Public sector.

5. Private sector

6. Selected countries cases

7 Sum up
8. Credits

Crisis itself

A financial crisis can
come as a result of
institutions or assets
being overvalued.
If left unchecked, the
crisis can cause the
economy to go into a
recession or depression.

Financial Crisis 2008

Financial Crisis 2008



Financial bubble



1% Interest Rate



collateralized debt obligation



subprime morgages



Prices of houses goes down



Everyone goes bancrupted



Financial bubble



1% Interest Rate



collateralized debt obligation



subprime morgages



Prices of houses goes down



Everyone goes bancrupted

Public sector

Public sector

Higher Inflation

Poor Health service

Higher Taxes

High Unemplyment

Higher Inflation

Poor Health service

Higher Taxes

High Unemplyment

Private sector

Even higher unemployment

Lower salaries

Problems of new business and

small companies

Demand on luxury goods

No more private schools

Government response

What was the government response to the crisis?

Dodd-Frank Wall Street Reform Act



Regulate Credit Cards, Loans and

Mortgages



Oversee Wall Street



Stop Banks from Gambling with

Depositors' Money



Regulate Risky Derivatives



Bring Hedge Funds Trades Into the Light:



Reform the Federal Reserve

GREECE

ICELAND

Sum up



Financial crisis is the result of overvaluing an
asset;



Crisis from 2008 called Credit Crisis was partially
caused by extremly risky investments made by
quite a lot of people



the crisis has affected both the public and private
sectors



citizens lost their jobs, opportunieties and
confidence in financial sector



Greece need EU to evoid bancruptcy and save
Eurozone

Credits



Investopedia



Youtube



Wikipedia

Thank you!