Financial Crisis
Public and private sector. Role of
government (public money) in saving
economies. Cases of selected countries
.
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!