Financial Crisis

The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth; they do not directly result in changes in the real economy unless a recession or depression follows.

Many economists have offered theories about how financial crises develop and how they could be prevented. There is little consensus, however, and financial crises are still a regular occurrence around the world.

Read more about Financial Crisis:  History

Other articles related to "financial crisis, crisis":

Financial Crisis - History - 21st Century
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Latvian Financial Crisis (2008– )
... The 2008 Latvian financial crisis, which stemmed from the global financial crisis of 2008–2009, was a major economic and political crisis in Latvia ... The crisis was generated when an easy credit market burst, resulting in an unemployment crisis, along with the bankruptcy of many companies ...
Late-2000s Financial Crisis - Background - Subprime Lending
... contributed to an increase in the amount of subprime lending during the years preceding the crisis ... Wallison, believe that the roots of the crisis can be traced directly to affordable housing policies initiated by HUD in the 1990s and to massive risky loan purchases by ... The majority report of the Financial Crisis Inquiry Commission (written by the 6 Democratic appointees without Republican participation), studies by Federal Reserve economists, and the ...
Lewis Ranieri - Career
... under major scrutiny for their role in the subprime mortgage crisis the United States housing bubble and the Financial crisis of 2007-2010, critics ... inserted Ranieri among the "Five Goats Who Contributed to the Financial Crisis" of 2008 with President Bill Clinton, former AIG head Hank Greenberg, Ben Bernanke ... whether the overextension of leverage inherent in subprime mortgages could lead to a financial crisis, Ranieri commented "I think is containable ...
Latvian Financial Crisis (2008– ) - See Also
... Economy of Latvia Global financial crisis of 2008–2009 2008–2009 Russian financial crisis 2008–2012 Icelandic financial crisis List of bankrupt or acquired banks during the financial crisis of 2007–2008 ...

Famous quotes containing the words crisis and/or financial:

    We can’t afford the wrath of Heaven. We survived a deluge by the skin of our teeth, but an economic crisis would be disastrous.
    Friedrich Dürrenmatt (1921–1990)

    A theory of the middle class: that it is not to be determined by its financial situation but rather by its relation to government. That is, one could shade down from an actual ruling or governing class to a class hopelessly out of relation to government, thinking of gov’t as beyond its control, of itself as wholly controlled by gov’t. Somewhere in between and in gradations is the group that has the sense that gov’t exists for it, and shapes its consciousness accordingly.
    Lionel Trilling (1905–1975)