The effects of the 2008 financial crisis on the world economy

In my previous blog post I discussed the recovery from the 2008 Financial Crisis and the potential effect of the current COVID 19 pandemic on the world economy, in this blog post I will discuss the emergence of cryptocurrency and discuss whether I believe it will have an effect on the financial industry.  Cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend (Frankenfield, 2021). Types of cryptocurrency include Bitcoin, Litecoin and Eretheum however Bitcoin is the most popular and well-known type of cryptocurrency. Satoshi Nakamuto first established Cryptocurrency in 2008 with the development of Bitcoin, however it wasn’t until 2017 that its value absolutely sky rocketed. The rise of cryptocurrency peaked this year when Bitcoin hit an all time high in value, but it is important to look into whether this could affect the financial industry.  One of the main problems with cryptocurrency ta...

In my previous post I discussed how the 2008 financial crisis affected several different countries around the world. In my analysis I discovered that the world economy in general was hit severely and it would require severe action to restore the economy to its previous state. I have previously discussed how the US government injected $700m into the economy to begin the process of recovery, however this was only the beginning of the recovery process. In this blog I will look into the recovery paths for several countries that helped to build the economy back up. I will also discuss the affect of the current COVID-19 pandemic on the economy and whether I believe the financial burden from it could cause another financial crisis in the not so distant future.  In the UK the financial crisis hit the economy hard, specifically the banking sector, as a means of recovery the UK bailed out banks such as Northern Rock. In the US however, they didn’t bailout the Lehmann Brothers firm and it col...

In my previous blog post I discussed what the 2008 financial crisis was and how it brought about ‘The Great Recession’, I also discussed the beginning of the financial crisis and the collapse of the Lehmann brothers firm. I also discussed what I personally believe was the cause for the crisis and The Great Recession. In this blog, I intend to examine the effect of the 2008 Financial Crisis and The Great Recession on numerous countries around the world, specifically the US and the UK. In the UK financial institutions are heavily interlinked with each other, meaning that when one collapses it has the potential to bring the rest with it, this is exactly what happened when the banking sector collapsed. The 2008 Recession brought about severely hard times for the UK people and the economy, Richards (2020) notes that the financial crisis was highlighted by “cutbacks in housing and retail sales, and widespread redundancies which sent the unemployment rate sky-rocketing”. This was highlighted ...

The 2008 financial crisis was one of the biggest shockwaves to hit the finance industry since ‘The Great Depression’. The financial crisis began with the collapse of the Lehmann Brothers firm. Theorist Lioudis (2021) stated that Lehmann’s downfall started with their stock falling sharply as the credit crisis erupted in August 2007 with the failure of two Bear Sterns hedge funds. As well as this many people feared that Lehmann Brothers would be the next to fall following the collapse of the two Bear Sterns hedge funds, this in turn led to their shares plummeting and this was a key event in their downfall. The Lehmann Brothers firm continued to suffer and struggle and eventually on the 15th September 2008 the firm collapsed, however as discussed previously signs had been there for a while that the firm was on the edge. The collapse of the Lehmann brothers firm had a huge affect on the financial industry due to the sheer size of the firm. However, while the collapse of the Lehmann Brother...