World Economic Crisis
A Report on
World Economic crisis
Have the world economies revived from the crisis?
Members:
1. 2. 3. 4. 5. N. Sesha Sathya Krishna N. Suganya Aswini Vishwanath J.R.Siddharth Elizabeth Thomas
ASB-Bangalore 07.12.2012
1|Page
Table of Contents:
Abstract 3 I.Introduction 4 II.Economic Crisis in USA 4 2.1 Dot-Com Bubble 4 2.1.1 Overview 4 2.1.2 Making Bubble Bigger 5 2.1.3 The Burst 5 2.2 Housing Bubble 6 2.2.1 Initial phase of Housing Bubble 6 2.2.2 Wall-Street‘s plan 7 2.2.3 CDO 7 2.2.4 Sub-Prime Mortgages 9 2.2.5 Burst of Bubble 10 2.3 Recession-2008 11 2.3.1 Overview of Recession 11 2.3.2 Effects of Recession 12 2.3.3 Federal Government response to crisis 13 2.3.4 After Effects of excessive spending 14 III. Euro Crisis 15 3.1 Overview 15 3.2Understanding the Crisis 15 3.3 Outlook for individual countries affected by crisis 19 3.3.1 Greece 19 3.3.2 Spain 21 3.3.3 Portugal 22 3.3.4 Ireland 23 3.3.5 Italy 23 3.4 Countries less affected by crisis 24 IV. The impact of global financial crisis on India 24 4.1 Offshoot of Globalized Economy 25 4.2 Reverse flow of Foreign Institutional Investment 25 4.2 Impact on various fields 26 Conclusion 34 Appendix 35 Reference 41
2|Page
Abstract
This paper is an attempt to throw light on major economic crises that world has faced by revealing their relation to each other. An honest effort has been put in this paper to bring out a clear picture of present economic situation of the world. In the vast arena of global economics, three major powers namely United States of America, European Union and India are considered to make the understanding process simple. The paper is structured as a literature with the goal of answering the following questions, 1. What is the reason for the different crises faced by these countries? 2. How were these countries affected by those crises? 3. What was the degree of damage caused to the society by those crises? 4. What were the response and measures taken by the Governments
World Economic crisis
Have the world economies revived from the crisis?
Members:
1. 2. 3. 4. 5. N. Sesha Sathya Krishna N. Suganya Aswini Vishwanath J.R.Siddharth Elizabeth Thomas
ASB-Bangalore 07.12.2012
1|Page
Table of Contents:
Abstract 3 I.Introduction 4 II.Economic Crisis in USA 4 2.1 Dot-Com Bubble 4 2.1.1 Overview 4 2.1.2 Making Bubble Bigger 5 2.1.3 The Burst 5 2.2 Housing Bubble 6 2.2.1 Initial phase of Housing Bubble 6 2.2.2 Wall-Street‘s plan 7 2.2.3 CDO 7 2.2.4 Sub-Prime Mortgages 9 2.2.5 Burst of Bubble 10 2.3 Recession-2008 11 2.3.1 Overview of Recession 11 2.3.2 Effects of Recession 12 2.3.3 Federal Government response to crisis 13 2.3.4 After Effects of excessive spending 14 III. Euro Crisis 15 3.1 Overview 15 3.2Understanding the Crisis 15 3.3 Outlook for individual countries affected by crisis 19 3.3.1 Greece 19 3.3.2 Spain 21 3.3.3 Portugal 22 3.3.4 Ireland 23 3.3.5 Italy 23 3.4 Countries less affected by crisis 24 IV. The impact of global financial crisis on India 24 4.1 Offshoot of Globalized Economy 25 4.2 Reverse flow of Foreign Institutional Investment 25 4.2 Impact on various fields 26 Conclusion 34 Appendix 35 Reference 41
2|Page
Abstract
This paper is an attempt to throw light on major economic crises that world has faced by revealing their relation to each other. An honest effort has been put in this paper to bring out a clear picture of present economic situation of the world. In the vast arena of global economics, three major powers namely United States of America, European Union and India are considered to make the understanding process simple. The paper is structured as a literature with the goal of answering the following questions, 1. What is the reason for the different crises faced by these countries? 2. How were these countries affected by those crises? 3. What was the degree of damage caused to the society by those crises? 4. What were the response and measures taken by the Governments