Economic Meltdown
1.0 Introduction
The 2007 collapse of the U.S. housing market and the worldwide economic damage that followed in 2008 and 2009 made people know the term "economic meltdown" (ehow.com, 2011). And the year 2011 proved to be a epic one in world history and brought dramatic change to many parts of the world - change that require cautious and serious analysis. International developments since World War II have drawn the nations of the world closer together in a global economy in which labour and capital move across borders. When an economic crisis in one area spreads around the world, a global meltdown may result.
The global financial crisis originated with the collapse of the U.S. housing market, as many sub prime borrowers defaulted on their mortgages. Lack of government regulation; easy lending in the US housing market meant anyone could qualify for a home loan with no government regulations in place (commondreams.org, 2011). Although the financial crisis that swept the world on 2008 may have started on Wall Street, it has brought down governments and shredded economic security worldwide, resulting in the loss of millions of jobs and homes as businesses collapse, foreclosures grow, credit tightens and communities are devastated. One estimate of the damage: $197 trillion (Al-Jazeera, 2011).
2.0 Identification
An unofficial definition of "meltdown" is a rapidly developing catastrophic situation. In an economic context, what began in the U.S. housing market in 2007 became a worldwide meltdown in 2008. A global economic meltdown describes an economic crisis that affects economic activity around the world. Such a crisis began in 2007 and spread around the world in 2008 (e-how.com, 2011). The more familiar term would be financial crisis.
2.1 The sequence of 2011 economic crisis
First, the tsunami in Japan sent its GDP tumbling and disrupted supply chains, and thus industrial output, around the world, particularly in April. But just as that slump shows up in the economic
The 2007 collapse of the U.S. housing market and the worldwide economic damage that followed in 2008 and 2009 made people know the term "economic meltdown" (ehow.com, 2011). And the year 2011 proved to be a epic one in world history and brought dramatic change to many parts of the world - change that require cautious and serious analysis. International developments since World War II have drawn the nations of the world closer together in a global economy in which labour and capital move across borders. When an economic crisis in one area spreads around the world, a global meltdown may result.
The global financial crisis originated with the collapse of the U.S. housing market, as many sub prime borrowers defaulted on their mortgages. Lack of government regulation; easy lending in the US housing market meant anyone could qualify for a home loan with no government regulations in place (commondreams.org, 2011). Although the financial crisis that swept the world on 2008 may have started on Wall Street, it has brought down governments and shredded economic security worldwide, resulting in the loss of millions of jobs and homes as businesses collapse, foreclosures grow, credit tightens and communities are devastated. One estimate of the damage: $197 trillion (Al-Jazeera, 2011).
2.0 Identification
An unofficial definition of "meltdown" is a rapidly developing catastrophic situation. In an economic context, what began in the U.S. housing market in 2007 became a worldwide meltdown in 2008. A global economic meltdown describes an economic crisis that affects economic activity around the world. Such a crisis began in 2007 and spread around the world in 2008 (e-how.com, 2011). The more familiar term would be financial crisis.
2.1 The sequence of 2011 economic crisis
First, the tsunami in Japan sent its GDP tumbling and disrupted supply chains, and thus industrial output, around the world, particularly in April. But just as that slump shows up in the economic