Impact Of The Financial Crisis On The United States

The impact of the financial crisis in 2008 is so far , it has resulted in various industries have revived a shock, even many large companies have been forced into bankruptcy.Inflation is a result of the decline in the quality of life, the weakening of people s ability to pay. The outbreak of the financial crisis from the United States and then spread to the world,so this essay analyzes the reason of the US financial crisis, it is equally applicable to the countries in the world and take warning,that is the lack of supervision of financial institutions in the United States. The United States has been advocating free trade, the government has been the market to take the lowest intervention policies to maximize the competition of various financial institutions, which led to the establishment of the United States with a large flexible economic system. However, the lack of supervision of the financial institutions will growing greed, so the financial system exist the inevitable loopholes. Before 2008, many American banks and financial institutions ignored the rules and risks of mortgage loans, and the packaging of securities to promote the outbreak of the financial crisis.In America s sub-prime mortgage,sub-prime mortgages in the United States, Some financial institutions ignore risk and used mortgage securitization as investment opportunities.They reduce the credit threshold for all borrowers, which led to the systemic risk increased of banks, financial and investmentShow MoreRelatedThe Impact Of Global Financial Crisis On The United States Essay1028 Words   |  5 PagesIntroduction The Global Financial Crisis, also known as The Great Recession, broke out in the United States of America in the middle of 2007 and continued on until 2008. There were many factors that contributed to the cause of The Global Financial Crisis and many effects that emerged, because the impact it had on the financial system. 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