Discussion of Fin 100 Week 4
The credit crisis of 2008 had far-reaching implications beyond homeowners & mortgage companies as it impacted virtually every aspect of the global economy. For example, financial institutions were forced to reduce lending due to increased risk levels which in turn led to a decrease in spending power thus negatively impacting both businesses & consumers alike. Moreover, entire sectors like housing have suffered significant losses as a result of factors such defaults on loan. This has further contributed to the economic recession.
Even a decade after its peak, unemployment rates and national debt remain high in many countries. This is why some argue we still feel the effects of this time period. The recent past has only exacerbated the situation, with pandemics and trade disputes/tariff wars causing widespread disruption.
Credit crisis has changed the landscape in many ways. Some areas are more affected than others. In order to prepare better for the challenges that may lie ahead, it is important to understand how decisions made in the past continue shaping our current.