` Global Economic Crisis `

The banking Sector

An analysis of the impact of the global economy and financial crisis

Student 's Name

Course Code , Semester , Year

Tutor

20 March 2009

Introduction

The global crisis may have shown its negative manifestation from mid 2008 to the present however the show started way before 2008 . It all started with the SubPrime mortgage crisis which was a manifestation of failing global stock market , failure of large financial institutions and bailouts by wealthy nations to rescue their failing systems . The SubPrime mortgage crisis which is at

the centre of the global crisis led to the reversal of the success that the housing and real estate industries were enjoying in most nations due to a ripple or shock effect that the failure in US has on other economies . The SubPrime mortgage crisis has attracted a number of theories that it is near impossible to decipher how it came about . However , the involvement of the banking industry in a crisis that resulted from mortgages cannot be excused . A key factor that played a critical role in the development of US as a financial power is the environment that it provided to investors . The US has for a long time enjoyed the benefits of operating in an environment characterised by low government intervention on the operational environment . The development of a free market where players are presented with equal opportunity to harness opportunities presented by the environment and the government only comes to the rescue of players that are considered big...