1 / 2

Financial Crisis

Financial Crisis. Week 7 Econ 202. Six Stages of a Financial Crisis. 1. Large decline in an asset’s price 30% in housing 2007-2009 (not since GD) 2. Insolvencies in financial institutions Failure of those holding mortgages/securities 3. Decline in confidence in Fin. Institutions

livia
Download Presentation

Financial Crisis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Financial Crisis Week 7 Econ 202

  2. Six Stages of a Financial Crisis • 1. Large decline in an asset’s price • 30% in housing 2007-2009 (not since GD) • 2. Insolvencies in financial institutions • Failure of those holding mortgages/securities • 3. Decline in confidence in Fin. Institutions • Pull money out -> fire sale on assets • 4. Credit crunch • 5. Economic downturn • 6. Reduced profits -> decline in value of assets -> back to Step 1

More Related