This essay will focus on the global imbalances, one of the most important causes of the current economic crisis. “The Global Financial Crisis: Causes and Consequences.” Lowy Institute for International Policy 2.09 (2009): 1.
Many researchers have pointed out that the global imbalances are the root of the recent financial crisis.
From the various critiques by experts, that the problem is Lehman Brothers announced a gradual loss before finally bankrupt. dollars in part-to-three in 2008 (10 September) and culminate in the announcement of bankruptcy on September 15, 2008. Likewise, also in Europe, the banking crisis in Europe was marked by problems at a small bank in the UK, namely Northern Rock Bank, in mid-2007.
On June 16, 2008, the company announced losses worth 2.8 billion dollars for the second half of 2008. Similar unrest was also experienced almost simultaneously by Merryl Linch, Citigroup, AIG and other large financial institutions. unemployment rate rose to 6.7% in line with the increase in pessimism among consumers and investors throughout the period from September to November 2008. Northern Rock is a true small-scale private bank in the UK.
• Replace only when needed: consumers were willing to delay their new purchases of cars or electronics and extend the lifetime of the current assets.