Brief summary of the article

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Brief summary of the article

The article based on the financial crisis of 2008 especially American International Group (AIG) as being most affected, also the causes and the pre-consequences of that financial crisis and finishing of  the main reason behind this financial crises starting with the U.S  to the global financial and economic crises

Financial crisis of (2007-2008) was the worst global crises after 1929 crisis it affected the whole world especially U.S and their bank system and the unemployment rate. Most underlying causes of this financial crisis were:[pic 3]

-The banks start taking loans since 2006 after the Gramm-Rudman act

-The believes of the Federal Reserve that Subprime mortgage crisis would only hurt the housing they didn’t expect that it will spread.

- The panic of the banks after they realized that they will absorb the losses and that’s what happened after so they stopped lending to each other.

-The Federal reserves starts pumping liquidity in 2007 into banking system missing the clues of the beginning of the crisis.

- The start of the crisis on September 19, 2008 after the companies start putting their excess cash and the banks use those funds to make short term loans

-Luckily it was kind fast response but the consequences were really bad it even lead to discourage workers and giving up of looking for other jobs and the unemployment rate to 8%  in the U.S

-Although the banks start getting bigger and they finally jumps through that crisis

   As I mentioned in the summary the article deals with the main idea of financial crises passing to the most affected agencies such as AIG also mentioning the pre-consequences such as the liquidity problem the decline of the value of securities led even for big banks that cause them bankruptcy without forgetting the economic problems of most countries that lead them to less economy growth especially third world countries such as our country without forgetting the high unemployment rate in almost all over the world.  As well as the head of this financial crises from the U.S as being the most affected to the global, the article mentioned the government as being the number one responsible of this crises but still for now we cannot deny the efforts of the government and all the solutions it gives to get through that global crises same of what happened in 1929 following almost same steps to save the countries and to success but we cannot forget that this crises left scars such as in Greek as being most affected till now cause of their banks policy and bankruptcy . As a conclusion either knowing the responsible or the causes the world should always be prepared for crises and that’s what we have now such as country reserves and projects although the growing up of the banks didn’t prove a thing cause the financial crisis of 2008 proved that banks cannot regulate themselves without government otherwise they could create another global crisis .

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